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 when
there are a variety of brands. A wholesaler makes sure to provide a product to nearly all
potential consumers. Our product is quite unique and there are not a lot of competing brands
to use this strategy.
Exclusive distribution uses only one retailer to sell the product. It is complicated and not
necessarily to detect and choose one and the most special and specific outlet in Poland, since
the development of organic food market are just growing. People started to be more attentive
of their health and the composition of a product. There are plenty of eco-stores available
where 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. This
distribution 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 a
few outlets in specific geographical area which rises a possibility of positive outcome. We would
pay 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 most
effective. Unlike intensive and exclusive strategies, selective is more appropriate and beneficial
for 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).