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Grey Marleting refers to the practice of one distributor purchasing the supplier's authentic products in its territory & selling those products throufh non-official dustribution channels into another distributor's territory.
TECHNIQUES FOR REDUCING GREY MARKETING
Restrict the locations from which a distributor can sell its goods as part of the grat of territory.
Provide warranty service for goods in the territory for only those goods sold in that territory.
Change producr formulation so that it is different in each territory. This strategy works on the premise that the trademark in the products applies to those specific products sold in the territory.