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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 distributionorganization by ensuring the customer is aware of your brand at the point of purchase.

"Taking the product to the customer"

Examples of push tactics:

y Trade show promotions to encourage retailer demandy Direct selling to customers in showrooms or face to facey Negotiation with retailers to stock your producty Efficient supply chain allowing retailers an efficient supplyy Packaging design to encourage purchasey Point of sale displays

Example:

Here we can take the example of manufacturing ste el which can take place in largeextent without considering the market or the customer this done on the bases of theraw material and production capabilities. This is the situation where push strategy isfollowed. In this manufacturing demand is uncertain, inventories should be properlymanaged 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 orde rs, rather than forecastdemand.

"Getting the customer to come to you"

Examples of pull tactics:

y Advertising and mass media promotiony Word of mouth referralsy Customer relationship managementy 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 theproducts. Here the lead times are less, inventories can be optimally utilised.

Push-pull strategy:

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

Example: Chrysler is one of the major automobile manufacturing company in USmarket which first manufactures a model of car and provides some customisation tothe customer depending upon the taste of the customer. Here is the case where thecompany push the product to some extent and later part i s pulled by the customer.

Pull-push strategy:

In a pull-push strategy, some stages of supply chain are operated in a pull base dmanner and remaining by a push based strategy here in a pull-push strategy firstpulling 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 butthey started advertising their services which makes the customer to attract towardsthe service before it came into the market. Here is the situ ation where pull strategycome into existence. Here the company is pulling the customer towards their productand then they push their services to the market.