This Master thesis is focused on topic of distribution channels and theirs practical application in distribution of Philips Oral Healthcare products on Czech market. The theoretical part is devoted to the physical structure of distribution channels, the parameters that define them, and the factors influencing their choice. Furthermore, the thesis focuses on the relationships that exist between channel members, a system for management and direction of the common value added. The thesis is further concerned about relationships developed in between two channel members and presents a system for management of such relationships in order to develop them and deliver additional value. Under this approach the thesis further deals with the process of key customers selection and their further integration. In the next section a more detailed presentation of Philips Company is given, followed by description of oral healthcare market competition and distribution of end customers by their habits. Furthermore the thesis describes a practical example of Philips dealing with key customer in oral healthcare category. In order to fulfill the set objectives of the this thesis deep analysis of Philips current distribution channels takes place, followed by described anticipated development and proposed important area to ensure such development.