Starbucks has an agreement with PepsiCo through which Pepsi distributes Starbucks' coffee drink, Frappuccino, to grocery stores and other retail outlets. This is an example of
A) a strategic channel alliance.
B) exclusive distribution.
C) multichannel distribution.
D) horizontal channel integration.
E) channel leadership.

Question

Quizplus · Accepted Answer

A strategic channel alliance is when two companies come together to distribute each other's products. In this case, Starbucks and PepsiCo have formed a strategic channel alliance where PepsiCo distributes Starbucks' Frappuccino to grocery stores and other retail outlets.

Starbucks Has an Agreement with PepsiCo Through Which Pepsi Distributes