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 wal-mart.The electronics company has begun production of a small line of high quality, professional studio-model components.How should the small electronics company best distribute its new products?

Question

Quizplus · Accepted Answer

Since the new line consists of high-quality, professional studio-model components, the best option for distribution would be through agents who sell to specialty electronics stores who can feature the new line. This will allow the small electronics company to target a specific market and build a reputation for their high-quality products. It may also help them avoid potential conflicts with their established channel and mass-market retailers who may not be interested in carrying their new line. Additionally, selling directly to specialty electronics stores may limit their reach, and establishing their own chain of electronics retail stores may be too costly and risky.

A Small Electronics Company Manufactures a Line of Low to Moderate