Thursday, 20 September 2012

Retailers' shoplifting battle is still costing consumers But new technology, law enforcement gaining ground

Recession weary retailers are making headway in a game of one-upmanship with increasingly savvy shoplifters, but consumers still are paying too high a price, according to recent studies.
Experts estimate the average family pays between $400 and $2,000 a year as a result of merchants and manufacturers increasing what they charge to offset their losses.
Those losses totaled $34.5 billion nationwide in 2011, according to the latest survey conducted by the University of Florida for the National Retail Federation.
But, that was down $2.6 billion from 2010.
Study author and UF criminology professor Dr. Richard Hollinger credits new anti-theft technologies and refocused law enforcement efforts for the reduction.
The U.S. Secret Service, FDLE and Broward Sheriff's Office are treating shoplifting more like racketeering and fraud, according to BSO Sgt. Rich Rossman.
"A lot of times law enforcement looks at this as an isolated incident, as just a [lone] shoplifter," Rossman said. "That's why we formed the Organized Retail Crime Unit to look at the bigger picture."
That's what led to the recent arrests of Michael Pollara, his mother Margaret and Travis Simpson in Broward.
Michael Pollara is accused of shoplifting $2 million worth of toys and other items from thousands of stores over a 10 year period.
"Without a doubt this is the most prolific booster, the term for a shoplifter, that we've ever come across," Rossman said.
New technologies allow retailers to get the upper hand too, according to Lee Pernice, director of retail and marketing for Boca Raton-based Tyco Integrated Security.
Organized retail crime usually involves one or more people who either distract salespeople or act as lookouts during the theft. It also can be a group of thieves targeting specific expensive items for resale on the Internet or on the street, Pernice said.
"We had a report about a gentleman who had a network of thieves, like 30 or 40 of them, and he would commission them to go out and steal certain products he was interested in and he would pay them," she said. "Over the Internet, you can pose as a legitimate reseller of merchandise and get 50 cents on the dollar."
Some thieves line shopping bags or baby carriages or clothing with several layers of aluminum foil. They hope to defeat doorway sensors that sound an alarm when merchandise with radio frequency identification tags passes through them.
However, newer sensors will sound a silent alarm the moment a metallic 'booster bag' enters a store, Pernice said.
"You can program those sensors to provide a unique signal to the store management so they understand it wasn't just a typical alarm for people leaving the store but rather a warning that potential shoplifters have entered the store," she said.
That alarm can be a beam or a beacon to alert guards in the security office. It can be sent to a mobile device. Those sensors at the doors can be linked to movable video cameras that can target the entrance and follow whoever triggered that 'booster bag' alert, Pernice said.
Shoplifters often defeat ceiling-mounted surveillance cameras and monitors by wearing a hat and sunglasses or by looking down at the floor.
But, cameras are so small now they can be embedded in door frames and counter tops to get digitally accurate images of a person's face and identify them through online databases, Pernice said.
Video monitors are being placed at eye level on store shelves near high theft items such as baby formula. The monitors display advertising until someone gets near enough to automatically activate a video recorder and when then they see their own face on the screen it acts as a shoplifting deterrent, Pernice said.
Retailers are starting to see shoplifters using 'jammers,' common in Europe, that mimic the signals door sensors emit and all the electronic interference shuts down the security system.
But, the newer systems also have the ability to detect those jamming devices and alert store personnel, according to Karen Bomber, director of softgoods solutions marketing for Tyco.
"You can [confront] the shoplifter before the theft even occurs," she said.
"It's always been amazing the lengths people will go to creatively steal, and some of them are pretty smart," Pernice said.
What really surprises Galindez is how shoplifters keep getting out of jail with little or no punishment.
"They just keep getting a slap on the hand and probation and they continue doing the same thing," she said. "What's going to stop them?"
Merchants are betting on anti-theft technology.

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Friday, 20 January 2012

Five practices for global brand success

A strong, scalable business model is a major advantage for multinational companies (MNCs).
In addition, these companies typically have:
  • An extraordinary depth of management talent that allows them to out-think the competition and survive changes in leadership.
  • The best advice from their global media, advertising and research agencies.
  • Global Research and Development capabilities that provide a constant stream of innovation and can readily adapt existing products and services to meet new market needs.
  • An understanding of what is likely to work in a new market based on experience elsewhere.
  • Big marketing budgets with which to establish their brands. If their first attempt to enter a market fails, they have the resources to try again, using research to understand where they went wrong and how they might do better.
View successful campaigns mentioned in The Global Brand.
MNC brands can succeed at disrupting the status quo in a new market by following five steps:
  1. Adapting products and services to meet local needs and tastes
  2. Solving the local value equation through product and pricing strategies
  3. Creating a strong presence and a distinctive identity
  4. Adopting more aggressive point-of-purchase tactics
  5. Getting as close to the local culture as is possible
The Global Brand discusses these steps in more detail before going on to consider general practices that will help grow a successful global brand.
One of the biggest challenges faced by global marketers is how best to communicate across countries and cultures.

Five brand success factors

An efficient and scalable business model combined with innovation is necessary to stay ahead of the competition. But individually these are not sufficient to make a successful global brand. Five further overlapping components are required:

1. A great brand experience

Brand experience is not limited to the product or service. Every contact with the brand counts.

2. A clear and consistent positioning

People need to know what a brand stands for. That's why an established and successful marketing campaign should not be abandoned simply for the sake of saying something new. When change is required, the challenge is to re-interpret the brand positioning in a way that is appropriate to the current time and culture.

3. A sense of dynamism

Innovation is key to brand success but it is not limited to the functional benefits of the brand. A brand that sets the trends rather than reacting to them is likely to be seen as different and more popular.

4. A sense of authenticity

Today consumers in developed countries have a finely tuned sense for what is true and authentic versus shallow and contrived. They are still drawn to brands with a strong heritage.

5. A strong corporate culture

Today people seek out brands that display their values by the actions they take. In industries with a strong customer-service component it is particularly important that everyone involved with the brand understands and embodies its values.
Which brand epitomizes these success factors? Apple. In the 2008 Millward Brown BrandZ™ Top 100 Most Powerful Brands ranking, Apple's brand value increased 128 percent as a result of strong business growth based on innovation and strong customer loyalty.

Wednesday, 4 January 2012

Golden Rules for Guided Innovation

How can corporate leaders guide innovation within their own organizations? According to Diane Beecher, The Brand Consultancy’s CEO and Senior Strategist, suggests the following Eight Golden Rules for Guided Innovation.
  1. Understand the customer. Listen to your customer’s thoughts and ideas, in their own words. Don’t ask questions; let them respond to ideas.
  2. The customer is the boss. The customer’s ideas should carry more weight than senior leadership teams or even the CEO. The Brand Consultancy’s process involves capturing the senior teams’ hypotheses and validating them with the marketplace. If a concept doesn’t fly, evolve the seed idea in a way that resonates with customers.
  3. Listen to all organizational levels. Internal brainstorming should not come only from the R&D and senior teams. Solicit and consider the perspective of employees with customer touch points throughout the organization. A cross-functional support perspective is also valuable.
  4. Include external ideas. Internal perspectives are valuable, but ideas generated internally may be created by those wearing industry or organizational blinders. Solicit ideas from a variety of external constituencies, including current, lost and prospective customers; vendors; creative panels; and any other relevant audience. Optimized idea selection should be limited to current and prospective customers.
  5. Be practical. You must be open to all ideas, but practical in response. Feasibility filters (time, money, resources, and impact) and competitive perspective must be applied to the ideas selected by customers.
  6. Create a replicable, scalable process. The innovation process should be replicable and scalable, to encourage and advance a culture of innovation within the organization.
  7. Get leadership buy-in. As with any organizational change, leadership must embrace the process for it to be successful and generate tangible, measurable and profitable results.
  8. Make a business case. The process must always include making the business case. If profit is not considered, then the process and the outcomes are not sustainable.