Penetration Pricing is the use of low pricing for a product to gain as much market share as possible in as quick a time as possible.
The technique relies on the forecast that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.

See also:
Market penetration strategy
Market penetration pricing
Market skimming pricing