Unlocking Market Growth: Penetration Price Strategies


The Penetration Price Strategy is a powerful tool for market growth and product launch. This strategy involves offering pricing that is unimaginably low, creating a big bang in the market. However, it requires significant financial resources and careful market analysis to execute successfully.


What is the Penetration Price Strategy?

The Penetration Price Strategy is a market entry strategy in which a company sets a very low initial price for its products or services. The goal is to quickly gain market share and establish a strong customer base. By offering prices that are lower than those of competitors, companies can attract customers who are price-sensitive or looking for a good deal.

The advantage of the Penetration Price Strategy is that it can create a buzz in the market and generate a lot of interest in the company’s products or services. It allows the company to quickly gain traction and establish itself as a major player in the market.

Success Factors of the Penetration Price Strategy

While the Penetration Price Strategy can be highly effective, it is not without its challenges. Here are some success factors to consider:

  • Deep Pockets: Implementing a successful Penetration Price Strategy requires significant financial resources. The company must be prepared to take a hit on its balance sheet, as the initial low prices may result in lower profit margins.
  • Market Knowledge: It is crucial to have a deep understanding of the target market and its customers. This includes knowing the competitive landscape, customer preferences, and the willingness of customers to switch from existing providers.
  • Economies of Scale: Companies that can achieve economies of scale can leverage lower production costs and offer competitive prices. This is particularly important in markets with thin profit margins.

Risk Management Challenges

The Penetration Price Strategy also comes with its fair share of risk management challenges. Here are some factors to consider:

  • Competitor Response: When a company implements a Penetration Price Strategy, competitors are likely to react. They may lower their prices or offer additional incentives to retain their existing customers.
  • Profit Recovery: After gaining market share, the company must find ways to recover its profit margins. This could involve gradually increasing prices, introducing new products or services, or upselling and cross-selling to existing customers.
  • Brand Perception: Launching with low prices can create the perception that the company’s products or services are of lower quality. The company must find ways to counter this perception and build a strong brand reputation.


The Penetration Price Strategy is a high-risk, high-reward approach to market growth. It requires sufficient financial resources, market knowledge, and the ability to manage risks effectively. When implemented successfully, it can catapult a company to the top of the market and establish it as a major player. However, careful planning and execution are essential to navigate the challenges and ensure long-term success.

Leave a Comment

Your email address will not be published. Required fields are marked *


Upcoming Cohorts of PG Diploma Program

Cohort 17

Starts: 3 Apr’21

Registrations close on 27 Mar’21
Seats Left: 3

Cohort 18

Starts: 20 Apr’21

Registrations close on 16 Apr’21
Seats Lefts: 14

Cohort 19

Starts: 18 May’21

Registrations close on 14 May’21
Seats Lefts: 15

Artificial Intelligence Program


Program Features

  • Learn advanced skills and gain a thorough understanding of modern AI
  • Solve Real world projects in AI
  • Learn to build AI models from the scratch
  • Not a Job Guarantee Program

Great For

  • Working professional in managerial role who want to develop core AI skills to build their career in machine learning and AI
  • Founders & Entrepreneurs who want to learn and apply AI in their own businesses
  • Management Consultants looking to understand the applications of AI across Industries
  • Senior Managers & executives wanting to develop a strategic understanding of applied AI


Upcoming Cohorts of PG Certificate Program

Cohort 17

Starts: 22 Mar’21

Registrations close on 18 Mar’21
Seats Available: 12

Fees: $2499 $1899


Cohort 18

Starts: 20 Apr’21

Registrations close on 16 Apr’21
Seats Left: 14

Fees: $2499 $1899


Cohort 19

Starts: 18 May’21

Registrations close on 14 May’21
Seats Left: 15

Fees: $2499 $1899


Flipped Classroom


Our learners learn by discussing and debating on real-world problems and are actively involved in the solution design process.

Conventional classroom

Sage on Stage

  • A teacher shares the knowledge via live presentations
  • Teachers are at the center of the learning and considered sage on stage
  • Knowledge transfer is one-way and the focus is on knowledge retention
  • Learners don’t get to discuss their ideas or opinions in the class
  • Hence, most learners are unable to apply these concepts in their everyday work life
  • Great for scenarios, where knowledge acquisition and retention is the only focus

Flipped classroom

Guide on side

  • Learners are the center of the universe
  • Classes are meant for healthy discussions and debates on topics
  • Learners go through the material on their own provided by the mentors
  • Mentors work as guide on the side, with the learners
  • Learners develop skills on problem solving, critical thinking and self-learning – the 21st century skills that employers look for
  • Great for scenarios where application skills matter
  • 21st century skills require guide on the side. Simply acquiring knowledge is worthless now.

Launching Soon!

Request Callback


Let us help you guide towards your career path

  • Non-biased career guidance
  • Counseling based on your skills and preference
  • No repetitive calls, only as per convenience

If the calendar is taking time to load you can click on the link below to schedule a call:

Click here to schedule a call