Penetration Pricing is a marketing strategy where a company sets a low initial price for a new product to attract customers quickly. The goal is to gain market share and encourage consumers to try the product, making it more competitive against established brands. This approach can lead to increased sales volume and brand recognition. Once the product gains traction and a loyal customer base, the company may gradually raise the price. This strategy can be effective in industries like consumer electronics or food and beverages, where attracting customers quickly is crucial for long-term success.