Chapter 9: Channels of Distribution

Examples of Distribution Intensity

Procter & Gamble (P&G), a multinational consumer goods corporation, is a prime example of a company that employs various levels of distribution intensity based on the specific product and its target market. P&G’s portfolio includes a wide array of products, such as cleaning agents, personal care products, and diapers, among others.

How P&G Utilizes Different Levels of Distribution Intensity:

Intensive Distribution:

• Products: Fast-moving consumer goods such as Tide, Pantene, and Gillette.

• Strategy: P&G ensures that these products are available in as many retail outlets as possible, including supermarkets, convenience stores, and online stores.

• Objective: To ensure maximum visibility and accessibility, catering to the daily needs of a wide array of consumers.

Selective Distribution:

• Products: Premium and specialized products such as SK-II (a luxury skincare brand).

• Strategy: These products are distributed through selected retail stores, high-end department stores, and specialized beauty stores, both physically and online.

• Objective: To maintain a premium brand image, ensure that the products are sold in an environment that aligns with the brand’s positioning, and offer specialized customer service.

Exclusive Distribution:

• Products: Limited edition products or certain professional product lines.

• Strategy: These products are available exclusively in certain stores or regions or through specific online platforms.

• Objective: To create a sense of exclusivity, control the brand image closely, and target a specific market segment.

 Impact of Various Levels of Distribution Intensity:

• Market Segment Appeal: By using different distribution strategies, P&G can appeal to various market segments, from mass-market consumers to premium clientele.

• Brand Positioning: The chosen level of distribution intensity helps in maintaining and reinforcing the brand positioning of each specific product, whether it be mass-market, premium, or exclusive.

• Consumer Accessibility: Different distribution intensities ensure that each product is accessible in a manner that aligns with consumer expectations and purchasing behaviors related to each product category.

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Conclusion:

P&G's nuanced approach to distribution, customized according to each product and its target market, showcases the effectiveness of employing varying distribution intensities in a diversified product portfolio. This strategy allows P&G to cater to different consumer segments efficiently, optimize market reach, and maintain the desired brand image and positioning for each of its product lines.