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Brand Protection and Marketing, what a team!

Over 30 years in the document and product protection space Initial technology invented by Ralph Wicker in 1987

Develop technologies, software and products that deter counterfeiting and product diversion

Publically traded company that is dedicated to the continual development of our extensive patent portfolio of anti-counterfeiting and authentication technologies

We secure the world’s most important documents and brands Including projects with:

US Government Agencies Foreign Governments Fortune 500 Companies

DSS - Background

Harmful Products toConsumers

Counterfeit Websites and Products: The Danger to Your

Brand

Loss in Revenue

Inferior Products with Your Name on it

Substandard Replacement Parts Loss of Revenue

Harmful reactions to Ingredients

Market Research ..conducted by Harris Interactive, home of the “Harris Poll”

Protecting your Website- Examples of companies website protection efforts

Protecting your Product- Examples of companies product protection efforts

Other Examples combining Brand Protection and Marketing

How DSS interacts with both your Brand Protection and Marketing Teams - “The Command Center”

Today’s Webinar

Market Research

Pros & Cons to Online Shopping

The vast majority also see drawbacks to shopping online, with lack of product interaction leading their concerns.

Not being able to see/touch

the product in person

Not being able to try products

out

More compli-cated to return

products

What I order may not be what I get

Don't know how to tell if

the website or seller is

trustworthy

Don't want to share my per-sonal or finan-

cial information with the web-

site

Harder to tell if a product is

counterfeit

Not having salespeople to

answer my questions

Other I don't think there are any disadvantages

70%66%

47%

37%33% 30% 28%

20%

3%7%

Main Drawbacks of Shopping Online

Any (Net)93%

Echo Boomers 66%Gen Xers 66%Baby Boomers 78%

Echo Boomers 73%Gen Xers 66%Baby Boomers 60%

Pros & Cons of Online Shopping

Seller got poor reviews

Price/deal seemed ''too

good to be true''

Didn't know if the seller was

''for real''/ legitimate

Never heard of the seller

Didn't know if the site was secure (e.g.,

fear of identity or credit card number theft)

Worried the product I was

looking at might be coun-

terfeit

Didn't know how to make sure the prod-uct I thought I

was buying was the prod-

uct I would receive

Didn't know whether or not the connection

was secure

Knew I didn't have a secure

connection

I'm just not comfortable with online purchases

None of these

50%

37% 34%30%

26%

18% 16% 14% 13%9%

23%

DSS Secure Touchpoints (Net) 54%Echo Boomers 60% Baby Boomers 49%

Secure Connection Concerns (Net) 21%Men 25% Women 16%

Reasons Have Decided Not to Make an Online Purchase

More specifically, over half of smartphone owners have ever decided against making an online purchase due to one of the factors DSS is designed to combat.

1. Roughly one third of smartphone owners have personally received a product not matching its description or the wrong product, nearly one-fourth have purchased an item online which never came.

2. Roughly one in ten smartphone owners have had their ID or credit card number stolen or have purchased an item online which turned out to be fake or counterfeit.

3. Majorities either have experienced them selves or know someone who has experienced products not matching their description and receiving the wrong product.

Consumer’s Online Counterfeiting Concerns

Auction sites (e.g., ebay, Zbiddy)

Buying through ''approved'' sec-

ondary merchants on online retailers

(e.g., Amazon)

Buying direct from major online retailers (e.g., Amazon, Over-

stock)

Online sites related to brick and mortar retailers (e.g., Best

Buy, Target)

Manufacturer-direct retail sites (e.g., Ap-

ple Store, Levi's)

Other None of these

75%

40%

21%

14%11% 11% 9%

Online Purchase Modes Perceived as Vulnerable to Counterfeit Merchandise

Auction sites are by far the online shopping mode most commonly perceived as vulnerable to counterfeit merchandise, followed by “approved” secondary merchants on online retailers.

Two in ten or fewer believe direct purchases from major online retailers, online sites related to brick and mortar retailers or manufacturer-direct retail sites are vulnerable to this.

Consumer’s Online Counterfeiting Concerns

Such a system shows especially strong potential to increase online shopping likelihood among those who have had first- or secondhand experience with counterfeit merchandise through an

online sale.

Authentication System’s Potential Impact on Purchases

Electronics (e.g., tablets, flat screens)

Apparel (e.g., dresses, pants, shirts)

Luxury & Fashion items (e.g., designer watches,

purses, brand name footwear)

Pharmaceuticals and nutritional products

(e.g., medication, vita-mins, herbal supple-

ments)

Health & Beauty products (e.g., cosmetics, personal

hygiene products)

Food & Beverage prod-ucts (e.g., dry goods, cof -

fee, wine and spirits)

68%64% 64%

60%56%

46%

Likelihood to Shop Online With One-Step Merchandise Verification(among Those with 1st/2nd Hand Counterfeit Merchandise Experience)

Summary of Much More/Somewhat More Likely (Net)

Series1

22%

33%

29%

16%

Major positive impact Moderate positive impact Slight positive impact No positive impact

Positive Impact on Confidence of In-Person Purchases

Major/Moderate Positive Impact(Net)

45% At Least A Slight Positive Impact(Net)

78%

Echo Boomers 84%Baby Boomers 73%

An independent, smartphone-based verification system also shows strong potential to positively impact in-person purchases in brick and mortar stores.

Authentication System’s Potential Impact on Purchases

DSS Takeaways

Counterfeit merchandise can have severe negative implications with customers, and copied manufacturers stand to take a perceptual hit from this.

1. Over nine in ten (92%) smartphone owners agree – 72% strongly so – that they’d be angry if they bought someone a product and it turned out to be counterfeit/fake.

2. Counterfeited brands don’t get away scot-free: over seven in ten (72%) say that if they received a counterfeit or fake item from an online retailer, it would lower their trust in the brand being imitated.

3. 86% feel a manufacturer has a responsibility to ensure retailers claiming to sell its products are selling the real thing.

DSS Takeaways

On the other hand, brands stand to gain from both perceptual and sales standpoints if they can show that their items are legitimate, and that they are taking steps to battle counterfeiting.1. Nine in ten or close to nine in ten…

…say they’d ‘have more confidence purchasing a product online if they could verify that the seller was “authorized” (90%);

…express a desire to have an easy way to authenticate their online purchases before completing them (89%);

…feel the ability to “check” the authenticity of a website would give them comfort (89%); and

…believe they’d have a better opinion of a brand they feel is taking steps to make sure their products are not counterfeited (88%).

2. Nearly eight in ten (78%) say they’d shop more online if it was easier to make sure sellers and items are “for real.”

Website Authentication and Protection Technology

How It Works:

Brand owner provides AuthentiGuard with a list of licensed reseller’s websites.

The AuthentiSite team creates and distributes the patented Prism mark to resellers for placement on their website.

Consumers scan the mark to verify that the website they are on is a true, licensed reseller.

Online real-time reporting captures data for brand owner’s use.

Consumer Scanning Authentication Marker on Website

The AuthentiSite solution is comprised of three key components that work together to secure your brand.

The AuthentiSite System:

The Prism Mark

The Application

The Portal

All Managed from the DSS Command Center

Examples of Our Technology:

Brides Magazine Naddi

AuthentiGuard Overview

Product Protection and Authentication Technologies

Product Protection

The AuthentiGuard system is comprised of three key components that work together to secure your brand.

The Mark The Database

The Application

All Managed from the DSS Command Center

AuthentiGuard: Application

Secure Login Scanning Mark Results Page Results Action Page

The smartphone APP is the power behind DSS’s brand protection solutions.

AuthentiGuard: The Portal

Extensive reporting capabilities

On-going management and integration into enterprise systems

Manage personnel access of system

Manage, edit, add or delete AuthentiGuard Marks.

Fully customizable

The AuthentiGuard User Dashboard gives access, control and organization to the database compiled from the AuthentiGuard

application scans.

All Managed from the DSS Command Center

AuthentiGuard: The Command Center

All Scans are tracked Valid Scans vs Invalid Exceptions are flagged Incidents recorded Incidents Analyzed Photographs GPS location All evidentiary information

collected Alerts passed on to you in

real-time Go Catch your Counterfeiter

in real-time!

Command Center

Examples of Our Technology:

Microtech Knives Medaxis

AuthentiGuard Overview

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Marketing Examples

Marketing with Authentiguard

Lead consumers directly to product website

Unlock hidden coupons and special offers

Easy entry into contests and sweepstakes

Mobile e-commerce Event registration and information Social media integration Open one-to-one communication Geo-target based reporting Fully customizable

Embed the AuthentiMark into your advertisements and drive consumers straight to

your brand.

Marketing with Authentiguard

Engage, inform and delight your consumers by printing the AuthentiMark onto your product

packaging. • On-the-go product information• Product usage tips• Accessory advice and

recommendations• Instant ‘buy now’ coupons• Fraud detection built right into the

app• Integrate with POS systems• Know where your consumers are with

geo-targeting reports• Hundreds of options• Fully customizable

Marketing with Authentiguard

How-to videos Salon appointment scheduling Push products/emails to friends Polls Product information Inserts/outserts Daily/Weekly/Monthly product

deals New product incentives

Questions?

Just Raise your hand

Michael BuellDirector of Sales585-500-4669 office585-683-3525 cellmbuell@dsssecure.com