BRAND PROTECTION
Mature programmes clearly identify internal and external stakeholders and participants. Typically, internal participants include individuals from the following disciplines: marketing, corporate security, legal, packaging and product engineers, government affairs and media relations. Each plays a specific role and is oſten supported by external participants or partners who may include: investigative resources, outside counsel, product/packaging security solution providers as well as customs agencies and local law enforcement. Each programme participant must align its activities with the overall global strategy and though everyone’s role is unique, all must fall under one central management scheme that affords the programme unity of command. All mature programmes have one individual that sets the tone and provides direction to the participants, ensuring global alignment and consistent messaging.
Operational and tactical implementation strategies
Te third characteristic common to all mature brand protection programmes focuses on operational and tactical implementation of the global strategy. Tis implementation is best described by four distinct pillars: intelligence and enforcement, metrics, barriers to market entry, and training.
Te intelligence/enforcement pillar is the most notable as it is oſten the aspect of the programme that receives the most media attention. Its focus is to remove illicit products from the marketplace to create space for the genuine product. Te process is complex and requires the participation of professionals who have a ‘real-world’ understanding of the intelligence life cycle and how the flow of information within the marketplace can create opportunity.
A mature programme recognises that information can come from a myriad of sources: sales force, channel, customs records, market intelligence, consumers and confidential sources. Mature programmes utilise outside consultants and/or investigative resources to help manage the intelligence life cycle, but ultimately direction comes from the corporation and those stakeholders within the corporation that are best suited to drive the activity. Corporate security in conjunction with corporate legal provides direction to external resources that in turn collect information in the marketplace.
Metrics not only define success, but can also help assess the size problem. Budgets are generally contingent on the ability to measure the associated corporate impact. Tough availability
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of illicit product and number of reported incidents provide insight into the problem, business leaders find it anecdotal. However, if the same methodology for measuring genuine sales growth is used to measure counterfeit market share, business leaders will take note.
Mature programmes realise that the most reflective measure of success for any programme lies in increased market share and revenue. Tough amount of seized product can be a good indicator of a programme’s success and is worth tracking, unless the programme can translate that opportunity into increased sales, the company will derive little measurable benefit.
Product authentication solutions are important barriers to entry that have an impact on a counterfeiter’s ability to enter a particular market. Technology associated with product design or packaging can be extremely useful in ‘hardening the target’ and raising the counterfeiter’s cost of doing business. Design and construction of the external packaging that implement covert features can help external investigators authenticate the product, while overt features on security labels can assist channel partners, customs officials and consumers with the ability to authenticate products. Te key with product/ packaging security solutions is to impact the monetisation of illicit product at any consumer segment: home, SMB and enterprise, and at the point of purchase. Once any of these consumer segments purchases a counterfeit product, the balance shiſts to the counterfeit and the damage has been done. Effective technology should be designed or integrated into the product or packaging to foil these transactions.
Mature programmes have a specific training curriculum for investigators, law enforcement, sales and the channel, as well outside counsel. All those mentioned are ‘force multipliers’ that can extend a programme’s influence in the marketplace. Authentication tools should be imparted to external partners; however, varying degrees of information should be pushed out to each audience. Authentication tools are best layered to afford each audience a varying degree of understanding to safeguard the corporation’s intellectual property.
Messaging should accompany these training tools that builds not only awareness of the problem but also affords the audience a medium by which it can report suspicious activity. Tis activity will fuel part of the collection process in the intelligence life cycle. Te messaging should continually strive to maximise brand awareness and the corporation’s commitment to protect consumer rights. Mature programmes don’t
engage media directly, but rather afford local law enforcement the opportunity to champion successes. Tis is critical to strengthening ties to local prosecutors, customs agencies and the law enforcement community in general. Te programme downplays its participation, pushing the judicial process out into the limelight.
Mature programmes affect their markets by operating with integrity, adhering to all applicable laws and regulations, as well as to the standards of conduct mandated by its organisation. Tey have a well-defined global strategy that can be communicated up, down and out in a concise and succinct manner. Tis strategy is supported by an appropriate infrastructure, bringing together multiple disciplines that execute this strategy using four pillars. Tese pillars create opportunity by removing illicit product from the market; establishing the size of the problem and defining a relevant and meaningful return on investment; providing market entry barriers to make it more difficult for counterfeiters to commercialise their illicit product; and training specific audiences to prevent the commercialisation of illicit product to report suspicious activity.
Rodolfo Diaz is chief operating officer of PICA Corporation. He can be contacted at:
rdiaz@pica.net
Rodolfo Diaz is responsible for directing and overseeing all operational activity of the PICA Corporation’s global business units. He has more than 17 years’ leadership experience, and has successfully and consistently led and managed global operations for both the private sector and the US military. Prior to joining PICA Corporation, Diaz served with the Hewlett-Packard Corporation, leading the Global Anti-counterfeiting Program. From 1994-2000, Diaz also served as a managing director for Pinkerton C&I, leading operations for both the Chicago and Miami offices, and providing security consultation.
World Intellectual Property Review May/June 2011
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