Assignment

A company’s supply chain stretches from the factory where its product are made to the point the
products. A company’s supply chain stretches from the factory where its products are made to the point
the products are in customer hands. Supply chain strategy determines when product should be
fabricated, delivered to distribution centers and made available in the retail channel. Under a pull supply
chain, actual customer demand drives the process, while push strategies are driven by long term
projections of customer demand.

Push and pull strategies both work within the supply chain. A typical supply chain has five different
steps. Products start out as raw material. In the second step, the manufacturer takes raw materials and
turns them into products. The third step occurs when the finished products get shipped to the
distribution facility. In the step four, the distribution facility uses the products to stock a retail store or,
in the case of an e-commerce business, a fulfillment center. In the final step, the products get delivered
to the hands of the consumer.

A push promotional strategy main use of a company’s sales force and trade promotion activities to
create consumer demand for a product. The producer promote the product to wholesaler, the
wholesaler promote it to retailer, and the retailer promote it to consumers. Push marketing is a
promotional strategy where businesses attempt to take their products to the customers. The term push
stems from the idea that marketers are attempting to push their products at consumers. Common sales
tactics include trying to sell merchandise directly to customers via company showrooms and negotiating
with retailers to sell their products for them, or set up point-of-sale displays. Often, these retailers will
receive special sales incentives in exchange for this increased visibility. Businesses often use push
marketing when launching a new product, or when trying to stand out in a niche or crowded market.

Pull marketing strategy is when you pull your consumers to you. You inspired want or need for your
product or service. Pull marketing can come in the form of inbound marketing, creating valuable content
that attracts your ideal consumer, word of mouth, referrals and advertisement. Pull marketing takes the
opposite approach. The goal of pull marketing is to get the customers to come to you, hence the term
pull, where marketers are attempting to pull customers in. Common sales tactics used for pull marketing
include mass media promotions, word-of-mouth referrals and advertised sales promotions. From a
business perspective, pull marketing attempts to create brand loyalty and keep customers coming back,
whereas push marketing is more concerned with short-term sales. Businesses generally will use pull
marketing when the customer knows what he is looking for or what problem he needs to solve, but
needs pulling towards your solution as opposed to the solution offered by your competitors.

The companies dealing with manufacturing with computers, furniture should follow pull strategy and
grocery, books manufacturing companies or printing should follow push strategy.

The above pull strategy companies should follow this strategy as the inventory control system with a
customer’s order. With this strategy companies only make enough product to fulfill customers’ orders.
One advantage to the system is that there will be no excess of inventory levels and the cost of carrying
and storing goods. In pull marketing strategy, first we have to research on the expected market need
then we have to go for research and development of the product which will fulfill the consumers
demand. Then we can go for production to meet the demand.
Computer manufacturing company should follow the pull strategy so that they can be beneficiary with
that. The demand should be clarified and research should be done for the demand of the computers
then the production should be done. This strategy helps in less inventory cost as well as less wastage.
The push strategy is not appropriate because the retailer and the company should push the product to
the wholesaler and the consumers.

The furniture manufacture company should follow the pull strategy because the consumers are very
different from each other. Everyone doesn’t want same type of furniture so we need to manufacture as
per the customer’s wish so the pull strategy is the best for furniture manufacturing company.

Books printing company should follow the push strategy because the books are dealing with targeting
different segments of customers. They have to push the books for the target audiences. The new books
has to follow the push marketing so that you can bring customers in your marketing.

Groceries should follow the push marketing because the advertisement is necessary for the selling.
Mostly customers buy those products which are on sales and those which are advertised, so these sales
and advertisement are coming under push marketing so they should follow this.

K Mahendra Dharmachakra
Roll- 33
2nd Sem
Centre of Agribusiness Management
Utkal University