Push Sales vs Pull Sales: Key Differences In FMCG Sales For Success

In the world of FMCG Sales, knowing the difference between push sales and pull sales is crucial for creating effective sales strategies. Both approaches play distinct roles in driving product sales, but understanding how to leverage them can help you optimize your sales efforts.

In this guide, we’ll explore the key differences between push and pull sales strategies, based on real-life experiences from working with various sales teams.

What is push sales?

Push sales are driven primarily by the seller's need to sell products. This approach focuses on pushing products to retailers or wholesalers to encourage immediate sales, often with the seller offering strong incentives like discounts, promotions, or attractive margins.

Key Characteristics of Push Sales:

Seller-Centric: The primary focus is on meeting the seller’s targets. The salesperson works actively to ensure products are placed in stores, even if it means incentivizing retailers heavily to take on stock.

Heavy Discounting and Price Focus: Push sales often rely on offering discounts, bulk deals, and price incentives to persuade retailers to stock and sell products. It's about driving immediate sales through attractive pricing.

Retailer-Focused: Push sales place a strong emphasis on convincing retailers or wholesalers to stock products. The strategy is focused on pushing the product into stores regardless of consumer demand at that moment.

Potential for High Return Rates: Since retailers may not always be convinced of the product's long-term potential, there can be higher chances of product returns or unsold stock being sent back.

Short-Term Gains: Push sales often lead to temporary sales boosts but lack long-term customer loyalty or engagement. They tend to be driven by immediate goals rather than sustainable growth.

What is Pull Sales?

Pull sales, on the other hand, are driven by consumer demand. In this approach, the focus is on creating a strong desire for the product among end consumers, which motivates them to actively seek out the product in retail stores.

Key Characteristics of Pull Sales:

Consumer-Centric: The focus is on creating consumer demand and building a relationship with the end user. Through targeted marketing campaigns, promotions, and brand-building efforts, pull sales strategies aim to get customers asking for the product directly from retailers.

Product Features and Benefits Focus: Unlike push sales, where pricing and discounts dominate, pull sales prioritize educating both the retailer and consumer about the product’s unique selling points (USPs) and benefits. This could include demonstrating how the product fulfills a specific need or improves the consumer’s lifestyle.

Retailer as a Facilitator: In pull sales, retailers act as facilitators rather than the target audience. The consumer demand for the product drives retailers to stock and sell it, and the retailer is motivated by the demand they receive from customers.

Long-Term Engagement: Pull sales strategies focus on building long-term relationships with both consumers and retailers. Once a retailer is confident in the consumer demand for a product, they are more likely to maintain consistent stock levels, leading to repeat purchases and brand loyalty.

Lower Return Rates: Since consumers are already asking for the product, the likelihood of returns or unsold stock is significantly reduced. This leads to more consistent sales over time.

Comparing Push vs. Pull Sales

Which Strategy Should You Choose?

While push sales can deliver quick, immediate results, pull sales offer more sustainable growth and long-term success. If you're looking to create a brand that consumers trust and seek out, pull sales are a more strategic choice. It’s not just about getting your product in stores; it’s about creating demand and educating consumers on why your product is the solution to their needs.

By focusing on pull sales, you’re ensuring that retailers are not just selling your product because they were incentivized, but because they know there is consistent demand from the consumer. This method builds lasting relationships with both consumers and retailers, ensuring your product remains on the shelves for years to come.

Conclusion

In summary, push sales are great for immediate goals and short-term boosts, while pull sales lay the foundation for long-term growth and sustainability. To maximize your success in the FMCG market, consider adopting a pull strategy, focusing on consumer demand, and building strong brand loyalty. Understanding the nuances of push and pull sales strategies will help you fine-tune your approach to achieving consistent and reliable sales performance.

FAQ

1. Can push and pull sales strategies be used together?
Yes, many FMCG brands use a mix of both strategies. Push sales help establish retailer relationships and initial distribution, while pull sales build consumer demand for long-term sustainability.

2. Which strategy is better for a new FMCG product?
For new products, push sales can help with initial market penetration and placement in stores. However, to sustain growth, incorporating pull sales strategies to generate consumer demand is crucial.

3. How can an FMCG company transition from push to pull sales?
Companies can transition by investing in marketing efforts such as brand awareness campaigns, influencer collaborations, and customer education initiatives to create demand-driven sales.

4. Are pull sales strategies more expensive than push sales?
Initially, pull sales strategies can require more investment in marketing and branding. However, they provide long-term benefits, reducing dependency on discounts and promotional costs.

5. What role does digital marketing play in pull sales?
Digital marketing is a key driver in pull sales, helping to create brand awareness, educate consumers, and generate direct demand through online engagement, content marketing, and social media campaigns.