A biscuit manufacturer reduces the price of its biscuits to below cost in order to attract more customers - HSC - SSCE Business Studies - Question 6 - 2019 - Paper 1

The approach described in the question is best identified as Loss leader.

A loss leader strategy involves setting the price of a product below its market cost to attract customers, with the expectation that they will purchase additional products that provide a profit. In this case, by reducing the price of biscuits to below cost, the manufacturer aims to increase customer traffic and potentially boost overall sales.