Question:

Your company, a manufacturer of beverage products such as mineral water, juices, and soft drinks. Your company just acquired (bought out) another company who is specialized in producing and selling several electronic items such as Washing machines, Refrigerators and Air conditioner. You know that your existing channels of distributions - regional & national distributors - are probably not capable of or interested in reaching this Electronic marketplace. In the acquisition package, your company has also assumed full ownership of $800,000 of product inventory. Consequently, your immediate supervisor has issued an order to you to immediately find another channel of distribution to move this inventory problem and therefore create sales revenue profits.

## Describe what new channel of distribution selection criteria you will use and why?

## Should you give your existing channel "right of the first option" to market these beverage items?