Taking Your Brand Global

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Taking Your Brand Global IABC Marketing Brand
Case Study
Randall S. Rozin Global Director, Branding and
Marketing Communications June 7, 2004
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Agenda

• Creating a value proposition which addresses
  diverse customer needs
• Understand how Dow Corning built and launched
  both a new brand and new business model
• Learn some dos and donts in global naming.
• Learn some common pitfalls of brand management.

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Dow Corning
A global leader in silicon-based technology and
innovation. Shares equally owned by The Dow
Chemical Company and Corning Incorporated,
established in 1943 Over 7,000 products for
diverse global industries. 25,000 customers
worldwide. Offer products and services, as well
as a range of solutions, tailored to customer
needs.
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Industries We Serve

• Automotive
• Beauty Personal Care
• Chemical Manufacturing
• Construction
• Electronics
• Healthcare
• Household and Cleaning
• Imaging
• Compound Semiconductor

• Industrial Lubrication
• Oil and Gas
• Paints and Coatings
• Plasma
• Power and Utilities
• Pressure Sensitive Products
• Rubber Fabrication
• Textiles and Leather
• Services

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New Approach Needed

• After nearly 60 years of success, driven by
  innovation and RD investments, we faced new
  pressures
• Increased competition
• Parts of our business maturing
• Differentiation more difficult
• Global economic slowdown
• New economy sours

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Implications for Dow Corning

• Success much more difficult
• Increased financial pressures
• Inward focus must change corporate culture
  change required
• Rethink our traditional approach to serving
  customers must become more flexible to address
  diverse customer needs
• Must think holistically, but segment
  appropriately

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The Groundwork

• 100 million in SAP-based global IT platform
• Reengineered company- people and processes
• Redesigned business/commercialization processes
• Laser beam focus to improve our understanding of
  customers needs
• Researched their needs on a global basis
• Conducted segmentation surveys
• Measured customer satisfaction
• Extensive external benchmarking in industry and
  out
• Branding audits

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Strategic Direction

• Realigned products and services based on growth
  rates and future potential
• Shifted resources to fast-growing, high-potential
  businesses
• Enhanced partnerships
• With customers
• With complementary product and service providers
• Offer total solutions

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Result

• One Company.
• Two Diverse Business Models
• Many Customer Choices.
• Revitalized Master Brand
• Newly Created Offer Brand.

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Dow Corning
One company
Two models
Value propositions based on customer needs-based
segmentation for value
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Solutions for Customer Needs

• Innovative solutions, based on cutting-edge
  technologies and expertise in getting products to
  market
• Grow Reliably, using proven solutions tailored
  for customers application
• Drive Costs Down, using Dow Corning technology
  to improve process efficiency or outsource
  specialized applications
• NEW BRAND X
• For customers who know exactly what they
  need, order in large volumes, and dont need all
  the frills

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New Brand and New Business Model

• Global introduction in March 2002 launched in
  50 countries simultaneously
• Fully utilizes our SAP backbone, HAHT software
  and business process efficiencies
• Offers our customers choice, low cost, and an
  easy way to do business online
• Target customers are those who buy in large
  volumes and know what they need

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How Does BRAND X work?

• Simple, clear business rules
• Online order entry electronically linked to
  global real-time production planning
• Defined shipping units
• Facilitates management of supply chain
• Transparent, dynamic real-time pricing
• Based on global supply and demand
• Brand X customers encouraged to use web
• Surcharge for rush orders, manual order entry
• Delivers clarity, choices and the tools to help
  our customers succeed

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Building the New Global Brand
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Target Audiences
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Brand Positioning and ValuesBrand X becomes
XIAMETER
OpenHonest
Trail Blazing
Energetic
Empowering
Industrial High Quality Reliable Trustworthy Best
Brands Worth Paying More
Value Industrial Good value Down-to-earth Cares
for customers Simple
Internet Distinct Original Authentic Independent
Internet Dynamic Innovative Progressive High
Performance
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Tips on Global Naming - DO

•   Consider the long-term strategy for the name
  youre developing. Do you want something highly
  descriptive to play along a narrow front
  (Silastic for silicone rubber), or a more
  generic or coined name to allow for brand
  expansion across categories (Virgin)
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• Consider how the new brand name will fit into
  your firms brand architecture and brand
  hierarchy systems. Will it be a master brand on
  its own? A sub brand?

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Tips on Global Naming - DO

•   Consider the real fixed and potential costs
  involved in creating, registering and defending a
  new name.
•  
• Keep an open mind to all possible names.
  Generate a lot of options, hundreds if possible
• Seek out and use one of the many specialized
  naming consultancies to help navigate the land
  mines and pitfalls associated with the naming
  process.

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Tips on Global Naming - DO

• Conduct native speaker linguistic checks.
• Look for similar meanings
• Look for similar sounding names that run counter
  to your goals or worse could be embarrassing to
  your business.
• Look for slang words that are similar that could
  negatively impact you.
• Look for any problems in pronouncing your brand
  name in other languages and balance against your
  objectives.
• Consider any potential conflict with surnames in
  various countries in which you plan to operate.

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Tips on Global Naming - DO

•   Set up a defined criteria as to how names will
  be judged in the process and stick to it. Some
  criteria Ive used recently include
• ability to articulate the brands attributes
• ability to translate well into other languages
• ability to pronounce in other languages
• ability to own the name outright and define the
  word
• ability to be protected domain, trademark, etc
•  
• Avoid confusion by deleting names that have
  negative double meanings or are hard to pronounce
  in key languages, or contradict your positioning

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Tips on Global Naming - DO

• Communicate how the name fits into the overall
  strategy for the business. Discuss internally how
  the name fits the business model and how
  customers will come to know and experience the
  name.
• Allocate the proper amount of time and resources
  to adequately communicate your new brand name to
  your intended target audiences to build equity in
  your new investment.

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Tips on Global Naming Dont

• Fall in love with any specific name early in the
  process.
• Have too many people involved in the name
  selection process. This is not to say avoid
  testing, but final selection of the name should
  be done by a smaller number of people.

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Tips on Global Naming Dont

• Have the conversation again. Once the name has
  been selected do not communicate what the second
  choice or other options on the list were.
• Short cut the process, sooner or later shortcuts
  will come back to bite you and could be
  potentially expensive and embarrassing to your
  company.

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Tips on Global Naming Dont

• Overlook the availability of Domain URLs for the
  name youve chosen. If the name youve chosen is
  not available, it is not the end of the world.
• Disclose your interest in a URL that has already
  been taken, but not developed. Have a third party
  negotiate on your behalf and keep your identity
  to yourself until after you own the name.

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Tips on Global Naming Dont

• Rule out an alternate domain name if the one
  youre after is already taken. If another company
  already has possession of a domain name in which
  youre interested, consider creating an alternate
  version.
• Rush the process. Naming done well and on a
  multi-country or global scale takes time. Allow
  time to conduct the proper checks and balances
  ahead of launch, as mistakes caught after
  introductions are far more costly to correct.

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Introducing the XIAMETER Brand Internally
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Distinct Visual Identity from Dow Corning and
Competitors
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Example XIAMETER Advertising
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Needed to Clarify the Master Brand
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Needed to Clarify the Master Brand
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Examples of Master Brand Advertising
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Customers Have Choices
Dow Corning
XIAMETER

• Flexible ship dates
• Materials delivered in all sizes and quantities
• Extensive services and solutions from Dow Corning
• E-commerce services
• Innovative, proven cost-effective solutions
• Technology and RD
• Personal customer service

Lead time requirements, average 7-20
days Large volume orders Guaranteed shipping
dates No technical service Web-enabled
business Commonly used silicones Lowest base
price Dedicated sales force
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Building Our Brand Equity

• Successfully migrated customersand theyre
  staying with us.
• Winning new customers
• Opening new geographic markets
• Contributed significantly to Dow Cornings sales
  performance
• Halved industry average for working capital
• Best in class inventory and strong A/R
  performance
• Achieved investment payback 3 months after launch
• Little cannibalization of Dow Corning business
• Before and after audits show dramatic impact

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Common Pitfalls in Managing Brand Equity

• Not having clear picture and purpose for the
  brand before promoting it.
• Not having all employees understand the brand
  promise and committed to fulfilling it.
• Extending the brand for short-term sales gain vs
  long-term asset build.
• Not properly controlling the brands visual
  identity, brand voice, and other branding
  elements.
• Being so tight with the brand that it loses
  relevance with customer base. Need to balance
  consistency with change.
• Not auditing brand performance and setting clear
  brand metrics.

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Thank you
Randall S. Rozin Global Director, Branding and
Marketing Communications Randall.Rozin_at_dowcorning.
com 405-773-0361