Company Experience of Working With State Market Surveillance

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 (1 st 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 (2 nd 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 1 st 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 May ‘ 00 Oct ‘ 00 Mar ‘ 01 2002 -2005 Detergents 23% 2% 0% 0% 0% Shampoos 42% 33% 17% > 1% 0% Nov ‘ 99

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!