Intensities of distribution involve determining the number of intermediaries that will be used at each level and includes:
i) Intensive Distribution
This is the strategy whereby a product is distributed by as many outlets as possible. This is used for products, which the consumer requires a great deal of location convenience e.g. cigarettes, Newspapers milk, bread, Scratch cards, soft drinks etc.
ii) Selective distribution
A manufacturer selects only a few distributors for a new product and is especially. For specialist and shopping goods e.g. Appliance like fridge, cookers.
Advantage of selective Distribution
- It enables the produce to gain adequate market coverage
- Easy to control the channel
- Less costly compared to intensive distribution strategy.
iii) Exclusive distribution
This is getting into an agreement with a particular middle man where the manufacturer gives exclusive rights to the marketer to distribute the product. This severely limits the numbers of intermediate or channel members. Used when the producer wants to maintain the control of the service levels. Also here, the middleman in return agrees not to carry any merchandise of the competition e.g. Bata, Simba Telecom ( Safaricom Dealer), Marshall, -exclusive distributor of electronics and DT Dobie for Mercedes.
Advantages of exclusive distribution
- The rationale behind this strategy is that the specialization in one line may greatly increase sales and profits particularly the premium price obtained through exclusive distribution
- Certain service level is maintained.
- Control by the manufacturer
- Standardized price
- Requires greater partnership between the seller and re –sellers e.g. Bamburi.
- Training of channel members thus costly.