Since Counter Diversion began, every brand and manufacturer we’ve engaged with has aimed to create a transparent marketplace and achieve online brand protection. They want to be able to enforce their sales policies, address the complaints of their good retail partners who are being undercut by the grey market, and at the end of the day, protect their product values and improve profitability. This involves clearly identifying third-party (3P) sellers, understanding their product sources, and determining the appropriate sales policies to safeguard product values and distribution strategies.
This is a commendable and well-intentioned objective. Every brand should strive to uphold its reputation. It’s essential to consider the company’s strengths, what consumers associate with the brand, and how to leverage that image to generate additional revenue.
Importance of Brand Image
When making these decisions clarity comes from a unified understanding of what you are trying to protect, and once that is done, several subsequent decisions become much easier to make.
Brand image might be the keystone to long term brand health. Brands must identify what they stand for and clearly articulate their mission, vision, and values. This helps in creating a strong foundation and guides the brand business decisions. Consistency is key ensuring that the message, actions, and products consistently reflect these values. These values build trust and loyalty among consumers. Solomon Thimothy wrote an article for Forbes titled, Why Brand Image Matters More Than You Think, outlining impression, credibility, recognition and equity of your brand. This is the brands foothold in the marketplace and the area to protect and from which to grow.
A well-defined brand image not only attracts customers but also retains them by fostering a sense of familiarity and reliability. When consumers know what to expect from a brand, they are more likely to return, creating a loyal customer base. This loyalty can translate into word-of-mouth marketing, where satisfied customers become brand advocates, further enhancing the brand’s reach and reputation.
Moreover, a strong brand image can differentiate a company from its competitors. In a crowded marketplace, having a unique and recognizable brand identity can be a significant advantage. It helps in creating a distinct presence that can attract new customers who resonate with the brand’s values and mission.
Solomon Thimothy’s insights in his Forbes article emphasize the importance of maintaining a positive brand image. He discusses how a brand’s impression, credibility, recognition, and equity are crucial components that contribute to its overall success. By consistently delivering on its promises and upholding its values, a brand can build a solid reputation that stands the test of time.
Progress over Perfection
Short-term deliverables frequently overlook the importance of long-term brand health. The best advice we can offer is that you don’t need to overhaul everything overnight. Today’s retail landscape, with its intricate distribution strategies and networks, has likely introduced more complex issues. It’s crucial to revisit the core elements that drive your brand image and ensure they remain protected.
Balancing immediate business needs with long-term brand sustainability is essential. While short-term goals might bring quick wins, they can sometimes undermine the brand’s enduring value. Instead of making drastic changes all at once, focus on incremental improvements that align with your brand’s core values and mission.
In the complex retail environment, where distribution channels and networks are more sophisticated than ever, it’s easy to get caught up in operational challenges. However, maintaining a clear vision of what your brand stands for and consistently reinforcing that image can help navigate these complexities. Protecting your brand’s essence ensures that it continues to resonate with your audience, fostering loyalty and long-term success.
We specialize in painting a complete picture that is designed to allow brands to make data driven decisions in the best interest of their long-term brand health. Our top priority is getting brands connected to a solution that matches their needs. We work with or know the best brand protection agencies in every aspect of the issue and will make sure your put in touch with the right people even if our solution isn't a part of your solution.
Under the Microscope
Marketplace sales channels like Amazon and eBay have revolutionized the way consumers shop, offering unparalleled convenience and variety. However, they also expose significant gaps in brand protection strategies. For larger brands, these platforms can become battlegrounds where unauthorized sellers, and inconsistent pricing can erode brand equity and consumer trust.
All brands should be monitoring their listings at the very least. For larger brands, protecting key categories on these marketplaces is crucial. This involves monitoring listings to ensure that only authorized sellers are offering genuine products. Understanding how many disruptive listings exist is vital, especially on the categories that define the brand. Addressing marketplace listings that compromise maintaining consistent pricing across all channels, prevent price erosion, and impact the perseveration brand value must be addressed.
Smaller brands, on the other hand, have the advantage of achieving total marketplace control more easily. With fewer products and a more focused distribution and market presence, they can closely monitor and manage their listings. This is where we've seen the biggest impact in the last 5 years. The ease of entry into the marketplace has improved for smaller and new brands.
THIS one aspect is the key to the marketplace roller-coaster. Premium products drive brand desire. Porche sells less cars than Toyota for a reason. Cars, because of their price and longevity are not a great example, but the point of what is considered premium is a good one. Premium products are premium for a reason, is it materials, craftsmanship, technology, patents? What is it that sets a brands product apart from another? Whatever that is, is the essence of the product, and the essence of a successful product greatly contributes to a brands overall brand health.
Online Brand Protection Essential Steps
Our blog post titled, "Amazon Brand Protection: 5 Steps to Protect Your Brand & Dominate," is a good resource on what to consider and creating or adjusting an order of operations.
Know your why - what is your brand protection goal. What products are driving your brand image. The more products in your range that drive or reinforce your brand image, the easier it will be to engage long term with your consumers. The products that drive your brand image are locomotives of your company train. The freight cars delivering high volume products may generate more money for the company, but they don't get there without the brand drivers. Protect those at all costs.
Make sure you have policies in place to protect your products. Another post, "Distribution Policies - The building blocks to Brand Health," is a good resource on things to consider beyond a Minimum Advertised Price Policy.
Hire a good tracking company! This is a must; you need the information to make data driven decisions.
Do what we do -
Have a seller centric focus - understand which sellers are disruptive to your marketplace listings.
Enforce your policies - enforcing a MAP policy is easy, the seller has to be approved on the marketplace to enforce MAP, otherwise it is likely a terms and conditions violation. To enforce terms & conditions effectively, you likely need to know the source of the product that is being listed.
Adjust distribution or business practices toward healthier options that are engaging with your consumers in line with your brand image goals.
Conclusion - Keeping it between the guardrails
In conclusion, while marketplace sales channels offer immense opportunities, they also present challenges that brands must navigate carefully. Every brand is on their own unique road. While they may be competing, larger brands are on wider roads that require robust strategies to protect their key categories and maintain consistent pricing. While smaller brands are on more narrow roads that are usually easier to maintain, allowing them to leverage their agility to achieve marketplace control. Ultimately, the success of any brand on these platforms' hinges on the quality and uniqueness of their products, especially those positioned as premium. By focusing on these aspects, brands can safeguard their equity and continue to thrive in the competitive marketplace landscape.
Counter Diversion is a boutique SaaS company - we don't have marketing, and we don't use high-pressure sales tactics. Our goal is to have solid, honest conversations about the issues at hand and then either recommend our service or another one that is a better fit for your needs. If you'd like to engage in that type of discussion, schedule a consultation here.
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