How to keep track of the revenue made or saved in your Brand Protection cases (Part 1)
Presenting the revenue has never been an easy task for a brand protection team. There are many obstacles standing in the way of bringing the right numbers to the table. Let us take a step back from how to present the revenue and begin by looking at why these reports are necessary.
- The assumption is that there are always endless cases, reported by consumers, whistle blowers, investigators and lawyers. Brand protection managers need to be selective and set up criteria in order to decide whether or not to proceed with a case how many resources can be allocated to each case.
- A report of the revenue made (or saved) from the cases will not only show the achievement and justify the budget, but also help the team to evaluate the previous activities. I.e. to compare its current achievement with previous ones, and adjust its plan in a dynamic way.
In this data driven approach, what data is important? If we look at the two purposes of having the report, we can state that this puzzle consists of three parameters:
- The weight of infringers – determine if the action hits the key target.
- The number of seized goods – measure if the enforcement is worth.
- The price of the goods – calculate the actual valuse of prevention.
So how do we calculate the revenue by introducing these three parameters? These are the common questions need to be answered first:
Firstly, different infringers count different value for each case. Depends on the nature of an infringer (i.e. manufacture, retailer, warehouse, internet seller etc.), the prevention value varies. The size of its business also indicates the importance of such infringer.
Secondly, challenge of product quantity. Should we use the seized quantity, unsold quantity or the counterfeiter offered quantity online?
Thirdly, what price should apply for the goods? Maybe apply the retail price, factory price of genuine goods, the market price in certain territory or average price? There is not one answer that applies everywhere, the Fashion industry has new products every season and the automotive industry has thousands of prices for each car parts. Where can the team get these numbers? What happens when they start changing?
Next article, I am going to discuss the pros and cons of aforementioned options and help you to choose the most suitable one for your organization.