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Brand Protection: In the face of mounting counterfeiting, diversion & other infringements Jim Mentone | Director, Consumer Global Brand Protection.

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Presentation on theme: "Brand Protection: In the face of mounting counterfeiting, diversion & other infringements Jim Mentone | Director, Consumer Global Brand Protection."— Presentation transcript:

1 Brand Protection: In the face of mounting counterfeiting, diversion & other infringements Jim Mentone | Director, Consumer Global Brand Protection

2 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 2 Create active collaboration group MFGs & Retailers: Help protect consumers & patients o Counterfeiting & diversion is serious and growing Support Branding & Consumer Confidence o Manufacture & Retailer Support Business Growth o Alignment with business strategies Objective:

3 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 3 What’s a counterfeit? Fake product in a fake package? Fake product in a genuine package? The real product repackaged in a real or fake package? The real product repackaged to extend a shelf life? The real product from a different country repackaged? Yes! All / Any of the above

4 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 4 Counterfeiting Apparel, DVDs, watches... money, cigarettes... But …. Healthcare???  Pharmaceuticals?  Medical Devices?  Consumer Products? Shampoo?, Soap?,... Really?

5 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 5 Counterfeiting is a large and growing business The World Health Organization (WHO) states that worldwide sales of counterfeit medicines could top $75 billion, a 90% increase in five years 30% of certain drugs consumed in developing countries are counterfeit In Africa estimates are that 50% of the anti-malarias and HIV drugs are counterfeit The Threat is Real....

6 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 6 Counterfeiting – an issue primarily outside US... RIGHT? Estimates for US: 1% of pharmaceuticals are counterfeit 5% of Consumer products and Medical Devices imported into the United States are counterfeit

7 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 7 If you’re a category leader, you’re a target for counterfeiting In the last 5 years: –We have identified counterfeit products in every major category –We have identified counterfeit products in every region of the world –We have identified counterfeits in every channel of sale Counterfeiting is a problem for consumer goods and the healthcare industry in general!

8 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 8

9 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 9 Diversion – Not Just a Business Issue Diversion may result in mishandling or contamination of products Diversion enables counterfeiters Diversion is how counterfeits are inserted into legitimate channels

10 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 10 Why Global Brand Protection (GBP)? Patient Safety Reputation of the product Reputation of the brand Reputation of the manufacturer & Retailer Legal liability  Centralized Brand Protection function consists of Global Sector Leads for strategy and regional coverage  Regional (cross-sector) Leads for emerging markets  Central support for anti- counterfeiting (ACF) technology and programs

11 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 11 Safe & Secure Supply Chain 1.Incident Reporting and Management 2.Awareness and Education 3.Market Monitoring 4.Commercial Insights 5.Distributor Compliance 6.External Manufacturer 7.Product Protection 8.Product Returns and Destruction 9.Transportation Security 10.Facility Security

12 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 12 1.Incident Reporting and Management 2.Market Monitoring 3.Commercial Insights Prompt reporting and management is critical to protect our patients Monitoring can identify issues before a product is dispensed to patients Internally available commercial data can guide our monitoring efforts and help investigate incidents Safe & Secure Supply Chain Practices

13 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 13 4.Awareness and Education 5.Distributor Compliance 6.External Manufacturer Awareness and Education can further our efforts by involving all associates and business partners Contractual language and proper due diligence can create a safer supply chain Implementation of measures to mitigate the inherent risks associated with using an external partner in a global supply chain Safe & Secure Supply Chain Practices

14 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 14 7.Product Protection 8.Product Returns and Destruction Risk-based assessments for new products Technology is applied based on level and type of risk Not serialization! Eliminate possibility of counterfeit product being restocked and sold Reduce possibility that product meant for destruction ends up in the grey market Safe & Secure Supply Chain Practices

15 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 15 9.Transportation Security 10.Facility Security Proper transportation security can reduce theft and pilferage, reducing source of product for grey market Facility security is vital for both finished goods and for WIP and packaging materials Safe & Secure Supply Chain Practices

16 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 16 Need to create active collaboration group: Protect consumers & patients o Counterfeiting & diversion is serious and growing Preserve Branding & Enhance Consumer Confidence o Manufacture & Retailer Support Business Growth o Alignment with business strategies Summary:

17 SUBGROUP NAME: REGION AND/OR PROJRCT | Confidential | Month 00, 0000 Confidential | 17 Thank You! For more information, please contact Jim Mentone (908)


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