GS1 DataBar: A Practical Guide Presented by Ken Conrad Pinpoint Data, LLC

Agenda Implementation Benefits Industry Overview Manufacturer Adoption Retailer Readiness Common Issues and “Watch-outs” DataBar Coding Examples Next Steps

Implementation Benefits

Implementation Benefits Accommodate full GS1 Company Prefixes Increased coding capabilities Handle more complex offers Reduce need for 992 Less cashier intervention Systematic expiration date checking Compliance with intended terms of coupon reducing mis-redemption Systematic identification and blocking of fraudulent or counterfeit coupons Potential improved tracking of coupon-related sales

Industry Overview GS1 DataBar became industry standard in 2011 Majority of manufacturers using DataBar only UPC prefix “5” retired June 30, 2015 Retailer validation capabilities still vary

Retailer Validation Capabilities: 3 Groups

Retailer Validation Capabilities: Group 1 Implemented all functionality for full DataBar validation All purchase requirement fields Family Code validation Systematic expiration date checking Retailer business decisions create validation exceptions Expiration grace periods >30 days Disregard start date – valid coupons in market sooner Accepts competitors coupons – disregard retailer Company Prefix/GLN Serialization not widely implemented yet

Retailer Validation Capabilities: Group 2 Implemented partial DataBar validation resulting in various combinations of the following: Validate only primary purchase requirement fields No family code validation Free offers sometimes treated as “fixed value” discounts National offers and corresponding barcodes should be kept as straightforward as possible Gain a full understanding of a retailer’s validation level prior to distributing account-specific offers

Retailer Validation Capabilities: Group 3 No DataBar validation capabilities Convenience and gas, natural foods Grocery independents, Mom & Pop’s, bodegas, etc. Some still do not scan coupon barcodes at all Retirement of UPC prefix “5” may help initiate retailer software/hardware updates to realize scanning efficiencies and controls

Common Issues and “Watch-outs”

Common Issues & “Watch-outs” General Considerations Only one discount value can be included (e.g. cannot code “Buy 1 save $0.50 or 2 save $1”) No more than 3 Company Prefix/family codes can be coded Primary CP always identifies the funder Cannot get a product for a pre-determined price (e.g. cannot code “Get product A for $0.99”)

Common Issues & “Watch-outs” DataBar Creation Up to 70-digits can be coded Magnification should not be reduced below 80% Recommended best practice is for no more than 2 stacked rows DataBar rows should not be truncated Limited human-readable data only displays Primary CP and offer code

Common Issues & “Watch-outs” GS1 Company Prefixes GS1 Company Prefix Conversion for US add a lead “0” to the UPC Company Prefix: UPC CP 614141 = GS1 CP 0614141 International items labeled with EANs do not require a lead “0” EAN – 5012345678993 contains a GS1 CP 5012345 Full variable length GS1 CP usage – no truncation 0812345 is not the same company as 0812345001 or 0812345002 Correct use of country codes: GS1 CP 5012345 (UK) is not the same as “0012345” (US) **Incorrect/incomplete Company Prefix usage could result in POS scanning failures, company conflicts, and misdirection during clearing

Common Issues & “Watch-outs” 992 Bypass Family Code Skips POS purchase validation Expanded DataBar capabilities should greatly reduce usage Should only be used when necessary: Fresh foods/random weight items Offers spanning more than 3 Company Prefixes

Common Issues & “Watch-outs” Free Offers Free item quantities must be included in purchase requirement Buy 1 Get 1 Free (same item) – PR = 2 If retailer is only validating primary information: max value may be processed as “cents off” Free Item may not be identified if coded in 2nd or 3rd PR Maximum Value cannot be coded when Save Value Code “2” is used (more than one free item). Save Value becomes number of items to be given free.

Common Issues & “Watch-outs” Variable Length Indicators (VLI’s) Critical for identifying number of digits within a variable length field e.g. Save Value of $0.50 = 50 (2 digits) vs. $1.00 = 100 (3 digits) Two types: Standard: VLI = length of field Example A: Save Value $1.00 (100) VLI = 3 Example B: Save Value $0.50 (50) VLI = 2 Offset of 6: Length of data in field - 6 = VLI Example A: GS1 CP 0614141 (7 digits) – offset 6 = VLI “1” Example B: GS1 CP 0812345001 (10 digits) – offset 6 = VLI “4”

Common Issues & “Watch-outs” Coding Considerations Checker Intervention is not tied to the coupon value – only takes the place of the purchase requirement DataBar “Do Not Multiply” flag replaces the old EAN-99 and should be used under the same criteria: Only when issuing in-store coupons & requested by the retailer Must match coupon artwork (if used “Do Not Double” should appear on the coupon as well) % off Save Value option should be used with caution as it may not be supported by POS and clearing processes

Common Issues & “Watch-outs” Retailer Validation Levels vs. Coding Options Design simple and easy to communicate offers Avoid coding complex purchase requirements whenever possible Consider consequences if only Primary data is validated Consider possibility that family codes will not be validated Discuss all validation capabilities and concerns with trading partners

GS1 DataBar Coding Examples

DataBar Coding Examples Cents-off: One Item

DataBar Coding Examples Cents-off: One Item Primary Fields: Application Identifier 8110 Primary GS1 Company Prefix VLI 1 Primary GS1 Company Prefix 0614141 Offer Code 123456 Save Value VLI 2 Save Value 50 Primary Purchase Requirement VLI 1 Primary Purchase Requirement 1 Primary Purchase Req. Code 0 (Number of units) Primary Purchase Family Code 111 GS1 DataBar: 811010614141123456250130111

DataBar Coding Examples Cents-off: Three Different Items

DataBar Coding Examples Cents-off: Three Different Items Primary Fields: Application Identifier 8110 Primary GS1 Company Prefix VLI 1 Primary GS1 Company Prefix 0614141 Offer Code 123456 Save Value VLI 2 Save Value 50 Primary Purchase Requirement VLI 1 Primary Purchase Requirement 1 Primary Purchase Req. Code 0 (Number of units) Primary Purchase Family Code 111   Data Field 1: 2nd Qualifying Purchase Second Qualifying Purchase 1 Add'l Purchase Rules Code 0 (Primary Item or Second Item or Third Item) Second Purchase Requirement VLI 1 Second Purchase Requirement 1 Second Purchase Req. Code 0 (Number of units) Second Purchase Family Code 222 Second GS1 Company Prefix VLI 4 Second GS1 Company Prefix 0812345001 Data Field 2: 3rd Qualifying Purchase Third Qualifying Purchase 2 Third Purchase Requirement VLI 1 Third Purchase Requirement 1 Third Purchase Req. Code 0 (Number of units) Third Purchase Family Code 333 Third GS1 Company Prefix VLI 9 Third GS1 Company Prefix Same as Primary GS1 DataBar: 811010614141123456250110111101102224081234500121103339

DataBar Coding Examples Free Offer: BOGO (Same Product)

DataBar Coding Examples Free Offer: BOGO (Same Product) Primary Fields: Application Identifier 8110 Primary GS1 Company Prefix VLI 1 Primary GS1 Company Prefix 0614141 Offer Code 123456 Save Value VLI 3 Save Value 199 Primary Purchase Requirement VLI 1 Primary Purchase Requirement 2 Primary Purchase Req. Code 0 (Number of units) Primary Purchase Family Code 111 Data Field 9: Miscellaneous Elements 9 Save Value Code 1 (Qualifying purchase item is free up to max amount in Save Value) Applies to Which Item 0 (Primary Item) Store Coupon 0 (Not a store coupon) Don't Multiply Flag 0 (Offer may be multiplied) GS1 DataBar: 811010614141123456319912011191000

DataBar Coding Examples Free Offer: BOGO (Different Products)

DataBar Coding Examples Free Offer: BOGO (Different Products) Primary Fields: Application Identifier 8110 Primary GS1 Company Prefix VLI 1 Primary GS1 Company Prefix 0614141 Offer Code 123456 Save Value VLI 3 Save Value 199 Primary Purchase Requirement VLI 1 Primary Purchase Requirement 1 Primary Purchase Req. Code 0 (Number of units) Primary Purchase Family Code 111 Data Field 1: 2nd Qualifying Purchase Second Qualifying Purchase 1 Add'l Purchase Rules Code 1 (BOTH - Primary Item and Second Item) Second Purchase Requirement VLI 1 Second Purchase Requirement 1 Second Purchase Req. Code 0 (Number of units) Second Purchase Family Code 222 Second GS1 Company Prefix VLI 1 Second GS1 Company Prefix 0030050 Data Field 9: Miscellaneous Elements 9 Save Value Code 1 (Qualifying purchase item is free up to maximum amount in Save Value) Applies to Which Item 0 (Primary Item) Store Coupon 0 (Not a store coupon) Don't Multiply Flag 0 (Offer may be multiplied) GS1 DataBar: 8110106141411234563199110111111102221003005091000

DataBar Coding Examples Free Offer: Multiple Free Items

DataBar Coding Examples Free Offer: Multiple Free Items Primary Fields: Application Identifier 8110 Primary GS1 Company Prefix VLI 1 Primary GS1 Company Prefix 0614141 Offer Code 123456 Save Value VLI 1 Save Value 2 Primary Purchase Requirement VLI 1 Primary Purchase Requirement 7 Primary Purchase Req. Code 0 (Number of units) Primary Purchase Family Code 111 Data Field 9: Miscellaneous Elements 9 Save Value Code 2 (Number of qualifying purchase items free) Applies to Which Item 0 (Primary Item) Store Coupon 0 (Not a store coupon) Don't Multiply Flag 0 (Offer may be multiplied) GS1 DataBar: 8110106141411234561217011192000

DataBar Coding Examples Cents-off Next Shopping Order

DataBar Coding Examples Cents-off Next Shopping Order Primary Fields: Application Identifier 8110 Primary GS1 Company Prefix VLI 1 Primary GS1 Company Prefix 0614141 Offer Code 123456 Save Value VLI 3 Save Value 500 Primary Purchase Requirement VLI 3 Primary Purchase Requirement 500 Primary Purchase Req. Code 2 (Value of total transaction) Primary Purchase Family Code 000 Data Field 9: Miscellaneous Elements 9 Save Value Code 6 (Cents off final transaction amount) Applies to Which Item 0 (Primary Item) Store Coupon 0 (Not a store coupon) Don't Multiply Flag 0 (Offer may be multiplied) GS1 DataBar: 81101061414112345635003500200096000

Next Steps

Manufacturer Checklist Next Steps Manufacturer Checklist Learn DataBar capabilities and coding techniques. Appraise family code structures and procedures. Implement procedures, tools, and training across staff and agencies to promote accuracy, visibility, and consistency. Monitor all DataBar activity to quickly address emerging issues. Stay informed of industry updates through coupon education courses and seminars. Include employees from all related areas in training.

Next Steps Retailer Checklist Assess DataBar hardware and software compatibility. Define business rules regarding DataBar interpretations and validation for POS processing. Track and evaluate hard-to-handle offers to identify recurring and addressable problems. Stay informed of industry updates through coupon education courses and seminars. Include employees from all related areas in training.

Questions?

DataBar Coding Examples Cents-off: Two Different Items

DataBar Coding Examples Cents-off: Two Different Items Primary Fields: Application Identifier 8110 Primary GS1 Company Prefix VLI 1 Primary GS1 Company Prefix 0614141 Offer Code 123456 Save Value VLI 3 Save Value 150 Primary Purchase Requirement VLI 1 Primary Purchase Requirement 1 Primary Purchase Req. Code 0 (Number of units) Primary Purchase Family Code 111 Second Qualifying Purchase: 1 Add'l Purchase Rules Code 1 (BOTH - Primary Item AND Second Item) Second Purchase Requirement VLI 1 Second Purchase Requirement 1 Second Purchase Req. Code 0 (Number of units) Second Purchase Family Code 222 Second GS1 Company Prefix VLI 9 Second GS1 Company Prefix Same as Primary GS1 DataBar: 8110106141411234563150110111111102229