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A manufacturer sells her organic meals only to major supermarkets - HSC - SSCE Business Studies - Question 5 - 2017 - Paper 1

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A manufacturer sells her organic meals only to major supermarkets. Which distribution channel has the manufacturer chosen? A. Exclusive B. Intensive C. Selective D... show full transcript

Worked Solution & Example Answer:A manufacturer sells her organic meals only to major supermarkets - HSC - SSCE Business Studies - Question 5 - 2017 - Paper 1

Step 1

Which distribution channel has the manufacturer chosen?

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Answer

The manufacturer has chosen a selective distribution channel. This approach involves selling products only through certain retailers, ensuring that they reach a specific market segment. By selling her organic meals only to major supermarkets, the manufacturer is limiting the availability of her products to select outlets, thereby controlling the marketing and distribution strategy effectively.

This is distinct from exclusive distribution, which would limit the product to a single retailer, and intensive distribution, which seeks to maximize product availability across a wide range of retailers. Warehousing does not fit into the concept of distribution channels as it refers to the storage of goods rather than their distribution.

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