Market Management – Supporting Selective Distribution

In 2014 this CE ‘premium’ brand implemented a Selective Distribution policy to regain control of their market and forge stronger relations with their selected dealers.

The challenge……

In 2014 this CE ‘premium’ brand implemented a Selective Distribution policy to regain control of their market and forge stronger relations with their selected dealers. In the 18 months leading up to the implementation date C3i provided visibility of the extensive online market across EMEA and provided enforcement to combat this significant issue which was identified as responsible for price erosion and saturated stocks in certain markets.

The solution……

Aligned with the appropriate distribution policies, C3i created monitoring and analysis of online sellers that were not authorised or selling product they were not supposed to. The focus was primarily upon the 3 major EMEA online markets for the brand. (Germany, France & UK) Very quickly C3i identified targets that were of most concern to the brand and whom were confirmed as disruptive to the market and the brand image.

“We had developed guidelines and protocols with C3i for our EMEA market which enabled them to add real value and impact by identifying problem sellers and reacting by taking appropriate actions quickly and effectively without creating more work for us” (Operations Director) Sellers were identified and in many cases ‘evidential test purchases’(*) were arranged and executed. This is a significant and important step to gather evidence and intelligence and serve as a foundation for any onward enforcement activity. With evidence collated and verified, information charted and recorded where appropriate, C3i actively engaged with the sellers adopting various strategies that deliver the required impact. “At C3i we make careful judgements and decisions as to how best we can ‘enforce’ against the brands sellers to provide impact, value and results for the longer team while maintaining the reputation and integrity of the brand. The focus is upon maximum disruption, but when ‘policing’ the distribution policies the approach needs to be subtle, professional and effective” (Founder & CEO) Takedown activity is fast and effective but generally has a short-term impact and doesn’t necessarily get the right message to the seller. Cease & Desist orders are more effective and illustrate to the sellers that we know what they are doing and Market Management – Supporting Selective Distribution Case Study - Premium Global CE Brand Protecting the integrity of your brand where they are located while also forming a further part of the evidence chain for any onward legal actions. ‘Knock & Chats’ are highly effective and are employed commonly by C3i. Representing the brand professionally, a visit to a seller drives the highest rates of success and commonly results in much more significant information being learned such as where they sourced the items, how much stock they have and how many they have sold in the past few months/years. Some ‘knock & chats’ resulted in the seizure of significant stocks.

Mobirise

Takedown activity is fast and effective but generally has a short-term impact and doesn’t necessarily get the right message to the seller.

The benefits……

In the past few years, at least 7 enforcement engagements by C3i have developed relationships with ‘sellers’ to the extent that they are now authorised dealers for the ‘premium’ CE brand.

In the early days of the new Selective Distribution framework, dealers were sceptical, prices were suppressed, and margin retention was a hot topic. Within 6-18 months C3i had effectively addressed the issues to reduce the sellers just in one single country on-line from almost 2,000 to less than 200, of which only a small number were problematic. This is a simple headline, but the results and impact were so much deeper and significant.

Price erosion became far less of an issue and the brands authorised dealers restored their faith in the brand as their margin retention was now stable and improved, this drove improved sales and improved.

POS thus supporting and delivering the ‘premium’ image the brand had worked so hard to establish. But the results didn’t stop there, the brand was able to show a robust attitude in support of their legal distribution framework and were able to engage with problematic dealers with evidence and facts to ensure that the UK market was insulated and managed. One further benefit was the detection of counterfeit product in the market and threatening sellers. The evidential test purchases along with C3i charting and open source intelligence gathering helped the brand identify and address the counterfeit threat and largely eradicate it across Europe.

Mobirise

To contact C3i for further information:

+44 (0)1244 661222
admin@c3ieurope.com