Watching For Threats

Digital printing is one process that can play a vital role in brand protection and track-and-trace applications.

March 2009 by Bob Neagle, Videojet Technologies Inc.

multipage

As the new millennium unfolds, it’s becoming more apparent that one of a consumer goods manufacturer’s most important assets is its brand. Consumers are willing to pay a premium price for their favorite brands, which translates into both profit and marketplace power.

But, brands face many threats and need to be protected. There are criminal enterprises that can steal a portion of the investment in a brand for themselves by counterfeiting or unlawfully distributing a product (called diversion), or worse, damage a brand’s equity and the manufacturer by hurting consumers who purchase a product (termed product terrorism).

One of the most important methods of protection is through digital variable data marking and coding technologies on primary packaging. Technologies can include inkjet printers, laser coders, thermal transfer overprinters, binary array printers, or a combination of technologies that provide multiple layers of protection, thus making it more difficult to counterfeit or divert products. Combining these technologies with software that creates unique, random codes that are placed directly on a package will go a long way in protecting the brand, the manufacturer, and ultimately the consumer.

Counterfeiting, diversion abound

The challenges and importance of ensuring product integrity today are magnified by the flood of counterfeit products and diversionary activity in the marketplace. The actual financial impact of counterfeiting and diversion is believed to be in the billions of dollars annually. Increasingly, governing bodies have placed the responsibility to ensure product and supply chain integrity on manufacturers.

As effective as a package’s structure and graphic design are in demonstrating a brand’s attributes, they provide limited protection from counterfeiting, diversion, and even product terrorism. The repetitive and commonplace nature of packaging and labeling make a product vulnerable to duplication and fraud, and also do not prevent unlawful distribution. As a result, manufacturers are being forced to add multiple layers of protection against these threats. These layers of protection have various goals in mind, the most important of which is verifying the authenticity of a product and tracing its pedigree from authorized start to end.

Fortunately, there are cost-effective approaches manufacturers can use to achieve these goals. Once a product’s primary and secondary protection measures are in place, variable data marking and coding technologies can play a key role in providing those added layers of protection that help ensure the authenticity of a brand and reduce potential product liabilities.

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• BRAND PROTECTION/...
• BUSINESS MANAGEMENT
• DIGITAL PRINTING