Analysis of Marketing Strategy for Stihl Inc.: Issues and Solutions

This report presents an analysis of the marketing strategy employed by Stihl Inc., highlighting key issues and suggesting potential solutions. The primary challenge identified is related to the distribution channels, particularly the limitations of the current wholesaler-retailer model. The report recommends leveraging market development and product development strategies, incorporating the Ansoff Matrix to guide expansion and innovation. Additionally, the report suggests improvements to the distribution channel by maximizing the benefits of intermediaries and enhancing supply chain management to improve delivery, product availability, and reduce costs. The report emphasizes the importance of market research to understand customer preferences and guide product innovations and market expansion efforts. This document is available on Desklib, a platform providing AI-powered study tools and resources for students, including past papers and solved assignments.

Marketing Strategy

Table of Contents
Analysing main issues in the case ...................................................................................................3
Remedy approach for the issue........................................................................................................3

Analysing main issues in the case
Marketing strategy can be determined as combination of marketing goals from which one
is applied for comprehensive plan. Marketing strategies are developed as per the marketing mix
that is developed and it helps to raise the profitability and sales. Present report is based on the
case study of Stihl Inc. With time there are many changes that are taken place and there are many
competitors that has raised. Ultimate aim of any firm to gain maximum profit. This is only
possible when management understand their customers and deliver them services and products
accordingly. One of the main issue that was faced by Stihl Inc. is related to distribution. Cited
firm were making use of two channel distribution in which it includes wholesaler distributor and
retailers. Due to this, management were not able to make the product reach out to their
customers. With changes in time, the rate of internet users are increasing drastically and so to
make changes as per the time, it is important to make sure that they deliver their products online.
This way more and more customers will get to know about the firm and they will be able to
reach out the product effectively and efficiently. Further, with time there are changes that take
place within the taste and preference of customers. It is important to conduct market research and
understand that changes that take place. Accordingly, changes should be made so that strong
customers base can be developed.
Remedy approach for the issue
There are different set of strategies that can be applied by the firm. In this context, one of
the effective one if Ansoff Matrix. There are four different type of areas that are considered in
this model and they are: Penetration strategy, diversification, market development and product
development. Among all these cited firm should make use of Market development and product
development. Innovation should be made in the product frequently so that customer's satisfaction
level can be raised. This is possible only when the changes that take place within the preferences
of customers are identified and steps are taken accordingly. On the other hand, there are many
markets around the world in which Stihl Inc. can make their business expand. This way firm will
be able to achieve their desired goals and objectives. For both the aspects, market research need
to be considered so suitable market can be identified and innovations can be made in products.
Further, the distribution channel can improved by raising the efficiency of the distribution. This
is possible by maximising the benefit of channel intermediaries. This way the sales volume can
be raised and cost will get reduced. Another way to increase distribution channel is through

raising supply chain management. With the help of dedicated supply chain mangers, firm will be
able to improve delivery, enhance availability of product and reduce cost related to inventory.