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What is the difference between intensive distribution and selective distibution and exlusive distribution?

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Question added by shadi hussien suliman alajrab , General Manager , Manuela training and management development
Date Posted: 2016/02/01
Omar Saad Ibrahem Alhamadani
by Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company

Thanks dear Shadi ,

·         Intensive Distribution mean : focus all you distribution efforts on one sector which it include one or more than one region , that’s require focus also on marketing campaign , customer services . Intensive distribution almost needs trained team, since when you focus on specific sector that’s mean you faced some kind of weakness in this site with huge competition.

·         Selective Distribution mean : choose group of POS's and\\\\ or sales channels to distribute your products , that’s happen when you face shortage in some of your POS's , sales channels , regions . Reason behind that your team activity, and also you can make a selective distribution when you want to target specific segment \\\\ customer.

·          Exclusive Distribution mean : Exclusive ; is an adjective not system of distribution , anyways, the exclusivity happen when brand produced give your company the right of distributing their product\\\\s exclusively in specific Region , Territory , Country, and arrange this by signed agreement to ensure the rights and duties . and under this agreements the distribution company abiding by distribute \\\\ sell the products in assigned region and ensure to cover all the POS's , and all customer services stuff , with build a sold DB of customers and\\\\or POS's. This agreement may be including open brand out let, customer service centers, DROS's, hiring outbound team.     

Asad khan
by Asad khan , Product specialist , shaigan pharmaceutical

Exclusive distribution is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.

Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products.

Intensive distribution involves all the possible outlets that can be used to distribute the product. 

Deleted user
by Deleted user

In the Exclusive distribution happens when the fabricant chooses their own dealers, authorizing them to distribute their products in an exclusive way and controlling a big part of those dealers activities.

 

The Selective happens when the fabricant sells through a selected intermediate group It´s most used when the nature of the business needs "valorization".

 

The Intensive applies to the logic "more retailers, better". The fabricant sells though the high possible quantities of retailers. It´s used when we need to have the products available in a big number of selling "points"

 

Mahmoud Zaher Tarakji
by Mahmoud Zaher Tarakji , مدير , أوال جاليري

MR SHADI already you answer

Abid  Patel
by Abid Patel , Freelancer , SAVERS GROUP ( CONSULTANCY )

HP- Intensive distribution. Many formats, many partners. Mostly companies with low-end products do this. Hp has both intensive distribution and selective distribution for the high-end products.

 

IBM - Selective distribution, chosen partners who grow the market based on training and knowledge.

 

Apple - Exclusive distribution. Company is cautious of the brand messages and does not compromise on prices. They believe in partnership and brand protection.

Hatem Atallah
by Hatem Atallah , Director - Business Development & Sales (coach & Trainer) , Performance Management Consultants

The last definition is the correct one....just to add one thing ....it's not about geography ...at all!

 

The strategy of distribution for a producer / manufacturer can be one of these three depending on your branding level:

1/ intensive distribution strategy : Distribution that puts products into as many retail outlets as possible...your goal is to have an intensive coverage of the market...any market (country, region, etc...) mostly the FMCG and similar...

 

 

 

2/ selective distribution : Distribution that sends products to only a preferred group of retailers in an area...means you select some retailer that you believe are good for your product/brand....they have some prestige....

 

3/ exclusive distribution:Distribution that sends products to only one retail outlet in a given geographic area ....her as a manufacturer you distribute your products & services through an exclusive branded retailer...usually the same brand name...I put my brand in my shops

 

As example in the UAE marketplace (shoes market):

or years ago brands like ECHO and CLARKS used to put their products through selected shops (shoemart...) , recently and since few years3-5...if you want to buy an ECHO or CLARKS shoes you have to go to the shops under the same brands....means they moved from selective distribution strategy to an exclusive distribution strategy. These2 brands have will never go for an intensive distribution strategy...like put their products in supermarkets ...and general outlets....

 

shadi hussien suliman alajrab
by shadi hussien suliman alajrab , General Manager , Manuela training and management development

intensive distribution : Distribution that puts products into as many retail outlets as possible .

 

selective distribution : Distribution that sends products to only a preferred group of retailers in an area .

 

exclusive distribution:Distribution that sends products to only one retail outlet in a given geographic area 

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