Market penetration strategy

A market penetration pricing policy involves setting a low selling price initially in order
to attract new customers. The objective is to:

• get customers to switch to the new brand purely for the cheaper price; thereby
  increasing the new entrant’s market share and sales volumes quickly rather than
  make short-term profits.
• This pricing strategy is based on the assumption that customers are not brand loyal
  and will switch to the new brand purely for the cheaper price.