Stihl Case Study

1. Was the decision to avoid the home-center channel a good one? Explain. What are the benefits of sticking with it? What are the concerns? The decision to avoid the home-center channel was an appropriate decision for Stihl Incorporated (Stihl). Stihl’s product line consists of a high quality line of outdoor power equipment: chain saws, edgers, string trimmers, brush cutters, blowers, vacuums, mulchers, and sprayers. In order to differentiate Stihl’s high quality products from its competitors (satisfying buyer requirements), the selected intermediary or channel representative needed to provide the appropriate education on proper product operation, maintenance, and overall performance compared to competitive brands (information). As a quality orientated manufacturer, Stihl requires that it’s products be sold with the appropriate buying support, and after sales support. A customer that purchases a Stihl product from a retailer should be able to have that product maintained, serviced, and repaired by that retailer (channel representative). By sticking with independently owned specialty dealers and hardware stores, Stihl was able to fulfill it’s own requirements to assure buyer satisfaction. The benefits of using independently owned specialty dealers and hardware stores is that the dealer has specific knowledge of certain products and carried only certain products. They are considered experts based on their reputation as an outdoor equipment dealer, and can therefore provide the end customer with the knowledge necessary to make the appropriate purchase. In Stihl’s case this becomes critical in the sale of its product line. Since Stihl never compromises on quality, its prices are generally higher than a majority of their competitors. The sales staff can effectively educate the consumer on knowledge of the product, when to use them, when to choose an alternative, which sizes and features were better suited for which application, and how a product might fit with