Retail Promotion Strategies

15/05/2020 0 By indiafreenotes

Push Strategy:

A retail push strategy includes offers that convince trade intermediaries channel members to “push” the underline product through vigorous distribution channels to the ultimate customer via some sales promotion schemes and personal selling efforts.

Under push strategy, the retail company promotes the product through a reseller who in turn promotes it to yet another reseller or the ultimate customer. The push strategy is used to convince retailers or wholesalers to stock a brand, provide a brand shelf space, encourage a brand in their advertisement drives, and/or push a brand to its ultimate customers. The usual tactics used in push strategy are: cash rebates, monetary or non-monetary allowances, buy-back schemes, free trial offer, contests, quizzes, promotional reminders, heavy discounts, and displays.

Pull Strategy:

A retail pull strategy efforts to get customers to pull the product from the manufacturer through its marketing channel. Under this strategy, company focuses its marketing communication efforts directly to customers with the hope that it encourages curiosity and requirement for the product at the end-consumer level.

This strategy is often employed if distributors/agents are reluctant to sell a product because it receives as many customers as likely to go to retail outlets and request the product, thus pulling it through the retail channel. The objective of the pull strategy is to attract customers to try a new product, lure customers away from competitors’ products, get consumers to weigh on a mature product, hold & reward loyal customers and build long lasting customer relationships.

Usual tricks employed in retail pull strategy are: cash refunds, samples, coupons, and heavy rebate, premiums, promotional reminders, advertising specialties, loyalty schemes, rewards, mementoes, contests, quizzes and point-of-purchase (POP) displays. If the pull strategy is well prepared and implemented, it results in extraordinary retail sales. But it depends on the commitment and dedication of retail staff and management.

Mixed Strategy:

As the very name implies, this strategy is the combination of above mentioned two strategies. Electronic and car dealers often use such type of strategy. Most of the car dealers near festival season advertise or offer cash discount or cash back offers to customers and dealer incentives which is the combination of both the push and pull strategies.