Fatafat khana is a fast food chain selling Indian finger food like Bread Roll, Samosa, Kachori Etc., Now, they want to sell "Matka Kulfi" in their outlets. They decided to initially price the Matka Kulfi at cost, with the objective of increasing market share. Management of Fatafat is of the view that once their Matka Kulfi is established in the market they will raise the price to a level that will help them in earning sufficient profit on their product. Identify the pricing strategy adopted by Fatafat Khana.

Variable Pricing Penetration Pricing Skimming Pricing Cost plus Pricing

Penetration Pricing

Explanation: Penetration pricing is a pricing strategy where the price of a product is initially set at a price lower than the eventual market price to attract new customers