The goal of distribution is to make sure products arrive in usable condition at designated places when needed. Thus distribution strategy is concerned with the channels a firm may employ to make its goods and services available to customers.
There are three methods of distribution of goods to be dispersed in the market.
*Intensive Distribution: As many outlets as possible.
*Selective Distribution: Select outlets in specific locations.
*Exclusive Distribution: Limited outlets.
In intensive distribution, firms distribute their brands through many outlets to ensure their easy availability to the customer. Hence, on the one hand brands are available in the restaurants and five-star hotels and on the other hand they are also available through countless soft drink stalls, kiosks, tea shops, sweat marts and so on.
Selective Distribution: At the retail level, a strategy of selective distribution restricts the sale of the product to a limited number of outlets. Each store selected must meet the company’s performance standard while appealing to select target market. As distribution becomes more selective, the manufacturer may expect a greater effort on the part of retailer.
Exclusive distribution is where possibly only one outlet in a certain geographic area supplies a product. This method of distribution usually relates to specialty products, e.g. special cars, specialist clothing, etc. often exclusive distribution is relevant to niche products.
Strategic distribution coverage
