January 30, 2024

When Should Intensive Distribution Be Used by Marketers?

Intensive distribution is a marketing strategy that involves making your product available in as many outlets as possible within a defined market. It’s a common technique for FMCG and consumer durable goods manufacturers. You’ll see their products everywhere from supermarkets to convenience stores. They also use this approach to raise brand awareness. This is because customers begin associating print ads and commercials with products they regularly see in their local stores.

However, there are some significant disadvantages to this strategy as well. For one, it can be costly to make and maintain a large supply chain. Another is that sales can vary by retail location, which could cause losses. Additionally, it can be difficult to establish strong relationships with retailers. This is especially true when dealing with large, diversified chains that require multiple managers for each category of goods.

For these reasons, intensive distribution is generally used by larger companies with established sales channels. They can afford to have specialist account managers negotiate with different retailers. They can also work with 3PLs that are able to manage multiple warehouses and delivery contracts.

Despite these challenges, when implemented correctly, intensive distribution can be a great way to drive sales numbers to new heights. The key is to be prepared for the challenges and have a solid game plan before going all in.

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