Distribution is the finest tool for almost every brand and its products to make a substantial impact in the new market and create an identity for itself. It is vital to be engaged in every step of the sales process to create an influence on the buyers and the target audience. Opting for a staunch distribution strategy for brands to develop an enormous brand acceptance and awareness is as vital as making quality products at a reasonable price. In this article, we will discuss brand distribution, distribution channels, types, and the chain it follows. 

What Is Brand Distribution?

Brands want their products and services to be readily available and accessible to possible consumers in the market to the greatest extent possible. The process requires packaging, delivery, and transportation. 

A distributor buys products from a company, stores them, and then sells them following a distribution channel. They are placed in the middle of the manufacturers and the direct consumers. 

The Channels of Brand Distribution

Starting from Level 0, the brand distribution channels go up to level 3. It gives information on the business flow between the makers and the consumers. The channels are easy to understand but are a bit complex in practice. 

Channels can be broadly categorized into two sections: Direct Channels and Indirect Channels. When a manufacturer directly addresses the consumer, it is known as a direct channel. While, when the transaction between a manufacturer and the consumer happens via intermediaries, it is known as an indirect channel. Let us study the different levels of distribution in brief:

Level 0

Level 0 is direct sales from the manufacturer to the consumers with no intermediary. 

Level 1

Only one intermediary, such as a retailer, between the makers and the customers. 

Level 2

Two intermediaries between the makers and the customers. For example, the makers sell their products to the wholesalers, the wholesalers to the retailers, and finally, the retailers to the customers.

Level 3

The presence of a broker or agent in business is a Level 3 channel of distribution. These agents or brokers work for the companies to deal with the wholesalers. 

The Types of Branding Distribution

Distribution largely depends on the market hype and market demand for the product. And it is crucial to know the correct type of branding distribution your brand requires to flourish fruitfully in the market. Brand distribution solely depends on the product’s type and nature, so they know their goals and choose a strategy accordingly. So, what are the kinds of distribution? It has been classified under three groups: intensive distribution, selective distribution, and exclusive distribution. 

Intensive Distribution

This is the wildest form of brand distribution conceivable. This means that products of this brand can be distributed to as many retail outlets as possible. The ultimate goal of this type of distribution is to permeate the market to the greatest extent. For example, Coca-cola were able to reach almost everywhere in the world. 

Selective Distribution

This type of distribution is done on specific outlets and in particular outlets. This distribution is a good policy for targeting a specific audience— for example, Peter England outlets in various Indian cities only. 

Exclusive Distribution

Products are only made available to limited outlets. Products are made available only in specific stores and locations. This distribution strategy is perfect for luxury brands that target only a small set of consumers, which helps them to maintain their allure and exclusivity—for example, a luxury car showroom of a particular brand in a posh locality. 

The Chain of Brand Distribution

Knowing about the distribution chain is the essential aspect of product distribution as it is the backbone of the whole idea. The entities of the entire sales process are distributors, retailers, agents and wholesalers, all playing a specific role in the cycle. It is hence crucial to know the individual roles played by them to uphold the distribution process of a brand. 

Distributors

A distributor can be termed as a wholesaler with some extra accountability. Their duty is divided into different sections. One is fulfilling the retailer orders. And other is to sell products directly to the actual producers vigorously. So, we can assume that a distributor plays a double role in the distribution process, primarily as the manufacturer’s sales representative and also a manager of orders and returns. They are always searching for market opportunities to reach the peak of sales with outstanding performance. They have a stronger connection with the manufacturing brand as they focus on the target market and audience. 

Wholesalers

A wholesaler’s job is to sell products in bulk quantities to retailers or final consumers. Wholesalers purchase the products in huge quantities either from the manufacturer directly or the distributors working on behalf of the brand. This purchase in bulk quantities allows them to buy the products at a lower price, and they sell to the retailers in small amounts at a comparatively higher price to make a profit. 

Retailers

Retailers are the penultimate participant in the sales process before it goes to the final consumers. They are the shops or the outlets where the buyers can buy the products. This can be a small shop in the locality or Walmart outlets. Retailers purchase their products from wholesalers or distributors. They buy it at a lower price than they sell it to the consumers to make a profit. 

Agents and Brokers

We have known about the brokers in the level 3 channel of sales, the ones who take care of the sales logistics of a company or brand. They take care of the marketing process and procedures, including specialized shipments of products. In addition, they take possession of the products on the manufacturer’s behalf to execute the distribution process. For big business houses, the role of agents and brokers is undeniably vital.  

Final Words

Distribution is a crucial aspect of a brand and significantly contributes to the customer’s insistence on its products. It vastly increases the accessibility so that the line between brand preference and brand purchase becomes thinner. Apart from this, distribution helps a brand gain exposure among consumers, increasing their sense of brand awareness. 

For example, brands like Coca-Cola, Pepsi, and KFC, have been hugely profitable for their to-the-point distribution strategies that make their products available to people worldwide. However, there are instances, depending on the type of products offered by the company, distribution may not be possible or wide distribution must not be initiated. For example, Louis Vuitton will lose their charm and acceptance if they become available and accessible everywhere. The branding purpose and distribution depend on the nature of the product. We hope that this article was able to provide you with information on what is branding distribution, its strategies, and when and how it works.