General Electric Case Study Limited distribution is when a product is only sold within a specific location or through a specific chain of stores (Business Dictionary, 2014). General Electric elected to use limited distribution method because it is a form of distribution that utilizes an indirect approach to reach consumers. General Electric is a household name and a common brand that customers can identify with and customarily turn to when they are searching for new or replacement appliances.
Strategy Creation GE knew that employing an indirect approach had many benefits. It would focus primarily on the producer, retailer and consumer channel, which is the shortest and recommended route to generate efficiency and value through a regulated …show more content…
Focusing primarily on the high-end cookware, GE took an aggressive approach to develop product that would return a high profit margin to the company and even greater benefits to their customers.
The Connection to Calphalon General Electric conducted extensive marketing research and determined that when uniting GE with their top brands, consumer awareness would accelerate immediately. They choose to engage in co-marketing and technology sharing initiatives with high profile brands to assist in increasing the market share while offering a unique, value added products with high margins. An example is when GE approached Calphalon, a successful and well known marketer of high end cookware, to collaborate with a promotion of GE 's Profile Performance electric range.
Leveraging an Established Brand Calphalon 's target market consisted of highly educated adults from age 40 to 55 with average incomes of $80,000 or more. GE leveraged their brands reputation and was able to move upstream in price by tapping into the more prosperous households. Part of GFA 's new Profile Performance line, the fridge is targeted toward professional adults ages 30-45 with household incomes ranging from $50,000 to $150,000 (Khurana, 2010). This was also a factor which assisted GE in upward streaming for
Strategy Creation GE knew that employing an indirect approach had many benefits. It would focus primarily on the producer, retailer and consumer channel, which is the shortest and recommended route to generate efficiency and value through a regulated …show more content…
Focusing primarily on the high-end cookware, GE took an aggressive approach to develop product that would return a high profit margin to the company and even greater benefits to their customers.
The Connection to Calphalon General Electric conducted extensive marketing research and determined that when uniting GE with their top brands, consumer awareness would accelerate immediately. They choose to engage in co-marketing and technology sharing initiatives with high profile brands to assist in increasing the market share while offering a unique, value added products with high margins. An example is when GE approached Calphalon, a successful and well known marketer of high end cookware, to collaborate with a promotion of GE 's Profile Performance electric range.
Leveraging an Established Brand Calphalon 's target market consisted of highly educated adults from age 40 to 55 with average incomes of $80,000 or more. GE leveraged their brands reputation and was able to move upstream in price by tapping into the more prosperous households. Part of GFA 's new Profile Performance line, the fridge is targeted toward professional adults ages 30-45 with household incomes ranging from $50,000 to $150,000 (Khurana, 2010). This was also a factor which assisted GE in upward streaming for