Stihl is the world’s leading manufacturer and marketer of chain saws that produces more than 80 models of equipment with the help of skilled employees and automated technology. One of the broadest range of diverse handheld gasoline, corded-electric and battery products produced by Stihl are used in professional forestry and agriculture, landscape maintenance, construction sites and discerning households. The products of Stihl are distributed throughout the country with the help of 11 regional branches, sold through network of 9,000 servicing dealers and are exported in more than 90 countries throughout the world. The operations of Stihl is guided by the philosophy of building quality product that are sold and serviced by quality people (Stihl).
As mentioned in the question, Stihl uses differentiation strategy to distinguish itself from other competitors. One of the major differentiating factors for Stihl is its distribution channel. It wants to keep the distribution, marketing and selling of its equipment in close observation of the company. So, all the products are sold through servicing dealers as the company believe this will help in building customer loyalty and keep the customer satisfied (Stihl). By using the selective distribution channel and offering the products only through dealers, it tries to provide customers with full range of services and education to make right purchases and use the product safely (Farwell, 2008).
Selling through dealers will be beneficial because the dealers possess adequate knowledge about the products that will help in providing proper guidance and expert advice to the customers. Leveraging the website as hybrid channel to guide the customers to nearest dealer is also a strategical move to ease the customers’ access towards the company’s products. The elimination of third party in the distribution process will shorten the time of delivery and provide better customer support services. The independent dealer network of Stihl is also contributing in big dividends as mentioned by Chicago Strategy Associates (2018).
To get noticed and stand out from the competitors, Stihl also uses advertisement campaign to capture new customers and retain the older ones. The advertisement contains of stories of people using the products to make people connected and engaged emotionally. The "why” campaign conveyed the message that products of Stihl are available only in its dealers, not in Home Depot or Lowe’s because the on-site technical assistance that the products need cannot be offered by mega-stores that sort of created a buzz in the people and make the brand noticed (Waldron, 2009). Some of the advertisements challenge gender stereotype by depicting women using power tool which is not easily acceptable in the society we are brought up in. The advertisement and communication strategy are formulated by keeping people in the center that is bound to attract customers (The Drum Marketing Awards).
Thus, we can conclude that Stihl uses selective distribution to ensure delivery of quality products by quality people and advertisement is directed towards addressing the sentiments of people that makes it different than others in the market.
References
Chicago Strategy Associates. (2018). Winning With A Counter-Intuitive Distribution Strategy. Retrieved from Case Study: chicagostrategy.com/case-studies/s...
Farwell, S. (2008, February 13). Thinking Outside the Box (Stores): Stihl VP Talks Channel Strategy with Kellogg Students. Retrieved from Kellogg : kellogg.northwestern.edu/news_arti...
Waldron, K. (2009, December 10). How Stihl Fulfilled Brand Promise of Supoerir Product, Customer Service. Retrieved from AdAge: adage.com/article/cmo-strategy/mar...
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Stihl is the world’s leading manufacturer and marketer of chain saws that produces more than 80 models of equipment with the help of skilled employees and automated technology. One of the broadest range of diverse handheld gasoline, corded-electric and battery products produced by Stihl are used in professional forestry and agriculture, landscape maintenance, construction sites and discerning households. The products of Stihl are distributed throughout the country with the help of 11 regional branches, sold through network of 9,000 servicing dealers and are exported in more than 90 countries throughout the world. The operations of Stihl is guided by the philosophy of building quality product that are sold and serviced by quality people (Stihl).
As mentioned in the question, Stihl uses differentiation strategy to distinguish itself from other competitors. One of the major differentiating factors for Stihl is its distribution channel. It wants to keep the distribution, marketing and selling of its equipment in close observation of the company. So, all the products are sold through servicing dealers as the company believe this will help in building customer loyalty and keep the customer satisfied (Stihl). By using the selective distribution channel and offering the products only through dealers, it tries to provide customers with full range of services and education to make right purchases and use the product safely (Farwell, 2008).
Selling through dealers will be beneficial because the dealers possess adequate knowledge about the products that will help in providing proper guidance and expert advice to the customers. Leveraging the website as hybrid channel to guide the customers to nearest dealer is also a strategical move to ease the customers’ access towards the company’s products. The elimination of third party in the distribution process will shorten the time of delivery and provide better customer support services. The independent dealer network of Stihl is also contributing in big dividends as mentioned by Chicago Strategy Associates (2018).
To get noticed and stand out from the competitors, Stihl also uses advertisement campaign to capture new customers and retain the older ones. The advertisement contains of stories of people using the products to make people connected and engaged emotionally. The "why” campaign conveyed the message that products of Stihl are available only in its dealers, not in Home Depot or Lowe’s because the on-site technical assistance that the products need cannot be offered by mega-stores that sort of created a buzz in the people and make the brand noticed (Waldron, 2009). Some of the advertisements challenge gender stereotype by depicting women using power tool which is not easily acceptable in the society we are brought up in. The advertisement and communication strategy are formulated by keeping people in the center that is bound to attract customers (The Drum Marketing Awards).
Thus, we can conclude that Stihl uses selective distribution to ensure delivery of quality products by quality people and advertisement is directed towards addressing the sentiments of people that makes it different than others in the market.
References
Chicago Strategy Associates. (2018). Winning With A Counter-Intuitive Distribution Strategy. Retrieved from Case Study: chicagostrategy.com/case-studies/s...
Farwell, S. (2008, February 13). Thinking Outside the Box (Stores): Stihl VP Talks Channel Strategy with Kellogg Students. Retrieved from Kellogg : kellogg.northwestern.edu/news_arti...
Stihl. (n.d.). About Us. Retrieved from Corparate: stihlusa.com/information/corporate...
Stihl. (n.d.). Why Stihl Chooses Servicing Dealers. Retrieved from Dealers: stihlusa.com/locator/benefits-of-s...
The Drum Marketing Awards. (n.d.). Why I Choose Stihl? Retrieved from thedrummarketingawards.com/drum-ma...
Waldron, K. (2009, December 10). How Stihl Fulfilled Brand Promise of Supoerir Product, Customer Service. Retrieved from AdAge: adage.com/article/cmo-strategy/mar...