Inferior channels in retail, an insufficient product environment, poor presentation, insufficient product information, loveless service – all of these erode the value of a brand. Grey market channels are the enemy of marketing investments. A positive consumer experience across the entire consumer journey determines the success or failure of a brand.
What effective protection is there? How can a brand protect itself against the grey market? How can brand protection actively contribute to consumer experience? Why should grey market protection become an indispensable part of your daily business?
The beautifully staged brand world is very fragile. The more successful a brand is, the more actors want to participate in its success. Success becomes a magnet for freeloaders. At best, they only behave parasitically – at worst, they cause considerable damage. Thus, brand value deteriorates.
LOSS OF SALES AND TRUST
Inferior sales channels damage consumer’s confidence in the brand. As a result, their willingness to spend money on the brand is dwindling. But not only the emotional value of the brand will be damaged. Significant damage will also develop for sales and distribution. Customer relationships with long-standing retail partners will be massively burdened. Reputable retailer will lose sales and the trust of their customers. Relationships with loyal and powerful retail partners will be heavily burdened. Trust between trading partners will be lost.
In the end there is a sometimes dramatic loss of sales for the brand. There are only losers.
BRAND PROTECTION IS A STRATEGIC DECISION
Ambitious corporate goals, high short-term pressure on sales targets and shady sales strategies fuel the misuse of brands by third parties.
Insecurity regarding competition law requirements and the aim to avoid any legal risks, leaves manager inactive. They are afraid to adjust directions accordingly. They are frozen. Subsequently the company’s strategic freedom, it’s healthy, sustainable growth and the brand are sacrificed.
Brand protection is a state of mind. First of all, actively protecting a brand is a strategic decision. Consistent brand protection has an impact on corporate success just as much as excellence in marketing. Companies can actively create the framework for protecting their brand sustainably. They can legally, strategically and in the daily processes establish the right framework and the necessary measures.
Preventing abuse is an active process. They can create structures that make it difficult for free riders. Black sheep can be systematically unmasked. The loyal trading partners and all employees benefit from a sufficient setting and the right measures, needless to say that includes the brand itself and sales growth.
We are happy to support.
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