Provide examples of the three levels of distribution intensity.

Examples of the three levels of distribution intensity, which are intensive, selective, and exclusive, are, respectively, Coca-Cola, Chevrolet cars, and Tiffany jewelry.

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The first level of distribution is intensive. In this type of distribution, the producer or seller uses all the available distribution channels to make sure that the product reaches the consumer. Intensive distribution is used on generic goods because they have plenty of substitutes. Most generic products don’t have any brand name on them. However, they can be differentiated by how they are packaged. Companies use intensive distribution for these products because consumers are not loyal to any brand, they just want the product because it helps to fulfill a certain purpose. Therefore, the company is likely to sell more if it makes its products available in all stores in the area.

The second level of distribution is selective. Here, the company distributes its products to a few dealers and retail stores. The company has specific rules that intermediaries have to meet if they want to distribute their products. For example, if the company wants to sell its products in a new market, they may select well-known intermediaries to sell their goods. Selective distribution is favored by appliance makers because it helps them reduce costs and gain wide coverage.

The third level of distribution is exclusive. As the name suggests, exclusive distribution is limited to one or two intermediaries. A company that uses exclusive distribution often wants to maintain some level of control over their products. Car manufacturers use this type of distribution. For example, you may only find one Ferrari dealer in a single county. Exclusive distribution makes sure that the dealer maintains the highest levels of customer service.

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The first level of distribution intensity is intensive. At this level, a product is available on a widespread basis at many outlets, and the customer service necessary to sell the product is minimal. An example is Coca-Cola or any other nationally (and internationally) distributed soda or candy. 

The second level of distribution is selective; at this level, products are distributed to many dealers but are not available everywhere. Examples include Chevrolet cars or Sony televisions. To buy these products, a consumer needs to go to a specific kind of dealer and receive specialized customer service to make a purchase.

The third level of distribution is exclusive; at this level, products are available at very few outlets, and consumers most likely have a very high level of tailored customer service. Examples include high-end jewelry stores such as Bulgari or Tiffany or high-end car dealerships such as Bentley or Rolls Royce. There are very few of these types of outlets or stores in existence.

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There are three levels of distribution intensity.

The first is intensive distribution. In this type of distribution, the company sells its products to as many outlets as possible. The main aim is to ensure the product is available everywhere in the market. The strategy is used for convenience products like soda, bread, cooking oil, and newspapers. The rationale behind the strategy is that more sales will be achieved with more customer exposure.

The second level is selective distribution. In this type of distribution, the company chooses a few retailers to sell their products. The level of customer service required to sell the product is higher compared to products sold through intensive distribution. The strategy is used for specialty items like engine spark plugs, watches, and some cosmetic lines.

The third level is exclusive distribution. In this type of distribution, the company limits the number of distributors by only allowing one or very few retailer(s) to carry its brand in a select geographical territory. The strategy is aimed at protecting brand image, and the products include luxury and industrial goods and brands like Porsche, DeWalt, and Audemars Piguet watches.

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The three levels of distribution intensity are intensive, selective and exclusive.

Intensive Distribution

Intensive distribution (also called Mass Distribution) is where a company supplies their product to all markets (essentially they are found everywhere). These products can be found in almost every place a person shops (grocery stores, gas stations, supermarkets, etc.). These are also the type of product a person can buy both at home and abroad. Examples of  products which use intensive distribution are Coke, Pepsi, most major cigarettes brands (like Marlboro), and major brewing companies (like Budweiser).

Selective Distribution

Selective distribution pays attention to very specific geographical locations regarding the availability of a specific product. Companies who want to maintain a specific quality store for their product will use selective distribution. An example would be high end clothing (such as Dolce and Gabbana products are sold at Neiman Marcus and not at Walmart or JC Penneys).

Exclusive Distribution

Exclusive distribution is, essentially, an extreme modification of selective distribution. Companies are far more selective with where their product can be purchased at. Exclusive distribution uses one distributor for entire regions. An example of a product which falls under exclusive distribution is high-end luxury vehicles. For example, Rolls Royce vehicles are exclusively distributed. Rolls Royce only has 33 dealerships in the United States (5 in California).

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