A customer who allowed Birth Note to use their data for a Case Study is a cosmetics manufacturer based in Bangkok. They produce cosmetics for the face, including serums, creams, cleansers, masks, etc. They do online marketing through social media and through agents in different provinces. The business seemed to be going well until the company began to experience frequent counterfeiting of their products. This was due to the fact that the labels and packaging were easy to counterfeit.
Mr. A, the CEO of a cosmetics manufacturer in Bangkok, Thailand, was concerned about the counterfeiting of his company’s products. He considered making the packaging more difficult to counterfeit by adding embossed text to the cream jars. However, this would have been quite expensive, so he decided to pursue other options.
Then, Mr. A saw that there was a hologram sticker, which is a 3D sticker attached directly to the packaging. This hologram sticker could make it possible for customers to notice the difference. Mr. A then tried this method to prevent counterfeit products.
Later, the company found that sales in the most recent quarter had decreased by more than 40%. Mr. A therefore called the heads of each department into a meeting to brainstorm about what the problems were that caused the sales to drop and how to fix them.
After the meeting discussed, it was found that the main causes of the sales decline of up to 40% came from the following problems:
When the team at Birth Note learned of these problems from A, we developed a QR code anti-counterfeiting system and a customer data collection system that could solve all of the company’s problems and also added some features that made it more convenient for both the company and its customers to use. The solution we developed is as follows:
Anti-counterfeiting QR Code stickers are unique stickers that are produced specifically for each product. Each product has a unique code. When the company attaches the QR code sticker to the product, it informs customers that the real product must have this QR code sticker only.
Customers who have purchased a product can check the product with their smartphone by scratching off the sticker and scanning the QR code to verify. When the QR code is scanned again, the system will notify that the QR code has already been scanned. This ensures that the QR code cannot be used to counterfeit the product again.
By holding a lucky draw to win a new smartphone and many other prizes, the company attracts customers who scan the QR code to fill in personal information such as gender, age, the channel that made them aware of the product, the place where they purchased the product, and to complete a survey about their satisfaction with the product and what should be improved.
The company set up a loyalty program that rewards customers for their purchases. Customers earn points for each product they buy, with the number of points depending on the type and price of the product. For example, a face cream earns 10 points, a face mask earns 20 points, and a serum earns 30 points. Once a customer has accumulated 100 points, they can redeem them for a free face cream. This program helps the company retain its existing customers and makes them feel like they are getting a good value for their money.
Using a dealer tracking system to track where the product or box of product came from.
Analyzing data by bringing customer data that scanned QR codes into the back-end system to promote online marketing. One important example is collecting data from customers who bought face cream, and then using this data to target online advertising about serums, which are more expensive, to this group of customers, along with offering various promotions.
Based on the experimental use of Birth Note’s QR code system, it appears that the problems mentioned above have been resolved and the company has benefited in many ways, as follows:
Counterfeit products are a major cause of revenue loss for companies. They also damage brand reputation, as customers who buy counterfeit products are not getting the same quality as the real thing. Birth Note was able to solve this problem and increase its revenue. The marketing department also used Big Data to improve marketing campaigns, such as targeted online advertising, lucky draws, loyalty programs, and cross-selling. The company also uses Big Data to track its distributors to ensure that they are selling genuine products.
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