Market Penetration Pricing

Market Penetration Pricing is a strategy where a company sets a low initial price for a new product to attract customers quickly and gain market share. The goal is to encourage more people to try the product, outperform competitors, and establish a strong presence in the market. Once the product gains popularity and customer loyalty, the company may gradually raise prices. This approach is effective in competitive markets where rapid growth is important. It helps the company establish itself and build a customer base before potentially increasing prices later.