The first key component of the Snap-on marketing strategy is direct selling. Such mechanism presented products directly to the final consumers and followed indirect selling which did not justify the company’s expectation. Indirect selling still remains the cornerstone of the Snap-on marketing plan and helps the company to avoid huge advertising expenditures. The second component is developing different distribution channels: mobile van franchises, company-direct, distributors and the Internet. The third key component is choosing one specific target market which is blue collar and focusing on the specific customer without expansion into other potential business areas. The forth main component of the Snap-on marketing strategy is keeping the company's main purpose unchanged which is providing mechanics and industrial users with quality products and favorable purchasing conditions.
What one element of Snap-on’s marketing mix do you think separates it from its competitors?
One element of Snap-on marketing mix which separates it from its competitors is variety of distribution channels and products. The company utilizes four different distribution channels which has given a chance to enter new markets in more than a hundred countries all over the world and offer clients 14, 000 different items.
How would you describe Snap-on’s marketing channels?
Mobile van franchises channel is the most common one to conduct sales. Products are transported in a van and even demonstrated in places of business. Each franchisee has their own route as well as clients and sells Snap-on products purchased earlier at a discount. Company-direct marketing channel ensures selling products to larger organizations, industrial and governmental customers and original equipment manufacturers. Such sales are conducted through both employees (in United States only) and independent distributors. Tolls and equipment are sold under different brands through distributors in different parts of the world (Europe, Asia and other). Some examples are: Fish and Hook, Hofmann, Bahco. Internet channel allows Snap-on clients purchase products online through the public Web site and communicate with the company’s representative anytime. I believe that all channels are effective and help to work with specific audience and deliver products to clients all over the world.
Assume that average annual per-square-foot sales for specialty retail are approximately $400 per square foot. How does this compare to Snap-on’s revenue generation per square foot? Why do you think there is such a difference?
Snap-on annual sales per square foot are $2,500 compare to average $400. I think it is caused by precise and effective marketing plan which distinguishes the target audience and ways to reach it not only on national but many other markets. Snap-on guarantees favorable conditions such as selling to mechanics on credit with partial payments and offering customers trainigns and technical advices. Keeping quality of products high and increasing sales enables Snap-on to receive desirable profit and customer loyalty.
Works Cited:
United States Securities and Exchange Commission Report. http://www.wikinvest.com/stock/Snap-On_(SNA)/Distribution_Channels, 18 Feb. 2009. Web. 21 Oct. 2014.
