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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

In this scenario, the manufacturer is selectively selling her organic meals only to major supermarkets, rather than making her products available through all possible retailers. This approach indicates that she is using a selective distribution strategy.

Explanation of Distribution Channels

  • Exclusive Distribution: This involves giving one or a few dealers the exclusive right to distribute the product. This is often reserved for high-end products.

  • Intensive Distribution: This is where a manufacturer tries to distribute their products through as many outlets as possible.

  • Selective Distribution: This type allows a manufacturer to choose specific retailers that can sell their products. It typically involves selling through a limited number of outlets.

  • Warehousing: This refers to the storage of goods in a warehouse, not a distribution strategy.

Given the provided options and the context, the answer is C. Selective.

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