Intensive distribution is a marketing strategy that involves making a product available in as many retail outlets as possible to maximize its visibility and accessibility to consumers. This approach aims to ensure the product is readily available at the point of purchase, increasing the likelihood of impulse purchases and repeat sales.
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Intensive distribution is commonly used for fast-moving consumer goods (FMCG) and impulse purchase items, such as snacks, beverages, and basic household products.
This strategy aims to maximize product visibility and accessibility, making it easier for consumers to find and purchase the product at their convenience.
Intensive distribution often involves partnering with a large number of retailers, including supermarkets, convenience stores, drug stores, and mass merchandisers.
The goal of intensive distribution is to achieve widespread market coverage and ensure the product is available wherever the target consumers are likely to shop.
Maintaining control over the product's pricing and promotion can be more challenging with intensive distribution, as the manufacturer has less control over the retail environment.
Review Questions
Explain how intensive distribution supports the marketing mix strategy of a fast-moving consumer good (FMCG) product.
Intensive distribution is well-suited for FMCG products as it aligns with the marketing mix strategy of making the product widely available, easily accessible, and visible to consumers. By placing the product in as many retail outlets as possible, intensive distribution supports the product's availability and convenience, which are key factors for impulse purchases and repeat sales of FMCG items. This distribution approach complements the pricing, promotion, and product decisions made for the FMCG, ensuring the marketing mix is optimized to drive sales and meet consumer demand.
Describe how the level of channel intensity (intensive, selective, or exclusive) can impact a manufacturer's control over the retail environment and marketing of their product.
The level of channel intensity directly affects the manufacturer's control over the retail environment and marketing of their product. With intensive distribution, the manufacturer has less control as the product is made available through a large number of retailers, each with their own pricing, promotional, and merchandising decisions. This can make it more challenging to maintain consistent branding, pricing, and promotional strategies. In contrast, selective or exclusive distribution provides the manufacturer with greater control over the retail environment, allowing them to better manage the product's positioning, pricing, and marketing. However, this comes at the cost of reduced market coverage and potentially fewer sales opportunities.
Evaluate the tradeoffs a manufacturer must consider when deciding between an intensive, selective, or exclusive distribution strategy for a new product launch.
When launching a new product, the manufacturer must carefully evaluate the tradeoffs between an intensive, selective, or exclusive distribution strategy. Intensive distribution offers the widest market coverage and visibility, but the least control over the retail environment. Selective distribution provides a balance of market reach and control, while exclusive distribution maximizes control but limits market access. The manufacturer must consider factors such as the product category, target consumer, pricing strategy, and desired brand positioning to determine the optimal distribution approach. They must weigh the benefits of widespread availability and impulse purchases against the challenges of maintaining consistent branding, pricing, and promotional control. Ultimately, the distribution strategy should align with the overall marketing mix and business objectives to drive sales and profitability.
A distribution strategy where a product is only available through a limited number of authorized retailers, often to maintain brand exclusivity and control.
A distribution strategy that falls between intensive and exclusive, where a product is made available through a limited number of carefully selected retailers.
Channel Intensity: The degree of market coverage a product achieves through its distribution channels, ranging from intensive to exclusive.