Presentation on theme: "Eastman Kodak Company 1 Kodak Security Solutions Tales from the Trenches! Dennis Kercher Kodak Security Solutions."— Presentation transcript:
Eastman Kodak Company 1 Kodak Security Solutions Tales from the Trenches! Dennis Kercher Kodak 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.
Eastman Kodak Company 3 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
Eastman Kodak Company 4 Liz Claiborne Cosmetics Established in 1986 Internally developed and licensed brands Worldwide manufacturer and distributor Several fragrance collections Bath, body and grooming products
Eastman Kodak Company 5 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: Prada Fendi Coach Rolex Gucci Dolce & Gabbana Burberry Calvin Klein and even Dora the Explorer* * Womens Wear Daily, Feb 27, 2008
Eastman Kodak Company 6 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
Eastman Kodak Company 7 Grey Market Diversion: A True Story Forecasts $10 million in Liz Claiborne perfume in 2007 40% markup ABC Perfumes agreement
Eastman Kodak Company 8 Grey Market Diversion: A True Story Forecasts $10 million in Liz Claiborne perfume in 2007 40% markup ABC Perfumes agreement Forecast not met Red flag goes up
Eastman Kodak Company 9 Grey Market Diversion: A True Story Forecasts $10 million in Liz Claiborne perfume in 2007 40% markup ABC Perfumes agreement Products being diverted Another distributor selling Liz Claiborne fragrances into ABC Perfumes territory at a much lower price Distributor gets 10% markup Forecast not met Red flag goes up
Eastman Kodak Company 10 Combating Counterfeiting and Grey Market Diversion – Liz Claibornes Approach Need to proactively protect brand Need security systems in place to combat both counterfeit and gray market diversion Combination of overt and covert security technology
Eastman Kodak Company 11 Working Together To Counter Counterfeiting Beware of Dog Communicating is critical. Let your customers and the counterfeiters know you are taking countermeasures
Eastman Kodak Company 12 Case Study: Donruss Playoff LLP National Treasures – highly collectable game day cards As players performance improves, their Brand increases and the value of cards increase exponentially Leading to fraud and counterfeiting, devaluing the Donruss brand.
Eastman Kodak Company 13 Case Study: Donruss Playoff LLP
Eastman Kodak Company 14 Kodak Security Solutions – Voice the Fight!
Eastman Kodak Company 15 Kodak Security Solutions – Voice the Fight! Harpers Bazaar – Anti Counterfeiting Summit May 13, 2008 - Fakes are Never in Fashion!
Eastman Kodak Company 16 Working Together To Counter Counterfeiting Collaborative Counter-Insurgency Align with other industry participants to raise public awareness, drive policy and share resources