HP Nets $1.8M in 'Gray Market' Case

  • . Sallee recently pleaded guilty to federal charges for his participation in what prosecutors say was a scheme to fraudulently acquire computer equipment at substantial discounts and then resell the products on the "gray market." While gray market items are not necessarily "illegal, " often times those products are often outdated, faulty, and come with expired warranties, or warranties that are not valid in the U.S.
  • . Industry research shows that gray market activity accounts is estimated to be a $20 billion industry and growing.
  • . According to court documents, Sallee unlawfully obtained computer equipment at substantial discounts from Compaq Computer, resold the equipment on the gray market, received payment for the equipment, and deposited the money into two bank accounts in Butler County, Ohio.
  • . "The recovery of funds represents another victory in the battle to fight gray market fraud.
  • . HP continues to closely monitor and pursue individuals and corporations that engage in fraudulent behavior to obtain equipment for resale in the gray market, " said Nikolaj Sjoqvist, director, brand protection and pricing, HP Global Operations.

    JM1G Summary & Biography - American Marketing Association -
  • site search | How Does Enforcement Deter Gray Market Incidence? Kersi D.
  • . Fisher Executive Summary Gray market activity—that is, the sale of genuine trademarked products through distribution channels unauthorized by the manufacturer or brand owner—has become increasingly common across a wide range of industries, from beauty and hair care products to fine jewelry, automobiles, and industrial equipment.
  • . The prevailing advice to manufacturers that wish to limit gray marketing of their products is to undertake severe enforcement of their resale restrictions.
  • . However, there is no evidence that strict enforcement by itself deters gray market incidence.
  • . This article represents an effort to examine whether and how enforcement deters the incidence of gray market violations.
  • . Building on insights from economics, law, and sociology, the authors propose that in addition to severity, the certainty and speed of manufacturers’ enforcement actions have a bearing on the incidence of gray market violations.

    Marketing Terms Dictionary - American Marketing Association -
  • site search |   Dictionary of Marketing Terms >> >> Term search matches (1 found) : gray market good - Merchandise that possesses a valid U.S.
  • . Terms: Page 1 of 1 Search for a specific marketing term...
  • . >"> search definitions also ( ) | Target both the AMA's 38, 000 members as well as the over 750, 000 marketing professionals working today in the U.S.
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    Alliance for Gray Market and Counterfeit Abatement - AGMA Global
  • General Gray Market Counterfeit Product Impact of Gray Market and Counterfeit Product Importance of AGMA Q.
  • . Who are the founding members of AGMA? The Alliance for Gray Market and Counterfeit Abatement (AGMA) is a non-profit organization incorporated in 2001 and is comprised of leading technology companies committed to addressing the global impact of the gray marketing and counterfeiting of technology products.
  • . In order to achieve these goals, AGMA will engage in the following activities: • Promote channel compliance and risk assurance • Develop and encourage industry best practices for brand protection and related issues • Investigate all legal avenues to deter criminal activities that feed gray market and counterfeit goods • Educate the industry, customers, investors and other stakeholders • Enlist domestic and foreign governments, state and local law enforcement Q.
  • . Who should join AGMA? Alliance participants are executives and senior managers involved in brand protection, quality assurance, customer satisfaction, operations, finance, security, channel management, sales, marketing, law and other fields.

  • info: GRAY MARKET

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    Marketing Science Institute: Report Summary 87-109
  • . 87-109 How Multinationals Can Cope With Gray Market Imports S.
  • . Tamer Cavusgil and Ed Sikora; 26 pages; 1987 Classifies types of strategic actions management can take to counteract gray market activity; illustrates arguments with examples of how multinational corporations have acted when confronted with gray market competition.
  • . Subject Strategies to control parallel, or "gray market, " importing.
  • . Type of Report Analysis of problem as it affects multinational corporations (MNCs); summaries of how individual manufacturers have confronted gray market threats to their markets.
  • . Objective To classify the different types of strategic actions for continuing gray market activity into broad categories and identify them for management consideration.
  • . Method Defines gray marketing in terms of international marketing; cites different kinds of damage that gray marketing can do to multinational corporations; describes conditions which can lead to increased gray market activity; presents and classifies different responses to gray marketing that are available to marketers.

    Marketing Science Institute: Report Summary 90-116
  • . 90-116 The Gray Market Threat to International Marketing Strategies Louis P.
  • . Bucklin; 43 pages; 1990 Develops mathematical model of interaction between the international gray market, manufacturers, and authorized distributors for improved private and public response.
  • . Subject A study of the operation of the international gray market, known as parallel importation, and its effect upon profitability.
  • . Type of Report A review of secondary data of the international gray market leading to the construction of a mathematical model of the interaction between the international gray market, manufacturers, and authorized distributors.
  • . Objective To derive a better understanding of the effect of the international gray market upon consumers, manufacturers, and distributors and provide the basis for improved private and public response.
  • . Audience Marketing executives affected by the international gray market and academicians concerned with international trade and distribution.

    The gray market : The Morning Call Online
  • • • • • Keywords: Google Currently: 61° F Clear • • | / / / / / / / / / | (NEW!) 1 | June 7, 2006 The gray market Advertisers have discovered that aging baby boomers have money to spend.
  • . ''All of a sudden corporate America is waking up to what's going on, '' said David Wolfe, a prominent marketing consultant and author who follows generational themes in advertising.
  • . As children, boomers — the largest swath of the population — were the market for hula hoops and Hot Wheels.
  • . What's different now is that the boomers are reaching an age at which the marketing world likes to write people off.
  • . ''More and more marketers are coming around to the fact that this is the biggest generation on Earth, '' Jones said.
  • . Women over 45 buy more than half of the cosmetics sold by mass retailers, according to market research firm ACNielsen Co.
  • . ''It's a very important launch for the company, '' said Michele Johnson, senior vice president of marketing for Vital Radiance.

    Competition Bureau - 'Gray Market' Products and Warranties
  • . Competition Bureau > > Section Site Tools Related topics Resources 'Gray Market' Products and Warranties Bargain-hunters know that brand-name products can often be purchased at a lower price from sellers who are not part of the manufacturer's "authorized dealer" network.
  • . "Gray marketing" is the popular term for the practice where goods are sold by sellers who are not part of the manufacturer's authorized dealer network.
  • . Gray marketing is quite common in retail sales of products such as household appliances and home entertainment equipment, and smaller items such as batteries.
  • . Gray market goods may be offered at a significant discount.

  • Benefits

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    Haymarket Events : Older, Richer, Wiser 2006 - Turning Grey Into Gold : Programme
  • . Increase contacts and gain fresh insights into best practice techniques from professionals who market to baby boomers across various industries.

    Nortel: Partners - Grey Market and Secondary Market - Enterprise
  • . All too often, unsuspecting customers are enticed by the lower prices grey marketers may offer, only to find out later that their product has been altered, is outdated or manufacturer discontinued, or that the manufacturer warranty is no longer valid.
  • . More importantly, the questionable integrity of grey market equipment undermines the authorized distributor's ability to provide manufacturer services.
  • . Nortel is working on many different initiatives in parallel to make a difference in combating grey marketing to the Enterprise.
  • . AGMA is a non-profit organization, whose members' combined annual revenues exceed $296 billion, and with mission to ensure the highest product quality standards, uphold customer satisfaction, protect brand integrity, improve standards for intellectual property enforcement, mitigate the counterfeiting of branded products, and stem the unauthorized flow of goods into the gray market - globally.
  • . AGMA provides a platform for sharing the best mitigation practices the industry can employ to reduce the unauthorized flow of products into the gray market.

    HP’s Assault on Grey Market Backed by VARs
  • Breaking eBusiness and Search News | WebProNews Search Part of the HP’s Assault On Grey Market Backed By VARs Alex Bard Expert Author Published: 2006-06-07 Last week, CRN online disclosed news that HP had announced its Serial Number Tracking Program would be launched this summer.
  • . The program requires VARs and distributors to "log and track serial numbers on all product sales and delivery documentation." This was welcome news to resellers as part of Hewlett-Packard's continuing battle against the grey market in the UK.
  • . Dave Poskett, director at HP's Solutions Partner Organization UK and Ireland, said: "We have a huge focus on the grey market.
  • . We look favorably on anything HP does to eradicate grey market activity." Tracking grey market products has been a continuing problem for HP and its VAR partners.
  • . "The grey market is a problem.
  • . Some resellers have been unwittingly caught out because they have bought stock from less ethical distributors." Greg Carlow, managing director of Repton, said HP has to take some responsibility for grey marketing.

    Nintendo Aims For the "Grey Market" | Marketing Profs Daily Fix Blog
  • Karl Long 04.21.06 Nintendo Aims For the "Grey Market" Sony, Microsoft and most big game publishers continue to aim squarely at the traditional "gamer" demographic of boys 18-35 with games that involve shooting, driving, and a healthy dose of "T&A"....
  • . Nintendo, on the other hand, seems to have avoided that kind of marketing myopia and has come out of left field with something that I think is a stunning departure, games for the "grey market." I mean, surely if a game came out that claimed to help your brain be more youthful you would have the undivided attention of the baby boomers, and probably their kids as well.
  • . Now they're going to exercise your mind" and "Train Your Brain in Minutes a Day" Nintendo is essentially turning market perception on its head, positioning the video game as positive "mental exercise, " as opposed to the common perception of it being a pointless, mind-numbing activity.
  • . Talk about Word of Mouth -- if it starts to gain traction in the 50+ market as a way to stave off something as awful as Alzheimer's, people like me are going to be buying Nintendo DS's for their parents.


    Gray Marketing: Taming the Beast!

  • Gray Marketing: Taming the Beast! The issue of gray marketing affects multiple industries around the globe.
  • . This article addresses the harmful effects of gray marketing on original equipment manufacturers (OEMs) and their authorized distributors as well as on their customers.
  • . I will also illustrate the driving forces leading to gray marketing and strategic recommendations for proactively dealing with this problem.
  • . In order to successfully market, sell and ship your company’s products into new markets, you must My last article covered back-to-back letters of credit (LC), and how banks, particularly in the United States, just don’t have an appetite for that type of business.
  • . Simply stated exporting refers to the marketing of goods produced in one country into another.
  • . Whilst exporting requires no direct manufacturing in a foreign country, The Central American-Dominican Republic Free Trade Agreement (CAFTA-DR) is an historic and comprehensive Free Trade Agreement that will remove barriers to trade, eliminate tariffs, open markets and promote investment.

    Internet Stocks » Odimo (ODMO), grey market online watch retailer with soaring marketing costs, prices IPO at low-end of range
  • SECTORS INTERNET THEMES: | Odimo (ODMO), grey market online watch retailer with soaring marketing costs, prices IPO at low-end of range by on Feb 14th with stocks:, Luxury goods retailer Odimo (ticker: ) raised $28 million in an IPO led by CIBC World Markets, but the offering priced at the low end of the range.
  • . Spending on marketing: 9% ($3.8 million) of revenues in 2003, 12% (also $3.8 million) in the first nine months of 2004.
  • . How comfortable will investors be holding stock in a company that sells grey imports (see quotes from the S-1 below)? Note that marketing costs rose from 9% of revs in 2003 to 12% in 2004.
  • . The S-1 comments: "Marketing expenses for the nine months ended September 30, 2004 increased 100.8% to $3.8 million from $1.9 million for the nine months ended September 30, 2003.
  • . The increase was primarily due to increased online advertising costs." But it gets worse: for the September 2004 quarter alone, marketing costs increased 247%! Note that Odimo has a very different supply chain in the diamond market than Blue Nile . @CallCenter