A small electronics company manufactures a line of low to moderate quality stereo components that are distributed through wholesalers to mass market retailers such as Walmart.The electronics company has begun production of a small line of high quality,professional studio model components.How should the small electronics company distribute its new products?

Question

Quizplus · Accepted Answer

Because the new line of high-quality professional studio model components is not suitable for mass-market retailer like Walmart, it would be best to distribute them through agents who sell to specialty electronics stores who can feature the new line. These stores will likely have customers who would appreciate the high quality of the new line and be willing to pay for it. This approach will not conflict with the existing channel and will give the new line the best chance for success.

A Small Electronics Company Manufactures a Line of Low to Moderate