Selecting Authentication Solutions to Fight Counterfeiting

©2015 www.aspaglobal.com
Authentication solutions Overview-
How to select a solution according to
your needs
Nityanand S Shenoy
President and Managing Director
PRS-Permacel Private limited
&
Governing body member- ASPA

Sequence of presentation
• SEQUENCE CHANGE
– How to select a solution as per your
needs
– Overview of Authentication Solutions

QUIZ
• Only 5 Questions
• Answer- YES or NO

How to select a solution as per
your needs
• Is there a magic solution to fight
counterfeiting ?

your needs
• Can you eliminate counterfeiting ?

your needs
• Can you accurately measure the
extent of counterfeiting of your
product ?

your needs
• Can you tell accurately the financial
losses due to counterfeiting of your
product ?

your needs
• How well do you know about your
counterfeiter. Do you have any
SWOT analysis of him ?

MAJORITY ANSWERS

How do you now select a right solution, right
technology or supplier and succeed in fighting this
menace
•4 Steps to success
– Background work
– Organisational commitment
– Selection of solution
– Implementation of solution

menace
–Background work

BACKGROUND WORK
•FOCUS TO FIND ANSWERS TO
– What Kind of Brand attack are you
facing
– Why are you facing this Brand attack
– Do you have any measure
– What are the implications to you as an
organisation

What Kind of Brand attack are you facing
•Tampering the product or packaging or both with intention
to steal, replace, modify, adulterate
•Replicate the product or packaging or both with the intention
of fooling the customer he is buying the original
– Pass offs/look alike
– Duplication
– Counterfeit
– All the above replications are called as SPURIOUS
•Diversion of the product form the market it is supposed to
be sold to other markets
•Recirculation of the original packaging material and filled
with substandard products

Why are you facing this Brand attack
•High price differential
•Non availability of Genuine product
•No means available to the end user to
distinguish at point of purchase
•Buyer and end user are different
•Physical flow of goods and communication
flow are different
•Differential pricing policies followed for
different markets

Do you have any measure
•Financial measure in terms of extent of
duplication
•Image loss measure

What are the implications to you as an organisation
•Parent company pressure
•Pressure from regulators
•Pressure from your channel
•Pressure from your end users

Background work-Results
•You have a clear problem definition
•You will know where to focus
•You can take a YES or NO decision whether
you wish to move ahead or not

Background work-Results
If decision is YES
– Budget all the costs based on % of lost sales and impact
on Brand
• Solution cost
• Solution usage costs
• Customer education costs
• Cost of raiding and legal actions
• Cost of measurement
– Protection cost to be part of marketing /
brand building NOT Packaging
– Fix milestones for review and period for usage of
solution( 3-4 Years maximum

menace
– Background work
–Organisational
commitment

Organisational commitment
•Is there a clear commitment from the TOP
that this issue has to be addressed

•Who is the driver-CEO or PACKAGING or
PROCUREMENT

•Does the organisation truly believe that it is
their problem and not the Government
problem

•Will Past failures due to wrong solution
selection act as a deterrent

•Does the Organisation has a clear BRAND
PROTECTION policy/ BRAND PROTECTION
COMMITTEE

•Will PRICE CONTROL pose an issue

Organisational commitment-
Results
•A committed CEO/organisation, with belief
that it is my problem & not bogged down by
price control/past failures is most likely to
succeed

menace
– Background work
–Selection of solution

Selection of Solution
•Solution model
•Solution technology
•Solution provider selection
•Why solutions have failed

Solution model
•Which is Safer

Level 1-Overt Features:
Highlight Authenticity
Level 2 Covert-Overt
Features: Confirm Authenticity by
consumer involvement features
Level 3 Full Covert- Need
special devices for
authentication:
Forensic Features :
Punish Counterfeiters in court of
law– DNA verification
Solution Model-KAVACH

Solution technology review
Technology Overt Covert-overt Full covert Forensic
Substrate based Holograms
Bright stocks
Colour
differentiation
Void pattern
Scratch
Pull/peel
Custom patterns
Holograms NA
Printing ink
based Optical variable ink
Thermo chromic
ink,, Rub /aqua
sensitive, Intaglio
Ink,
Tagged ink,
Conductive
inks
Bi Fluorescent
florescent,
DNA Tagged Ink,
Chemical tagging
IR , X ray,
magnetic
Printing
technology based
2D bar codes/Q
codes
Raster images Micro text, ,
Nano text
Adhesive
Technology based
Coloured adhesive Chemical reactive
Fluorescent
Conductive
IR mark
Fluorescent
DNA additives
Chemical tagging
Availability
EASY
Holograms,2D bar
codes
Bright stocks
DIFFICULT
High security
holograms,Intaglio
Ink,
EASY
Void pattern
Scratch
Fluorescent
DIFFICULT
All the rest
All are difficult All are difficult

Solution Technology
For Technology to work it must be
understood that
– More the levers.. Higher the price
– Single technology solutions can be
copied easily
– Selection of technology that fits into
your current manufacturing process is
more likely to succeed

Solution Technology
For Technology to work it must be
understood that
– Technology cannot help in all forms of
brand attack
– Where technology can be used it cannot
be the ONLY deterrent, It must a part of
a fully integrated solution
– Technology is not permanent . There is
need to upgrade

Solution provider selection
– Selection of vendor before selection of
technology is advisable
– Willing to sign NDA
– A written ethical policy
– Experience & technology strengths
– ASPA member
– Not a trader (audit of facility is a must)

Why solutions have failed
• Solutions used are Incomplete or quick fix
based on single technology, price or herd
mentality
• Counterfeiters have access to technology and
move faster & are no longer made in small
household plants BUT in big organized
factories
• Wrong solution provider
• Companies have no senior driver & expect
instant results
• Companies have no measurement parameters
to judge effectiveness

menace
– Background work
–Implementation of
solution

Solution implementation
•Properly planned & should include
–LAUNCH
• CEO communication (internal and
external)
• Marketing team communication
• Distribution team involvement
• Legal team involvement

– POST LAUNCH
• Strong review mechanism lead by CEO
– Channel response
– User/influencer response
– Trade/ media response
• Measurement Parameters put in place
– Solution effectiveness on business
– Solution efficacy in market

–REVIEWS
• Next action plan
• Cost effectiveness
• Is upgradation required

Conclusion
• Counterfeiting is a serious issue in the
Pharmaceutical Industry
• Technological solutions are available but
success is dependent on ensuring
– Proper background work
– CEO lead organisational commitment
– Right & scientific solution selection
– Planned solution implementation

Thank you for your Patience
nshenoy@prs-permacel.com
09821038371

Selecting Authentication Solutions to Fight Counterfeiting

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