Saks Gloweli Business Tip – Push and Pull Strategies
In Push strategies, manufacturers promote their product to intermediaries by offering, ex, free in-store promotional displays and price discounts, in an effort to get them to carry and promote their product to consumers. Push Strategies are most effective when an item is an impulse purchase, brand loyalty is low, or when consumers already understand a products benefits.
In Pull strategies, the manufacturer promotes the product directly to consumers perhaps by providing coupons and free samples, to encourage them to request the item from retailers. This strategy works best when brand loyalty is high and there are perceived differences between brands
Push production is based on forecast demand and pull production is based on actual or consumed demand. The interface between these stages is called the push–pull boundary or decoupling point.
By Sid Mewara, Managing Director, Saks Gloweli Consulting Saks Gloweli Consulting is a management strategy consulting firm based out of Shenzhen and Hong Kong that helps clients grow their business www.saks-gloweli.com