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Brand Protection: In the face of mounting counterfeiting, diversion & other infringements

Brand Protection: In the face of mounting counterfeiting, diversion & other infringements. Jim Mentone | Director, Consumer Global Brand Protection. Objective:. Create active collaboration g roup MFGs & Retailers : Help pr otect consumers & patients

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Brand Protection: In the face of mounting counterfeiting, diversion & other infringements

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

  2. Objective: Create active collaboration group MFGs & Retailers: • Help protect consumers & patients • Counterfeiting & diversion is serious and growing • Support Branding & Consumer Confidence • Manufacture & Retailer • Support Business Growth • Alignment with business strategies

  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. Counterfeiting • Apparel, DVDs, watches. . . money, cigarettes . . . • But …. Healthcare??? • Pharmaceuticals? • Medical Devices? • Consumer Products? • Shampoo?, Soap?, . . . Really?

  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. 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. 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. 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

  9. Why Global Brand Protection (GBP)? • Patient Safety • Patient Safety • 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

  10. Safe & Secure Supply Chain • Incident Reporting and Management • Awareness and Education • Market Monitoring • Commercial Insights • Distributor Compliance • External Manufacturer • Product Protection • Product Returns and Destruction • Transportation Security • Facility Security

  11. Safe & Secure Supply Chain Practices • Incident Reporting and Management • Market Monitoring • 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

  12. Safe & Secure Supply Chain Practices • Awareness and Education • Distributor Compliance • 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

  13. Safe & Secure Supply Chain Practices • Product Protection • Product Returns and Destruction • Risk-based assessments for newproducts • 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

  14. Safe & Secure Supply Chain Practices • Transportation Security • 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

  15. Summary: Need to create active collaboration group: • Protect consumers & patients • Counterfeiting & diversion is serious and growing • Preserve Branding & Enhance Consumer Confidence • Manufacture & Retailer • Support Business Growth • Alignment with business strategies

  16. Thank You! For more information, please contact Jim Mentone jmentone@its.jnj.com (908) 904-3523

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