The strategy is designed to grant exclusive geographic territories to one or very few retail customers so no other retailers in the territory can sell a particular brand. Can benefit to manufacturers by assuring them that the most appropriate retailers represent their products. Widely used by luxurious good firms as this strategy would not weaken their image. When supply is limited or a firm is just starting out, provide an exclusive territory to one retailer or retail chain helps ensure enough inventory to provide the buying public an adequate selection.