A firm produces goods that are subject to frequent customer design changes. The products are sold to a few distributors who sell to a large number of retailers. In this situation, which of the following push-pull strategies is the best approach?
The best push-pull strategy for a firm producing goods subject to frequent customer design changes and sold through a few distributors to many retailers is A. Push to distributor and pull to retailer.
Explanation:
Push to distributor:
This approach involves actively promoting the product to the distributors, providing them with information about new design changes and incentivizing them to stock the new versions. This ensures the distributors are aware of the latest offerings and are ready to supply retailers when demand arises.
Pull to retailer:
While pushing to the distributor initiates the process, a pull strategy is then used to encourage retailers to order the product from the distributors. This can be achieved through consumer marketing efforts directed at the end-user, creating demand and prompting them to request the new designs from their retailers. This pull mechanism ensures retailers are only ordering what consumers are actively seeking.
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