1. Company Experience of Working With State Market Surveillance Agencies Andriy Bublyk Procter & Gamble Ukraine External Relations Manager

2. 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%)

3. 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

4. 1.Building strong consumers confidence where to buy genuine P&G products Store Certification Program PR Support

5. 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

6. 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

7. PR Support TV copy print open markets leafleting free-phone line

8. PR Support (1 st year of the program) Certification program advertising National TV Print media 2300 GRP at the launch of the project

9. PR Support A free telephone line to answer all the questions of consumers related to the project: 26,000 calls 2,200 complete calls

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. RESULTS Nov ‘99May ‘00Oct ‘00Mar ‘012002-2005 Detergents23%2%0% Shampoos42%33%17%> 1%0%

17. 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

18. THANK YOU!