Definition: Intensive distribution is a marketing strategy that involves placing the product in every available distribution channel. Under this approach, companies direct their sales efforts to position the product into as many places as possible.
What Does Intensive Distribution Mean?
This marketing approach applies mostly to mass-produced goods that have no specific market segment, since they are bought by almost everyone. By employing this method, companies take advantage of being constantly present in customer’s everyday life since products will probably be available at retail shops, supermarkets, wholesalers, small shops, kiosks, restaurants and many other establishments.
In order to engage in this strategy companies have to produce a large quantity of goods to be able to place them effectively to cover its target geographical area, which is normally the most important segmentation that takes place under this technique. On the other hand, these companies will have to deal with many different customers with different business realities and dynamics. This is very challenging to the manufacturer but since intensive distribution is a procedure that is normally employed by big firms and large brands, customers are the ones that desire to commercialize the product, therefore the manufacturer can demand certain conditions to be met in order to do business.
Energize Drinks Co. is a company that produces energetic beverages for common athletes and people demanding considerable hydration into their diet or every day journey. The company commercializes a widely known brand called “Powerfill”. This brand is constituted by many different drinks offered to customers in different flavors and presentations. Since its beginnings, the company decided to pursue an intensive distribution strategy.
They gathered enough funds to mass-produce the drinks and started by filling an entire town with the drinks. Each drug store, supermarket and food establishment offered Powerfill to their customers. This proved to be an effective strategy to position the brand positively and it created more opportunities for the company to expand to other geographical area.