Hot products seminar presentation adrian beck

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Hot products seminar presentation adrian beck

  1. 1. Understanding and Identifying Hot Products:The Top 50<br />Background, Plans and Vision<br />Adrian Beck, University of Leicester<br />
  2. 2. Defining Hot Products<br />Defining Shrinkage<br />Malicious and Non-malicious<br />Known and Unknown<br />Parameters of Loss Prevention Function<br />
  3. 3. Understanding Shrinkage<br />intended sales income that was not and cannot be realised<br />
  4. 4. Defining Hot Products<br />Measuring Shrinkage<br />Total value?<br />Percentage of retail turnover?<br />Margin?<br />
  5. 5. Why Margin Matters<br />
  6. 6. The ‘Hot’ Concept<br />Risk is not evenly distributed.<br />Crime hot spots<br />3% of locations in some cities account for 50% of recorded crime <br />Products<br />Places<br />People<br />Processes<br />Places<br />People<br />Products<br />Processes<br />
  7. 7. Value of Understanding the ‘Hot’ Concept<br />Avoids spreading valuable resources too thinly<br />Focus on the vital few amongst the trivial many <br />Rapid impact <br />Greatest return<br />Possible diffusion of benefits<br />
  8. 8. Hot Products Example<br />
  9. 9. Understanding Hot Products: The Rise of the Acronym<br />CRAVED<br />AT CUT PRICES<br />SERV<br />
  10. 10. CRAVED<br />Concealable – easy to hide<br />Removable – easy to get out of store<br />Available – on open display<br />Valuable – easy to sell on<br />Enjoyable – high demand and reputation<br />Disposable – good market for them<br />
  11. 11. AT CUT PRICES<br />Affordable – easily purchased with cash<br />Transportable – easy to move around<br />Concealable – easy to hide<br />Untraceable – few auditable markings<br />Tradeable – easily exchanged for cash or other commodities<br />Profitable – have value<br />Reputable – good brand placement<br />Imperishable – long lasting<br />Consumable – need to be replaced regularly<br />Evaluable – quality can be verified<br />Shiftable – regular market for items<br />
  12. 12. CRAVED AT CUT PRICES<br />
  13. 13. Influencing Offender Decision Making<br />Increasing Risk<br />What are the chances of being caught?<br />Reducing Reward<br />What are the benefits?<br />Increase Consequences<br />What will happen to me if I am caught?<br />
  14. 14. Understanding the Dominance of the Malicious Agenda<br />Dominance of Security as Loss Prevention<br />Lack of Engagement with Known Losses<br />Prioritisation by Technology Providers<br />Planned Shrinkage<br />Lack of Data<br />
  15. 15. SERV – Non-malicious Shrinkage<br />Sensitive to time – time limited<br />Expectations of consumers – any damage unacceptable<br />Reprocessing – opportunity for error<br />Vulnerability of packaging – likely to generate damage<br />
  16. 16. Hot Products Lists<br />Hugely Difficult<br />Variance in Recording<br />Variance in Categorisation<br />Variance in Detail<br />Variance in Definition<br />Dominance of Lowest Common Denominator<br />
  17. 17. Methodology<br />Request to ECR Members for Information<br />Limited Response – not willingness but ability<br />Top 50 Items Across Agreed Categories<br />Food<br />Beer, Wines and Spirits<br />Health and Beauty<br />Limited to 3 UK Retailers: <br />Supermarkets<br />Combined 40.7% of Total Turnover<br />Sales of €109.9 billion<br />
  18. 18. Methodology<br />Normalisation of Categories<br />Indexing of Data to Enable Parity in Ranking<br />Variance from Company Category Average<br />Percentage of Sum Total of Combined Variance: Risk Value<br />All Data For 12 months – Previous Year<br />Only Unknown Data<br />Total of €72 million of losses – only top 50 items per retailer<br />
  19. 19. Hot Product Categories<br />
  20. 20. Food Categories<br />
  21. 21. Food: Fresh Meat<br />
  22. 22. BWS: Category Type<br />
  23. 23. BWS: Hot Categories<br />
  24. 24. BWS: Top 10 Brands<br />
  25. 25. BWS: Specific Brands All<br />
  26. 26. BWS: Specific Spirit Brands<br />
  27. 27. BWS: Specific Beer Brands<br />
  28. 28. BWS: Specific Wine Brands<br />
  29. 29. BWS: Manufacturers<br />
  30. 30. Health & Beauty: Top 10 Type<br />Remedies<br />Sun cream<br />Testers<br />Baby Food<br />Wipes<br />Nappies<br />Blades<br />Sprays<br />Toothpaste<br />Brushes<br />Mascaras<br />Creams<br />Shampoo<br />
  31. 31. Health & Beauty: Top 10 Brand<br />
  32. 32. Health and Beauty: Specific Brands<br />
  33. 33. Health & Beauty: Top 10 Manufacturer<br />
  34. 34. Health & Beauty: By Category<br />
  35. 35. Health & Beauty: By Category<br />
  36. 36. Health & Beauty: By Category<br />
  37. 37. Health & Beauty: By Category<br />
  38. 38. Conclusions<br />Note of Caution<br />Difficulty of standardising and normalising data<br />More clarity required on categorisation<br />Need for a broader range of companies<br />Watch out for Smirnoff vodka drinking beef eaters who like shaving and have a headache!<br />

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