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INTRODUCING THE RED TAG SECURITY SYSTEM
The new industry standard in security packaging
Developed by AGI Amaray, the inventor of the video and DVD box. Now part of the US giant Mead-Westvaco packaging conglomerate.
Already implemented by the studios in Australia and now full in roll-out in Europe.
Being adopted by retail and rental with any type of EAS system: AM, RF and EM.
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GBREAKTHROUGH IN DVD & GAMES RENTAL & RETAIL
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The devastating impact on margin from retail theft by:
casual thieves
fanatics
professionals
unfortunately, staffRED
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G THE PROBLEM - 1
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Unacceptably high cost of deterring thieves:
high labour costs in using “safers”, “library” or “master-bag” systems
equally high cost of purchasing safers, cabinets and space
unattractive presentation of stock
inefficient use of precious space on shelves and in stock reserve
lost sales through all stock not being on display
inability to freely merchandise and display major titles
V V V V V ‘Something has to give if things are going to improve!’
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G THE PROBLEM - 2
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Unlock the full sales potential of DVDs and games
A totally new approach is needed.
A low cost solution which can:
reduce the cost of loss-prevention measures AND
provide greater profit returns
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THE CHALLENGE
Adapt the standard industry packaging as a security package:
World-best practice initiative replicated by Kmart, Australia on behalf of CML brands
Insert a simple low cost security lock into the box at store level
Ensure it is staff-friendly and can reduce labour costs
Demonstrate that the system can reduce or at the very least maintain stock losses at current levels
Demonstrate that very significant sales increases are possible
Quantify GP$ increases to prove success of strategy.
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A STRATEGIC SOLUTION
No negatives - only upside No impact on operations or marketing “presentation” as 70% of majors already using the market-leading Amaray/DVD-Safe box
No cost increase compared with other quality product
Source tagging not necessary
Up to 400% retail sales increases, across the total catalogue, as live product sells better
Opportunity for impactful merchandising and displays – anywhere in store, anytime.
Product displayed as intended – greatly improved presentation
Less stock in stock reserves = faster sell-through & fewer returns
Sale or return stock remains in near perfect condition
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GBENEFITS TO THE INDUSTRY AS A WHOLE
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A SIMPLE BUT EFFECTIVE DETERRENT
Red Tag holds the disc and an EAS tag inside the box - then “staples” the box shut.
The Red Tag is easy to insert and remove.
Benefit denial: Thieves need to break the box (loudly) and may break the disc trying to remove it. They get less for their trouble and are more likely to be apprehended. The professional thieves may then “shop” elsewhere.
Increased sales of sell-through product Increases of 200 to 400% in pilots
Live stock means more sales, including back catalogue titles
Now more free to display stock how and where you wish
More efficient use of precious store space At least 22% more stock on show compared to bulky safers
Less space taken up behind counter - and in stock reserve
Labour efficiencies Stock put on show far more quickly
Tags removed from stock far more quickly
Easier to return sale or return stock Negligible impact on the outer wrap.
Rapid payback on investment – inside of 12 months.
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GALL THE UPSIDE OF A THRIVING DVD MARKET
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A better shopping experience!
Extremely positive feedback from stores using Red Tag More customer friendly
No more scratched, opaque “safers” or shabby dummy boxes
They browse more freely
They receive unopened, pristine product
No delays at the service desk
Greater customer satisfaction – they’ll come back for more.
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GBENEFITS TO CUSTOMERS
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Not just cost-effective loss-prevention: – a total stock management strategy for DVD and games
Losses held to a more palatable rate – a lower proportion of sales
Vastly increased sales over more cumbersome measures
Reduced impact of losses on margin
Staff efficiencies – more staff friendly; quicker and easier stock management
Space saving – at least 22% more stock on shelves and also behind counter in stores
Better customer service
Better shopping environment
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GSUMMARY
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Close to 100% support from studios in DVDs and interactive games.Coverage of 30% of the mass retail market – rising to 80% in 2003.
CML brands - Kmart (all stores) including pilot stores dating to Oct 2001 - Target (worst 35 stores) - Megamart (all stores)
- MGB (Frankston store only at this stage).
HMV (all stores), participant in trials conducted in the UK in 2001. Extremely positive results in Australia.
Borders, also a participant in UK trials.
Harvey Norman (majority of stores).
Blockbuster – 9 stores initial pilot. Now want to roll out to another 30 stores.
About to roll-out in ToysRUs, Dick Smith Powerhouse and JB HiFi.
Pilots in Big W, Civic Video and VideoEzy.
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GTAKE-UP IN AUSTRALIA
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Wide spectrum of operating environments for Red Tag - from smaller, tightly controlled and well-supervised spaces - to large, self-service spaces with little direct staff interface.
Red Tag addresses different sets of problems in each retail or rental operation according to their individual set-up. No two are the same.
Vital to set and manage expectations of Loss Prevention, Buying and Store Operations teams. There are no perfect solutions to this problem.
No margin for error in production schedules to produce volumes required for Christmas demand. Uncertainty re deliveries via DC were overcome by direct deliveries, addressed to Store Manager. Still some boxes being found in off-sites.
Low incidence of incorrectly inserted tags and stuck tags addressed by shipper of empty cases. Faulty Red tags are covered by warranty.
Appreciate the support of LP team in each state to address any remaining issues, misconceptions or procedures in stores ( eg EAS gates tuning).
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GIMPLEMENTATION & LEARNING
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• Changes to the box to make it harder to remove disc
• Closing off avenues to attack system with knives, screwdrivers and powerful magnets
• The search for the Holy Grail: - a means of creating an interaction between Red Tag and disc to render the disc useless if removed unlawfully
• Next, protection of DVD-Audio and CD-Audio, as per the agreement with CML.
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G FUTURE PLANS
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