In today’s retail world theft is a major problem. I work at Macys and i see the biggest problem is the current sensor tags on the market. Most can easily be tampered with and taken off a piece of clothing with some effort and with tag removers people can buy online! The current sensor tag systems are also not working very well, the loss in expensive departments such as POLO Ralph Lauren and Women’s Better Sportswear are very high. The Idea I have is for a sophisticated sensor tag using tracking devices to keep a close watch on where expensive merchandise is at all times. The tags would look very similar to current tags on the market (hard outer plastic casing, with a pin on the back). On the floor they could not be tampered with, without Loss prevention noticing with the tracking device. They could not be taken out of the store without an alarm sounding and even when out of the store Radio frequency Identification tracking devices are installed to catch the culprit with the merchandise. At point of sale the tag will be removed and deactivated until it is reattached to another piece of clothing.
Idea Generation/Idea Screening
The idea behind the tracking sensor tag is that it can not be easily tampered with and can’t be taken out of the store without someone knowing. With a tracking device installed the Loss Prevention Manager at a store can easily track where merchandise is going. With the use of software and security cameras the prevention of expensive merchandise will be much better. The Sensors are also like current ones on the market. They will use Detection Systems at doorways and bathrooms. When a tag comes to close to the detection system, LP will be notified and an alarm will sound by that door.
Business Analysis:
What is the likely demand for the product?
I feel the demand for the product would be quite high for mid-tier and high-end stores. In a larger store it is hard to keep an eye on everything, so these tracking devices would make it much easier to find the highest ticketed items at all times. Outside the store RFID tracking devices inside the sensor will lead the LP manager or security right to the culprit. Getting the merchandise back and keeping it in the store would be in a stores best interest.
Would Current Customers benefit from the product?
Yes. The less theft a store has the lower the prices will be on select merchandise
What is the risk of failure?
There is a high risk of failure due to stores not thinking it would be cost effective to upgrade current security systems and equipment. The best way to show them it would be is to give them proof that the tracking devices save money in the long run.
What new facilities would be need if any?
I do not believe any new facilities would be needed all of the pieces to make the product already are made and existed. The product would not be hard to make at all. The only difference in the product is the tracking device.
Development
Developing the product will not be as hard as getting retailers to upgrade to the new product. The only new development would be adding a small tracking chip inside the plastic casing.
Test Marketing
The first thing to market the product is to get a major retailer, such as a department store to try the security tag and after one year see if their loss in that department is significantly lower. That would be an example to retailers on how much money they could save from using the devices.
How Might Competitors Respond?
If the new tracking sensor takes off, it will hurt some of the competitors business but not all of it. The Tracking tag is only meant for expensive merchandise. So the use of regular pin and ink tags would still be used in most stores.
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