Faced with resale price erosion over the Internet, this webinar is designed for managers who are thinking about either (1) a minimum resale price (MRP) or minimum advertised price (MAP) program, or (2) revising a current program to make it work better. After briefly discussing the basics, it will focus on perennial problems, the latest thinking, and new developments. As a follow-on to their popular webinar of last year, David Howell, Vice President of Brand Strategy at Channel IQ and Gene Zelek, legal counsel for more than 100 successful MRP and MAP programs and a partner at Freeborn & Peters, will deliver no-nonsense perspectives.

1. Channel IQ
312-585-3900
www.channeliq.com
55 W Monroe, 22nd Floor
Chicago, IL 60603
Channel IQ | Know What You Don’t Know Series:
How to Live with Amazon and Prosper:
Managing an Effective Resale Price or MAP Policy in 2015 & Beyond
David Howell | VP Brand Strategy | Channel IQ
Eugene Zelek | Partner | Freeborn & Peters LLP

2. David Howell
Introductions
Today’s Guest Speakers
Gene Zelek

3. 3
“Action is the foundational key to
all success.”
- Pablo Picasso

4. Living with Amazon:
What is the problem? Simply put.
DIVERSION

5. 3 Core Components to Protecting Your Channel
1. Reporting
• We have to first identify the problem affecting
our brand and where it’s occurring
2. Investigations
• We have to “know what we don’t know”- dive
deeper into the unknown
3. Enforcement
• Unless we actively have a strategy to
enforcement our reporting and research we will
never solve the “Problem”

6. 6
Survey

7. Combating Resale Price
Erosion: Terminology
Combating Resale Price Erosion: Terminology
Minimum Resale Price (MRP) Program:
• Covers all offers and actual selling prices
Minimum Advertised Price (MAP) Program:
• Covers some offers, but never actual selling prices

8. Method: By Agreement or Policy
MRP: Policy only
MAP: Either agreement or policy

9. What’s the Difference?
Agreements: Require approval from other
side to implement or change

10. Policies: Announcements that can be adopted
or changed anytime
What’s the Difference?

11. MRP and MAP Programs: Overall Trends
• More common in U.S.
• Changing acceptance outside U.S.
• Reseller price matching & hostility
• Moving to second (or later) generation
programs
• Expansion beyond consumer durables

12. MRP and MAP Programs: Overall Trends more
• Addressing more behaviors to avoid
cheating
• Better controlling distribution
• More sophisticated monitoring ability
• MRP and MAP: Penalties looking more similar

13. MRP and MAP Programs: Recent Developments
▪ Strong-dollar currency issues
▪ Contact lens cases and fallout
▪ Hybrid policies
• MRP + MAP
• MAP + Promo MAP

14. MRP and MAP Programs:
Recent Developments (More)
▪ B2B applications
• Point-of-sale reporting
• Accommodating cost-plus contracts
▪ Support for approach

15. MRP and MAP Programs:
Ongoing Challenges
Clash: Long-term vs. Short-term

16. MRP and MAP Programs:
Ongoing Challenges
Whack-a-mole enforcement

17. MRP and MAP Programs:
Ongoing Challenges

18. The A-word: Amazon Facts of Life
▪ No cooperation with unauthorized reseller problems
▪ Rip-your-face-off contract provisions
▪ Inventory commingling
▪ The algorithm ate my homework & other excuses
▪ Only the nuclear option seems to work

19. MRP and MAP Programs:
Ongoing Challenges
Lack of resolve

20. ▪ Vagueness
▪ May vs. will
▪ Lack of sting
▪ More than three strikes
Lack of Resolve:
Policy Timidity

21. • Restarting the clock
• Bad behaviors allowed
• Ineffective monitoring
• No uniform enforcement or any
enforcement
Lack of Resolve:
Policy Timidity (More)

22. MRP and MAP Programs:
Ongoing Challenges
Rigidity

23. MRP and MAP Programs:
Ongoing Challenges
Myopia

24. Myopia: Failure to See the Whole Problem
▪ Forgetting other means
▪ Overlooking business and legal conflicts & friction
▪ Neglecting distribution realities

25. Neglecting Distribution Realities
▪ Uncontrolled distribution
▪ Powerful resellers
▪ Multi-step implications

26. Multi-Step Implications
▪ Ignoring integrated resellers
▪ Inability to track products
▪ Invisibility of the indirects

27. And the Retailer of the Year is …
Drum Roll Please!

28. Outlook for the Future?
▪ Policy saturation
▪ Restrictive distribution
▪ More product differentiation
▪ E-tailer evolution and reconciliation
▪ New challenges

29. Q&A
Webinar Recap
29

30. Join us all year for our educational webinar
series!
Next Upcoming Webinar:
June, 2015 “Channel IQ Annual Compass”
David Howell & Channel IQ Executive VP Kevin Potrzeba

31. ciqcompass.com

32. Thank You!
For additional information, please direct all questions to
David Howell and he’ll answer them as soon as possible.
David Howell:
dhowell@channeliq.com
Direct Line: 1-208-340-5866
Channel IQ
55 W. Monroe Street, 22nd Floor
Chicago, IL 60603
www.channeliq.com
Gene Zelek:
Freeborn & Peters LLP
311 S. Wacker Drive, 30th Floor
Chicago, IL 60606
www.freeborn.com