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Genuine Products, Genuine Benefits

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A presentation covering consumer trends, and trends within counterfeiting, and posing the Q - what happens when you combine these 2 sets of trends? What could this mean for authentication? …

A presentation covering consumer trends, and trends within counterfeiting, and posing the Q - what happens when you combine these 2 sets of trends? What could this mean for authentication?
The premise of the presentation is that in a world where there is increasing communication and empathy between consumers and brands, could it be that some of the systems set up to authenticate products could also provide a powerful new marketing tool to engage your consumers
In other words, providing a means of delivering genuine benefits as well as genuine products?

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  • Quickly over this
  • We’re all seen signs like this right?! And I expect many people have bought products from stalls like this …watches, sunglasses, dvds…? Hands up?! Who has bought things like this? A lot of people might think ‘what’s the harm?’ But we know this damages brands, and counterfeiting costs the global economy 100s of Bs, funds organised crime and terrorism. So let’s see what can we do about it.
  • I’m Ruth Thomson and I’m here from Cambridge Consultants, where I work in both the consumer group and the security group. Many of you will know Cambridge Consultants for our product development expertise, we work across a wide range of market delivering for clients over the last 50 years.
  • Spanning all of our market areas we have been working with you to help deliver authentication and brand protection solutions for the last 20-25yrs. Technology independence, system level thinking. Our technology independence together with our 300 strong engineering/scientific staff means we can select, understand and implement the best technical solution. Also our systems approach means that we understand the vulnerabilities that can exist in the interactions between the individual technologies in a system and interactions of people with the system.
  • This evening it’s my job to set the scene for this discussion. I want to take you through some consumer trends, some that have come about over the last decade, and other that are emerging today. Then I want to look at some of the trends within counterfeiting I want us to consider what happens when you combine these 2 sets of trends. What could this mean for authentication? I’d like to suggest that in a world where there is increasing communication and empathy between consumers and brands, Could it be that some of the systems set up to authenticate products could also provide a powerful new marketing tool to engage your consumers In other words, providing a means of delivering genuine benefits as well as genuine products?
  • Ok, let’s first consider some consumer trends
  • Transparency. This is quite an old trend today, but it has changed and morphed over the years. Think about it…In general our parents/grandparents generation trusted brands, they probably had their favoured brand for most products that they bought all the time…their persil box, their packet of digestives… This isn’t the case anymore, we no longer blindly trust, we want information, we’re far more savvy. Think about the last time you bought a car..a holiday… a computer… a bike… you did your research didn’t you? You went on review sites and looked at other peoples opinions.. we demand transparency. We find information where ever we can – in whatever form. e.g. With mobile phone cameras now ubiquitous, everything brands do and don’t do is likely to end up on YouTube. We want information, we want to convinced that we can trust. Brands are responding by becoming more ‘see through’ and making data, pricing.. Sourcing strategies.. Sustainability.. Ever more transparent. We’re demanding conversations with brands, if we have a question then we want an on-line forum, we want our questions answered, we want a response. We want to be able to give suggestions and have a dialogue. Recently we’re seeing that brands are now demanding a ‘right of reply’ so that they respond back to and create a conversation to engage consumers.
  • Reviewing has become the new advertising. Here’s an example that we will all know – Tripadvisor – now with X number of visitors per month Right of reply – owners of hotels / properties can now reply back to comments to address the concerns raised. Brands are creating communities where ideas can be shared – Dell – share - become part of the community We are transparent Dell Ideastorm (www.dellideastorm.com Find product company – Innocent – find the forum on their website
  • Reviewing has become the new advertising. Here’s an example that we will all know – Tripadvisor – now with X number of visitors per month Right of reply – owners of hotels / properties can now reply back to comments to address the concerns raised. Brands are creating communities where ideas can be shared – Dell – share - become part of the community We are transparent Dell Ideastorm (www.dellideastorm.com Find product company – Innocent – find the forum on their website
  • Now add to ‘transparency’ the fact that we are part of the ‘now generation’. Life on multiple levels has become ‘real time’ – consider reviews – previously review sites would consider once a week a high level of activity – but this has moved to once a day to once an hour, now to once every few seconds. We demand and lust after information, we live in a knowledge economy and we want information and access to things we want at our fingertips. This is aided and abetted by increased connectivity.
  • Let’s look at some examples… ShopSavvy, and many other smart phone apps are now available that will read standard and 2D barcodes and other machine readable codes to send you directly to price comparison and review sites. Amazon have got a similar smart phone app where you can go into a real store to check-out a product, then search for it on amazon and ‘click’, order it for cheaper! So these machine-read codes and devices, previously just there in the background, are now adding a consumer benefit, and consumers are increasingly aware of them. In response to this they are becoming part of the ‘design’. More fun, more enticing. Real world objects are linking consumers to more information, an enhanced brand experience. Not just self-checkout tills, becoming part of the brand graphics, part of the brand vocabulary (and increasingly just pictures of products – Google goggles) SnapTell is owned by Amazon.com, who last month also released its own, free,  Android mobile application , which allows users to take photos of an item on their phone, or scan a barcode, and then have Amazon search for the same product online, enabling immediate comparison with the physical-retail price. If the price is right, users can purchase the item securely from their mobile device. “… consumers are starting to treat real-world stores as showrooms and try-out centres, while finding the lowest online price via their web-enabled cell phones. Only  hard-to-find and unique objects of desire and impulse buys  may escape the "feel it - see it - try it offline - then buy it cheaper online" routine…” (trendwatching.com)
  • Let’s look at some examples… ShopSavvy, and many other smart phone apps are now available that will read standard and 2D barcodes and other machine readable codes to send you directly to price comparison and review sites. Amazon have got a similar smart phone app where you can go into a real store to check-out a product, then search for it on amazon and ‘click’, order it for cheaper! So these machine-read codes and devices, previously just there in the background, are now adding a consumer benefit, and consumers are increasingly aware of them. In response to this they are becoming part of the ‘design’. More fun, more enticing. Real world objects are linking consumers to more information, an enhanced brand experience. Not just self-checkout tills, becoming part of the brand graphics, part of the brand vocabulary (and increasingly just pictures of products – Google goggles) SnapTell is owned by Amazon.com, who last month also released its own, free,  Android mobile application , which allows users to take photos of an item on their phone, or scan a barcode, and then have Amazon search for the same product online, enabling immediate comparison with the physical-retail price. If the price is right, users can purchase the item securely from their mobile device. “… consumers are starting to treat real-world stores as showrooms and try-out centres, while finding the lowest online price via their web-enabled cell phones. Only  hard-to-find and unique objects of desire and impulse buys  may escape the "feel it - see it - try it offline - then buy it cheaper online" routine…” (trendwatching.com)
  • Throughout our lifetimes there has been a growing awareness of environmental and sustainability issues. The phrase ‘C footprint’ was unheard of 10yrs ago and now it’s a standard part of our vocabulary here in Europe, and increasingly across the rest of the world. Many brands have claimed to be ‘eco-friendly’, but consumers are becoming more savvy, and , as we’ve seen, will search and research and get the information they require. Green credentials are no longer a benefit for a business, they are a requirement. Green trends have moved a long way from being all ‘treehugging’ to eco-everything
  • HarvestMark®, the fresh food traceability solution from YottaMark. To date, over a billion produce packages have been enabled with HarvestMark codes to speed response to suspected recall events and deliver on-demand product information throughout the supply chain. These are the benefits to the produce company and the distribution chain, but to the consumer they can get information about the ‘sustainability’ of their food, and effectively trace back the distance travelled – C footprint. Similarly Crop-to-Cup… satisfies consumers demand for information and reassures them of the authenticity of the sustainability of the product. http://www.croptocup.com/ Crop to Cup buys directly from African coffee farmers and represents them in consumer markets. Through Crop to Cup's website, consumers can trace their coffee back to the farmers who produced it and interact with them (along with roasters and other drinkers) through message boards, forums, ratings and reviews. The result is that drinkers of Uganda Bugisu AA coffee, for example, can read profiles of the farmers who produced the beans, including Bernard Walimbwa's 17-member family, which manages roughly 30,000 coffee trees in the Bugisu Region of Uganda. Crop to Cup's site is still rough around the edges, but its approach is a promising one, from both an ethical and a marketing perspective. And let's not forget apparel: knitwear brand Flocks gives customers details about the individual animals that provided the wool for their sweaters and mittens. Every item in young Dutch designer Christien Meindertsma’s collection can be traced back to its source. Since one sheep supplies exactly enough wool for one sweater, each sweater is tagged with a specific animal’s ID number, and comes with a certificate: the animal's passport. Information provided includes breed, weight, year and place of birth, and a picture of the sheep. Sweaters are priced from EUR 475.
  • HarvestMark®, the fresh food traceability solution from YottaMark. To date, over a billion produce packages have been enabled with HarvestMark codes to speed response to suspected recall events and deliver on-demand product information throughout the supply chain. These are the benefits to the produce company and the distribution chain, but to the consumer they can get information about the ‘sustainability’ of their food, and effectively trace back the distance travelled – C footprint. Similarly Crop-to-Cup… satisfies consumers demand for information and reassures them of the authenticity of the sustainability of the product. http://www.croptocup.com/ Crop to Cup buys directly from African coffee farmers and represents them in consumer markets. Through Crop to Cup's website, consumers can trace their coffee back to the farmers who produced it and interact with them (along with roasters and other drinkers) through message boards, forums, ratings and reviews. The result is that drinkers of Uganda Bugisu AA coffee, for example, can read profiles of the farmers who produced the beans, including Bernard Walimbwa's 17-member family, which manages roughly 30,000 coffee trees in the Bugisu Region of Uganda. Crop to Cup's site is still rough around the edges, but its approach is a promising one, from both an ethical and a marketing perspective. And let's not forget apparel: knitwear brand Flocks gives customers details about the individual animals that provided the wool for their sweaters and mittens. Every item in young Dutch designer Christien Meindertsma’s collection can be traced back to its source. Since one sheep supplies exactly enough wool for one sweater, each sweater is tagged with a specific animal’s ID number, and comes with a certificate: the animal's passport. Information provided includes breed, weight, year and place of birth, and a picture of the sheep. Sweaters are priced from EUR 475.
  • Timberland - on all their footwear now carries a ‘nutritional label’
  • Service is the new selling.
  • http://trendwatching.com/trends/brandbutlers/ Olay for You  is a branded micro-site offering a two-way dialogue with consumers to help improve their skin. The user is asked a series of questions centered on their lifestyle, appearance, and skincare regime, before offering some advice and a product recommendation.
  • http://trendwatching.com/trends/brandbutlers/ Olay for You  is a branded micro-site offering a two-way dialogue with consumers to help improve their skin. The user is asked a series of questions centered on their lifestyle, appearance, and skincare regime, before offering some advice and a product recommendation.
  • Historically associated with forging of bank notes, counterfeiting has spread into other potentially less challenging but more lucrative areas High value luxury branded goods Automotive and electrical components, with implications for compromised safety Alcoholic beverages and fuel that may be adulterated and/or diverted to avoid government taxation Medicines and, increasingly, more general pharmaceutical products – toothpaste, even cleaning products. For example, not so long ago, fake toothpaste found its way onto the shelves of UK supermarkets. What I will be focusing on today is the situation where people are buying, and sometimes selling, what they believe to be the genuine article, but are in fact in some way illegitimate or counterfeit.
  • What are some of the trends in counterfeiting? - It’s a big and growing problem – measuring the size is clearly very difficult – I mean what do you measure? Why should we care? The numbers…. The Impact of Counterfeiting on Governments & Consumers, BASCAP, May09 ( Business Action to Stop Counterfeiting and Piracy – initiative of the International Chamber of Commerce) Clearly it’s very difficult to estimate the impact of counterfeiting – do you look at the value of seized counterfeit goods? The estimated loss of sales? The damage to brand value?.... But whichever way you look at it, the numbers are BIG. This is a BIG problem But it’s just high-end luxury items that are targeted. WRONG. The low value items may surprise you – this is exactly why they are attractive targets for counterfeiters. This effects ALL of your businesses… Quote from OECD Report on The Economic Impact of Counterfeiting & Piracy - July08 ORGANISATION FOR ECONOMIC COOPERATION AND DEVELOPMENT In recent years, there has been an alarming expansion of the types of products being infringed, from luxury items (such as deluxe watches and designer clothing), to items that have an impact on personal health & safety (such as pharmaceutical products, food & drink, medical equipment, personal care items, toys, tobacco and automotive parts IF YOU STILL DON’T THINK IT APPLIES TO YOU AND YOUR BUSINESS, THINK ON THIS – LAST CHRISTMAS COUNTERFEIT TOOTHPASTE WAS FOUND ON THE SHELVES OF BIG CHAIN SUPERMARKETS IN THE UK – WHAT’S NEXT? Also governments are starting increasing regulation – So even if your business wasn’t doing anything about counterfeiting.. It may soon have to!
  • There are other ways in which the manufacture, supply and marketing of counterfeit goods is changing. Technology advances play a role for the consumers and the adversaries. It’s not garage sales anymore.. Counterfeit goods are ending up in Wegmans and BestBuy and Wallmart Harvest Mark is a traceability tool developed for the Organic Alliance to allow consumers to trace the origins of their food, either via a web site or an application on their phone. to date, a over a quarter of a billion items have already been tagged with HarvestMark and by the end of this summer, 60% of all US strawberries will be traceable using our platform” Arisen out of the Product Traceability Initiative , paid for upfront by growers, without an immediate return from the market. It has been said that the new system could be a ‘dead weight’ if it doesn’t provide a marketing tool at the consumer level. US food industry is a $1T industry – worth the while! WHO PAYS?? Development? QC? Marketing?
  • So I want to say a few points about approaches for combating counterfeiting… Clearly technology plays an important role, but this must be combined with rigorous system level thinking System level thinking enables us to plan to stay ahead of the counterfeiter Technology without process can significantly limit our effectiveness
  • Also when implementing technology you must understand the user interactions with the technology – coz people don’t always do what you expect! - This applies to both the end-user, e.g. the consumer, as well as to people who are part of the ‘authentication’ at different points in the supply chain.
  • Why are layers important Avoiding a single point of failure Staying one step ahead of the counterfeiter Different stakeholders will interact with different layers
  • Think of the peripheral benefits authentication brings, for example, control over supply control and recall. Now think about the different parts of your business and the what benefits they could derive from authentication – logistics, brand protection, and now marketing. Consumer products supply chains tend to be long and not as highly regulated as, for example, pharma. Consider – by adding this layer of consumer authentication which ‘secures’ the final stage in the supply chain – does this compensate for lower security at other stages? What makes a good consumer authentication technology – one that achieves (1) and delivers additional benefit, and enhances the brand values that are important to you. what made a good technology used to be just about ‘ease of use’… but now consider the trends that are relevant to your business. What are your brand values and how could these be enhanced through consumer engagement that would also effectively add an authentication step?
  • Transcript

    • 1. Genuine Products, Genuine Benefits - Setting the scene Cambridge Network – Consumer Products SIG event – 26 th May 2010 Ruth Thomson REAL FAKE
    • 2. Context
      • This presentation was given at the inaugural Cambridge Network Consumer Products & Supply Special Interest Group meeting.
      • The event was entitled ‘Genuine Products, Genuine Benefits’.
      • There were 2 other presentations from
        • Colin Peacock,   Director, On Shelf Availability, Shrink & Brand Protection for P&G.
        • Franck Bourrieres,   COO of Prooftag
      • http://www.cambridgenetwork.co.uk/events/article/default.aspx?objid =69668
    • 3.  
    • 4.  
    • 5. We work across a wide range of security and brand protection technologies Data Analysis Secure Communications System Integration Reader Development Distributed Secure Systems Disposable Authentication Authentication System Design Software Architecture Background to Cambridge Consultants Smart Packaging Brand Protection Strategy Vulnerability Analysis
    • 6. For today’s talk… … what could this mean for authentication? + Consumer trends = ? Counterfeiting trends
    • 7.
      • I’d like to suggest that in a world where there is increasing communication and empathy between consumers and brands, Could it be that some of the systems set up to authenticate products could also provide a powerful new marketing tool to engage your consumers?
      • In other words, providing a means of delivering genuine benefits as well as genuine products?
    • 8. For today’s talk… … what could this mean for authentication? + Consumer trends = ? Counterfeiting trends
    • 9. BRAND TRANSPARENCY
        • Consumer Power!
        • ‘ See Through’ Brands
        • Demand for conversation with brands
        • ‘ Right of Reply’
      Consumer trends
    • 10. Consumer trends BRAND TRANSPARENCY - examples
    • 11. Consumer trends BRAND TRANSPARENCY - examples
    • 12. NOW GENERATION
      • “ I don’t want it in 10mins, I want it NOW!”
      • Immediacy of… access to information… service… products…connectivity… people….is now an expectation
      • Life on-line has become ‘real time’
      • Aided and abetted by increased connectivity
      Consumer trends 1.8 billion consumers are now online + >4B mobile phone subscriptions worldwide http:// www.internetworldstats.com/stats.htm and UN report
    • 13. NOW GENERATION - examples Consumer trends
    • 14. NOW GENERATION - examples Consumer trends
    • 15. GREEN
      • ‘ Eco-’ everything!
      • Increasing consumer awareness of C footprint
      • ‘ green credentials’ are now required
      Consumer trends ECO – EVERYTHING!
    • 16. GREEN - examples Consumer trends
    • 17. GREEN - examples Consumer trends
    • 18. GREEN - examples Consumer trends
    • 19. SERVICE IS THE NEW SELLING
      • In the past.. brands sold products
      • Then… + brands sold the aspiration of a lifestyle
      • Now…. + brands are assisting people with their day-to-day lives
      Consumer trends “ It has never been more important to turn your brand into a service. Jaded, time-poor, pragmatic consumers yearn for service and care, while the mobile online revolution (it's finally, truly here!) makes it possible to offer uber-relevant services to consumers anywhere, anytime.” (trendwatching.com)
    • 20. SERVICE IS THE NEW SELLING - examples Consumer trends
    • 21. SERVICE IS THE NEW SELLING - examples Consumer trends
    • 22. For today’s talk… … what could this mean for authentication? + ?
        • Consumer trends
        • TRANSPARENCY
        • NOW Generation
        • GREEN
        • Service is the New Selling
        • ……
      = ? Counterfeiting trends
    • 23. For today’s talk… … what could this mean for authentication? + ?
        • Consumer trends
        • TRANSPARENCY
        • NOW Generation
        • GREEN
        • Service is the New Selling
        • ……
      = ? Counterfeiting trends
    • 24. Historically associated with forging of bank notes, counterfeiting has spread into other potentially less challenging but more lucrative areas
    • 25. What is the impact of counterfeiting? What are the trends?
      • It’s a BIG problem - Impact on world trade estimates range from $200B to $700B
      • The SCOPE is increasing – there is a notable shift from luxury to common products
      • Increasing REGULATION
    • 26. Further trends in counterfeiting
      • Increasing skill of the counterfeiter
      • Increasing infiltration of legitimate supply chains
        • Counterfeit goods are no longer restricted to informal markets
      • Increasing use of the internet as a distribution channel
      • BUT there is an opportunity to use authentication as a marketing tool
        • authentication as a ‘value add’ rather than a ‘necessary evil’?
    • 27. Technology + rigorous system level thinking Combating counterfeiting…
    • 28. … + understanding user interactions Combating counterfeiting…
    • 29. Layers
        • Layers in-terms of technology
          • Tamper evident / tamper proof
          • Track & trace , serialisation
          • Authentication - overt / covert / forensic
        • Layers in-terms of strategy
          • Law enforcement is a stakeholder
          • IPR
          • Use of technology
          • Education of stakeholders
      Combating counterfeiting…
    • 30. Today’s talk…
      • Counterfeiting trends
      • Size and scope increasing
      • Regulations increasing
      • Skill of counterfeiters increasing
      • Infiltration of legitimate supply chains
      • Use of internet increasing
      • ……
      … what could this mean for authentication? +
        • Consumer trends
        • TRANSPARENCY
        • NOW Generation
        • GREEN
        • Service is the New Selling
        • ……
      = ?
    • 31. Genuine Products AND Genuine Benefits
        • = another ‘layer’ of protection + enhanced consumer engagement
        • What’s the business benefit that consumer authentication could bring to your brand?
        • Can authentication in the hands of the consumer compensate for weaknesses within the supply chain?
        • What makes an authentication technology good for your consumers?
      + Consumer trends Counterfeiting trends
    • 32. Contact details:
      • Cambridge Consultants Ltd Cambridge Consultants Inc
      • Science Park, Milton Road 101 Main Street
      • Cambridge, CB4 0DW Cambridge MA 02142
      • England USA
      • Tel: +44(0)1223 420024 Tel: +1 617 532 4700
      • Fax: +44(0)1223 423373 Fax: +1 617 737 9889
      • Registered No. 1036298 England
      • [email_address]
      • www.CambridgeConsultants.com
      © 2010 Cambridge Consultants Ltd, Cambridge Consultants Inc. All rights reserved.