MAP Program Development
A MAP (Minimum Advertised Price) program is a pricing policy implemented by manufacturers to maintain price integrity and protect their brand image. It sets a minimum price at which retailers can advertise their products for sale. Retailers can still sell the products at any price they choose, but they cannot advertise them below the specified MAP. At ChanneRecon, we partner with clients to develop a custom MAP program that works for their brand, customers, and products.
Market Analysis
Our team partners with manufacturer clients to assist with market research to understand the current pricing landscape for their products. This analysis includes studying competitor pricing strategies, identifying price erosion trends, and assessing the impact of discounting on brand perception.
Setting the MAP
The minimum advertised price for each product is determined based on the market analysis and the desired brand positioning. An effective price should strike a balance between profitability and competitiveness while also maintaining brand value.
Legal Considerations
We work with our clients to ensure that MAP policies comply with relevant laws and regulations, including antitrust and competition laws. We have legal counsel on staff who can consult in drafting the MAP policy and ensuring its legality.
Communication with Retailers
Once the MAP policy is established, the manufacturer communicates it clearly to their network of retailers. Our team can also assist with drafting this communication, which typically includes written agreements outlining the terms and conditions of the MAP program, consequences for non-compliance, and mechanisms for enforcement.
Enforcement and Compliance
Once the MAP Program is developed, our team provides ongoing, proactive enforcement of the MAP policy. This includes monitoring online and offline advertisements, conducting periodic audits of retailer pricing practices, and implementing penalties for violations such as withholding promotional support or restricting supply.
Feedback and Adjustment
The development of a MAP program is an iterative process. We work with our manufacturer partners to continually gather feedback from retailers, monitor market dynamics, and evaluate the policy’s effectiveness. Based on this feedback, adjustments may be made to the MAP policy to address any emerging challenges or opportunities.
Monitoring and Evaluation
The ChannelRecon team will continue to monitor the implementation of the MAP policy over time to ensure compliance and assess its impact on sales, brand perception, and overall profitability. Regular evaluation helps identify areas for improvement and refinement of the program.
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