eastman kodak company 1 kodak security solutions tales from the trenches! dennis kercher kodak...
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Eastman Kodak Company 1
Kodak Security SolutionsTales from the Trenches!
Dennis KercherKodak Security Solutions
Eastman Kodak Company 2
Kodak Security Solutions – Tales from the Trenches
Counterfeiting is an intentionally organized crime You need an intentionally organized plan of action to combat it.
Counterfeiters attack your competitors and peers Joining organizations like AAFA helps you to work with your peers to be more
effective in the fight.
Work your anti-counterfeiting strategy into your brand products Budget for anti-counterfeiting technology to be included in all brand products.
Effectively communicate your fight Counterfeiters will go where they believe they can have the best results with the
least resistance.
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Case Study:Liz Claiborne – A Brand Worth Protecting
Founded in 1976
Established at a time when women were entering the workforce in large numbers
Transformed the way women dressed and ultimately, how they shopped
The first company founded by a woman to be listed in the Fortune 500
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Liz Claiborne Cosmetics
Established in 1986
Internally developed and licensed
brands
Worldwide manufacturer and distributor
Several fragrance collections Bath, body and grooming products
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Brand Assault - Counterfeiting
Serious issue, especially overseas
Not a largely detected problem with Liz Claiborne Cosmetics products to date
Canal Street Feb 2008, $1 million in knockoff accessories
and fragrances bearing some of the fashion industry's best-known labels, including: PradaFendiCoachRolexGucciDolce & GabbanaBurberryCalvin Klein and even Dora the Explorer*
* Women’s Wear Daily, Feb 27, 2008
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Brand Assault – Grey Market Diversion: What is it?
Distributor agrees to markup and forecasts purchase of product from manufacturer. Distributor is authorized to sell product at markup agreed upon based on marketing, tariff responsibilities
Manufacturer strikes deal with distributor
Unauthorized distributor comes in and sells retailers same product at a greatly reduced cost
Consumers purchase product from unauthorized retailers
Legitimate distributors and retailers lose sales and profits
Authorized distributor does not purchase products as forecasted
Manufacturer loses sales and profits
Brand is eroded due to lack of exclusivity; becomes commodity
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Grey Market Diversion: A True Story
Forecasts $10 million in Liz Claiborne perfume in 2007
40% markup
“ABC Perfumes”agreement
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Grey Market Diversion: A True Story
Forecasts $10 million in Liz Claiborne perfume in 2007
40% markup
“ABC Perfumes”agreement
Forecastnotmet
Red flag goes up
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Grey Market Diversion: A True Story
Forecasts $10 million in Liz Claiborne perfume in 2007
40% markup
“ABC Perfumes”agreement
Productsbeing
diverted
Productsbeing
diverted
Another distributor selling Liz Claiborne fragrances into ABC Perfume’s territory at a much lower price
Distributor gets 10% markup
Forecastnotmet
Forecastnotmet
Red flag goes up
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Combating Counterfeiting and Grey Market Diversion – Liz Claiborne’s Approach
Need to proactively protect brand
Need security systems in place to combat bothcounterfeit and gray market diversion
Combination of overt and covert security technology
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Working Together To Counter Counterfeiting
“Beware of Dog” Communicating is critical. Let your customers and the counterfeiters
know you are taking countermeasures
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Case Study: Donruss Playoff LLP
National Treasures – highly collectable game day cards
As players performance improves, their “Brand” increases and thevalue of cards increase exponentially
Leading to fraud and counterfeiting,devaluing the Donruss brand.
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Case Study: Donruss Playoff LLP
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Kodak Security Solutions – Voice the Fight!
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Kodak Security Solutions – Voice the Fight!
Harpers Bazaar – Anti Counterfeiting Summit May 13, 2008 - Fakes are Never in Fashion!
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Working Together To Counter Counterfeiting
Collaborative Counter-Insurgency Align with other industry participants to raise public awareness, drive
policy and share resources
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