Question

Gillette is preparing to market and sell its new razor, the mach 6 afterburner. gillette believes that its best strategy involves selling the razor at a low introductory price in order to gain maximum market share. what type of pricing strategy will gillette use?

Answer 1

The Penetration Pricing pricing strategy is what Gillette will use in selling the new razor in the market. Selling the product at cost or below cost to expand the market share of the product. By selling at a lower price, the new product can capture the market and may even drive out other competing brands.