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ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
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Market Penetration Strategy of Mr. DIY towards Customer Loyalty
Mary Jane A. Talugco, Michell D. Generalao, Eliezer U. Lactuan, Josephine A. Sayson, Mark D. Gil
Balazo, &Marivic L.Han-awon, PhD©
Business Administration program, Bukidnon State University, Philippines
DOI: https://doi.org/10.51244/IJRSI.2025.1210000098
Received: 06 October 2025; Accepted: 14 October 2025; Published: 05 November 2025
ABSTRACT
This study investigated the effectiveness of the market penetration strategy of Mr. DIY towards customer loyalty
among the three stores of Mr. DIY within the city of Malaybalay and Aglayan, Bukidnon. Specifically, it
examined various penetration strategies of the store namely price penetration and promotional strategy and its
effectiveness in building customer loyalty. A descriptive-correlational research design was employed, with 150
respondents selected through non-proportional quota sampling. Data was gathered using an adapted
questionnaire validated by experts and measured on a four-point Likert scale. Statistical research tools such as
weighted mean, standard deviation, and Spearman rank correlation analysis were used to analyze the data.
Results revealed that market penetration strategies are generally rated as Very effective, with price penetration
receiving the highest evaluation. Correlation analysis showed a significant positive relationship between market
penetration strategy and customer loyalty, indicating that improved market penetration strategy increases
customer loyalty. The findings highlighted the importance of implementing relevant and quality strategies to
foster stronger connections between businesses and their target customers. This study concludes that market
penetration strategy plays a critical role in building customer loyalty and recommends Mr. DIY store to continue
implementing these strategies.
Keywords: quantitative, price penetration, promotional strategy, home improvement store
INTRODUCTION
Mr. DIY is a leading Asian home improvement retailer with over 2,300 stores across 10 countries, driven by a
market penetration strategy that boosts market share through attracting new customers and increasing purchases
via balanced pricing and promotions (Muriithi & Waithaka, 2020). In the Philippines, rapid retail growth amid
rising middle-class spending and competition has fueled Mr. DIY's expansion to over 700 stores, serving 100
million customers since 2018. The strategy emphasizes affordability, variety, and quality, creating enjoyable
shopping experiences (Tech, 2025; Vital et al., 2023). Focusing on Bukidnon's economic boom and demand for
low-price, high-quality products, this study assesses Mr. DIY's tactics—affordable pricing, quality goods,
distribution, and promotions—and their effectiveness in building customer loyalty. It highlights how such
strategies maximize profits and market foothold in competitive environments (Chukwuka, 2023; Ekankumo &
Perearau, 2024), offering benchmarks for similar businesses in growing home improvement sectors. The scope
of this study was delimited to the Home Improvement Retail Industry at Mr. DIY stores in Malaybalay City and
Aglayan, Bukidnon. It focused on market penetration strategies (price penetration and promotions) and their
effectiveness in promoting customer loyalty (dependent variable), using questionnaires from 150 customers.
Market segmentation was excluded to avoid delays. Data were collected, analyzed, interpreted, and stored
securely for confidentiality. The was gathered using non-proportional quota sampling.
Objectives of the Study
This study aimed to assess the market penetration strategies employed by Mr. DIY Home Improvement Store
and their effectiveness in promoting customer loyalty. The market penetration strategy enabled a company to
maximize profits while establishing a foothold in the market (Ekankumo & Perearau, 2024). Further, the findings
aimed to serve as a practical benchmark for other businesses operating in a similar industry, offering insights
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into replicable strategies and highlighted successful approaches, and gained a significant competitive advantage,
especially in a competitive market like Bukidnon, where the home improvement industry is growing and
becoming more integral as customers demand more. Specificlly, this study will:
Investigate the relationship between the market penetration strategy of Mr. DIY and customer loyalty.
Significance of Study
The significance of this study anchored in identifying market penetration strategies employed by retail
companies and evaluating their effectiveness in fostering customer loyalty. The findings offer valuable insights
for businesses in the retail sector, enabling them to pinpoint key factors influencing loyalty, refine their
approaches for sustainable growth, and maintain a competitive advantage. For the broader retail industry, the
research encourages innovation and the development of more efficient strategies to better engage customers and
optimize performance. It also serves as a practical case study for future researchers exploring market penetration
tactics and retail dynamics. Ultimately, customers benefit through improved products, services, and marketing
that align more closely with their needs, enhancing their overall experience.
Conceptual Framework
This study examines market penetration strategy as the independent variable driving customer loyalty, the
dependent variable. Market penetration measures product or service usage in the market and helps businesses
expand their share through tactics like price penetration—lowering prices to make products more affordable and
attractive—and promotional strategy, which involves communication activities to promote products, ideas, or
services to consumers (Ekankumo & Thankgod, 2024; Muriuki et al., 2023; Kenton, 2024; Ekankumo &
Perearau, 2024). Customer loyalty is defined as a strong commitment to repeat purchases and favorable attitudes
toward a product or brand (Dam & Dam, 2021). The study is anchored in the Ansoff Matrix, a planning tool for
growth strategies such as market penetration, product development, market development, and diversification
(Ansoff, 1957; Auma & Waithaka, 2020), and the Commitment-Trust Theory, which posits that commitment
and trust in relationships reduce uncertainty, encourage cooperation, and foster loyalty by making customers feel
valued and less inclined to switch to competitors (Morgan & Hunt, 1994; Huo et al., 2022).
Statement of the Problem
This study aimed to assess the Market penetration strategy of Mr. DIY home improvement store and its
relationship with a company’s ability to increase its customer loyalty. It aimed to answer the following questions:
1. What is the level of effectiveness of Market penetration strategy in terms of.
1.1 Price Penetration; and
1.2 Promotional Strategy?
2. What is the level of Customer Loyalty?
3. Is there a significant relationship between the level of effectiveness of Market Penetration Strategy and
Customer loyalty?
4. What recommendation can be drawn up based on the findings and results of the study?
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Research Hypothesis:
Ho1: There is no significant relationship between Market Penetration Strategy and Customer Loyalty
INDEPENDENT VARIABLE DEPENDENT VARIABLE
Figure 1: Framework of the Study
METHODOLOGY
Research Design
This study employed quantitative research design, specifically utilized a descriptive correlation, as it investigated
the level of Market Penetration Strategy in terms of price penetration strategy, promotional strategy, and
customer loyalty. Further, the study investigated the relationship between Market Penetration Strategy and
Customer Loyalty. The researchers used this method to investigate the effectiveness of independent and
dependent variables without the researcher controlling or manipulating them.
Participants of the Study
The respondents of this study involved a total of 150 customers of Mr. DIY. 50 customers at Brgy. 3 Malaybalay,
Bukidnon, 50 customers at Brgy. 9 Malaybalay, Bukidnon, and 50 customers at Aglayan, Malaybalay, Bukidnon.
The researchers included 150 customers as the minimum number of participants needed for quantitative research.
The criteria for selecting participants in the study were individuals who had knowledge about Mr. DIY and had
previously purchased from the store, specifically, customers of the Mr. DIY store.
Population Sampling
In collecting data, the researchers employed non-proportional quota sampling. This sampling technique is a non-
probability sample where the population is divided into subgroups. However, respondents were not necessarily
selected from each subgroup in proportion to their size in the population. It allowed researchers to focus on
specific population sizes in each area to achieve the desired goals. This study had a minimum of 150 respondents,
using the non-proportional quota sampling. The respondents were divided into the three locale which is the
barangay 3, barangay 9, and Aglayan, Bukidnon, making it 50 respondents each for a total of 150 respondents
as is the case for quantitative research.
Data Analysis
The researchers employed the following statistical treatments to effectively interpret the data: frequency and
percentage, as well as mean and standard deviation.
Market Penetration Strategy
Price Penetration
Promotional Strategy
Customer Loyalty
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For problems 1 and 2, descriptive statistics were calculated, and measures of central tendency were computed
to describe the levels of market penetration strategy and customer loyalty, using the mean and standard deviation
measures.
For problem 3, to determine the relationship between market penetration and customer loyalty, A Spearman
rank correlation analysis was used. It was due to the non-normal distribution of the data. A Spearman rank
correlation is a non-parametric test equivalent to Pearson correlation, which suits data that do not meet the
required assumptions.
Thus, the interpretation of Correlation Coefficient: -0.00–0.19: Very weak correlation, -0.20–0.39: Weak
correlation, -0.40–0.59: Moderate correlation, -0.60–0.79: Strong correlation, -0.80–1.00: Robust correlation.
All analysis was performed.
Research Instrument
In gathering the data, the researchers utilized a modified questionnaire by Dr. Ekankumo and Perearau (2024),
entitled "Market Penetration Strategies and Customer Retention in the Hospitality Industry in Bayelsa State,
Nigeria." The researchers modified the hospitality industry to include Mr. DIY store to fit in the study. Also,
from Merlin, D.J et al. (2012). "Evaluation of Customer Loyalty in TVS Motorcycle Dealership," and the study
of Yum&Kim (2024), "The Influence of Perceived Value, Customer Satisfaction and Trust on Loyalty in
Entertainment Platforms," and the study of Dehgan & Shahin (2011). “Customer Loyalty Assessment: A Case
Study in MADDIRAN, the Distributor of LG Electronics in Iran". The researchers modified this study to align
with the home retail industry, specifically Mr. DIY, to suit the study's context. The questionnaire was composed
of two (2) parts: The first part was Market Penetration Strategy in terms of price penetration strategy,
promotional strategy, and the second part is Customer loyalty. The researcher obtained consent through email,
and this questionnaire passed the validity and reliability tests conducted by an expert, achieving a high level of
internal consistency.
The questionnaire was used to gather data that would serve as a basis for addressing the problem under
investigation. Data was gathered after conducting surveys through a questionnaire.
Validation of Instruments. A validation process was carried out to ensure the reliability and validity of the
survey questionnaire. Internal consistency was confirmed through Cronbach’s Alpha with all constructs
surpassing the recommended benchmark of 0.70.
Expert Evaluation. To be appropriate for the educational context of the University, the expertise of the domain
in technology-enhanced education and academic achievement were engaged to review the questionnaire for
conceptual clarity and contextual relevance.
Data Collection. The survey questionnaire was personally distributed and administered to the respondents by
the researchers. Before it was used in the study, first the researchers had an approval letter from the campus to
the company. Second, the researcher’s consultant checks and validated the adaptive questionnaire. The
researcher explained the purpose and objectives of the study to the respondents and provided clear instructions
on how to complete the survey questionnaire, allowing ample time for them to answer all the questions. The
researcher then collected the completed questionnaires from the respondents. Lastly, the researchers tallied and
analyzed the data results.
Ethical Consideration
Before the actual gathering of data, the researchers ensured that the participants understood that they were taking
part in a study, the purpose of the research, the methods being used, and made sure that no material information
that they needed to know was left out of the participants’ knowledge. They were also made aware that their
decision whether to participate or not to participate in the study was respected and valued, and they have the
right to withdraw anytime their participation in the study. All the information gathered was held with the outmost
confidentiality and used only for the completion of the study. This study undergone plagiarism detector test like
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the plagiarism checker for students to avoid indications of owning other authors or researchers’ ideas and words
without proper acknowledgement. This study did not add or construct inaccurate facts or observation in the data
gathering. No claims were made based on incomplete or assumed results.
This study had no trace of misrepresentation or manipulation of results to fit a theoretical expectation, nor was
there any evidence of exaggeration. Conflict of interest was not evident in this study. There was no intent on the
research to disclose any information detrimental to the welfare of the participants. This study did not invade
participants’ privacy or coerce them into acting against their own will, and ensured no damage in any way to the
participant’s self-esteem is done. The research document went through a series of the revisions as per advice and
recommendation of their adviser and panelists. It followed the standards of Bukidnon State University Ethics
Review Committee for the guidelines and ethical considerations of the study.
RESULTS
Descriptive Statistics
The mean scores of the Market penetration strategy with its two indicators- [1] price penetration and [2]
promotional strategy, and [3] customer loyalty were computed to evaluate their overall levels. Each result was
then further interpreted to provide a more comprehensive understanding of the data. A Spearman rank correlation
analysis was used to determine the relationship between Market penetration strategy and customer loyalty. It
was due to the non-normal distribution of the data.
Table 1. Descriptive Statistics for market penetration strategy in terms of price penetration.
Item Mean
Std.
Deviation
Qualitative
Interpretation
1. Offering discount rates and special promotions encourages me
to revisit Mr. DIY.
3.51 .68 Very Effective
2. I am more likely to remain loyal to Mr. DIY if they
consistently provide competitive pricing compared to their
competitors.
3.33 .69 Very Effective
3. Adjusting prices to attract more customers positively
influences my decision to continue patronizing the Mr. DIY
store.
3.38 .72 Very Effective
4. I believe that pricing strategies, such as happy hour deals and
seasonal discounts, contribute significantly to customer
retention in Mr. DIY.
3.44 .66 Very Effective
5. I feel satisfied when I perceive that I am receiving good value
for the price paid at Mr. DIY.
3.42 .72 Very Effective
PRICE_PENETRATION 3.42 .48 Very Effective
Note: (N=150)
Respondents rated price penetration as "very effective" (M=3.42, SD=0.48), with strong agreement that
discounted rates and promotions encourage revisits (M=3.51, SD=0.68) and competitive pricing fosters loyalty
(M=3.33, SD=0.69), with the Cronbach’s Alpha value of .786 which is interpreted as “acceptable”. This high
satisfaction indicates that discounted prices are a key component of market penetration, attracting budget-
conscious customers. Supporting studies include Susanto et al. (2023), who highlight effective pricing as crucial
for retail success; Utami et al. (2024), noting lower prices attract consumers and influence buying interest;
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Ezekiel et al. (2025), showing consumers prefer lower-priced similar products; and Vizconde and Mendoza
(2023), confirming that reasonable prices positively affect purchases among price-sensitive
The degree of the respondents’ response on price penetration which is “very satisfied”, implies that offering
discounted prices are considered in the measure of Market penetration strategy.
Table 2. Descriptive Statistics for market penetration strategy in terms of promotional strategy.
Item Mean
Std.
Deviation
Qualitative
Interpretation
1. Promotional offers, such as discounts and loyalty programs,
make me more likely to return to Mr. DIY.
3.59 .52 Very Effective
2. I perceive promotional activities as a significant factor in my
decision to remain loyal to Mr. DIY.
3.31 .59 Very Effective
3. Engaging in promotional events and campaigns positively
influences my perception of Mr. DIY.
3.31 .70 Very Effective
4. I feel valued as a customer when I receive information in Mr.
DIY.
3.34 .72 Very Effective
5. Regular advertising enhancing customer retention in Mr. DIY. 3.40 .71 Very Effective
PROMOTIONAL_STRATEGY 3.39 .43 Very Effective
Note: (N=150)
Respondents rated promotional strategy as "very effective" (M=3.39, SD=0.43), with high agreement that
discounts and loyalty programs encourage returns (M=3.59, SD=0.52), though lower ratings were noted for
promotional activities influencing loyalty (M=3.31, SD=0.59) and perception (M=3.31, SD=0.70), with the
Cronbach’s Alpha value of .762 which is interpreted as “acceptable”. This "very satisfied" status underscores
promotional strategy's significant role in market penetration, facilitating customer retention and repeat
purchases. Supporting studies include Schrotenboer et al. (2022), who describe promotional strategies as plans
using advertising, sales promotions, public relations, and social media to enhance market presence; Ekankumo
and Perearau (2024), noting their positive effect on market penetration, attracting new customers, and boosting
loyalty; Thahir (2024), emphasizing high promotional efforts to increase market control and sales through
discounts and campaigns; and Toling (2021), attributing increased profits and repeat purchases to effective
promotional activities.
The above finding, which resulted in a promotional strategy aimed at achieving "very satisfied" status, indicates
that the market penetration strategy has significant implications for the promotional strategy.
Table 3. Descriptive Statistics for customer loyalty.
Item Mean
Std.
Deviation
Qualitative
Interpretation
1. I will visit Mr. DIY store again because of the quality of
their products.
3.73 .55
Very High
Loyalty
2. I will visit Mr. DIY again because of its satisfying
services.
3.50 .64
Very High
Loyalty
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3. I will visit Mr. DIY again because of its reasonable price.
3.52 .68
Very High
Loyalty
4. I will say positive feedback about the services of Mr. DIY
store to other people.
3.49 .62
Very High
Loyalty
5. I will recommend Mr. DIY store to potential customers
because I am extremely satisfied with their products and
services.
3.39 .66
Very High
Loyalty
6. I am generally pleased with the social media platforms of
Mr. DIY.
3.31 .66
Very High
Loyalty
7. I intend to continue shopping for Mr. DIY.
3.45 .66
Very High
Loyalty
8. I consider myself to be a loyal patron of Mr. DIY.
3.33 .62
Very High
Loyalty
9. Compared to other stores I know, Mr. DIY is growing in
popularity.
3.43 .73
Very High
Loyalty
10. I prefer shopping for Mr. DIY over other options.
3.35 .76
Very High
Loyalty
LOYALTY
3.45 .42 Very High
Loyalty
Note: (N=150)
Respondents rated customer loyalty as "Very High Loyalty" (M=3.45, SD=0.42), with strong agreement that
product quality encourages revisits (M=3.73, SD=0.55), though satisfaction with social media platforms was
lower (M=3.31, SD=0.66), with the Cronbach’s Alpha value of .841 which is interpreted as “good” This aligns
with Dam and Dam (2021), defining loyalty as ongoing commitment and repeat purchases driven by positive
attitudes; Kotler (2025), noting satisfaction from performance versus expectations fosters loyalty; Khowjoy et
al. (2022), highlighting service and product quality's significant impact on loyalty; and De Jesus and Ibarra
(2023), emphasizing loyalty's role in company success through customer satisfaction.
Table 4. The correlation analysis between Market Penetration and Customer Loyalty
Market Penetration Strategy LOYALTY P-value Interpretation
Price Penetration .585** <0.01 Significant
Promotional Strategy .625** <0.01 Significant
Overall mean .663** <0.01 Significant
It reveals that there was a moderate positive correlation between price penetration and customer loyalty (r =
.585, p < .01), suggesting a statistically significant relationship. Similarly, there was a strong positive correlation
between promotional strategy and customer loyalty (r (148) = .625, p < .01), which was also statistically
significant. The overall market penetration strategy correlation revealed a strong positive relationship with
customer loyalty (r (148) = .663, p < .01), indicating a significant association.
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DISCUSSION
The study found that price penetration and promotional strategies significantly boost customer loyalty, with a
strong overall correlation. This high level of satisfaction underscores discounted prices as a key driver of market
penetration, attracting budget-conscious customers and supporting repeat business. The "very satisfied" response
indicates that such pricing is integral to effective market penetration strategies.
On the other hand, the "very satisfied" status highlights promotions' role in market penetration by boosting repeat
purchases. It aligns with research on tactics like advertising, sales promotions, public relations, and social media
enhancing market presence, attracting customers, increasing loyalty, sales, and profits through discounts and
campaigns. Effective promotions support market penetration and long-term loyalty for businesses like Mr. DIY,
though optimizing for broader loyalty and perception could yield stronger results.
Further, respondents expressed "Very High Loyalty" overall, largely driven by strong agreement on revisiting
Mr. DIY due to product quality, which highlights how quality perceptions encourage repeat visits and foster
loyalty. Satisfaction with social media platforms was notably lower, indicating potential for improvement in
digital engagement to enhance overall loyalty. These insights suggest that emphasizing product quality
strengthens customer retention, while optimizing social media could further elevate loyalty levels. Businesses
can enhance loyalty through effective pricing and promotions, aligning with research by Susanto et al. (2023).
Customers tend to get easily interested in products and services that are low in prices, making them more attached
to the businesses that are implementing it. Utami et al. (2024), and Ezekiel et al. (2025) on pricing, and
Schrotenboer et al. (2022) and Ekankumo and Perearau (2024) on promotions. At Mr. DIY, these strategies
showed a positive relationship, enabling firms to strengthen market positions and build loyal bases.
CONCLUSION
After conducting the study, it can be concluded that market penetration strategies play a vital role in the success
of businesses by influencing customer loyalty. It explored the effectiveness of both price penetration and
promotional strategies at Mr. DIY, drawing on data and analysis from recent research studies. Understanding
these strategies can provide insights into how businesses enhance customer loyalty and foster enduring
relationships. This study not just helps Mr. DIY stores but also identify customer needs and developed customer
loyalty and satisfaction.
FINDINGS SUMMARY
The results of the study revealed that price penetration and promotional strategy fall under the "Very effective"
level, indicating that these two factors have a significant impact on the Market penetration strategy. At the same
time, customer loyalty falls under the "Very high loyalty" level, indicating that customers have a positive
experience with Mr. DIY's market penetration strategies. Additionally, the correlation between the two variables
falls under the "Significant" level, indicating a significant relationship between the Market penetration strategy
and Customer loyalty. With these results, the researchers recommend that Mr. DIY store continue using its
penetration strategies, as they are very effective in promoting customer loyalty. Additionally, the home
improvement retail industry may benchmark its strategy against that of the Mr. DIY store to achieve customer
loyalty, and researchers may consider studying more strategies that influence customer loyalty.
Implications for Practice
The findings highlight the importance of strengthening market penetration strategies through the integration of
price penetration and customer loyalty to build customer loyalty. Implementations of such strategies should be
prioritized, especially in ways that directly enhanced customer loyalty.
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RECOMMENDATION
Given Mr. DIY's success—over 200 stores, 25% annual revenue growth from 2019-2023, and 15-20% market
share via its “Always Low Prices” strategy—it should continue price penetration and promotions. These have
driven growth by offering tools and essentials 10-20% below competitors, appealing to Filipino consumers.
To strengthen this, conduct quarterly market research on needs like eco-friendly products; optimize pricing with
regional discounts (5-15% variations) and tiered models for items like power tools; and innovate promotions,
such as loyalty points for ₱500 spends or "DIY Fest" workshops to increase engagement by 20-30%.
By adapting to inflation and e-commerce, Mr. DIY can further promote customer loyalty. Future researchers
should study penetration strategies versus competitors like Home Depot, plus tactics like supply chain
optimization for business prosperity.
Future Research Directions
Future research should explore market penetration strategies and other strategies that may help businesses
prosper. It is also recommended to conduct another study, using customer loyalty and product reliability as
mediating variables.
Hypothesis testing results and decision
Ho1: There is no significant relationship between Market Penetration Strategy and Customer Loyalty
The relationship between market penetration strategy and customer loyalty was significant (r (148) = .663, p <
.01), indicating that there is a strong positive correlation.
Decision: Ho1 is rejected.
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