How Stihl Corporation Impacts Americans
- 1. 1 Michael Hovan III American Intercontinental University Unit 3 Individual Project MKTG 205 – Principles of Marketing 04/10/2016
- 2. Abstract 2 Within the contents and body of this paper, you will find defining research and a proven need how the Stihl ‘brand’ products have impacted Americans along the eastern seaboard during the “Hurricane Season”. Furthermore, the Stihl ‘brand’ products have become a household name due to the various types of marketing and advertising strategies.
- 3. How Stihl Corporation Impacts Americans 3 When the Stihl Corporation made a creative and strategic marketing adventure to bring its brand* of multi-purpose products to the United States, it opened the doors for gainful employment and a higher end product with fair pricing. Now with the number one selling brand* of gasoline-powered handheld outdoor power equipment, Stihl has become a trusted household name on the eastern seaboard. We’re confident with these new marketing channels, this will show how homeowners and business owners will be well informed on just how great the Stihl ‘brand’ truly is. As a company that has been in business since 1926 (stihl.co.uk/history.aspx) expanding our distribution channels has been priority number one. For example, if a consumer wanted to purchase a chainsaw, he or she would not have to go to the factory for this purchase. Instead, the consumer can go directly to one of their local dealers or retail chain outlet and make the purchase. Not only does the consumer receive the convenience, but has the hands on experience of a qualified dealer and experienced retail chain employee. This is an indication of how dependable the Stihl brand* is and has been from day one. With the ever growing and popular internet, Stihl Incorporated has discovered that consumers are making more and more purchases online. This direct channel has made it so convenient that consumers are placing orders online and saving time and money, but still getting the same quality product, warranty, and service that they have come to expect from local dealers. As you can see that the results from direct as to indirect distributing, both seem to have the same outstanding results. In the early stages of business, Stihl did sell directly to the public at its local factory located in Waiblingen, Germany (stihl.co.uk/history.aspx), but in 1974 Stihl Incorporated expanded its’ business into the United States and opened up a whole new distribution channel that would prove to be extremely profitable. Now that Stihl Incorporated has expanded its locations across the United States and worldwide, the target markets need’s through distribution channels has relied singularly on the Stihl name. Did you know that when Stihl Incorporated expanded into the United States, one of the first locations was located right here in Virginia Beach, Virginia? Stihl Incorporated marketers realized that because of not only hurricane types of weather along the east coast, but the need across the country had grown due to the target markets needs through channel distribution. In 1974 Stihl Incorporated started out in a 20,000 square foot building with less than 50 employees (greenindustrypros.com) and today sits on 150 acres with over two million square feet under roof. As of record today, Stihl Incorporated employs over 1,900 locally and over 2,100 nationwide. With 42 years of manufacturing nationwide, and 169 dealers throughout the country, choosing Virginia Beach, Virginia as their main manufacturing plant made the statement that the east coast provided a great target market. Consumers locally have come to know the Stihl brand* as quality craftsmanship with outstanding durability.
- 4. 4 Now came the easy part, what channel members would Stihl Incorporated use? The research for potential clients or dealers found that local lawn and garden conventions or trade conventions were being held nationwide and Stihl decided to set up shop at each and every single one. They were so confident that their products would sell themselves and how right they were. Hardware stores, independent lawn and garden dealers, and large chain stores such as Lowes, Home Depot, and even Sears wanted in on this great product. A bid war started and eventually Sears and Home Depot backed out. Over the next 30 years, building a rock solid channel or canal on how independent dealers and chain operating stores would receive the Stihl brand* became the main priority. Extensive research and planning became a strong factor to cutting cost through shipping and receiving so no increase in product pricing would happen. Shipping through private and commercial airlines such as Federal Express and nationwide trucking companies such as Emery and DHL gave Stihl Inc. the opportunity to deliver their products anywhere in the United States and worldwide, timely and safely. Hazardous material precautions needed to be taken into consideration and they made sure these guidelines were met. With all of the new regulations that are being enforced by the U.S. government, no hazardous materials are shipped with gas powered products. All gasoline powered products are fully factory tested before they are shipped. This guarantees customer satisfaction and quality assurance with all Stihl Inc. products. Stihls’ team of marketers’ strive very hard to bring the American consumer, products through dependable shipping channels and have been doing so for over 40 years (stihl.co.uk/history.aspx). In recommending a channel organization, Stihl Inc. uses the vertical type of marketing channels. In other words, Stihl Inc. manufactures the product, ships it to a wholesaler/retailer, and in turn sells it to the consumer. This type of marketing channel has been the main-stay since Stihl Inc. decided to bring its products into the United States in 1974(stihl.co.uk/history.aspx). Each intermediary plays a vital role and sometimes with vertical channels this can be lengthy, but with this product there are the producer, the transporter of goods, the receiver of goods, and the consumer. As well noted and researched by Stihl Inc. marketers, all products that are manufactured are strategically placed, promoted, and sold with the consumer’s needs taken into strict consideration. In 1926 when Andreas Stihl took his vision and brought it to reality, he knew exactly where he was going to direct his product to, the lumberjack.
- 5. References 5 Stihl Inc. archives. (2014). Stihl Inc. history: 1926 to 2016. Retrieved from http://www.stihl.co.uk/history.aspx Coughlan, A., Anderson, E., Stern, L. W. & El-Ansary, A. (2001). Marketing Channels (7th ed.). Upper Saddle River, NJ: Prentice-Hall. CMO by Adobe. (2016) Updated Friday Apr. 01, 2016. Retrieved from http://www.cmo.adobe/digitalmarketingstrategies.com Perreault, W. D., & McCarthy, E. J. (1998). Basic marketing (13th ed.). New York, NY: McGraw-Hill Aaker, D., (2011, June 17). Secrets of social media revealed 50 years ago. Havard Business Review. Retrieved from http://blogs.hbr.org/cs/2011/06/secrets_of_social_media_reveal.html Channel members & Channel organizations. (2016). Retrieved from http://stihl.co.greenindustrypros.com Editorial Board by Words of Wisdom. (2012). Introduction to Marketing (1st ed.). Shaumburg, IL. Retrieved from http://www.aiuonline.edu