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Dispensing Strategies: Brandits |
| Written by Michelle Brisebois | |
A co-worker of mine, who had an identical twin, once told me that as a
teenager the jealous boyfriend of a girl his twin was dating on the sly
had beaten him up. It was a case of mistaken identity.
It must be frustrating to take the rap for someone that looks just like
you but whom you have no control over. If you’ve ever had another
company copy one of your products – it’s akin to the evil twin
syndrome. It’s corporate identity theft and companies suffer its
effects through lost sales and if the imposter is of lesser quality –
damage to the reputation.Brand piracy is a serious topic in a very competitive business environment. With all due respect to Johnny Depp’s Captain Jack Sparrow – pirates aren’t welcome in the business world. Counterfeiting and brand piracy have subtle differences. Counterfeiting is defined as the unauthorized production of goods protected by copyright, trademark or patent. Brand piracy is the unauthorized use of copyrighted or patented goods or ideas. Making a hand-held PDA that looks like a RIM Blackberry and calling it a Blaccakberry is counterfeiting. Making a hand-held PDA with subtle differences in look and feel and calling it a Redberry (as a company in China did) is brand piracy. A 2005 conference on brand piracy reported that the revenue legitimate business lost to counterfeit attacks is up to six to eight per cent of world trade. Canada has been under fire for reputedly providing a haven for brand piracy with its lax copyright laws. The Pollara polling firm conducted a survey for the Canadian Anti-Counterfeiting Network and found that 28 per cent of Canadians have knowingly purchased counterfeit products. An additional 12 per cent learned of counterfeit purchases after the fact. The RCMP has concluded that 90 per cent of the pirated products in the GTA are imported – many of them offshore from Asia. In an ironic twist, the Chinese government is already having challenges around the pirating of the logo for the 2008 Beijing Olympics. It’s a growing concern reinforced by the fact that the U.S. borders have more than doubled their seizure of counterfeit goods since 2001 (Guiterez et al. 2006). This type of issue is often described as a “victimless crime,” but we all know that this is a shortsighted view. Companies can be looking at big dents in their revenue stream and that affects shareholders, owners and employees. The vending industry not only deals with machine knock-offs but also must worry about the products being vended. The top 10 most pirated sectors are: high fashion, electronics, handbags, medicine, DVDs and CDs, automotive parts, toys, cosmetics, foods and beverages. It’s estimated that 20 to 30 per cent of the food sold in the U.S. is done so by bogus manufacturers (CBC July 2007). Bogus products are rarely made to the same quality standards as the real products are. In the case of some ingested products – the results can be devastating. If it’s your brand that’s being compromised – it can feel like there’s no recourse. There are, however, some things to consider that may give you back some control. Defensive strategies for protecting your brand from being copied or stolen are strengthened by using the Internet. I once worked at “company xyz” with a very talented webmaster. To guard against brand thieves he had not only registered “companyxyz.com” as the corporate web address but also several closely spelled versions and even “company xyzsucks.com.” Scour the Internet regularly to keep yourself up to date on all competitive products – including the copycats. Some companies use the Internet to ferret out pirated product. Microsoft sells a basic version of its software which then requires the user to visit the Microsoft website to upgrade. Unauthorized users are identified and tagged. While this exact strategy may not apply to all sectors – the fact that Microsoft changes its product regularly is their competitive strength. Constant innovation will help to keep the copycats at bay. Some companies are using holograms and types of DNA imprinting similar to those appearing on our currency. There are reports that counterfeiters are able to duplicate these stamps fairly well causing some debate as to their effectiveness as a deterrent. Consider strengthening your trade channel to offer incentives to those partners who choose to work with you instead of using the knock-off product. Your brand is your reputation. It’s what people say about you when you’re not in the room. While eradicating piracy is not feasible short term – your long-term strategy hinges on your brand strength. If your “product” becomes about your service, efficiency and innovation then imitators will have a very tough act to follow. |
