A bakery produces organic bread that is sold in health food stores - HSC - SSCE Business Studies - Question 5 - 2019 - Paper 1

The most appropriate channel choice for the organic bread sold in health food stores is D. Selective.

Explanation:

A selective distribution strategy is ideal for products that have specific characteristics appealing to a select consumer group, such as organic bread.

• Selective Distribution: This strategy allows the bakery to maintain a balance between control over brand image and market coverage. By selecting specific health food stores to sell their organic bread, the bakery can ensure that their product is aligned with the values of health-conscious consumers and premium quality.
• Why Not the Others:
  • Exclusive Distribution (A): This would limit the availability of the product to a single or very few outlets, which is not typical for bakery products that aim to reach a broader market.
  • Extensive Distribution (B): This option suggests a wide availability, suitable for mass-market items, which does not fit the niche of organic products.
  • Intensive Distribution (C): Similar to extensive, this strategy focuses on maximum market coverage, generally inappropriate for specialty items like organic bread.