Question

Subject: MArketing

Hello, im currently unsure about the definition and i need to identify which ideal level of distribution on Victoria secret based on customer needs, market characteristics, and competitor behavior.

1.Explain how intensive, exclusive, and selective distribution differ from one another. Is Victoria Secret a selective distribution? why?

Answer 1

An intensive distribution strategy involves selling a product in as many stores as possible. Intensive distribution is usually needed where customers have a range of acceptable brands to choose from.That is, if one brand is not available, a customer will simply switch to another brand.

Selective distribution means selling a product at selected outlets in specific locations. An advantage of this approach is that the producer can choose among the most preferred or best-performing outlets and focus his effort (e.g., training) on them. Selective distribution works best when consumers have a preference for a particular brand or price and will visit the outlets that supply these products.

Exclusive distribution involves selling a product through one or very few outlets.When the firm allocates its products through few but major outlets in the market, which exclusively deal with it and not all competing brands, the firm is said using an exclusive distribution strategy. This is a common way of distribution of products and brands that seek a high prestigious image.

Victoria Secret is a selective distribution as these brands are typical of trading up as consumers move up the range. Admittedly there is a little of luxury in these brands (better quality, emotive value), but luxury is elsewhere.