Question

Lori Smith sells her handmade jewelry through a few very exclusive gift shops. Lori along with one other employee produce all of her beautiful jewelry. Lori’s best friend told her, “You could sell a lot more if you tried to get them into every gift and department store in town.”   Lori asks you to explain the three different types of distribution intensity strategies and which one you would recommend. Answer Lori’s question on distribution intensity strategies and give her your recommendation.

Answer 1

answer-

I would say Lori that distribution plays very important role to provide them the product in their hands. The three types of Distribution intensity strategies are-

Intensive distribution strategy in which Companies uses all type of distribution channels they can to sell their products to end consumer.This strategy is used for generic products which are used in daily lives like drinks, bread,Ice cream, Toothpaste etc because these products have many alternatives to customers to choose from.

Exclusive distribution strategy as the name suggest the companies which have rare and unique items they use this type of strategy.You may have heard of Rolls royace as they have limited showrooms because they are rare and unique cars which maintain its exclusivity by limiting its distribution strategy.

Selective distribution strategy which is Not as common as intensive but easier to find than exclusive. In this, the company distributes its products to a few dealers and retail stores. The company has specific rules that intermediaries have to meet if they want to distribute their products.

I would recommend Lori to use Selective strategy in which she can use limited number of outlets and intermediaries to sell her handmande jewlery. This stratgey will help her to increase her sale as well as maintain some type of exclusivity and rareness of her jewelry.