selective distribution strategy example

selective distribution is the most effective distribution strategy for high-end brands that want to set up a limited number of outlets in a particular geographical location. this type of strategy works best when dealing with consumers that like to “shop around”. for better clarity, selective distribution occurs when a company resorts to opening up a limited number of outlets in a specific geographical location. this yields better results and allows the company to put in all their focus effort (training facilities and resource) to better use. this eventually leads to a more personalized shopping experience that encourages consumers to come back again and again. since this form of distribution caters to the needs of consumers of a specific geographical area, its best suited for companies that want to maintain quality. high-end companies that produce exceptional quality clothing and accessories are likely to use selective distribution.

exclusive distribution is a more extreme type of selection distribution. selective distribution allows companies to garner optimum market coverage, that too at a relatively lower price. since a number of distributors are handpicked by the company, consumers are likely to benefit from better quality services and products. because there are only a few number of outlets to oversee, manufacturers are able to establish good working relationships with channel members. better communication and coordination ultimately leads to an improved brand image which is what most leading companies desire. but of course, that depends on the goals of the organization. in this case, companies must ensure that there are no problems in communication and that all conflicts are resolved immediately. this’ll help determine what kind of distribution strategy would be best suited for their products.

intensive distribution is the method where every possible outlet is serviced and the company’s product is made available in that outlet. this makes the brand more exclusive and gives the dealer exclusive rights for the sale of the product in that particular vicinity. selective distribution is a distribution approach where selective and few outlets are chose through which the product is made available to the customers. a good example for products for which selective distribution is used is cars. for the low-end range and mid-level range cars, selective distribution is used. all of these brands are present in the outlets which are owned and operated by the company. this is done to show that the brand is using selective distribution.

this can happen if there is a legal agreement of some sort between the producer and the retailer. also if the store is one of the big ones in the locality and more popular and more frequently visited, then this kind of an agreement will create an advantage in the entire locality. selective distribution is gaining importance as it provides an optimal mid way solution between intensive and exclusive distribution. one of the main disadvantage is that you become selective. i will add the disadvantages of selective distribution to this article tomorrow the difference between exclusive and selective is the amount of geography a distributor covers. however, now a company enters the market which is cheap. that is mass distribution.

a good example for products for which selective distribution is used is cars. this need not be the example of such companies include: apple, samsung, lamborghini, gucci, coca cola, bmw and mercedes. selective distribution is a middle-ground option between intensive and exclusive distribution. with, exclusive distribution strategy, exclusive distribution strategy, exclusive distribution examples, intensive distribution strategy, apple selective distribution strategy. selective distribution example the best examples would be of whirlpool and general electric who sell their major appliances through dealer networks and selected large retailers. they develop a good working relationship with these selected channel partners and expect a better-than-average selling effort.

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