Product diversion is an object of contract law and, more often than not, industry and company specific. Moreover, product diversion often stems from a company’s own internal policies that authorize and approve geographically diverse pricing and compensation programs to meet unique market needs. To counter this threat, in conjunction with effective policies and measures, product diversion requires the ability to mark, track and integrate information at the item level about the product’s own pedigree from start to authorized end. The negative effects of product diversion are brand erosion, inadequate inventory levels in targeted markets, lower revenue from higher paid discounts and higher cost of distribution within established channels because of slower sales. Based on our extensive research and experience, the financial damages and harm to stakeholder value attributable to product diversion are often equal to, and sometimes even greater than, product counterfeiting.
S.G. Hart & Associates offers a wide range of services for companies who need to stop and prevent the diversion of their branded products. The anti-diversion services we offer are customized for each client because the threats, the supply chain and the level of sophistication are different in each case. The depth of our service can range from establishing complete brand protection programs to analyzing the effectiveness of current measures with recommendations for improvements. Listed below are just some of the broad services we offer our clients. If you are unsure of what we can do for you, give us a call so we can discuss your unique circumstances.