There are 3 strategies for a start-up business: intensive, exclusive and selective. Intensive distribution stock the product in all available outlets and is a winning strategy whenthere are a variety of brands. A wholesaler makes sure to provide a product to nearly allpotential consumers.
Our product is quite unique and there are not a lot of competing brandsto use this strategy.Exclusive distribution uses only one retailer to sell the product. It is complicated and notnecessarily to detect and choose one and the most special and specific outlet in Poland, sincethe development of organic food market are just growing. People started to be more attentiveof their health and the composition of a product. There are plenty of eco-stores availablewhere customers do their shopping and all of them offer a high quality, environmentally-friendly, and natural products.
Selective distribution strategy tends to be used for upscale and high-quality products. Thisdistribution strategy lies between intensive and exclusive distributions and uses more than one,but not all of the intermediaries that exist. Selective distribution allows us to concentrate on afew outlets in specific geographical area which rises a possibility of positive outcome. We wouldpay fewer cost and help producers to gain best market coverage than with the intensive strategy distribution. After considering and analyzing each of those strategies selective is turned out to be the mosteffective.
Unlike intensive and exclusive strategies, selective is more appropriate and beneficialfor our product. We want to maximize profits and focus on point of sales (POS) in order to increase awareness of our brand “Frummy” in the market and selective distribution would be a midpoint to achieve this since we would have higher sales than in exclusive distribution while retailers carry competing brands.As a result, we as suppliers would be encouraged to provide marketing support and retailers would focus on “all efforts that increase sales at the point the purchase is actually made (POS).