Intensive distribution is a distribution strategy whereby a producer attempts to sell its products or services in as many retail outlets as possible within a geographical area without exclusivity. Show For more on defining your market and target customers, check out How to Do Market Research, Market Research Resources for Entrepreneurs, and How to Define Your Target Market.
Intensive distribution is a distribution strategy for generic products where a product is made available to all customers. Intensive distribution uses all the possible sources by utilizing different distribution channels so that the customer gets the product at every possible location for shopping like general store, health store, discount store, shopping malls etc. This method of distribution is for goods or commodities which are generic in nature. Sometimes a generic product is having problem of differentiation and retention by the customer is difficult for such product. The problem of brand retention will not be there as customer doesn’t have to be aware for that product, the availability of the product will serve the customer need. Importance of Intensive DistributionIntensive Distribution is important for products of high demand and daily use like soft drinks, bath soaps, tooth brush, match box etc. Here the customers do not identify with different brands and attributes. Soap is a good example of intensive distribution. Even if there are different soap brands and customers recognize them. There are high chances that if their regular brand is not available and they need a soap they might pick another one which was available on the shelf in the store. Many a times, one brand marketing campaign can lead to a customer interest and if that brand is not available where the customer is, a competitor brand can get advantage to fulfill the customer interest. Advantages of Intensive DistributionSome advantages are: 1. Products are distributed across all geographies. 2. Goods are available in large quantities at multiple outlets. 3. Brand visibility is very high as these products are present at every store. ExampleSome examples of intensive distribution are goods that we use daily. Products like biscuits, wheat, chocolates, shaving cream, soaps, soft drinks etc are all product categories which use this type of distribution. These products are sent by manufacturers to multiple wholesalers across different geographies, who then distribute the products across all different retail outlets. Hence a large network is formed and the products are widely available. Hence, this concludes the definition of Intensive Distribution along with its overview. This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only. Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories. Continue Reading: « Integrated Marketing Communications (IMC) Interindustry Competition » Share this Page on:
Definition: Intensive distribution is a marketing strategy that involves placing the product in every available distribution channel. Under this approach, companies direct their sales efforts to position the product into as many places as possible. What Does Intensive Distribution Mean?This marketing approach applies mostly to mass-produced goods that have no specific market segment, since they are bought by almost everyone. By employing this method, companies take advantage of being constantly present in customer’s everyday life since products will probably be available at retail shops, supermarkets, wholesalers, small shops, kiosks, restaurants and many other establishments. In order to engage in this strategy companies have to produce a large quantity of goods to be able to place them effectively to cover its target geographical area, which is normally the most important segmentation that takes place under this technique. On the other hand, these companies will have to deal with many different customers with different business realities and dynamics. This is very challenging to the manufacturer but since intensive distribution is a procedure that is normally employed by big firms and large brands, customers are the ones that desire to commercialize the product, therefore the manufacturer can demand certain conditions to be met in order to do business. ExampleEnergize Drinks Co. is a company that produces energetic beverages for common athletes and people demanding considerable hydration into their diet or every day journey. The company commercializes a widely known brand called “Powerfill”. This brand is constituted by many different drinks offered to customers in different flavors and presentations. Since its beginnings, the company decided to pursue an intensive distribution strategy. They gathered enough funds to mass-produce the drinks and started by filling an entire town with the drinks. Each drug store, supermarket and food establishment offered Powerfill to their customers. This proved to be an effective strategy to position the brand positively and it created more opportunities for the company to expand to other geographical area.
In order to continue enjoying our site, we ask that you confirm your identity as a human. Thank you very much for your cooperation. 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. Virtually, a customer will be able to find the product everywhere he goes. Soft drinks and cigarettes are some of the examples on which intensive distribution is followed. Description: Under the intensive distribution strategy, all the possible outlets can be used by a company to distribute the product. It creates brand awareness of the product as well as boost sales. This method is particularly useful for products like soft drinks, cigarettes etc. There are various advantages of intensive distribution. First, it increases the supply of the product which raises the chances of more sales. More sales mean more revenues for the company. Another advantage is that a company is able to analyse the source of sale, whether a product is more in demand from local vendors or hypermarket type stores. With this data, the company can further plan out its promotional efforts to boost sales and increase the presence of the product. Looking at the data, a company can also analyse the causes of its failure in increasing its sales at some locations. In that case either it can cut down on the distribution or increase marketing efforts to build brand awareness. |