Disruption for Electrical ManufacturerA Not So Bright, Counterfeit Idea
A market leader of residential and commercial electrical parts found that counterfeits of their products were being sold with impunity throughout Colombia.
In addition to deflecting sales away from the genuine products, the counterfeits were of such poor quality that the perception in the market was that all products of the client’s brand name were of inferior quality. The situation had gotten to the point where even the legitimate resellers of the client’s products could not convince the public of the quality of their merchandise.
A full investigation was undertaken to identify the principal importers, producers and distributors of the counterfeit electrical products in three major cities in Colombia. The information was coordinated with the Colombian Intellectual Property Prosecutor’s office, resulting in multiple raids netting in excess of 500,000 counterfeit products and the closing of two production facilities and numerous distributors in Colombia.
Due to the poor reputation of the products in Colombia, however, the raids were not enough. Investigators partnered with the client to develop a marketing plan to rebuild the reputation of the company. This plan included the creation of authorized distributors for the company.
After fulfilling certain requirements, including the signing of a contract agreeing to sell only genuine products, the distributors were presented with signs and other material to display in their facilities identifying them as authorized distributors.
Press releases describing the raids, and the institution of an authorized dealer network to ensure that the public only receive genuine products, assisted in turning around the reputation in a very short period.
In the first two weeks following the press releases, the company noted an increase in purchase orders of 100,000 units.