Push and Pull

How is the market in Pharmasim going to react to a product going through the channel.  Is Allround going to be a pushed through by incentives to the intermediaries of grocery stories or will it be pulled through the channel by the incentives to the customers. There are many different report to look at how the product is moved by the channel or by the consumer.

The promotion report shows the promotion activities of Allround and the competitors.  There are the amount of promo allowed which compare the percentage of promo.  As well the amount of point of purchase value is displayed which is part of a pull strategy.  Also the use of news paper coupons is another pull strategy. The promotion report helps to show the pull strategies that are being employed. To implement these, the amount of point of purchase discounts and coupons should be increased.  The channel sales report can also help on a pull strategy as it can focus the promotion to specific points of purchase.  The sales of allround increased with on the increase to promotion but by a minimal value.

 One way to create a push strategy is to keep a low price for the mass merchants and whole sellers so they can keep pushing product which can be seen on the pricing report.  Another report is the shelf space report that shows how much space is taken up.  The more shelf space at a place the more product is needed which relates to the push strategy.  It would be important to create ways to have benefits of point of purchase displays and other ways to increase the quantity needed.  The Co-op advertising is also a way to increase the channel sales.  By increasing the co-op and discounts, the sales increased less than the amount of the POP increase.

Overall the push and pull strategy can be instituted in pharmasim by  changing the promotional values it becomes a pull strategy and by changing the co-op amount it becomes a push strategy.