How do you balance distribution intensity and exclusivity?

2 Distribution exclusivity

Distribution exclusivity is the degree of restriction and control you have over your distribution channels and intermediaries. It can range from low, where you allow your intermediaries to sell other competing or complementary products or services, to high, where you require your intermediaries to sell only your products or services or follow certain guidelines and standards. The level of distribution exclusivity you choose depends on several factors, such as your brand identity, differentiation, quality, customer loyalty, and channel power.

4 Adapting to changes

Your distribution strategy is not set in stone. You may need to adapt it to changing market conditions, customer preferences, and competitive actions. For example, you may start with exclusive distribution to establish your brand identity and quality, but then switch to selective or intensive distribution to expand your market share and reach new segments. Or you may start with intensive distribution to gain exposure and recognition, but then switch to selective or exclusive distribution to increase your differentiation and profitability. You may also use different levels of distribution intensity and exclusivity for different product lines, regions, or segments.

5 Leveraging technology

Technology can also help you balance distribution intensity and exclusivity in innovative and effective ways. For example, you can use online platforms and e-commerce to distribute your products or services directly to your customers, bypassing intermediaries and reducing costs. You can also use digital tools and social media to communicate with your customers, enhance your brand image, and create a sense of exclusivity and community. You can also use data and analytics to monitor and optimize your distribution performance, identify new opportunities, and respond to customer feedback.

6 Evaluating your results

Finally, you need to evaluate the results of your distribution strategy and measure its impact on your marketing goals. You can use various metrics and indicators, such as sales volume, market share, customer satisfaction, retention, loyalty, brand awareness, equity, and reputation. You can also compare your results with your competitors and benchmark your performance against industry standards. You can also solicit feedback from your customers, intermediaries, and other stakeholders to identify strengths, weaknesses, opportunities, and threats.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?