Question

Topic: Branding

Defending Your Brand From The "unknown" Knockoff

Posted by lrode on 12/12/2016 at 3:50 PM ET 250 Points
We manufacture a product and sell directly and through distribution channels. We are tasked with creating a campaign that is basically putting "a stamp of authenticity" on all of our manufactured products.
Here's the dilemma (and this is a HYPOTHETICAL EXAMPLE): Let's say as the customer, you call Distributor A and order a carton of Kleenx.
It arrives and you assume it is Kleenx - There isn't a reason not to assume this. You stock the restroom containers with the boxes and never actually look at the box to determine if it really is Kleenx. Why should you? It is what you asked for...
But it is NOT Kleenx; it is an off-brand. However, you never find out and life goes on...

So you want to have a campaign informing your customers that they are getting Kleenx and there is even a "Stamp of Authenticity" they can look for, but you don't want them to ever realize there is this "issue" to begin with - that they might be getting an off-brand.

Usually with a campaign, you want to show the customer they are sick and then show how you can make them better...but in this case, they don't know they are sick and you can't tell them they are! In my opinion, it is better to talk about your customer and how you can help them, as opposed to talking about how great YOU and your brand are. Any suggestions on how to go about doing this in a way that isn't all about "me" and is more customer-focused, plus giving them a remedy for a sickness they aren't or can't be made aware of??
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RESPONSES

  • Posted by Jay Hamilton-Roth on 12/12/2016 at 5:43 PM Member
    If the knock-off inferior in quality to your product? If so, that's more straightforward. If not, then you need to re-assert what your key benefit/value is. Customer service? Education?
  • Posted by lrode on 12/12/2016 at 6:07 PM Author
    Yes, it is inferior. Our general marketing efforts are focused on educating the customer, letting them know the services that we offer (which others do not), and other key product differentiators. But specific to this particular campaign, I guess I am thinking of it in terms of saying, "Here, take this medicine." But I can't tell you why you need it or if you need it. I just have to assume you know you need it (even though you never knew your needed it before). And maybe it is okay to just say that, as it is, "Look for the Stamp of Authenticity," and not provide any reasons. Maybe I just need to get over the idea of providing the reasons? Additional thoughts?
  • Posted by Jay Hamilton-Roth on 12/12/2016 at 7:49 PM Accepted
    If you're the #1 trusted name, then it makes sense to reinforce it ("accept no substitutes"). But if you're seeing a drop in sales because people are buying the knock-off, consider clearly re-articulating why "you're worth it". If it's not causing problems for your sales, then mentioning that there are knock-offs will only hurt you (unless the knock-offs can cause a major problem for the customer).
  • Posted on 12/12/2016 at 8:21 PM Moderator
    Without specifics of the category/brand it is hard to respond. There's a lot of "it depends" to consider. Trying to respond to a general case is particularly difficult.

    Who makes the purchasing decision? What criteria do they use to decide on a brand/supplier? Are they generally loyal to the suppliers, or is there a lot of brand switching?
  • Posted by Peter (henna gaijin) on 12/12/2016 at 9:45 PM Accepted
    The challenge is that the certificate can be copied, or if uncopyable, then would be very expensive.

    For a while (maybe they still do), Microsoft used a hologram to show their product was authentic. Basically, they must have figured that anything that they can print to show it is authentic could be copied, so they went with something that would be difficult to print. Expensive for them, but that is what made it challenging to duplicate. This is something that a company that has very high margins can get away with. Not likely something that a low margin product like paper products can afford.

    Not sure if I agree with your statement of not wanting them to know they are getting off brand. if they are getting off brand, whether by choice or through some part of the supply chain deceiving them, you do want them to know. That is what you are trying to do with your certificate of authenticity.

    The main thing people like Kleenex do is brand the hell out of the product. Make sure the brand name is large, not missable, etc. And put the generic part along with the brand, to protect your brand from being generic. Kleenex brand facial tissues. In a paper example, you might want to even imprint the brand into the product.

    And promote the value of your product over imitations. Better product, better materials, better manufacturing process, better labor policies, better environmental policies, etc. - whatever ever makes you different and such that someone might want to be willing to buy your product over another. An example you may want to follow is what brand name printer inks are doing against no name ink. they talk about how their ink is scientifically designs and won't run, smear, etc. as fake inks may.

    A different route, and much longer to implement route, would be to change the packaging of the products so that only your product fits the dispensers. Makes it harder for others to get in, as they also have to match that product form/function. An ink example is making a new printer with a special ink cartridge - now only that cartridge fits the printer, so they have to buy from you. Lasts until knock offs catch up and make that cartridge (or old cartridges are obtained and re-filled).
  • Posted by saul.dobney on 12/13/2016 at 9:27 AM Member
    This is difficult without details. It's a problem that can happen in many industries. Do some research with end users - do they notice and value the difference in quality? If so can you show this difference in quality has the potential to generate additional margin, or to support a brand image of the supplier?
    If this is the case sell the value of your brand to the customer 'Ask for it by name...'

    So you might look at setting up discount or promotional schemes - in a case like Kleenex you include an 'X to charity' or 'Y money off' for returning the packaging when its empty - this draws attention to the product in a positive way. Companies would also use marks on the product like embossing, watermarks, activation codes - but this only counts if the customer values 'genuine' products - so does it come with more warranty or guarantee, or customer service?

    Secondly, does the difference in quality have any impact on the outlet the customer chooses (one stage up the chain)? For instance the end customer seeing a supplier as lower quality because it sells poorer quality 'non-genuine' products? Is the difference sufficient to consider a certification or 'valued supplier award' or co-marketing for validated retailers. So can you support the supplier's business eg via training and quality awards? Or offer joint promotions, or bid assist?

    Similarly, does quality translate into reduced supplier costs - eg lower amounts of usage, lower rejection or return rates? - in other words can you show a lower total usage cost, and so more profit for the supplier in using your product because, for instance, packaging is better and makes refilling faster, or reduces spillage.

    If suppliers are selling knock-off product when claiming it is yours, you may want to find some cases to take to court using passing-off legislation. Some mystery shopping might help here. The same can be done with distributors.

    And then for distributors can you structure the distribution agreement to make more volume more profitable for them. They will want 'pull' and it's easier to sell what the customer wants than try to switch sell and get unhappy customers so can you run sales schemes with suppliers that generate that pull?
  • Posted by lrode on 12/13/2016 at 11:39 AM Author
    Regarding Peter's response - "Not sure if I agree with your statement of not wanting them to know they are getting off brand. if they are getting off brand, whether by choice or through some part of the supply chain deceiving them, you do want them to know. That is what you are trying to do with your certificate of authenticity."

    I agree with you. However, I do not have the approval to do such, which is causing the dilemma. Originally, that was our campaign idea.

    "The main thing people like Kleenex do is brand the hell out of the product. Make sure the brand name is large, not missable, etc. And put the generic part along with the brand, to protect your brand from being generic. Kleenex brand facial tissues. In a paper example, you might want to even imprint the brand into the product."

    Yes, it will be imprinted into the product. The trouble we are having is trying to make people know they should look for this without letting them know why. So that again leads back to just telling people about it and to look for it, but not explaining why. As a customer, I guess I would be wondering why? But maybe this will lead the customer to come to their own conclusion because they will we asking themselves this same question...
  • Posted by lrode on 12/13/2016 at 11:52 AM Author
    Saul, you have some good ideas.

    "Companies would also use marks on the product like embossing, watermarks, activation codes - but this only counts if the customer values 'genuine' products - so does it come with more warranty or guarantee, or customer service?"

    We are going to actually do this.

    "Secondly, does the difference in quality have any impact on the outlet the customer chooses (one stage up the chain)? For instance the end customer seeing a supplier as lower quality because it sells poorer quality 'non-genuine' products? Is the difference sufficient to consider a certification or 'valued supplier award' or co-marketing for validated retailers. So can you support the supplier's business eg via training and quality awards? Or offer joint promotions, or bid assist?"

    I do like the direction here and maybe we can somehow incorporate it as we progress. But often times it isn't even realized. The product we manufacture and sell is used in a variety of industries and sometimes the person who ordered it never has contact with it, so it is challenging to track and measure how they perceive quality.

    Appreciate the feedback though!
  • Posted by doublebbogue on 12/13/2016 at 4:37 PM Accepted
    I don't think the actual "seal" or certificate is really the issue. It's the perception -- the brand. Your campaign needs to drive the point that not using the REAL brand would be a bad thing. Have diverse consequences. And perhaps there is a bit of "snobbery" to it (in a fun way) like you're not part of the elite crowd if you don't know the difference. Think Grey Poupon mustard. It could be a series of funny outcomes that highlight the differences. Maybe there's a character of some sort who surreptitiously checks the "seal" at the end... like "Oh, no wonder! They didn't buy X." Tie it all together with a tagline that drives the main advantage home...
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