After doing research, the company found that it will be competing with over 32 major competitors and thousands of street-side vendors, in addition to the fried vegetable snacks made in homes. The company plans to enter the country through a Joint Venture with a local firm. The distribution objective is to ensure 100% distribution of the product with all retail outlets in the 4 provinces; shelf positioning next to closest competitor Krackles that dominates the potato chip market.

Distribution Channel Structure: Considering the large areas the product needs to be distributed to, they plan to use the following distribution channel structure:

Manufacturer --> Distributor (for the 4 provinces) --> Regional Distributor (1 per state) --> Sub-distributors (4 per state for Rift Valley, Coast, and Eastern; 2 for Nyanza province) -->Wholesalers (one per every 150 retailers) --> Retailers --> Consumer

The company assumes that the consumer will be willing to travel about 0.50 miles to buy the product. Channel Markup: The markups for each of these intermediaries are shown below: Manufacturer = 20% Distributor = 25%

Regional Distributor = 30% Sub-Distributor = 35% Wholesaler = 40% Retailer = 45%

1. Based on the information given, how many retailers should carry the companys products so that the company can achieve its distribution objectives?

2. How many wholesalers should carry the companys products in order to service the retailers calculated in #1 above?