Intensive Distribution

Intensive distribution is a marketing strategy that seeks to make a product widely available through as many retail outlets as possible. The goal of the intensive distribution is to increase the accessibility and convenience of the product for consumers, thereby increasing sales and market share. This strategy is often used for fast-moving consumer goods (FMCG).

The wide availability of the products can increase brand loyalty and expand the customer base. The intensive distribution strategy can also involve mass production and selling products in small kiosks and foreign markets. However, it is not the only way for a company to implement this strategy, as the distribution channels may vary depending on the product type, target market, and competition.

• Intensive distribution aims to make the product available in as many retail outlets as possible to reach many consumers.
• This strategy involves partnering with many retail outlets, from small local stores to supermarkets and shopping malls.
• It often involves mass-producing the product to reduce the unit cost and make it more affordable for consumers.
• The strategy focuses on providing consumers easy access to the product to increase sales and market share. In addition, the strategy aims to increase brand visibility, improve accessibility, and ultimately increase sales and profits for the company.

Intensive distribution originated in the mid-20th century as a response to the increasing competition in the consumer goods market. With the growth of mass production and mass marketing, manufacturers sought to increase the availability of their products to as many consumers as possible. The aim was to make their products more accessible than their competitors, thereby gaining an advantage in the market.

Intensive distribution involves a high effort, with products being made available through many retail outlets. This approach is particularly relevant for fast-moving consumer goods (FMCG) such as snacks, soft drinks, and personal care products, which aim to provide widespread accessibility and convenience to consumers.

Over time, intensive distribution has become a widely adopted strategy, especially in markets with high competition and consumer demands constantly evolving. By partnering with multiple distributors, manufacturers can ensure their products are available in as many locations as possible, thereby maximizing their reach and sales potential.

Let us look at the examples to understand the concept better: 

Example #1

Fast-moving consumer goods (FMCG) are distributed using an intensive distribution strategy. The goal is to make these products readily available to consumers at any time and place. For example, a well-known soft drink brand may be found in convenience stores, supermarkets, gas stations, vending machines, and public places. This high level of accessibility and availability is achieved through partnerships with numerous distributors, who place the products in as many locations as possible.

Example #2

Electronic devices such as smartphones and laptops also use intensive distribution to maximize product availability. These products are typically sold through various retail channels, including large electronics stores, online marketplaces, and small independent stores.

By partnering with a wide range of retailers, manufacturers of these devices aim to make their products easily accessible to consumers, regardless of their location or preferred shopping method. The intensive distribution strategy also allows manufacturers to tap into the customer base of each retailer, increasing their market reach and overall sales.

Advantages & Disadvantages

The advantages and disadvantages of intensive distribution are as follows:

Advantages

• High brand visibility.
• Increased market coverage.
• Improved product accessibility.
• Stronger customer loyalty.
• Better control over product distribution.

Disadvantages

• High costs for manufacturer and distributor.
• Limited brand differentiation.
• Difficult to maintain quality control.
• Conflict with other distributors.
• Increased competition in the market.

Selective and intensive distribution are two different types of distribution strategies that a company can use to get its product to the market.

• Selective distribution: In selective distribution, a company chooses to distribute its product through only a limited number of outlets that are carefully chosen for their reputation, location, and customer demographic. This strategy is often used when the product is seen as premium or high-end, and the company wants to control how it is marketed and sold to consumers.

• Intensive distribution: A company places its product in as many outlets as possible, including supermarkets, convenience stores, and discount stores. This strategy aims to make the product widely available and accessible to many consumers.

In summary, selective distribution is used when a company wants to target a specific market segment and maintain control over the marketing and distribution of its product. In contrast, intensive distribution is used when a company wants to maximize the availability and accessibility of its product to the market.

The main difference between intensive distribution and exclusive distribution is explained below:

• Intensive distribution: A company distributes its products in the maximum possible outlets to increase the customer base and reach a wider audience.

• Exclusive distribution: In exclusive distribution, a company restricts its product distribution to only a few high-end outlets. This strategy is used when the company wants to maintain a premium image for its product and limits access to only consumers willing to pay a premium price.

In summary, intensive distribution is used for products that are meant for mass consumption, while exclusive distribution is used for premium or luxury products.

This article has been a guide to what is Intensive Distribution. We explain its examples, comparison with selective and exclusive distribution, and advantages. You may also find some useful articles here -

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