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

RESULTS

  Nov ‘99 May ‘00 Oct ‘00 Mar ‘01 2002-2005

Detergents 23% 2% 0% 0% 0%

Shampoos 42% 33% 17% > 1% 0%

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

THANK YOU!