The world of marketing channels is a dynamic and ever changing place that offers some of the most exciting challenges known to business professionals. Whenever a new opportunity to make money appears, a new marketing channel is often created. In some fast changing markets, business possibilities emerge so rapidly, radically transforming the distribution channels. Often times, this is so frustrating for channel managers, who must decide which channels are correct for their company, product, and market places. A distribution channels are a group of people and firms involved in the transfer of title or ownership as the product moves from the producer to the ultimate consumer. The American Marketing Association describes a distribution channels as the structure of intra company organization units and extra company agents, dealers, wholesalers and retailers through which a commodity, product or service is marketed (Havaldar and Cavale, 2006). In short, distribution channels are nothing but intermediaries or middlemen between the producer and the consumer. Distribution channels are there because the producers can not reach all their customers. They help to multiply reach and provide efficiency to the marketing process. Furthermore, they have the core competence and the reach which a company may not have and they can do this entire process more cost effectively. According to Havaldar and Cavale (2006), distribution channels can broadly be classified as follows: Sales Channel This has the function of motivating buyers, sharing information between the consumer and company, negotiating fair bargains for the consumer, and financing the transactions. A distributor for Oatmeal/Quaker Oats Company would perform all these functions for the company by dealing with retailers and wholesalers who stock and sell the company products. Delivery Channel This is regarded as the primary job of a clearing and forwarding company and, is typically meant for physical transactions only. A clearing and forwarding company for Oatmeal/Quaker Oats Company would ensure that the orders received from the company for the company distributors would be physically delivered to them on time and in full. The clearing and forwarding company would also receive and stock the company products for distribution. Service Channel This is mainly concerned with the after sales service. This will ensure that Oatmeal/Quaker Oats Company is able to address any issues brought up by clients after the actual distribution has taken place. A number of distribution channels are available and may be used by a company depending on preference. They include company owned distribution centers, distributors, value added resellers and agents, who could be exclusive, or shared, wholesalers who stock and sell a variety of products including that of competition and, retailers who are the ultimate and direct connect with the end user and consumer. For industrial products, a company’s own sales and marketing team could also serve as part of the channel system. Each channel member has unique characteristics and serves some objectives for the companies doing business in a given market or geographical area. Analysis of Target Market’s Needs Th