Intensive distribution is the highest level of product availability. This strategy is typically motivated by a concern for customer convenience. For instance, items like a bag of chips or a soda must be readily available for consumers to purchase them. Otherwise, theyll buy some other version or option,.
Advantages of intensive distribution
Intensive distribution can have many advantages for a business. These benefits primarily focus on enhancing customers’ interactions with a product and its benefits. Some common advantages to intensive distribution include:
Increases brand awareness
Making products widely accessible increases the likelihood that customers will see the product, logo, and other marketing materials. Customers may become more familiar with the product and its uses as a result of this repetition. By raising brand recognition in this way, potential customers are more likely to remember the product the next time they require something it provides.
Increases brand loyalty
Customers can be assured they can buy a product whenever they need it by having it available wherever they go. Customers are more likely to make subsequent purchases when a product meets their needs or wants when a company is reliable. Additionally, brand loyalty fosters a connection with consumers and helps make products a part of their daily routines.
Improves sales
The primary goal of intensive distribution is selling more products. The likelihood of selling a product increases when it is accessible to as many customers and in as many outlets as possible. It can assist customers in purchasing the product every day or as needed because intensive distribution frequently involves goods made for daily or single use.
Helps product become alternative option
Customers benefit from having options because many products with intensive distribution are items they purchase on a regular basis. The brand they typically purchase might run out. When this occurs, they can choose from other brands. A product’s extensive distribution makes it a viable alternative for more consumers, which can help the brand attract new customers.
What is intensive distribution?
A marketing tactic known as “intensive distribution” entails making a company’s products accessible to customers in as many locations as possible. This typically entails selling the item in as many retailers as possible. Typically, businesses that use intensive distribution sell their goods to both small, neighborhood stores and big, national chains. This increases the likelihood that a customer will discover the product when they need it, potentially increasing sales.
Disadvantages of intensive distribution
Intensive distribution can also have some disadvantages. Numerous drawbacks relate to the logistics required to produce and distribute goods to as many outlets as possible. Some common disadvantages of intensive distribution include:
Requires a large inventory
Having a large supply of goods to sell makes it easier to distribute goods to numerous locations. This might entail paying for resources, labor, and storage. Even though it can be expensive to produce and ship such a large quantity, it can help put the product in front of lots of potential customers.
Uses complex distribution channels
Building a vast distribution network can be necessary to get a product into as many stores as possible. All the wholesalers and distributors who transport and market the product to retailers can be a part of a distribution channel. Additionally, it may include all retailers who offer the product to customers. It can take some time to plan the logistics and establish business ties with every company along the way when creating such a vast network.
Doesnt guarantee sales
Putting a product in front of customers cant guarantee sales. So, spending the money on intensive distribution is inherently risky. However, it can help increase the likelihood of more sales and aid consumers in connecting a brand with a necessity item. Before deciding whether intensive distribution is the best course of action for your brand, research consumer habits, focus groups, or risks and rewards.
Involves low-priced goods
Products made for extensive distribution frequently have low price points due to their frequent use. This could imply that the profit margins for each sale continue to be low. Despite this, it’s still possible that the distribution plan will boost sales enough for your business to benefit from it.
Examples of intensive distribution products
It helps to have products that many people need for intensive distribution to sell many products to various types of customers. Selling a product that many customers buy frequently or in large quantities is advantageous because profit margins are typically low. Some examples of typical products sold through intensive distribution include:
Example of an intensive distribution model
Intensive distribution may involve a supply chain that consists of numerous companies, each with their own set of capabilities. Typically, each company plays a distinct role in transporting the product from the manufacturer to the customer. A typical intensive distribution channel might look like this:
The manufacturer
Intensive distribution usually begins with the manufacturer. A soft drink company, for instance, might create and market a soda that they want to sell to consumers. After producing the soda, the company has two options for distributing it: either doing it themselves or finding and hiring a shipping company to do it.
The manufacturers distributor
The product may be picked up from the warehouse by just one primary distributor for the soft drink company. They can also establish connections with numerous distribution businesses to arrange for the pickup of goods from numerous production facilities across the nation, thereby reducing the time needed for distribution. In either case, the distributor typically sends a wholesaler the product of the soft drink company.
The wholesaler
A wholesaler purchases products from manufacturers to sell to stores. Usually, wholesalers have agreements or contracts with various shops to purchase goods they can then resell to customers directly. Once more, the wholesaler has two options for distributing the product: either doing it themselves or hiring a distributor to do it.
The wholesalers distributor
Taking the soda from the wholesaler to the retailer is the following distribution stage. Trucks may deliver goods along a delivery route to numerous stores as part of this distribution. When the item arrives at the store, it frequently goes straight to the shelf for sale.
The retail stores
The product frequently arrives at numerous stores spread out over a large area at the channel’s end. In the case of intensive distribution, this might entail shipping goods to retail locations across the whole nation. Customers can buy the sodas directly from the shelf for their own use in the given example.
Marketing – Intensive Distribution
FAQ
What is example of intensive distribution?
An illustration of an intensive distribution model is the production and marketing of a soda by a soft drink company in an effort to sell it to consumers. After producing the soda, the company has two options for distributing it: either doing it themselves or finding and hiring a shipping company to do it.
What is an intensive channel of distribution?
Intensive distribution is a marketing tactic that entails distributing the product through every channel that can be used. With this strategy, businesses focus their sales efforts on getting the product into as many locations as they can.
What is extensive distribution?
Extensive distribution is a distribution strategy that aims to inform many people about a particular product or product line. This distribution strategy’s complexity enables it to target a variety of delivery channels for the best outcomes.
What is intensive and extensive distribution?
Exclusive distribution is when a company or producer partners with just one or two retailers to sell their goods, whereas intensive distribution refers to the distribution strategy in which the producer of the goods appoints multiple retailers to sell its products.
