Brands Group policies

Competition | Innovation | Intellectual property | Parasitic packaging | Grey/parallel trades | Price comparisons

Although we all come across a myriad of brands in our every day lives, most of us have little understanding of how they actually benefit society. The Group’s role is to build a better understanding of what a brand really is and of its value to both consumers and the wider economy. Brands create choice, quality and value in a responsible way, stimulating innovation and competitiveness as a result. Brands also generate significant economic wealth and jobs – something that may be too easily overlooked.

Brands policy:
The Group supports: a vigorous competitive environment that delivers choice and value to consumers and drives innovation; competition based on quality as well as price; competition that empowers consumers; a competitive environment that helps consumers make informed purchasing decisions.

Competition

Where there are brands, there is a healthy, dynamic market. An individual identity is a brand’s distinguishing feature and this both provides the consumer with choice and promises quality and value for money. In today’s competitive environment and crowded marketplace, this empowers consumers to make informed choices based on quality and price.

Competition policy:
The Group supports: a vigorous competitive environment that delivers choice and value to consumers and drives innovation; competition based on quality as well as price; competition that empowers consumers; a competitive environment that helps consumers make informed purchasing decisions.

Innovation

Innovation and brands go hand in hand. In order to survive and thrive brands have to listen to what the consumer wants and focus their research and development accordingly. When they get it right, brands are rewarded by the consumer’s trust and loyalty, which in turn increases brand equity and leads the way to the next innovation.

Although it requires a massive investment of time and money, brands rely on innovation to set them apart from the crowd as they compete for consumer preference. The Group encourages a greater awareness of the vital nature of innovation and the challenges brand manufacturers face.

Innovation policy:
The Group supports: greater awareness of the importance of innovation; the existence and enforcement of intellectual property rights to safeguard investment while maintaining vigorous competition; initiatives which enhance the innovation culture within organisations; and the sharing of best practice.

Intellectual property

“Innovation and intellectual property are the strongest drivers of competitiveness.” (Building Business for Europe (1996) PIMS/Irish Management Institute)

Intellectual property is at the heart of the creation of any new processes, business methods, technologies and products. The knock-on contribution to society is enormous but, because the results take time to materialise, the risks to the brands are enormous. The BBG Is committed to both building a greater awareness of IP and its value to the economy and society and to supporting the existence and effective reinforcement of IP rights to safeguard investment.

IP policy:
The Group supports: building greater awareness of IP and its contribution to society and the economy; the existence and effective enforcement of IP rights to safeguard investment while maintaining vigorous competition.

Parasitic packaging

Parasitic (or copycat) packaging is used by competitors to boost sales by confusing and misleading consumers. Distinctive features of a brand’s packaging are hijacked in order to trick shoppers into buying something they believe to be that brand, made by the brand manufacturer or sharing the reputation of that brand. The wily competitor gets a free ride on the back of the brand’s reputation, investment and innovative efforts. Read more.

Packaging policy:
The Group supports: clear, distinct packaging that differentiates one product from another, does not mislead or deceive consumers and does not trade on another's reputation; an effective means of resolving packaging disputes to minimise consumer confusion; more effective legislation in the UK to prevent competitors trading on the reputation of another.

Grey/parallel trades

This describes the distribution of goods between one trader and another using channels “in parallel” to the manufacturer’s official supply chain. Goods circulate freely within the European Economic Area (EEA) and there is no restriction on parallel trade for the large majority of goods. However, outside the EEA, parallel trade without consent is “grey trade” and may, in principle, be prevented by a trade mark owner. The opportunity and spur for both parallel and grey trade is primarily the price differences between countries.

Grey/parallel trades policy:
The Group supports: the free movement of goods between markets that are in principle harmonised; the right of trade mark owners to withold consent for their goods to be imported into the EEA where this may damage the brand's reputation, increase potential for the circulation of counterfeits, undermine legitimate selective distribution agreements, or damage the competiveness of UK manufacturing.

Price comparisons

The British Brands Group appreciates that the reason why consumer prices vary from country to country comes down to a combination of exchange rates, taxes, different business costs and market variations. Proper evaluation of price differentials requires great care and needs to ensure that products and the outlets where they are bought are identical, any effect of promotions, tax and exchange rates are discounted and consumption patterns comparable.

Price comparisons policy:
The British Brands Group recognises that markets differ and that these differences often affect consumer prices. Comparing consumer prices between countries in a way that allows robust conclusions to be drawn requires considerable care, ensuring for example that products are identical, the outlets in which the products are bought are identical, any effect of promotions, tax and exchange rates are discounted, and consumption patterns are comparable.