If Kashi wants to gain a large market share quickly with its new line of reduced-fat snack crackers, it should use penetration pricing.
The pricing of any product is based on the factors that help them to determine long-run success in the market and to increase the share in the market through its product.
Penetration pricing is used in newly opened firms in which the initial price is kept low to attract customers and to gain market share quickly. Therefore, in the case of Kashi, it will be appropriate as she alos wants to gain market share quickly with its new line of business.
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