Distribution Strategies

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A Presentation about the Distribution Strategies (Exclusive, Intensive and Selective distribution).

Cooperating with Mrs. Mengzhen Wan and Mrs. Tao Yi.

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  • Few years ago I started a business, which was quite competitive and it was NEARLY impossible to increase sales. So, after a bit of digging, I found out about intensive distribution and surprisingly, my sales increased by 12%. This quite good of a strategy.
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  • Good and detailed presentation
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Distribution Strategies

  1. 1. AgendaExclusive distributionIntensive distributionSelective distribution
  2. 2. Exclusive Distribution -Few intermediaries(usually only one with more control ) -When a single outlet is given an exclusive franchise to sell the product in a geographic area, the arrangement is referred to as exclusive distribution. Products such as specially automobiles, some major appliances, certain brands of furniture, and lines of clothing that enjoy a high degree of brand loyally are likely to be distributed on an exclusive basis.
  3. 3. Exclusive distribution Advantage: More control the market, more aggressive middleman, provide the products with a prestigious image because it can’t be found everywhere, high brand loyalty Disadvantage: difficult to build and maintain a high level of brand image, betting on one dealer in each market, only suitable for high price & margin & low volume products
  4. 4. A channel that the manufacturers choose a certain amount ofmiddlemen (similar) to sell the products according to certainqualification. Usually formed by stronger middlemen, sincethey can maintain the credibility of the manufacture of thebrand more effectively and establish a stable market andcompetitive advantage.
  5. 5. LI-NING SPORTS EXCLUSIVE STORE SPORTS DEPARTMENT STORE DEPARTMENT STOREMANUFACTURE LARGE SCALE EMPORIUM RETAIL STORE OUTLET
  6. 6. Advantages Disadvantages Difficult for enterprises to achieve a variety of business objectives in relaxed conditions of the marketing environment,save expenses, improve marketingefficiency, control the marketing. lack of adaptability to goods that are not selectived, enterprise has to provide more services to selected middlemen,a certain risk
  7. 7. A marketing strategy under which a company sellsthrough as many outlets as possible, so that theconsumers encounter the product virtually everywherethey go: supermarkets, drug stores, gas stations, andthe like. Soft drinks are generally made available thruintensive distribution. Source: BusinessDictionary.com
  8. 8. Intensive Distribution Strategy of Pepsi Cola PepsiCo, a world leader in convenient snacks, foods and beverages, has a plan that places their soft drinks products in many different locations for distribution. Pepsi-Cola products are used every day and replaced often may be found in dozens of different retail outlets in any given area. The purpose of this type of strategy is to put so much of a soft drink (e.g. Pepsi Max) in so many locations that a customer will come across the product frequently, making it easy for them to remember and buy the product.
  9. 9. Benefits of Intensive Distribution Strategy Benefits to Pepsi Co Pepsi Co in the first place benefits greatly from intensive distribution. Their products and their brand name is seen everywhere and is available everywhere. It can easily become the recipient of product loyalty if a customer knows that no matter where they go they will be able to find what they want; one product in the brand of Pepsi. With such intensive distribution, customers are seldom forced to go without the product (meaning they buy more) and are seldom forced to choose another brand (meaning the Pepsi company doesn’t lose business) even from the main competitor, Coca-Cola Co or from other local companies.
  10. 10. Benefits of Intensive Distribution Strategy (2) Benefits to Retailers For those who sell Pepsi products, there are also significant benefits. The more brands they carry of any coke, the more they are seen as having a great selection. There are dozens of brands of soft drink available and most of them can be found at the local grocery store. This increases customer satisfaction and allows the retailer to establish a positive reputation with producers and consumers alike.
  11. 11. Benefits of Intensive Distribution Strategy (3) Benefits to Customers The intensive distribution strategy of Pepsi Co allows customers to both have choices and find what they want without going out of their way. It makes sure the Pepsi Cola products are everywhere a customer might be, so that customers can find what they want when they want them.
  12. 12. Pepsi Co follows an intensive distribution strategy. To support their ubiquitousfeature they want to place their product in as many outlets as possible.
  13. 13. Factors Selecting Intensive Intensive Distribution Customer Need  Increases Market Coverage.  Assortment of Goods: Pepsi has a wide assortment of goods. In beverages some very famous are Pepsi Mirinda, 7up, Slice etc Aquafina, Lehar  Competing against Coca Cola Soda also. and other local companies. Ubiquitous: Restaurant, Kiosks, Grocery Stores, Confectionaries, Pepsi on wheels, all these are some examples of the fact that the product Pepsi is ubiquitous.
  14. 14. Bibliography, Sources and References http://www.pepsico.com/ http://www.pepsicobeveragefacts.com/ http://www.pepsi.com/ http://www.businessdictionary.com/ http://www.baidu.com

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