Intensive Distribution

Businesses try to distribute their products in three different ways: intensive, selective, and exclusive distribution. When a company tries to make its product available in as many outlets (such as retail stores) as possible so that it can serve customers easily and saturate the market, the method or strategy of distribution employed is termed intensive distribution. Firms choose this strategy when customer switching of brands is common. For example, if customers feel indifferent about a headache remedy, a marketer of this kind of product attempts to make its product present in the shelves of pharmacies, supermarkets, and other retail outlets where consumers regularly shop.

In the health care industry, most consumers are brand loyal, meaning that they are likely to buy the brand name products they have used and benefited from before. If a consumer has used the Mayo Clinic for health care and was happy with the service, this consumer is likely to search for a Mayo Clinic when he or she moves to a new location in the United States. This is because the consumer is brand loyal. If a Mayo Clinic is not available in the new location that the consumer moves into, the consumer will have to search for a new medical service provider. This is why the Mayo Clinic is available in more than a single location. However, because of the high cost of capital in the health care industry, the intensive distribution strategy is rarely used. Keep in mind, however, manufacturers of most over-the-counter products utilize intensive distribution strategy, because if the product is not available, consumers are likely to switch to a different brand (such as Tylenol as opposed to Advil or Bufferin).

Medical doctors commonly use an intensive distribution strategy. Many doctors provide services in multiple locations in a variety of medical facilities including hospitals, clinics, and medical office buildings. However, this practice is not the same as distribution of products. Although many products distributed by an intensive strategy can be available even in vending machines, a doctor’s care cannot be provided through a vending machine.

Most products distributed intensively are available in convenient locations for consumers to see and purchase. Checkout counters in retail stores are examples of this strategy. At checkout counters, consumers see and purchase many products that they did not plan to purchase. Often products distributed utilizing this strategy are purchased on impulse while the customer is waiting in line at a checkout counter.

Although it is costly and sometimes uncommon to use the intensive distribution strategy in the medical field, companies attempt to come close to using this strategy by trying different methods. For example, giving free samples of medicines to medical doctors to distribute to their patients is a good example of the intensive distribution strategy in practice. As the health care industry grows, we are likely to see this strategy being utilized more and more.