Marketing Strategy : A Push Strategy Essay
Since the 2004 Price Promotion, a push strategy, retailers have started to develop a dependency on price reductions, which creates a slippery slope into a pattern of always having to provide trade promotions. Given that retailers do not have a contract with CC, there is no guarantee that additional orders will be placed after each promotion. Additionally, push strategies only reach the in-store customers and in-store discounts can distort the premium brand image of CC.
There are pros to a push strategy, it is cost effective, can influence the customer at the point of purchase, and can encourage the store retailer to market the item. However, these pros are best for low value items where the distributor is likely to place bulk orders. Together, these pros and cons do not outweigh the benefits of a pull strategy.
A pull strategy stimulates demand and motives the customer to actively seek out the product. The advantages of a pull strategy are that it can reach a wider audience, CC will have more control of their premium brand image, can communicate directly with their customers, and receive instant payment. This strategy is excellent for premium…