Stanley Black & Decker is leading the industry in innovation, focused on well-developed products/ideas that will deliver market leading products across the globe. Efficient management of the domestic and international supply chain directly impacts the company’s ability to offer high quality products at competitive prices. This paper will outline the marketing strategy as it relates to pricing strategies and proper utilization of channels to get the product to the consumer.
Distribution Strategies/Positioning within Channels
Stanley Black & Decker tools are available online, as well as across the country in major hardware/department stores. The strategy behind the firm is providing tools for the full spectrum of their consumer base. The ability for the same company to provide tools to entry level craftsman, as well as highly skilled tradesman is a trait that builds brand loyalty across multiple demographics.
Global distribution strategies include a multi-channel process that begins with the producer. In this case, Stanley Black & Decker provides large quantities of tools to wholesalers located strategically across the globe, whom in turn sell the products to retailers who provide the brand name product in thousands of hardware stores. This indirect distribution strategy allows third party retail stores to sell Stanley Black & Decker products, reducing costs by extending global reach simply through having your products on retail store shelves (American Marketing Association 1992). Additional advantages of the indirect channel are the ability to acquire feedback from all geographical areas and have your marketing strategy be a constantly evolving tool catering to who is buying what and where.
The new product marketing strategy that is being developed throughout this course will continue to implement principles of the indirect channel strategy. Areas within this distribution strategy that can be refined include focusing on supply chain management development. I believe that this starts with your personnel, acquiring dedicated department heads and investing time into training specific processes such as inventory control and shipping logistics. Another way Stanley Black & Decker can increase efficiency with a new product release is to acquire other distribution channels outside of the manufacturer/producer. Taking ownership of additional channels will allow the company to form a single channel, creating additional leverage between the firm and the retailer who will be selling the products.
Dynamic/Static Pricing Strategies
Dynamic pricing is based on the principle of continuously evolving prices based on the market and competitors’ prices. As a manufacturer/producer it is important to understand the pricing strategies being utilized by retailers. If they are successfully selling your product, they will continue to order the firms product through the wholesaler. Retailers using dynamic pricing will be able to adjust prices based on real-time trends of competitors within the industry. This live access to pricing will provide a better understanding of the supply and demand of specific products. The rapid growth of e-commerce and manufacturers making their products available through third party websites such as Amazon.com makes the dynamic pricing strategy an effective tool in maximizing revenue (Aaker, Kumar & Day 1998).
Static pricing establishes a price point that is maintained for a pre-determined length of time. Static pricing is a strategy that attempts to attract customers who are made comfortable by price assurance (Vohra & Krishnamurthi 2011). Consistency in pricing leads to less risk of offending your client base by having a dynamic price that changes frequently over time. This strategy will not be implemented in the new product marketing strategy, since it does not allow for enough time to adjust prices to remain competitive. Applying a static pricing strategy will result in the company being reactive to the dynamic strategies already in place amongst competitors.
Developing a marketing strategy that streamlines the supply management chain and maximizes the time it takes to get your product to the consumer are key to the success of the company. The new product launch will rely heavily on brand equity, building on the relationship between the manufacturer and customer. Ensuring that wholesalers and retailers share these values will help convey this message. The opportunity in the future to acquire additional distribution channels will lead to an umbrella being cast in which the work culture promotes customer loyalty. Establishing a dynamic pricing strategy will allow for price adjustments to happen within minutes, guaranteeing that the new product will be priced competitively even during promotional periods and sales.
- Aaker, D., Kumar, V., & Day, G. (1998). Marketing research (6th ed.). New York: Wiley.
- American Marketing Association. (1992). Marketing management. (1992). Retrieved December 21, 2018
- [bookmark: _Hlk533113149]Vohra, R., & Krishnamurthi, L. (2011). Principles of pricing: An analytical approach. Cambridge: Cambridge University Press.