Exclusive, Selective, & Intensive Channel Distribution-

 Exclusive, Selective, &  Intensive Channel                         Distribution. 

                    MBA / BBA MARKETING MANAGEMENT 

                                                    QUESTION PAPER APRIL 2018

PUNE UNIVERSITY 

 1: Exclusive Channel Distribution- 

 Exclusive Distribution is an agreement between a distributor and a manufacturer whereby only one distributor is authorized by the manufacturer or supplier to distribute goods and services over a certain region. The sole authorized seller of the specific products of the manufacturer becomes the distributor thereof. The agreement may also be such that the distributor will sell the products of the manufacturer exclusively and not those of competitors. 

Example-

 Industries or companies that enter into exclusive distribution are High-tech companies, women’s clothing manufacturer, Automakers and major appliances manufacturers.

 2: Intensive Channel Distribution-

 Intensive distribution is the use of more than one channel by manufacturers to distribute their products and reach the target audience or customers. This policy is used when manufacturers decide to distribute their products through as many mats as possible. The aim of this method is generally to make the product brand of the manufacturer available in abundance and distributed over a large geographical area and to ensure that end users (customers) do not face any type of shortage.

 Example- The products distributed through intensive distribution method are those that are generally used on a daily basis and those which do not require extensive brand awareness.

(Newspapers, Coca Cola, PepsiCo.)

 3: Selective Channel Distribution-

 Selective Distribution is a distribution strategy where, on the basis of a company specific set of rules, selective and few outlets are chosen through which the product is made available to customers. In many cases, this method is used to distribute furniture, TVs and home appliances.

It also allows a good working relationship with channel members to be established by the company. Selective distribution, but at a lower cost than intensive distribution, can help the manufacturer gain optimum market coverage and more control. This alternative is known to be used by both existing and new firms.

 Example-

 The criteria may include- service provision requirements, distributor sales personnel training or specific presentation of products, among many others.

 Product based: These are the companies that have their own products to sell

EXAMPLE:

Coca-Cola:

This strategy is particularly employed in Coca-Cola products like Coca-Cola, Sprite, Fanta, etc. Here distribution is a key success factor. Coca-Cola distribute their products through multiple outlets to ensure their easy availability to the customer. Therefore, its products are available in restaurants and five-star hotels and are also available through countless soft drink stalls, shopping marts, sweet marts, tea shops, grocery stores, etc. Coca-Cola uses any possible outlet where the customer is expected to visit should find its products there.

Service based:

These companies may or may not have their products, but their primary business is service. They work for other organizations

EXAMPLE:

Infosys, Wipro, TCS, Cognizant, etc.