A Presentation about the Distribution Strategies (Exclusive, Intensive and Selective distribution). Cooperating with Mrs. Mengzhen Wan and Mrs. Tao Yi.

2. Agenda
Exclusive distribution
Intensive distribution
Selective distribution

3. Exclusive Distribution
-Few intermediaries(usually only one with more
control )
-When a single outlet is given an exclusive
franchise to sell the product in a geographic area,
the arrangement is referred to as exclusive
distribution. Products such as specially
automobiles, some major appliances, certain
brands of furniture, and lines of clothing that
enjoy a high degree of brand loyally are likely to be
distributed on an exclusive basis.

5. Exclusive distribution
 Advantage: More control the market, more aggressive
middleman, provide the products with a prestigious
image because it can’t be found everywhere, high
brand loyalty
 Disadvantage: difficult to build and maintain a high
level of brand image, betting on one dealer in each
market, only suitable for high price & margin & low
volume products

6. A channel that the manufacturers choose a certain amount of
middlemen (similar) to sell the products according to certain
qualification. Usually formed by stronger middlemen, since
they can maintain the credibility of the manufacture of the
brand more effectively and establish a stable market and
competitive advantage.

8. LI-NING
SPORTS
EXCLUSIVE
STORE
SPORTS
DEPARTMENT
STORE
DEPARTMENT
STORE
MANUFACTURE
LARGE SCALE
EMPORIUM
RETAIL STORE
OUTLET

9. Advantages Disadvantages
Difficult for enterprises to achieve a
variety of business objectives in
relaxed conditions of the marketing
environment,
save expenses, improve marketing
efficiency, control the marketing. lack of adaptability to goods that are
not selectived,
enterprise has to provide more
services to selected middlemen,a
certain risk

10. A marketing strategy under which a company sells
through as many outlets as possible, so that the
consumers encounter the product virtually everywhere
they go: supermarkets, drug stores, gas stations, and
the like. Soft drinks are generally made available thru
intensive distribution.
Source: BusinessDictionary.com

11. Intensive Distribution Strategy of
Pepsi Cola
 PepsiCo, a world leader in convenient snacks, foods
and beverages, has a plan that places their soft drinks
products in many different locations for distribution.
Pepsi-Cola products are used every day and replaced
often may be found in dozens of different retail outlets
in any given area. The purpose of this type of strategy
is to put so much of a soft drink (e.g. Pepsi Max) in so
many locations that a customer will come across the
product frequently, making it easy for them to
remember and buy the product.

12. Benefits of Intensive Distribution
Strategy
 Benefits to Pepsi Co
Pepsi Co in the first place benefits greatly from intensive
distribution. Their products and their brand name is seen
everywhere and is available everywhere. It can easily
become the recipient of product loyalty if a customer
knows that no matter where they go they will be able to
find what they want; one product in the brand of Pepsi.
With such intensive distribution, customers are seldom
forced to go without the product (meaning they buy more)
and are seldom forced to choose another brand (meaning
the Pepsi company doesn’t lose business) even from the
main competitor, Coca-Cola Co or from other local
companies.

13. Benefits of Intensive Distribution
Strategy (2)
 Benefits to Retailers
For those who sell Pepsi products, there are also
significant benefits. The more brands they carry of any
coke, the more they are seen as having a great
selection. There are dozens of brands of soft drink
available and most of them can be found at the local
grocery store. This increases customer satisfaction and
allows the retailer to establish a positive reputation
with producers and consumers alike.

14. Benefits of Intensive Distribution
Strategy (3)
 Benefits to Customers
The intensive distribution strategy of Pepsi Co allows
customers to both have choices and find what they
want without going out of their way. It makes sure the
Pepsi Cola products are everywhere a customer might
be, so that customers can find what they want when
they want them.

15. Pepsi Co follows an intensive distribution strategy. To support their ubiquitous
feature they want to place their product in as many outlets as possible.

16. Factors Selecting Intensive
Intensive Distribution
 Customer Need  Increases Market Coverage.
 Assortment of Goods: Pepsi
has a wide assortment of
goods. In beverages some very
famous are Pepsi Mirinda,
7up, Slice etc Aquafina, Lehar  Competing against Coca Cola
Soda also. and other local companies.
 Ubiquitous: Restaurant, Kiosks,
Grocery Stores, Confectionaries,
Pepsi on wheels, all these are
some examples of the fact that
the product Pepsi is ubiquitous.

17. Bibliography, Sources and
References
 http://www.pepsico.com/
 http://www.pepsicobeveragefacts.com/
 http://www.pepsi.com/
 http://www.businessdictionary.com/
 http://www.baidu.com