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Section- C
Push strategy:

A push strategy is in which it involves taking the product directly to the customer
push through the channel, from the supplier to production through to the distribution
organization by ensuring the customer is aware of your brand at the point of
purchase.

"Taking the product to the customer"

Examples of push tactics:

 Trade show promotions to encourage retailer demand


 Direct selling to customers in showrooms or face to face
 Negotiation with retailers to stock your product
 Efficient supply chain allowing retailers an efficient supply
 Packaging design to encourage purchase
 Point of sale displays

Example:

Here we can take the example of manufacturing steel which can take place in large
extent without considering the market or the customer this done on the bases of the
raw material and production capabilities. This is the situation where push strategy is
followed. In this manufacturing demand is uncertain, inventories should be properly
managed to push the product to the customer whenever they require.

Pull strategy

In a pull-based supply chain, procurement, production and distribution are demand-


driven so that all activity is based on actual customer orders, rather than forecast
demand.

"Getting the customer to come to you"

Examples of pull tactics:

 Advertising and mass media promotion


 Word of mouth referrals
 Customer relationship management
 Sales promotions and discounts

Example:

Pull strategy is used in the concept of FREE HOME DELEVARY where the customer
is pulled to the restaurant to make the order from the menu available and get the
products. Here the lead times are less, inventories can be optimally utilised.

Push-pull strategy:
In a push-pull strategy, some stages of supply chain are operated in a push based
manner and remaining by a pull based strategy here in a push-pull strategy first
pushing is done and then they pull the customer towards their product.

Example: Chrysler is one of the major automobile manufacturing company in US


market which first manufactures a model of car and provides some customisation to
the customer depending upon the taste of the customer. Here is the case where the
company push the product to some extent and later part is pulled by the customer.

Pull-push strategy:

In a pull-push strategy, some stages of supply chain are operated in a pull based
manner and remaining by a push based strategy here in a pull-push strategy first
pulling is done and then they push the product to the customer.

Example:

In the case of Vodafone 3G services in India they are yet to release the services but
they started advertising their services which makes the customer to attract towards
the service before it came into the market. Here is the situation where pull strategy
come into existence. Here the company is pulling the customer towards their product
and then they push their services to the market.

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