If a firm decides to use push strategy, its efforts are directed at resellers and the manufacturer becomes very dependent on their personal selling abilities and efforts.
The promotional efforts are focused at pushing the product through the distribution channels; the resellers may be required to display, demonstrate and offer discounts, to sell the product. The communication to resellers is generally through trade circulars or the sales force.
Push strategies generally appropriate for
- Product categories where there is low brand loyalty
- Where many acceptable substitutes are available in the market.
- Relatively new products are to be launched
- When the brand choice is often made in response to displays in the stores,
- The product purchase is unplanned or on impulse and
- The consumer is familiar and has reasonably adequate knowledge about the product.
Manufacturers, who cannot afford to engage in sustained mass advertising, often use push strategy and offer effective incentives to dealers.
Retailer promotion: Buy Cadbury’s products worth Rs.3000/- and get any 30 chocolates worth Rs.5 each free.
Through this offer the company is pushing its product to the retailers and now that the retailer has enough incentive the retailer stocks more and thus it becomes essential for the retailer to push the product to the consumers.