Case Analysis: GE
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1. Analyze the case study "General Electric" available at
http://media.pearsoncmg.com/ph/bp/bp_akamai/kotler/General_Electric.html
Include responses to the following questions in your analysis:
• Why did GE implement a limited distribution strategy?
• How was GE able to evoke an emotional buying experience for customers purchasing appliances?
• How was GE able to move upstream in price?
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Solution Summary
Describes GE's strategy to gain tract in the appliance market based on case study analysis.
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Why did GE implement a limited distribution strategy?
GE choose to use limited distribution because it is a form of distribution that utilizes indirect channels to reach consumers. Because customers are familiar with GE and habitually turn to them when looking for what they need in regard to appliances or other GE staples, the use of indirect channels that focus on the producer-retailer-consumer channel, which is the shortest indirect channel helps to create utility and transaction efficiencies while channel members make producers' lives easier and enhance their ability to reach customers. GE uses this channel when it sells small appliances through large retailers such as Wal-Mart or Sears.
Selective distribution or limited distribution is the distribution of a product through only a limited number of channels. The impetus for GE using this arrangement is predicated upon controlling price cutting. The benefits of using limited distribution strategy for GE is that by limiting the number of retailers, marketers can reduce total marketing costs while establishing strong working relationships ...
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