The Eagles and Wal-Mart; Exclusive distribution as a marketing strategy

The rock group The Eagles and Wal-Mart have come together to form a partnership that will likely affect marketing for years to come. On October 24, these two announced a long-term strategic deal for exclusive audio and video releases by the band. The group's new album, Long Road Out Of Eden, will be sold exclusively through Wal-Mart and Sam’s Club retail stores in North America as well as online at www.walmart.com .

Now many of you have heard me talk about how more marketers are using limited availability in their marketing efforts. But I am starting to see a new trend towards exclusive distribution arrangements that marketers should take note of.

The exclusive distribution deal between The Eagles and Wal-Mart is not a first. Jessica Simpson formed an exclusive distribution arrangement with 7-11, Ray Charles and Starbucks formed an exclusive arrangement recently and Garth Brooks also formed an exclusive arrangement with Wal-Mart, making the retailer and its Sam's Clubs and walmart.com outlets the only places where his music will be commercially available.

These kinds of exclusive distribution deals are a 180 degree shift from the marketing model of old that sought to get a product into every distribution channel possible. Now it seems, there’s more demand in creating an exclusive distribution deal. It creates buzz, and focus; two important elements for the success of any marketing campaign.

Now I realize that The Eagles, Ray Charles and even the Rolling Stones (who have released an exclusive box set DVD through Best Buy retail stores) are dealing from a position of strength. They have years and years of building their own brands and awareness behind them, so they carry more sway in their negotiations with retail chains.

But more and more I’m becoming convinced that the old marketing model of “all forms of distribution at any cost” is beginning to tire. There are just too many products, too many channels….too many of everything. The clutter is enormous and odious on consumers.

Could it be that selecting an exclusive distribution arrangement helps a brand build a more significant demand?