This July Only: Save 30% on PRO with code SUMMER30 »
Become a Member
Guides and Reports
Show All »
Metrics & ROI
Search Engine Marketing
More Marketing Topics »
See All »
Schedule of Events
Virtual Conference Series
Products and Services
Post a Question
Quick Start Guide
Find and Post Jobs
Real-World Education for Modern Marketers
Join Over 615,000 Marketing Professionals
Ask your question ... sign up today! It's FREE!
Just for Fun
MProfs PRO Seminar Q&A
Topic: Student Questions
Search more Know-How Exchange Q&A from Marketing Experts
This question has been answered, and points have been awarded.
Posted by Anonymous on
1/17/2010 at 3:39 PM ET
What is exclusive distribution and will you recommend exclusive distribution for FMCGs?
Give two examples of products being exclusively distributed in the market along with the reason for selected examples.
Exclusive distribution: Involves limiting distribution to a single outlet. The product is usually highly priced, and requires the intermediary to place much detail in its sell. An example of would be the sale of vehicles through exclusive dealers
Another type of exclusive distribution may not involve high-end products but rather products only available in selected locations such as company-owned stores
Exclusive distribution is a distribution strategy whereby a producer sells its products or services in only one retail outlet in a specific geographical area.
A distribution system, in which a company grants exclusive rights on its products or services to another company, for example, the right to exclusive territory . The supplier grants exclusivity to incentives the distributor to promote the product and provide better service to customers.
I'll not recommend exclusive distribution for FMCGs because FMCGs means FAST MOVING CONSUMER GOODS. These are typically personal consumables, such as shampoo, dry food. Nestle, Proctor & Gamble and Unilever are some of the biggest FMCG companies
1/17/2010 at 4:00 PM
OK, nicely done. You're the first in your class to actually provide your thoughts to this question (appears about 3 or 4 other times).
I agree with your assessment of exclusive distribution and I like your two examples - EXCEPT - can you provide the brand of a high end vehicle that is through exclusive distribution? Given the advantages and disadvantages of exclusive distribution, as you very well defined it, why would a high end auto company go exclusive?
Same questions for the not-so-high end products through company owned stores. Why would they go through their own store versus with lots of dealers?
For the FMCG - why do they NOT go exclusive? Why wouldn't P&G and Unilever go with company owned stores or exclusive distributors? What characteristics of their business model doesn't fit within the definition you gave?
I hope this helps.
1/27/2010 at 9:42 AM
I am closing this question since there has been no activity in 10 days.
Thanks for participating!
Carrie (Production Editor)
BACK TO TOP
Post a Comment
Why Your Web Copy Is Missing the Mark (and How You Can Fix It)
by Tara Chila
Why B2B Sales Leads Don't Convert (and Who Is to Blame)
by Ayaz Nanji
Consumer Psychology and the E-Commerce Checkout [Infographic]
by Verónica Maria Jarski
How Big Businesses Use Colors to Affect Your Emotions ...
by Verónica Maria Jarski
Community Trolls: Types, Motivations, and Solutions
by Dan Sullivan
See more marketing articles »
MarketingProfs uses single
sign-on with Facebook, Twitter, Google and others to make subscribing and signing in easier for you. That's it, and nothing more! Rest assured that
provide your social data to 3rd parties
contact friends on your network
post messages on your behalf
interact with your social accounts
Your data is secure with