Moreover, price penetration occurs when companies charge a low price for their product in order to reach the largest amount of target market. Penetration pricing is considered an effective strategy for building brand image within customers and works especially well for increasing customer base. Competitive pricing is a key strategy and is used through Aldi. Aldi is able to offer quality products at low prices as it buys in large volumes. The fact that Aldi buys such large quantities of these products allows for the business to achieve an economies of scale and thus have an ability to charge their products for low prices. This example of Aldi can illustrate how the penetration pricing strategy may be beneficial when businesses want to build
