LG Steps Up MAP Enforcement

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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 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, 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.


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