Exclusive distribution is a channel coverage strategy in which a limited number of dealers or intermediaries are granted the exclusive right to distribute the company’s products in their territories. This approach creates a close partnership between the manufacturer and the intermediary.
This strategy is suitable for luxury, specialty, or “shopping” products where image and high quality of service are critical. Exclusive distribution provides the manufacturer with greater control over the intermediaries’ marketing efforts, and the dealers with higher profit margins and reduced competition in their area.
