There are three types of distribution that can be used to make all products accessible for the consumers’ i.e. Intensive distribution, selective distribution and exclusive distribution. Whenever a generic product is faced with a problem of differentiation and retention, the intensive distribution is used as a marketing strategy for such products where it is made available to customers from all sorts of sources possible with the help of various distribution channels. The customer is encountered with all the products which are available in shopping malls, discount stores, general stores etc. The brand retention will persist as the customer doesn’t have to look for a product as it’s already been made available in the market to serve the customer’s needs.
The products that are sold out intensively are usually low priced or impulse purchase products. In the intensive distribution strategy, the seller’s unit costs for stocking the products are low and the ease for consumers is also seen as a critical part. The idea behind this strategy is that by making all the products readily available in the market is to boost more sales. The customers are not targeted based on their specific demographic segment necessarily. The intensive distribution becomes appropriate for products like chewing gum, bread, candy bars, soft drinks, salt, soaps etc where the key factor behind the purchasing decision is convenience.
[large]The best way to implement an intensive distribution strategy is to sell products that are in everyday use and that are purchased frequently. For instance, toothpaste are made in the factory but all common brands that sells toothpaste place them in every grocery store, drug store on any other place which is more convenient to the customer. The company that are selling their products through intensive distribution strategy also has a lot of benefits as their name and brand image gets well recognized and helps them to establish brand loyalty as well. The benefit for the retailer lies where more carrying the product items of one brand the more they will be perceived as having a great selection in all local grocery superstores. This creates a sense of satisfaction for the customers and gives the retailer an opportunity to establish a positive reputation with the customers and producers in a similar way.
The intensive distribution strategy offers customers to have both choices and to get what they actually want without looking at any other way. Intensive distribution provides any product a household name and it’s beneficial to everyone who is involved. After a successful implementation of this strategy, it results as a huge increase in sales, as part of the production process the manufacturer builds the reputation of a brand with the consumers which in turn makes the consumers to attach with one well known brand name every time. The intensive distribution is not involved in any other approaches of marketing rather it adopts an ancillary approach where it works on creating consumer awareness about the product and persuade consumers to pay more attention towards advertisements, print media ads that flaunt the benefits of a product simply because the consumers get to see the products wherever they go.