Snap on Tools Case Study
1. Selling strategy is a major component of Snap-on’s marketing strategy. They developed certain strategies that attracted customers and expanded their market, their original selling strategy did not work and once they went to a more direct approach, customers started buying the product. The second component is that their basic commitment to direct selling has remained pretty much unchanged, even though the dynamics have changed over the years, the basic building blocks and marketing strategy is still used to this date. This also means the company’s basic purpose has remain unchanged – “the production and sale of quality hand tools and related items to professional mechanics and industrial users”. The third component is how each independent dealer carries rolling stock of Snap-on small hand tools, which is a unique marketing strategy compared to most companies since it uses each ...view middle of the document...
It is like a tool express because once you buy something or want to see it first hand, a van with all the tools you would like to buy or try out can visit you and you get to view all the products first hand instead of having to go into a store etc. It is delivered to you! This way, the pull strategy is utilized and it builds customer loyalty and trust in the long run instead of making a customer buy on emotion.
3. Snap-on’s marketing channels is developing a selling strategy that presented the tools directly to the mechanics with a demonstration and opportunity for the mechanics to try out the product. In addition, the transition to direct selling – from factory-to-warehouse-to-you. In direct response Snap-on introduced a new distribution method by selling territories to individual sales representatives and having them carry product inventory in their vehicles for immediate delivery to the customer. Moreover, starting a program of selling to mechanics on credit with weekly time payments. The company backs this credit program as it proved to increase sales and generated customer loyalty. Finally, Snap-on provide who fix cars for a living, tools and entering. Snap-on markets its products through distribution channels in over 130 different countries. The biggest thing it avoids is advertising and promotions because it tries and sell through direct marketing and catalog sales.
4. The difference is massive since a 160 square foot van of Snap-on generates $400,000. That means each square foot of a Snap-on van generates $2500, while an averages specialty retail store only generates $400. The difference is huge since Snap-on makes so much more revenue a year and the reason for this is because each square foot of space in the van is filled with products and when someone enters the van all they see is products and there is no space wasted. While a square foot of a retail store has products and walking room and empty space which actually is a lot of wasted money. Therefore a Snap-on van is using the most value of each square foot.