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Discussion on: Stihl Distribution Channels and Advertisements Analysis

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Angel Paudel

Stihl holds a big history of around a century being in the business and further with their excellent sales, it also suggests that they’re doing really well. They’ve over one thousand patents related to the products they offer which would mean that the competitors can’t copy them exactly as they do due to the company reserving the rights of the process and product. They focus on a particular segment and excel while dominating any new entrants in the market.

One of the core strategies they use to differentiate themselves from the market is their closed operation such that the product is only sold through their independent dealers and none other secondary stores (Thomas & Wilkinson, 2015). This allows them to retain more profit for themselves or provide the product to the customer at a comparatively cheaper price compared to if they had to sell it from other third-party stores.

Another element in the mix is that they have got an excellent team of support staffs and sales team in all their distribution stores. With their huge revenue, they can afford the best of the staff which is not the same for their market rivals. The items they sell are usually those which need one to have hands-on experience and also know how to use it. In case of one not being aware of how to use it, they may harm themselves or someone else in the process. So, customers look for assurance and with an excellent team, they’re able to do exactly that. They’re showed practically by the team at Stihl store on how to disassemble the items they sell, how to add fuel or other elements into the product and also how to start and stop the product offering. Further, they also teach the customer on the safety techniques and what can be done if something unexpected happens suddenly based on past similar events.

Stihl also tries to differentiate themselves from the mass by providing their website targeting to two different segments - one being the United States while the other being for rest of the world. The products they offer differ on the same as well and targeting varies a lot based on your past activities if any within the website. They also seem to have catered the website for so many different countries. What surprised me the most was they also have Nepal as one of the nations listed in the website which no other products in the category does (Stihl, 2018). Let alone these websites, even Twitter fails to recognize Nepal in their website while a store like Stihl doesn’t and shows that they care of the nation encouraging people to take action and buy.

They have a strong brand with over 8,000 stores spread around the United States and other parts through which they can cater to the needs of the customer (Stihl, 2018). Their network and communication is so strong and with the ability to be able to ship the order to the customer within 24-hours of the ordering. The closed-circuit allows them to manage stocks better, provide support to the customer and preserve their brand image while also be able to serve to the customer in the best way possible.

Stihl does advertise but they do in a lot different way from any other product in the market. Backed by their slogan "Real People Stihl People”, they tell the story (Stihl, 2018). The story of a customer, their journey and their experience of using the product and how it simplified their life. With their brand image, strong presence in the market and telling a story that resonates with the people, they persuade others to associate themselves with the product more and more.

The closed distribution channel and advertisement which speaks the language of the customer and to them directly differentiate them from the mass a lot. This allows them to connect with the customers directly on a personal and emotional level and persuade them to buy from them. This has differentiated them against all the competitors in the market and has been a dominating player in its category.

References

Stihl About Us. (2018). Retrieved from stihl.com/stihl-about-us.aspx

Stihl Country Options. (2018). Retrieved from stihl.com/

Stihl Store Locator. (2018). Retrieved from stihl.com.au/store-locator.aspx

Thomas, A., & Wilkinson, T. (2015). The Customer Trap (2nd ed., pp. 75-90).