Understanding Exclusive Distribution Strategy

Armon Apparels Exclusive Distribution Strategy

Armon Apparels designs, manufactures, and distributes athletic apparel and accessories for men and women. The company has only nine distributors across the United States. These distributors control a nationwide network of 600 retailers. The company does not sell its products through other channels. This is an example of exclusive distribution.

What is Exclusive Distribution?

Exclusive distribution is a distribution strategy where a manufacturer chooses to sell its products through a limited number of distributors. This strategy is often used when a manufacturer wants to maintain control over its brand image and ensure that its products are only sold through certain channels that meet its standards.

Benefits of Exclusive Distribution

By using exclusive distribution, a company can ensure that its products are only sold through authorized channels that meet its standards. This helps maintain the brand's image and reputation. Additionally, exclusive distribution can create a sense of scarcity and exclusivity among customers, driving up demand for the products.

Conclusion

Exclusive distribution is a strategic approach that can help a company maintain control over its brand image and ensure that its products are only sold through selected channels that meet its standards. Armon Apparels' use of exclusive distribution exemplifies how this strategy can be effective in controlling distribution and ensuring brand consistency.

What is the distribution strategy used by Armon Apparels? A) selective B) intensive C) exclusive D) internal E) passive

The correct answer is C) exclusive distribution. The company does not sell its products through other channels. This is an example of exclusive distribution. This strategy is often used when a manufacturer wants to maintain control over its brand image and ensure that its products are only sold through certain channels that meet its standards.