This post was most recently updated on April 30th, 2018
Market penetration becomes more achievable when businesses use extensive distribution strategies. This unique strategy is typically used when a company wants to take advantage of multiple delivery channels at the same time.
This is quite different from selective distribution where businesses would have to hand-pick retailers to sell their products.
What is Extensive Distribution?
It’s a distribution strategy that aims to spread the word about a specific product or product line to multitudes of people.
Because of its complexity, this distribution strategy is able to target a number of delivery channels for maximum results. It’s often used when a company wishes to target as many potential customers as possible. However, this can be quite tedious if you don’t have a proper plan in mind.
Using multiple deliver channels ultimately increases product awareness, ensuring that a maximum number of people have information about the product. This is practically the opposite of selective distribution which targets specific channels.
Extensive Distribution Strategy
Selecting the right distribution strategy is a pivotal decision that could either steer your business to success or plunge it down. While an extensive distribution strategy initially sounds like a good idea, it requires a plethora of resources to execute, not making it a suitable choice for small businesses.
Your decision will ultimately impact how your product is received in the market. Here are a couple of factors you ought to keep in mind while selecting a distribution strategy:
- Type of product: Businesses that deal with everyday products are likely to do better with this kind of strategy as opposed to companies that sell designer wear.
- Budget: The budget is perhaps one of the most crucial factors one ought to consider while selecting the best strategy. An extensive distribution strategy may require a hefty budget to execute so be prepared to make a few cutbacks elsewhere.
- Middlemen: Depending on how things work out, you may have to employ a middleman to ensure quick and efficient distribution of goods and services. However, you’ll probably have to take a look at your budget first before making any decisions.
Ideally, this strategy is better suited for big companies that would have an easier time controlling multiple channels.
Examples of Extensive Distribution
Companies such as The Coca-Cola Company and PepsiCo are known for implementing extensive distribution strategies.
Because of their consistent efforts and enviable marketing tactics, both brands have a huge competitive edge over other nonalcoholic beverage brands.
Extensive Distribution Advantages and Disadvantages
Every distribution strategy offers its own list of advantages and disadvantages. Let us start by discussing the advantages of extensive distribution:
Companies are able to cover more ground. Since the whole point of this campaign is to boost product awareness, businesses are likely to benefit from optimum market coverage. If used wisely, this strategy can be used to build thousands of loyal customers.
Increased product awareness
Extensive distribution strategy increases product awareness and helps generate a buzz among potential customers.
Companies can easily maximize these results by increasing investments and putting in more efforts in marketing.
Disadvantages of Extensive Distribution
Some major disadvantages of extensive distribution may include:
Requires more effort
Instead of focusing on a few outlets, extensive distribution strategies requires businesses to dissipate their energies over countless channels.
This would also require access to a larger number of resource that small businesses may not have access to, especially in the beginning.
Difficult to control
Because of its extensive reach, companies may find it difficult to control market coverage. Additionally, businesses may also have a tough time gaining over sales if they don’t have the correct resources to execute this strategy.
Hopefully, this blog has taught you everything you need to know about extensive distribution and how it can benefit businesses. Happy learning!
Photo Credits: The Billboard Review