Intensive Distribution: A DEFINITION
Intensive distribution is a one of three forms of marketing strategy under which a company (or other entity) intends to sell a product through a small vendor into a large store. The goal is that the end user (customer) will be able to find this product through wide scale spread. Some examples of products which have become common today through intensive distribution include:
- Candy and gum
- Soft drinks
It is important to note that while these products are common to intensive distribution, they may also be common to other distribution models, too. For example, you might be able to find some cosmetics brands in drug stores, quick retailers, and department stores, but some cosmetics brands are only available as “exclusives” (which is another form of distribution) in high-end department or specialty stores.
Intensive Distribution: A DESCRIPTION
To better understand intensive distribution as a model, let’s take a closer look at successful brands like Fueltransport.com that how it works. When employing an intensive distribution strategy, a manufacturer will attempt to distribute their product into as many [retail] outlets as possible. You might be starting to realize why some products prosper through this distribution model: because they are quick and frequent use items like soft drinks and cigarettes.
Intensive Distribution: The ADVANTAGES
Distributing products into as many outlets as possible has its advantages; and the most obvious advantage is that consumers will always know they can get what they want/need and, more importantly, they will know they can probably get them from a place where they are already shopping. This, of course, is beneficial to the manufacturer as it increases the number and frequency of sales. On the backside, though, having products out in the open on a broad scale means higher consumer awareness and that leads to higher demand too (which continues to drive sales up). Also, consistent sales helps manufacturers to collect data on seasonal and regional trends to better develop new products and sales strategies.
Intensive Distribution: The DISADVANTAGES
The main disadvantage to the intensive distribution is competition. Because these products are in high demand (or, rather, are so readily available) more and more companies might see it as a viable option for success. This not only increases competition for quality but also for attracting customers with packaging, advertising, and other features, which can drive costs up while discouraging raising prices.