What is intensive distribution strategy. What Is Intensive Distribution Strategy? Example & Advantages 2022-11-07

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Intensive distribution is a marketing strategy in which a company distributes its products through as many channels as possible in order to maximize its reach to potential customers. This strategy is often used for products that have a wide appeal and are considered essential or convenient for daily use, such as household products, snacks, and beverages.

The main goal of intensive distribution is to make a product as widely available as possible, so that it is convenient for consumers to purchase. This is achieved by placing the product in as many stores and outlets as possible, including supermarkets, convenience stores, gas stations, and other retail locations. By increasing the number of places where a product can be purchased, a company can increase the likelihood that a potential customer will encounter and purchase their product.

One advantage of intensive distribution is that it allows a company to reach a large and diverse customer base. This is particularly useful for companies that want to appeal to a wide range of demographics, including different age groups, genders, and income levels. By making their product available in a variety of locations, a company can increase the chances that their product will be seen by a potential customer.

Intensive distribution can also be an effective strategy for introducing a new product to the market. By making the product widely available, a company can quickly build brand awareness and generate buzz about the product. This can be especially helpful for companies that are trying to differentiate their product from competitors and establish themselves as a leader in their industry.

However, intensive distribution can also be costly for a company, as it requires significant resources to manage and maintain relationships with multiple distribution channels. In addition, the proliferation of a product in many locations may lead to price competition and lower profit margins.

Overall, intensive distribution is a marketing strategy that aims to increase the availability and accessibility of a product to potential customers. By making their product widely available, a company can increase its reach and appeal to a large and diverse customer base. However, intensive distribution also has its challenges and can be costly for a company to implement.

Know the Advantages and Disadvantages of Intensive Distribution?

what is intensive distribution strategy

Whereas a premium clothing brand like Gucci or Versace will have maybe 3-5 outlets at Once again, such a distribution strategy is not categorized based on the length of its distribution channel but rather on the basis of its marketing strategy. How does KFC distribute their products? This can help to increase sales and revenue for the company, as well as build brand recognition and awareness. Because of its complexity, this distribution strategy is able to target a number of delivery channels for maximum results. Let us go to the next paragraph and learn more about this topic. This can be a retailer, wholesaler, or distributor.

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What is intensive strategy example?

what is intensive distribution strategy

Intensive distribution is the answer to this problem. Depots ensure that small shops, supermarkets, and relevant businesses have an adequate supply. Intensive Distribution Strategy Companies must develop effective distribution strategies to ensure the efficient delivery of goods and services to the consumer. The objective of distribution strategies is to maximize revenue, reduce distribution costs and maintain customer loyalty. Which is the most common form of distribution intensity used today? Intensive Distribution Strategy Goal: The goal of intensive distribution is to maximize the availability of the product, making it convenient for customers to find and purchase.

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Advantages and Disadvantages of Intensive Distribution

what is intensive distribution strategy

Eliminate out-of-stocks and lost sales The intensive distribution also helps eliminate out-of-stocks, lost sales, and customer dissatisfaction. It may include a selling platform such as an e-commerce store, but as long as the length of the distribution channel is minimal the process will be considered as a direct distribution process. The vehicles are available at several different dealerships across the country and at some larger retail stores, such as Walmart and Target. Additionally, the company must compete with other brands for shelf space and visibility in each outlet. The Coca-Cola Company 1 The company operated under a franchise distribution model since 1889 and was incorporated in 1892. It is available practically everywhere you turn, from convenience stores to gas stations to major grocery chains and even in a drug store.

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What is Intensive Distribution?

what is intensive distribution strategy

There are three distribution strategies: intensive distribution; exclusive distribution; selective distribution. However, implementing an intensive distribution strategy can be challenging for the company. When distributing products high in demand or used daily, such as matchboxes and soaps, this strategy is key. One such strategy is intensive distribution. Unlike intensive distribution, extensive distribution focuses on market penetration. The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales.

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What Is Intensive Distribution? Strategies & Examples

what is intensive distribution strategy

Why is intensive distribution strategy important? Definition: Intensive distribution is a form of marketing strategy under which a company tries to sell its product from a small vendor to a big store. Although there are advantages and disadvantages to intensive distribution, the success of the product is limited to the resources the manufacturer has available. Customers can buy the sodas directly from the shelf for their own use in the given example. Well, first, money is an obvious answer. Definition: Intensive distribution is a form of marketing strategy under which a company tries to sell its product from a small vendor to a big store. Uses complex distribution channels Building a vast distribution network can be necessary to get a product into as many stores as possible. These changes have created a need for a flexible, responsive supply chain that can react quickly to market demands.

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What Is Intensive Distribution? Definition and Examples

what is intensive distribution strategy

Direct Distribution Strategy Direct distribution is exactly what it sounds like, the manufacturer directly selling to the consumer. However, they are not just marketed in specialty stores, such as Toys R Us. When products are placed in many locations, it becomes recognizable. Disadvantages of intensive distribution Intensive distribution can also have some disadvantages. It will fit perfectly if a manufacturer can produce many goods and send them to retail and wholesale selling points across a geographic region. What is extensive distribution? All the wholesalers and distributors who transport and market the product to retailers can be a part of a distribution channel.

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What is Distribution Strategy

what is intensive distribution strategy

Is Coca-Cola intensive distribution? Explore the advantages and disadvantages of the intensive distribution strategy through real-world examples of retailers who use it, like Wal-Mart and Target. Another product distributed using this strategy is newspapers which can be bought in multiple outlets. The process results in brand loyalty and trust because the products are made available in multiple shops and establishments. Large stores, such as Walmart or Target, are often hard for companies to get their products into, which could limit a company's ability to distribute its products. The next trait is that the approach requires multiple wholesale and retail locations. Because of its complexity, this distribution strategy is able to target a number of delivery channels for maximum results. Virtually, a customer will be able to find the product everywhere he goes.

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Intensive Distribution: Definition, Strategy & Examples

what is intensive distribution strategy

Based on our discussion above, we can find several large brands that use the intensive channel. On the other hand, these companies will have to deal with many different customers with different business realities and dynamics. If the plan fails to increase sales, the project becomes a loss-making venture. Meanwhile, we want to describe the characteristics of the intensive distribution. What should be included in an intensive growth plan? Why is intensive distribution strategy important? What is intensive distribution? What type of distribution channel is mcdonalds? Intensive distribution allows consumers to discover and trust products from different companies. Products that use the intensive distribution strategy are often interchangeable.

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Intensive Distribution: Importance, Strategy & Case study [All you need to know]

what is intensive distribution strategy

As a result, KFC covers both — online and offline deliveries. An intensive distribution strategyinvolves marketing a product using any applicable technique. This helps the restaurant increase its sales and eventually the total revenues. Practically, intensive distribution is applied to mass-produced products and does not have a specific target market. He has more than 20 years of experience leading the IT department for the Distribution, Retail, and Manufacturing business.


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