Drug stores and Supermarkets

Pharmaceutical (drug/medicine) companies make a broad range of products. Some must be sold via drug stores (such as medicines), whereas some can be sold in supermarkets (such as headache tablets). Obviously, supermarkets offer significant sales potential

There was a challenge revolving around the distribution of a range of popular vitamintablets. Traditionally, they have been sold only in drug stores. However, as the overall market has become more health conscious, the major supermarket chains have approached the pharmaceutical firm, as they now want to also sell this product.

The drug store channel is not all that happy with this news. Obviously, the supermarket chains are in a position to under-cut them on price, which would mean that they would lose this profitable product line, as well as a number of their customers who only visit a drug store to buy this product.

Therefore, the drug store channel has indicated to the firm that they want to keep their exclusive arrangement in place; otherwise they will be less willing to distribute the firm's range of other products (that is, medicines).Is there any distribution problem in this following