Distribution channels and place strategies: an outlet grid showing intensive, selective and exclusive distribution, and a warehouse, transport and inventory model
Selling in fewer shops can make a brand worth more
Place is not just where a product is sold. It is how many doors the business chooses to open, and how the stock gets through them without running out or piling up. Choose an intensity for the market below and watch how many outlets light up and where the reach and control bars go. Then change the stock held and watch the warehouse, the trucks and the shelves.
Market coverage
Intensive
Choose an intensity. Watch how many outlets light up and which way the two bars move.
50 of 50 outlets · soft drinks
Channel intensity
Outlets stocked
50 / 50
Brand control
Low
Physical distribution
Stock held 10 days
Change the stock held. Watch the warehouse fill, the trucks on the road and the shop shelves. The model is illustrative.
3 trips a month · stock-out risk medium
Stock held10 days
3 days102030 days
Transport trips / month
3
Stock-out risk
Medium
Channel length: how many hands the product passes through
Know This
Intensity decides how many outlets stock the product, channel length decides how many hands it passes through, and physical distribution decides whether it is on the shelf when the customer arrives.