What do you think might have triggered Midas’s new policy?
What do you think might have triggered Midas’s new policy?
What do you think might have triggered Midas’s new policy? Do you think the new policy will affect dealer behavior? If so, how?
Procter & Gamble has become so concerned about the proliferation of private-label products that it has taken the extraordinary step of suing one of its own channel members that sells private labels as well as large volumes of P&G products. The firm in question, F&M Distributors Inc., operates over 100 drug stores. P&G claims that F&M’s private-label merchandise is designed and packaged to look almost identical to famous brand P&G products, such as Pantene Pro-V, Head & Shoulders, Secret, Sure and Noxema. P&G not only wants F&M to discontinue the sale of such copycat, private-label products, but seeks damages as well. P&G had initiated similar suits before against private-label imitators, but the targets of those lawsuits had been manufacturers of private-label merchandise rather than distributors of P&G products. Industry observers think P&G is taking quite a risk in suing its own channel members because they are unlikely to be enthusiastic sellers of P&G products after being sued by P&G.
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