Exclusive Distribution
Giving exclusivity enables the channel member to associate your product more closely with the channel member's other products. With exclusivity, they channel member will typically have more motivation to push the product to the next level of distribution or to the consumers.
Exclusive Distribution- Elements of Tradeoffs
Possible easier to sell in
Higher control
Higher margins for all
Less competition at point of sale
More push in store
Less coverage
More association with channel
Members attributes
Possible guaranteed minimum sales
Higher control
Higher margins for all
Less competition at point of sale
More push in store
Less coverage
More association with channel
Members attributes
Possible guaranteed minimum sales
Selective Distribution
Selective distribution is the conceptual middle between exclusive and intensive distribution. This allows some to resell the product but by not allowing everyone to carry the product you retain some control as to how it is resold.
Selective Distribution-the conceptual middle between exclusive and intensive distribution
Resellers compete
Less reseller loyalty
Less reseller loyalty
Intensive Distribution
Intensive distribution allows anyone who wants to carry the product to do so. The objective is to be everywhere the end customer might be and possibly buy the product offering. This is a good option for impulse purchases, such as candy and snacks. The consumer does need to know the product exists and see the value in it.
Intensive Distribution-the opposite extreme in the options
High Coverage
Convenience
Lower Control
Less Push in store
More mass pull needed
More Coverage
Faster Sales Cycle Possible
Convenience
Lower Control
Less Push in store
More mass pull needed
More Coverage
Faster Sales Cycle Possible