RETAIL DISTRIBUTION STRATEGY
Have you ever wondered what is the secret behind the success of manufacturers who have an effective distribution of their products to their consumers? I’m sure you must be thinking the only way to have an efficient distribution of your goods is to make use of the distribution channel such as the wholesaler and retailer. Yes, you are right, you can have your goods disbursed to your consumer through the distribution channel. However, there is another habit you have to inculcate which is the retail distribution strategy.
Retail distribution strategy is the secret to having your goods distributed to your consumers more efficiently and easily aside using the distribution channel, trust me! It makes your distribution process a superb one. Retail distribution strategy is the kind of seller or method you use to get your products delivered to consumers. The distribution strategies are intensive, selective, and exclusive.
Intensive distribution: adopting the intensive distribution strategy, you as a manufacturer distributes your product at reasonable prices to as many retailers who are ready and are willing to sell your products at, regardless of their type, reputation, and how they run their business. To be sincere with you, this strategy is regarded as the fastest means to get your goods distributed because your goods will literarily appear on almost all retail shelves and stores thereby penetrating your goods into the market. You can also make use of wholesalers to help you in the distribution process. This strategy also helps in promoting your products and even makes it easier for your goods to reach new end users
Selective distribution: using this strategy, you only distribute your products to selected retailers or outlets, you distribute to different retailers but not as many as the intensive distribution. This strategy ensures the safety of your products because the retailers know how to handle the product and the kind of customers to sell to. As a manufacturer, this method also allows you to choose the best performing retailer and it fosters a close relationship between your company and the retailer.
Exclusive distribution: this strategy deals with the limited retailer; it is restrictive in the sense that you can only work with a retailer at a particular location. This method is usually for high-quality products or special products for instance luxury products or automobiles. This strategy helps you to have control over the price of your products. You can also strike a deal with the retailer you have selected to train their staff.
At this point, you might be a little bit confused about which strategy to use. This is it, the kind of goods you produce will determine the strategy you will adopt, you should also consider your rivals and the strategy they have adopted in their distribution, see whether you can use a better strategy to step your game and importantly consider cost and benefit you stand to gain, then all your fears on efficient distribution will be done away with.