Brands generally find themselves in one of four categories when it comes to addressing Brand protection and the Grey Market. “Getting Started,” “Hopeful Skeptic,” an “Expert” approach and finally those brands that have a “Relentless Determination,” to protect their product values and Brand Equity.
In some cases, these brands are young, or their sales and distribution have grown to the point where marketplace listings have started to impact the brands product values.
Brands in this category are working with a Tracking company and likely have marketplace management responsibilities as a part of an employee's job (often Sales), but usually not their sole responsibility. They can usually enforce their MAP policies, but the Grey Market is a challenge.
Brands in this category work with a Tracking company and likely have an employee dedicated to marketplace management. These companies have a marketplace strategy, enforce their MAP policy and invest some time in addressing unauthorized 3P marketplace sellers
There are two differences between Experts and the Relentlessly Determined. They are, the ability to confidently address the Grey Market at scale and the willingness to aggressively enforce policies to protect product values
The Importance of this Effort
Counter Diversion has a process of assessing where every Brand stands and the steps that they can take to protect their brand. Grey market distributors can have a significant negative impact on both a company's brand equity and its bottom line. In order to mitigate the damage, companies need to have a well-defined distribution management process in place.
The first step is to identify where every brand is on its journey to Brand Health as the retail landscape shifts to a digital environment. Whether a brand is just getting started or has a level of expertise in this area, the Counter Diversion system can give brands best practices on that journey, all the way up to information to confidently address the source of the product to the Grey Market.
The Grey Market is a growing concern for companies as more and more sales are shifting online. Grey market distributors can have a significant negative impact on both a company's brand equity and its bottom line. To mitigate the damage, companies need to have a well-defined distribution management process in place.
Anytime there is more than one offer for the same product on a website/marketplace, there will be pressure on the price of these offers for the different sellers to win the sale. As marketplaces like Amazon and eBay become more prevalent and more companies try to replicate a viable marketplace, it creates an environment for increased demand. As this scenario plays out, compromised product values erode brand equity, and eroded brand equity creates less consumer loyalty, which leads to an easier acceptance of an alternative. That alternative could be a private label at a lower price, or a competitor that has done a better job of managing its distribution and brand health.
We would like to help your company define where you are today on this journey and how our system can help you take the next steps.
Please contact us at firstname.lastname@example.org for any questions.