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 …show more content…
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 priced products that require a carefully maintained brand image. The cons are that many small in house orders will be placed and this will require more staff to process these orders but given the above advantages, CC should pursue a pull …show more content…
It is very important that CC maintain its premium brand image. Offering a price promotion could damage the brand as customers begin to associate CC with lower quality cookware and could fuel retailers’ reliance on price promotions. Instead, CC should offer its products on a limited basis to overseas customers. By utilizing exchange rates to the company’s advantage and targeting countries that have similar target markets (Canada, United Kingdom, and Australia) CC can move “slow merchandise”. This will help to prevent customer burn, the anger a customer gets when they buy at normal price and then see the product go on