The organization should use the penetration pricing strategy. This is due to the fact that there is huge untapped market whose needs and wants could be only satisfied if the organization offer them value for the price (Blackwell, Miniard, & Engel, 2001). Most of the people living in this sub-urban area are middle class having moderate income and they cannot afford costly car washes. The organization by utilizing the penetration pricing strategy could better accomplish the firm's long-term goals as the strategy will enable the firm to attract larger number of price conscious as well as quality conscious customers (Kotler & Armstrong, 2004). Although, the per car wash profit of the firm will be minute, the fact is that the organization may benefits from different economies of large scale that will be accrued with the passage of time that will offset the minute per unit profit and accumulate larger profit revenue for Joe Bert's Car Wash.
The promotion strategy that the organization should use should be directed towards reinforcing the core service benefits that the firm offers to its target market that include the cost effectiveness and the manual car wash. For this purpose the organization will use different promotion tools that will include different side boards and advertising hoardings erected on the roads leading towards the car wash location (Kotler & Armstrong, 2004). Besides this the organization should also place different banners in the car dealers selling different automobile.