Penetration price refers to a marketing strategy in which a company sets a lower price for its products or services in order to quickly gain a foothold in a new market or increase its market share. This tactic is often used to attract price-sensitive customers and create a buzz around the brand, ultimately leading to increased sales and brand recognition. However, this approach may also result in lower profit margins in the short term, as the company sacrifices immediate profits for long-term success. Penetration pricing is commonly used by businesses entering a competitive market or launching a new product, and can be an effective way to gain a competitive advantage and establish a strong presence in the market.