Pranav is an entrepreneur producing LED lamps with brand name "Lavells". These lamps are in great demand. He finds that the cost of production per unit of lamp is ₹1600 and he can sell the same at ₹2000 per lamp. The competitors in the market are selling this type of lamp at the rate of ₹2400. Pranav's objective is not to earn profit in short run but to capture the largest market share. His expectation is that the customers will be attracted towards the new brand because of lower price. Identify the method of pricing adopted by Pranav to capture the substantial portion of the market.

Penetration pricing

The correct answer is Option (2) → Penetration pricing