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LG Steps Up MAP Enforcement

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

 “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
re-invest 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, and Sennheiser 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.