Intensive distribution

Definition

Intensive distribution is a marketing strategy aimed at making products available at as many outlets as possible to maximize consumer access. This approach focuses on ensuring that products are readily accessible in numerous retail locations, thus increasing the chances of purchase. It’s commonly used for products that have a high turnover rate and appeal to a broad audience, allowing companies to reach a larger market quickly.

5 Must Know Facts For Your Next Test

1. Intensive distribution is most effective for low-cost consumer goods like snacks, beverages, and household items, where the goal is to achieve high market penetration.
2. This strategy can lead to increased brand recognition and loyalty, as consumers are more likely to encounter the product frequently in various locations.
3. Companies using intensive distribution often need to manage relationships with a wide range of retailers, which can complicate logistics and inventory management.
4. Intensive distribution can increase competition among retailers for shelf space, sometimes leading to price wars or promotional battles.
5. The overall goal of intensive distribution is to ensure that customers can find and purchase the product easily, which ultimately boosts sales volume.

Review Questions

• How does intensive distribution impact consumer purchasing behavior compared to exclusive or selective distribution strategies?
  • Intensive distribution significantly influences consumer purchasing behavior by providing greater accessibility to products. When consumers can easily find products in multiple locations, they are more likely to make impulse purchases. In contrast, exclusive or selective distribution may limit access, potentially reducing the frequency of purchases as consumers might not go out of their way to seek out specific brands that are harder to find.
• Discuss the advantages and challenges associated with implementing an intensive distribution strategy for a new snack product.
  • Implementing an intensive distribution strategy for a new snack product offers several advantages, such as maximizing product availability and increasing brand visibility across various retail locations. However, challenges include managing relationships with numerous retailers, ensuring consistent supply and inventory levels, and facing increased competition for shelf space. Balancing these factors is crucial for success in reaching a broad consumer base while maintaining operational efficiency.
• Evaluate how a company might measure the effectiveness of its intensive distribution strategy over time and adapt accordingly.
  • To measure the effectiveness of its intensive distribution strategy, a company can track key performance indicators such as sales volume per location, market share growth, and consumer feedback regarding product availability. Analyzing these metrics allows the company to assess whether the strategy is meeting its goals. If certain locations underperform or if consumers report accessibility issues, the company can adapt by adjusting its distributor relationships, optimizing inventory management, or reallocating marketing resources to enhance visibility in key markets.

Related terms

exclusive distribution: A distribution strategy where a manufacturer grants exclusive rights to one or a few retailers to sell its products in a specific geographic area.

selective distribution: A distribution strategy that involves selling products through a limited number of retailers in certain locations to enhance brand image and control quality.

channel of distribution: The path through which goods and services travel from the vendor to the consumer, including intermediaries such as wholesalers and retailers.