If you’re also a business owner and looking for the best distribution strategy in marketing. You have landed in the best place.
Businesses can manufacture the products. But, they need help to distribute the products to the users. Distribution channels marketing depends upon the type of product/service you’re selling. You have to select the right distribution strategy. It will help you make your products reach the customers at the preferred time and location.
In this guide, we have mentioned all types of distribution strategies. Plus, which distribution strategy should you use to have better and effortless logistics in your business?
What is a Distribution Strategy in Marketing?
Distribution Strategy refers to a method that helps the companies to make the products or goods reach the consumers. Successful businesses need easy and effective delivery of your products to the customers.
Companies generally need to figure out which distribution strategy will be easy, effective, and generate more profit. You can also try various or overlapping distribution strategies. The strategy should be relevant to the company’s goals and objectives. For instance, some products get better exposure in online markets than the demographic.
To create your distribution strategy in marketing, you have to analyze your ideal customers. Figure out their purchasing behaviour, and add the essential changes to your strategy. It will make your distribution strategy more familiar to the users.
Generally, you can figure out the right distribution channel of marketing and strategy by looking at the product. For instance, some product like furniture requires a physical presence. Customers would prefer to purchase it from the original manufacturer. At the same time, any routine product can be purchased from nearby stores.
Types of Distribution Strategy in Marketing
Typically, only five types of distribution strategies can help you reach consumers in different ways. But there are some other distribution strategies as well like omni channel distribution strategy, multi channel distribution. Let’s explore various distribution strategies for marketing.
1. Direct Distribution
Direct Distribution is the way of selling products to customers. Companies sell it via e-commerce store, catalogue, or phone. Here, businesses need to deliver the products when they get the order.
A direct selling strategy lets businesses know more about their customers and target audience. This strategy provides you more control and generates higher profit for the businesses.
2. Indirect Distribution
An indirect Distribution strategy means making the products reach third-party sellers. These third-party sellers further sell these products to the customers. In this distribution strategy, customers get their products on time and at their preferred location.
This Indirect strategy allows businesses to reach more comprehensive customers. It will also provide a better customer experience. You can connect with wholesalers, retailers, franchisors, and distributors. It will allow you to deliver your products to the end-users.
3. Intensive Distribution
Intensive Distribution is a helpful strategy for selling routine products. They generally need low marketing efforts. In this strategy, you make your products reach all the possible local stores or retail stores. For instance, your product could be any grocery, stationery, or dairy product. This strategy increases your brand awareness, explores more into the segment, and acquires more new customers.
4. Exclusive Distribution
Exclusive distribution is the strategy where your company’s products are exclusively available in one place. The products might be sold only by a specific retailer or at the company’s official website. This is one of the best strategies for expensive products. For instance, you can buy luxury cars from single stores only. This strategy helps you keep your products in a premium segment.
5. Selective Distribution
Selective distribution is a combination of Intensive and Exclusive distribution. Here, you distribute your products to all the possible locations but at a specific dealer. You can also open your own selective stores to sell your products. For instance, various branded garments products are only available at specific stores. This strategy allows companies to provide personalized customer experience and brand messages.
What are Distribution Channels for marketing?
Distribution Channel for marketing refers to how your products or services reach the customers. The distribution channel is the supply chain of the product to deliver the products to the customers. For instance, some products are released from the manufacturer and reach the warehouse to the customers. Some products reach the manufacturer or company. This series of reaching the products to the customers is called a distribution channel. The product’s Distribution strategy in a marketing plan is based on cost-effectiveness and profitability.
4 Types of Distribution Channel in Marketing
Distribution channels marketing has four types: Wholesale, Retail, Franchisor, and Distributor. Let’s have a look at all the distribution channels in marketing.
1. Wholesale
In the Wholesale, the manufacturer sells their products to the wholesaler in bulk. Later, the wholesaler sells the product to the retailer and customers. Here, the company releases its products in bulk, allowing it to register good revenue. Wholesalers work as a trader between manufacturing companies and retailers.
2. Retail
Retail is a distribution channel of marketing that is connected to the customers. Retailers generally purchase products from the wholesalers or manufacturers. The retailers sell the products after adding their profit margin. The Retailers are generally considered local stores, supermarkets, departmental stores, etc.
3. Franchisor
The franchise is a distribution channel for marketing allowing other business owners to sell your products. It will use your company’s branding. For instance, you would generally see the franchise option. It includes fast-food chains, cafes, hotel chains, healthcare companies, etc.
4. Distributor
The distributor is one of the most accessible distribution channels for marketing. Distributor takes the product from the manufacturer and delivers it to the consumers. It saves your logistics costs and efforts. Here, distributors also generate wide profit margins by working for various clients.
Distribution Strategy Examples
Distribution Strategy in marketing is one of the most successful strategies. It has several live examples. We have mentioned some distribution strategy examples. It can help you understand the power of this strategy.
Example #1:Toothpaste Companies
Toothpaste is a simple daily routine product that is essential for everyone. The company tries to reach the toothpaste to as many locations as possible. These routine products can also be sold through wholesalers, distributors, and retailers. For instance, this toothpaste can be sold through various sources. It includes supermarkets, local stores, warehouses, and e-commerce stores.
Example #2: Luxury Car Brands
Luxury Car Brands generally use exclusive distribution. These luxury products are only available at specific stores. These distribution strategies for marketing will allow you to have better control over certain factors. It includes branding, manufacturing, pricing, and negotiations of the products. Thus, you can better maintain your product’s premiums.
Example #3: Neighborhood Lawn Care Business
A neighborhood lawn care business generally utilizes direct distribution. It helps them to reach their services to the customers. These businesses have an online presence, door-to-door selling, and fine staff members. Once this lawn care business expands, you can also start with the franchise of your business. You can provide the franchise in exchange for a minimal fee. This strategy helps the companies to generate more revenue and profit.
To Wrap Up
Distribution strategy in marketing plays a crucial role in defining better logistics. This strategy helps companies to maintain a better supply of products to customers. Therefore, every company needs to adopt a better distribution strategy. It should deliver the products to the customers on a timely basis. We hope you like the guide. You can find everything you need to know about distribution strategy in marketing.