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Explore how Procter & Gamble worked with state market surveillance agencies to combat counterfeit products in Ukraine. Strategies included store certification programs, PR support, and collaboration with consumer rights protection committees.
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Company Experience of Working With State Market Surveillance Agencies Andriy Bublyk Procter & Gamble Ukraine External Relations Manager
Situation in the market in 1999 AC Nielsen research (1999): • at 20 biggest markets • of 5 largest cities in Ukraine • on 6 P&G brands Outcome (% of fake products at the open markets) : • Laundry (23%) • Hair Care (43%)
STRATEGIES 1.Building strong consumers confidence where to buy genuine P&G products 2. Work with Consumer Rights Protection Committee (CRPC) to support Anti-Counterfeits (AC) Program in order to harass/eliminate counterfeit re-sellers and manufacturers
1.Building strong consumers confidence where to buy genuine P&G products • Store Certification Program • PR Support
Store Certification Program • P&G, Consumer Rights Protection Committee and the Distributor issue the “Certificate of Producer” • Loyal store signs the Agreement and gets the Certificate
Store Certification Program 17000 certificates distributed and Agreements signed (including open markets, kiosks and stores) Coverage: 32 cities that represents about 90% of population, 95% of spending power Created database of stores/kiosks - participants of the program
PR Support • TV copy • print • open markets leafleting • free-phone line
PR Support (1st year of the program) Certification program advertising • National TV • Print media 2300 GRP at the launch of the project
PR Support A free telephone line to answer all the questions of consumers related to the project: • 26,000 calls • 2,200 complete calls
PR Support (2nd year of the program) • PR events focused on “problem cities” with the messages: • announce the project results • confirm the Parties’ intention to work further • increase public awareness of the project
PR Support Results: • High consumers awareness (over 95% during 1st 2 years of the program) • Word of mouth in trade • High level of awareness among enforcement bodies
2.Work with local law enforcement bodies to support AC Program and harass/eliminate counterfeit re-sellers and manufacturers 11 mobile laboratories: • equipped to run on-site testing in the Open Markets • provided to the Ukrainian Consumer Rights Protection Committee
Enforcement Major partner: Consumer Rights Protection Committee: • is responsible for consumer policy • empowered to control safety and quality of goods • empowered to impose fines on guilty sellers or to prohibit selling goods
Enforcement P&G: 5 Dedicated persons all over the country responsible for: • Regional ownership of anti-fake program • Constant monitoring of the situation • Constant updates of mobile labs rout
Enforcement mobile laboratories run by CRPC experts at regular basis In Dec/00 – May/01: • over 200 raids conducted • 700 samples collected • over 100 fake sellers punished
TODAY • 1 Mobile laboratory raids (on 2-weeks basis) all over the country • Constant contact with Law-enforcing agencies • Constant situation monitoring Result: “0” fakes level during last 5 years