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Giant Beanstalks is a company based in Maryland that processes and cans vegetables
Giant Beanstalks is a company based in Maryland that processes and cans vegetables. It has contracts with several large farms in Riverdale, 80 miles away from the factory, that agree to sell their produce to Giant Beanstalks. The company's products are available to the public only through Greenleaf, a grocery chain with 38 stores in the country. What distribution strategy does Giant Beanstalks use?
Expert Solution
Solution
Exclusive distribution [because the Giant Beanstalks has only a single retailer Greenleaf to sell its products]
Distribution is exclusive when the supplier grants exclusive right to only one retailer within a geographic area to distribute product of supplier.
In this case Giant Beanstalk, a company that processes, cans vegetables only gives distribution right to Greenleaf grocessy chain operat es 38 stores in the country.
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