ENGLEWOOD CLIFFS, N.J. –
LG Electronics is bolstering
its efforts to enforce MAP policy.
While the manufacturer has long maintained limits on
advertised discounts of its products by retailers, it has
increased its attention to MAP over the past 12 to 18
months.
According to James Fishler, LG’s go-to-market operations
senior VP, the company is reviewing its policies on
a regular basis, revises them as it sees fit, and is holding
all retailers accountable for violations.
“There’s a renewed interest in making sure [the policies]
are right for the marketplace and consumers,” Fishler
told TWICE. “Retailers appreciate that we’re trying to
help them maintain profitability. They benefit by making
more margin, and consumers benefit when retailers reinvest
in value-added services.”
To support its enforcement efforts online, LG has replaced
its previous e-tail monitoring service with Channel
IQ, a Chicago-based business that scours the web
24/7 for pricing and promotions. The real-time information
helps clients including Crutchfield, Kodak, Panasonic,
Sennheiser and Whirlpool develop merchandising
strategies, detect knock-offs and, for LG, enforce MAP
policies.
Fishler described the service as “consistent, accurate and
almost instant” and as an important enforcement tool as LG
adds major appliances to its online channel sales, beginning
with floor care.
Online violations include posting an unsupported price,
or even the suggestion of one, outside the confines of a
shopping cart or pop-up box, while print infractions include
picturing an LG electronics product in a “famous maker” discount
ad without an identifiable logo.
Fishler added that LG’s MAP policy is relaxed during
sponsored national promotions surrounding holidays, Black
Friday or other special events.
