Exclusive distribution

A market coverage strategy that relies on one retailer in a given geographic territory. It is most appropriate when the product is high involvement specialty or shopping good. Exclusive distribution is also useful when a firm wants to differentiate its products on the basis of high quality, prestige, or excellent customer service. The main advantage of exclusive distribution are that the manufacturer can choose retailers whose clientele match its target market, and that there will be close cooperation in implementing the producer’s merchandising and customer service programs.