Distribution of a business product has different ways and each business firm chooses a distribution strategy according to the status of their product in the market. How much wanted a product is and how many enterprises are into the same business determines the mode of distribution. Intensive distribution is done in large scale and the volume of sale is also high, owing to the high scale of distribution. The businesses make sure that the product is available everywhere and is displayed in as many was as possible.
Factors like production capacity, size of the target market etc are taken into account before choosing a particular scale of distribution. The changing demands of the seasonal market are also crucial factors. Being available everywhere means being available online as well. The strength of online platforms has given a boost to online distribution business and companies that employ intensive distribution can get the help of these.
Why Choose Intensive Distribution?
If your product is a common one in the market and you are faced by a large number of competitors, you have to choose intensive distribution to stay afloat. The thing about a common product is that it is wanted by everyone and thus, people choose one or the other product. They don’t have to face scarcity of opportunity.
Intensive distribution makes sure that the product is available at all possible outlets and never runs out of stock. The easier it is for the customer to find your product; the better will be your sales and faster will be your growth. If a customer has specific brand choices, intensive distribution will make sure that the customer does not have to change his or her brand choices because the product is available always. It is through intensive distribution that a company earns brand loyalty.
Intensive distribution also benefits the retailers because they get more visitors if they sell more brands.
How Does Intensive Distribution Become Advantageous?
- When the sale volume increases, the profit earned also increases.
- When the products are available in more locations, the manufacturers find more ways to make profit.
- When the reach of product across locations increases, customers will become more aware about the products and they will start connecting with the commercials about the product.
- When more products adopt intensive distribution strategy, the choices that customers have increases. When retailers are able to offer more choices to their customers, their sale volume and thereby their profit increase.
What Kind of Products Chooses Intensive Distribution?
Products that everybody wants have intensive distribution as the best choice. This is why products like toothpaste, soaps, deodorants etc choose intensive distribution. The distribution companies work day in and out to ensure intensive distribution.