It is one of the marketing strategies that company may adopt in the context of introducing a new product or brand in its target market. In this strategy the company introduces the new product keeping relatively low price with low promotion in order to penetrate the target market at a leisurely pace. This strategy works effectively in
certain market conditions.
These include:
(1) Market size is large,
(2) Market is predominantly price sensitive,
(3) Majority of market is familiar with the product, and
(4) The firm’s objective is to maximize sales/profits in the long run
