Intensive distribution is a distribution strategy in which a company places its products in as many outlets as possible in a given market. This approach is typically used for products that have a high level of consumer demand, such as fast-moving consumer goods (FMCG) such as soft drinks, snack foods, and other everyday items.
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. This can help to increase sales and revenue for the company, as well as build brand recognition and awareness. However, it can also be expensive to implement, as the company must maintain relationships with a large number of outlets and provide regular supplies of the product.
Intensive distribution strategy example:
An example of a company using an intensive distribution strategy is a beverage manufacturer that produces a popular brand of soft drink. In order to make the product widely available to consumers, the company might place its drinks in supermarkets, convenience stores, gas stations, vending machines, and other outlets throughout the market. This would make it easy for customers to find and purchase the product, increasing the likelihood of sales and helping to build brand recognition.
However, implementing an intensive distribution strategy can be challenging for the company. In order to maintain relationships with a large number of outlets, the company must have a well-organized and efficient distribution network. It must also be able to provide a steady supply of the product to all of these outlets, which can be costly. Additionally, the company must compete with other brands for shelf space and visibility in each outlet. Despite these challenges, intensive distribution can be a effective strategy for companies with popular and in-demand products.
There are several advantages to using an intensive distribution strategy, including:
- Maximizing product availability: By placing products in as many outlets as possible, a company can make it more convenient for customers to find and purchase the product, which can help to increase sales and revenue.
- Building brand recognition and awareness: By having its products available in a large number of outlets, a company can increase its visibility and exposure to consumers, which can help to build brand recognition and awareness.
- Capitalizing on consumer demand: Intensive distribution is often used for products with high levels of consumer demand, such as FMCG. By making these products widely available, a company can capitalize on this demand and drive sales.
- Establishing relationships with outlets: By working with a large number of outlets, a company can establish strong relationships with these outlets, which can be beneficial for both parties. For example, the company can gain valuable insights into consumer behavior and preferences, and the outlets can benefit from the increased sales and foot traffic that the product brings.
