Exclusive distribution means that one particular retailer servicing a given area is granted sole right to carry a product. E.G., Coach Leather hoods are distributed exclusively though select stores in area. Several advantage may be gained by the use of exclusive distribution, it promotes tremendous dealer loyalty, greater sales support, a higher degree of control over the retail market , better forecasting , and better inventory and merchandising control . the impact of dealer loyalty can be helpful when a manufacture had seasonal or other kinds of fluctuating sales
An exclusive dealership is more willing to finance inventories and thus bear a higher degree of risk than a more extensive dealership . Having a smaller number of dealer gives a manufacturer or wholesaler greater opportunity to provide each dealer with promotional support .
Dealers are also more outlets: it is easier to control such aspects as margin , price , inventory . dealers are also more willing to provide data that may be used for marketing research and forecasts. exclusive distribution is especially relevant for product that customers seek out . Example of such products include Rolex watch , Gucci Bags , Regal Shoes. Celine Neckties and Mark cross wallets .
The inverse of exclusive distribution is intensive distribution .Intensive distribution makes product available at all possible retail outlets . The distribution of convenience goods is most consistent with this strategy , if the nature of the product is such that a consumer generally does not bother to seek out the product but will buy it on sight if available , then it is to the seller’s advantage to have the product visible in as many places as possible.
Between Exclusive and intensive distribution is selective distribution selective distribution is the strategy in which several but not all retail outlets in a given area distribute a product . Shopping goods – Goods that consumers seek on the basis of the mist attractive price or quality characteristics are frequently distributed though selective distribution .
Because of this competition among retailers is far greater for shopping goods than for convenience goods . Naturally , retailers wish to reduce competition as much as possible . this causes them to demand exclusive territorial space or limit the number of dealers in geographical area