STHIL is a world largest chain - saw family business. The founder of STHIL is an Andreas Sthil. First he didn’t want to involve her daughter in this business because he wanted that her daughter start some innovative work than this. But when she complete her studied from Munich University in Economy and Language After that she directly involved in same business in Marketing Department. After few years later she served as a Vice - chair a chief finance officer for STHIL Company. In 1982 it was popular worldwide and it had sales of $355 million a years. It had 5300 employees at that times now they have more than 15000 employees in worldwide (STIHL - A pioneering force for garden and power tools, 2018). They have a more than 8000 plus independent dealers. Their revenue is increasing day by day because they update their product and technology on time and they have 12 plus manufacturing plants in world, and they also have a strong, and knowledgeable human capital so that they provide a better customer service to their customer. For example, they have cordless saw technology now which is portable, and cheaper than heavy saw. So the cordless saw is for private use and it has high demand. They are the one of the largest Mechanical manufacturing company. They have many products like, Cordless Saw, fuel and oil accessories clearing saw, special harvester, and hedge trimmers. From the report of 2017, "they sold more than 10 million motor units in worldwide for the first time” (Waldron, 2014) this means they have high quantity manufacturing strategy. If we manufacturing a product in a big volume then it definitely decrease the cost of product. So that customer can buy easily those product. Now they also sold fuel, oil and gasoline which make their growth in double digit. They are popular not only in Germany they are popular in worldwide America, Europe and Asia.
STHIL Company has applied two major strategy in his business. One is product differentiation strategy and next is low cost strategy. They have a competitive price strategy (Dickson & Ginter, 1987). They have variety of product in market which already mentioned above so that they provide better customer relation strategy. First they sell their product to their customer after that they give basic training to them "How to operate a system”. So they have very knowledgeable employees. After selling the product there is any problem with the product they provide fast and reliable service to maintain those this. They have 8000 plus independent deals and they support them faster and reliable service. So that only customer have a high trust in the product and company. They have variety of product in different size and wait. They have also customize product as well. For example, they offer power saw for manufacturing and big furniture industry and cordless saw for private home application both machine can use for same purpose. So they specially design the on the basis of work and budget.
The distribution process of this company is very simple they have 8000 plus dealers in different places and these independent dealers helps to sell the product easily and these are the main distribution process. Second is, they have an online distribution channel system. Customer can order the product through online and then they deliver it to customer location. Hence, this is how STHIL uses autonomous channels of distribution and advertises its products which will contribute to STHIL differentiation strategy (Yuen & Robyn, 2017).
References
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. The Journal of Marketing, 1-10.
STIHL - A pioneering force for garden and power tools . (2018). Retrieved from stihl: stihl.com/index.aspx
Yuen, M. R. L., & Robyn, M. (2017). Ambient Advertising: An Examination of Ad Features Influencing Consumer Engagement (Doctoral dissertation, University of Warwick).
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STHIL is a world largest chain - saw family business. The founder of STHIL is an Andreas Sthil. First he didn’t want to involve her daughter in this business because he wanted that her daughter start some innovative work than this. But when she complete her studied from Munich University in Economy and Language After that she directly involved in same business in Marketing Department. After few years later she served as a Vice - chair a chief finance officer for STHIL Company. In 1982 it was popular worldwide and it had sales of $355 million a years. It had 5300 employees at that times now they have more than 15000 employees in worldwide (STIHL - A pioneering force for garden and power tools, 2018). They have a more than 8000 plus independent dealers. Their revenue is increasing day by day because they update their product and technology on time and they have 12 plus manufacturing plants in world, and they also have a strong, and knowledgeable human capital so that they provide a better customer service to their customer. For example, they have cordless saw technology now which is portable, and cheaper than heavy saw. So the cordless saw is for private use and it has high demand. They are the one of the largest Mechanical manufacturing company. They have many products like, Cordless Saw, fuel and oil accessories clearing saw, special harvester, and hedge trimmers. From the report of 2017, "they sold more than 10 million motor units in worldwide for the first time” (Waldron, 2014) this means they have high quantity manufacturing strategy. If we manufacturing a product in a big volume then it definitely decrease the cost of product. So that customer can buy easily those product. Now they also sold fuel, oil and gasoline which make their growth in double digit. They are popular not only in Germany they are popular in worldwide America, Europe and Asia.
STHIL Company has applied two major strategy in his business. One is product differentiation strategy and next is low cost strategy. They have a competitive price strategy (Dickson & Ginter, 1987). They have variety of product in market which already mentioned above so that they provide better customer relation strategy. First they sell their product to their customer after that they give basic training to them "How to operate a system”. So they have very knowledgeable employees. After selling the product there is any problem with the product they provide fast and reliable service to maintain those this. They have 8000 plus independent deals and they support them faster and reliable service. So that only customer have a high trust in the product and company. They have variety of product in different size and wait. They have also customize product as well. For example, they offer power saw for manufacturing and big furniture industry and cordless saw for private home application both machine can use for same purpose. So they specially design the on the basis of work and budget.
The distribution process of this company is very simple they have 8000 plus dealers in different places and these independent dealers helps to sell the product easily and these are the main distribution process. Second is, they have an online distribution channel system. Customer can order the product through online and then they deliver it to customer location. Hence, this is how STHIL uses autonomous channels of distribution and advertises its products which will contribute to STHIL differentiation strategy (Yuen & Robyn, 2017).
References
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation, product differentiation, and marketing strategy. The Journal of Marketing, 1-10.
STIHL - A pioneering force for garden and power tools . (2018). Retrieved from stihl: stihl.com/index.aspx
Waldron, K. (2014). Stihl Shows Staying Power . Retrieved from green industry pros: greenindustrypros.com/article/1143...
Yuen, M. R. L., & Robyn, M. (2017). Ambient Advertising: An Examination of Ad Features Influencing Consumer Engagement (Doctoral dissertation, University of Warwick).