Product Development Stages

If the new product is an extension of an existing brand and brand loyalty is present, then I would agree with the strategy. The pull strategy is used frequently by existing brands that produce massive consumer products, such as Proctor & Gamble, Unilever, Frito-Lay and Diageo PLC. The strategy is successful for these companies because they have deep pockets that are required to implement the strategy. In addition to deep pocket, these companies have products that “typically have sufficiently broad appeal to make an aggressive consumer promotion and advertising and advertising program worthwhile” (Mullins).

Convenience goods are goods that are normally purchased by consumers frequently, immediately and with little effort. The decision to focus on a pull strategy requires the manufacturer to focus on building selective demand and brand loyalty with the consumer. The pull strategy focuses on building consumer demand and allows the manufacturer to entice the sale of product among the channel members with attractive sales volumes discounts.

As stated, if the manufacturer was established and well known, I would agree with the strategy. However, if there is no sales history for the new product, I would alter the strategy to introduce the new product. If a product has no history, the manufacturer may have a difficult time convincing channel members that their marketing plan will produce both loyalty and strong consumer demand quickly. The manufacturer may have a greater chance of convincing channel members if they have substantial resources available to devote to the marketing of the new product. In addition, they will need to rely on and promote past marketing expertise and track record.

Mullins. Distribution Channels. Retrieved from http://answers.mheducation.com/marketing/marketing-strategy/distribution-channels