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 high promotion in order to penetrate the target market as fast as possible. The objective is market share and profit maximization in the long run. This strategy works effectively in certain market conditions.
These include:
1) Target market is highly competitive,
2) Consumers are not aware of the product, and
3) Consumers are price sensitive.
