Intensive distribution is when a business ignores market segmentation and decides to supply their product to every market available.
The idea of intensive distribution is that your product can be found anywhere where a person shops, so that the product will be available for as many customers as possible.
Mostly, the intensity distribution is essential where consumers have several brands to choose.
To put it differently, if your favorite brand isn’t available, you still have the option to choose another.
Furthermore, this strategy is more useful for products like the beverage, soda, and cigarettes where distribution is a key success factor. Because, particularly, these products are available everywhere. For instance, restaurants, hotels, grocery stores and supermarkets.
Intensive Distribution Strategy
Intensive distribution strategy is widely used by world-leading organizations.
But, before deciding to implement the strategy into our own companies, it’s essential to determine, whether our resources are enough to pull it out because financial problems may restrict our business from further development.
Moreover, to implement an intensive distribution strategy, it’s important to have large capacity because delivering our products to the world-leading markets like Walmart is really costly and hard.
So why exactly is intensive distribution strategy useful? After discussing the advantages and disadvantages of intensive distribution, you’ll understand how exactly it can be beneficial.
Advantages of Intensive Distribution
The best practice of intensive distribution is to choose a product that corresponds with everyday needs.
For instance, toothpaste, cigarettes, soap, etc. are products that will perfectly fit with mass marketing strategy because these are common things that can be found in any type of store.
Money – The more ground you cover, the more product you carry and the more product you sell will positively affect your revenue.
Furthermore, manufacturers often link the potential of their earnings to product location is stores because the more visible it is, the more chances are to sell them.
Product Awareness – One of the main reasons of using intensive distribution strategy is that it has the ability to increase product awareness.
When your product is visible in every store, consumers start to build trust and recognize your product as an authority and an authentic brand.
Impulse Buying – Many marketers disagree that impulse buying is profitable and effective, but considering that if certain brands aren’t available, customers often select products that a bit less recognized for them.
So, impulse buying is definitely beneficial.
Benefits to Retailers – Besides the producers, retailers also find huge benefits from selling intensive distribution products because their selection rises and customers interact more often with the organization due to knowing that the company definitely has what they’re looking for.
For example, the variety that Wal-Mart offers increases customer satisfaction and the authority of the retailer dramatically expands.
Benefits to Customers – When a consumer enters a store he has only two intentions, to buy the product he came and to know that he had the option to choose others.
To make it clear, it’s like balancing between “Walmart has my favorite chips” and “there’s an awesome chips selection at Walmart.”
So, consumers want to have both and this strategy is perfect to satisfy their needs and desires.
Benefits to Manufacturer – The producer itself is the first one who wins from intensive distribution because the organization is receiving high revenues and is steadily growing its reputation and authority.
For example, Pepsi-Cola is a brand that is seen everywhere and is recognized by everyone.
So, it’s highly possible that Pepsi-Cola may have one of the biggest numbers of loyal customers because wherever they go, they know that they can always buy their favorite drink.
Disadvantages of Intensive Distribution
Despite the huge benefits intensive distribution carries, it still has some disadvantages and risks.
Money – When a manufacturer decides to market his product everywhere, he has to consider that prices vary by retailer locations, but the product distribution costs don’t necessarily change.
So, it’s crucial to consider the fact of location because it may severely damage your organization.
Low Prices and Margins – Most of the products that are intensively distributed are low-cost products with low margins, so before deciding to implement mass marketing strategy, it’s vital to thoroughly analyze your product and decide, whether it’ll bring extra revenue or not.
Retailer Control – Due to the fact, that the majority of retailers will be far away from you, it’s hard to supervise them and some unwanted things may happen, for instance, lost products.