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Management Practices

Disbanding Diversion

Web Editor | July 10, 2011 | 1:36 PM
Dermalogica closed $1 million in accounts in 2008 as part of their newly fortified attack on product diversion. The company’s goal is to keep Dermalogica products within the control of licensed therapists who prescribe the brand as part of a professional approach to skin health. The company has increased its anti-diversion efforts by investing in state-of-the-art tracking capabilities as well as more consistent packaging, which allows diverted product to be spotted more easily. “We’re pursuing an integrated response,” says Jerry Wenker, President and Chief Operating Officer of Dermalogica, “to ensure optimal effectiveness in stemming this destructive business practice.” Dermalogica practices a “zero tolerance” approach to diversion, meaning an account will be closed if it’s discovered to divert even a single product.
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