New Branding: Selective Distribution

How to reposicionate the brand, by going back and create an strategy over selective distribuition.

New MaSelective Distribuition. What is that?

There are three common types of distribution channels adopted by companies: Intensive Distribution, Selective Distribution, and Exclusive distribution

Before we delve into selective distribution, let us understand what intensive distribution and exclusive distribution mean.

Intensive distribution is the method where every possible outlet is serviced and the company’s product is made available in that outlet. This is done especially for products where more availability leads to more sales. Example, cigarettes. Another reason for doing this is because some products are such that if one brand of it is not available, the consumer will simply choose another brand. This induces competition and hence a company uses all outlets possible to make its products available to the customers.

Exclusive distribution as the name suggests is the model wherein a particular locality a company has just one dealer or retailer. This makes the brand more exclusive and gives the dealer exclusive rights for the sale of the product in that particular vicinity. This dealer also deals only in one particular brand and does not sell brands of competitors. Maruti has recently launched its ‘Nexa’ showroom that is for its slightly higher end cars. This is an example of exclusive distribution model.

Now let us come to selective distribution.

Selective distribution is a distributed approach where selective and few outlets are chosen through which the product is made available to the customers.

Unlike intensive distribution, not all available outlets are targeted and neither is it like exclusive distribution where there is only one outlet. A few outlets with calculated potential are identified and then they are given the rights to stock and sell the offerings of a company.

A good example of products for which selective distribution is used is cars. This need not be the case for high-end luxury cars, for which, more often than not, exclusive distribution is used. For the low-end range and mid-level range cars, selective distribution is used. You would have observed that multiple, but not all, dealers in a certain locality deal in certain cars.

This marketing technique focuses their efforts to reposition the brands into the market, renewing the value of the brand, giving them something fresh, clean, exclusive, of high quality, that was successfully lost some time in the rage of the competitive market for the sell volume and low quality. Now the "rebranding" target is to sell value and quality, which is not absent to a higher risk, however, the retailers and big clothes companies are pointing to that market, because their brand requires 180° direction and focus, and most of the companies that attempt this strategy are succeeding, Why? because the brand was something and got lost, and now is coming back home to what always should have been: THE BRAND!!, and within mind only is enough to create a sell value that will convince the same to shareholders or the buyer audience.