Brand managers beware: Five-finger discounts rising

Brand stewards must take a leadership roll. Devise a brand security program, sell it to senior management, and customize your packaging solution.

Every brand faces the potential of loss from product theft, diversion, and counterfeiting. Product theft is on the rise at U.S. retail outlets in 2009, and CNNMoney.com quotes various experts who believe the recession is a major culprit.

Food and beverage products, clothing, and OTC drugs always have been popular targets. But now, baby formula, power tools, gaming software, and even weed killer have joined the list.

What can consumer packaged goods companies do to protect their brand? Foremost, say brand-protection experts, devise a way to discourage theft that includes the following steps: Sell your program to senior management, create a team, assess the situation, identify program goals, select the appropriate security solution for your brand, and determine how you will address communications—what and how much will you say internally and externally?

What’s the cost of doing nothing? When consumers have a bad experience with your brand, they may no longer trust or purchase it.

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