Post on 06-Aug-2015
transcript
PRESENTED BY:NISHANT VARSHNEY…………..13
ANKUR GOYAL……………......33SNEHAL JADHAV……………….34SHIVRAJ MANE………………….54
DUPONT:MANAGING A CORPORATE
BRAND
FLOW OF PRESENTATION
• INTRODUCTION TO THE CASE• COMPANY HISTORY• PRODUCTS• EARLY BRANDING LESSONS• CORPORATE MARKETING PROGRAMS• INGREDIENT BRANDING• PUSH & PULL STRATEGY• DUPONT RESEARCH• BRANDING EFFORTS INTO THE FUTURE• DUPONT BUSINESS DEVELOPMENT• ANSWERS TO THE QUESTIONS
“Du Pont”…does the name sound familiar????
DuPont's Vision: “To be the world's most dynamic science company, creating
sustainable solutions essential to a better, safer, healthier life for people everywhere.”
Introduction to the CaseDUPONT: Managing the
Corporate Brand
COMPANY HISTORY
E. I. du Pont
E. U. du Pont
Birth
Growth Maturity
Birth
Birth
Growth
Growth
Maturity
Maturity
Explosives
Chemistry, Energy
Chemistry,Biology,Knowledge intensive solution
1802 1830 1850 1900 1925 1945 1990 2000 2050 2090
E. I. du Pont
E. U. du Pont
Birth
Growth Maturity
Birth
Birth
Growth
Growth
Maturity
Maturity
Explosives
Chemistry, Energy
Chemistry,Biology,Knowledge intensive solution
1802 1830 1850 1900 1925 1945 1990 2000 2050 2090
PRODUCTS
Agriculture & Nutrition
Source: Dupont. 2001. 2000 Databook
Nylon Enterprise
Source: Dupont. 2001. 2000 Databook
Performance Coatings & Polymers
Source: Dupont. 2001. 2000 Databook
Pharmaceuticals
Source: Dupont. 2001. 2000 Databook
Pigments & Chemicals
Source: Dupont. 2001. 2000 Databook
Polyester Enterprise
Source: Dupont. 2001. 2000 Databook
Specialty Polymers
Source: Dupont. 2001. 2000 Databook
Specialty Fibers
Source: Dupont. 2001. 2000 Databook
EARLY BRANDING LESSONS
• DuPrene to neoprene….Careful Sub-Branding.
• Protection of Brand name/ Trade mark.
CORPORATE MARKETING PROGRAMS
• First advertisement in newspaper in1804.• 19th century- advertising through handbills, lithographs.• 1907-oval DuPont logo was brought.• 1909-officially established corporate umbrella brand.• 1930-corporate heritage turned into a liability, image
makeover was badly needed (Better things for better living).• 1940-Largest advertising investment-on weekly radio.• 1952- first TV commercial.• 1980-six major advertising agencies in pocket.• Will Demby in DuPont's memorable TV Ad• High profile sponsorships.• 2002- Introduced logo on Gordon’s car. • 2008- Sponsor Gordon’s team.
INGREDIENT BRANDING
• What is Ingredient Branding?• Some ingredient Brands
• Ingredient Brands of DuPont Teflon, stain master, polyglide, XTI, nylon, Duco, neoprene, Dacron, Mylar, lycra, suva, sorona,….& so on
The Teflon Ingredient Brand
• Developed by DuPont in the 1930s primarily for Military Applications.
• Consumer Desire and Teflon non-stick properties & stability at extreme high and low temperature led to development of Teflon coated cook ware.
• Why the Brand Name “Teflon”?
• Early Teflon Branding Effort:– Centered at “Easy Cleaning”– Communication Channel: Television in the form of direct-to-consumer
campaign.– Dependent on Pull strategy
• 1990:– Improved Version of Teflon as well as a new brand called Silverston– Consumer Advertisement waned but continued to market Teflon for industrial
use.• 2001:
– Consumer Campaign:• Highlighting Teflon use as stain and wrinkle repellant in fabric.
Marketing the Stainmaster Brand
Unique to DuPont Portfolio!Advertising & Promotion Campaign
Largest in the Carpet Industry History well thought-out & Executed
Based on “Push” & “Pull “ Strategy
PUSH & PULL STRATEGY
• Production Program– “Push” Strategy
• Incentives
• Trade Program– “Push” Strategy
• Demonstration Unit• Training and Support for exclusive Stainmaster Distributor• Corporate Advertising Options
– Stain Master Newspaper/ TV Tapes/ Radio Commercial Ad Slicks
• Consumer Advertising– “Pull” Strategy
• Biggest Marketing Endeavor• Ad program creatively & humorously captured the stain resistance comfort &
durability qualities associated with Stainmaster Carpet
• Warranty– “Repair and Replace”
• Toll-Free Number– Provide 360 degree assistance
• Result– Beyond Expectation
– Out of 60% stain resistance carpet sold ¾ sales belonged to DuPont Stain Master
Stain Resistance Carpet
60%
Non Stain Res-istance Carpet
40%
Sales of Carpet
Other Ingredient Brand
• Auto Safety– Nylon, Automotive Finishes
• Toothbrushes– DuPont Filament
• Sneakers– Hytrel Thermoplastic Polyester Elastomers
• Detergent– Elvanol
• Cheeseburgers– The BAX System
• Space Exploration– Pyralux (for flexible cable circuits) & Kapton (A polymide film to control
vibration)• Cell Phone
– Handheld Device contained up to 14 DuPont products.• Music
– DuPont Performance Coating and DuPont’s Teijin Films Polyester Film
Building Brand Awareness by Bolstering Ingredient Branding Programs!!!
Two Part Initiative
• Develop New Uses for Core Brand– Curion: From Countertops to Sculpture & Furniture– Kevlor: From Military & Law to Residential Storm Shelter
• Foster Relationship with partners who use DuPont Ingredient – Partnered with CIBA Specialty Chemical to create a new brand “ Easy
Care”
DuPont RESEARCH
The driving force behind DuPont consistent growth is the company’s aggressive investment in scientific research.
DuPont’s annual R&D expenditure in 1990’s:-• Exceeded $ 1 billion annually.• 3700 Scientists & Engineers working at 24 Major Industrial research laboratories in
11 countries.
DuPont invested close to another $ 1 billion on:-• Manufacturing• Technical• Marketing• Engineering Technologies.
DuPont’s annual R&D expenditure by 2004:-• Dupont had over 75 R&D facilities globally, including 35 outside U.S• Sites were staffed by nearly 2000 Scientists and Researches including 600
with Ph.D's.
When Dupont began to focus on revitalizing its R&D in 2000, 40% of its Technological resources & assets were dedicated to its growth.
By 2005, 65% of DuPont’s research was focused on growth.
DuPont RESEARCH
BRANDING EFFORTS INTO THE FUTURE
Explosive 1802
Chemical 1902
Biological 1998
NEW TAGLINE
Better Things for
Better Living • 1935….
Miracle of Science • 1999….
DUPONT BUSINESS DEVELOPEMENT
• Biological Research and Development
– Invested more then $3.2Billion in Ralston Purina
– Acquired Hi-Bred International in $7.7b( World’s Largest seed company )
– Lesson the dependency on nonrenewable resource
• Fine tuning the DuPont's positioning
– Transferred it’s positioning from Biological research positioning
– Founded DuPont itechnologies
– Acquired UNIAX Corporation in 2000 (Polymer Producer )
Cont ..
• Focusing on the Core Business
– Sold Textile and Interior Business to KOCH Industries for $4.2 billion
( Lycra ,Stain master, CoolMax)
• Organized in 5 SBU
1) Electronic & Communication
2) Performance Material
3) Coating & Color Tech.
4) Safety & Protection
5) Agriculture & Nutrition
And Hired single global communication agency
Cont…
Marketing the New DuPont
Donated $80000 Billion to a mother who Lost his Home in
hurricane
Sponsored the XVII World Congress in 2005
Also Sponsored World Police and Fire Games(2nd Largest
sporting Events )
Joined WOMMA (World of Mouth Marketing Organization)
Global Patent Filing by DuPont’s R&D Department
2000 2001 2002 2003 2004 20050
500
1000
1500
2000
2500
3000
Approx. Patent's Filed
Approx. Patent's Filed
Net Sales and Net Income by Year
2000 2001 2002 2003 2004 20050
5
10
15
20
25
30
Net SalesNet Income
Q.1 A How would you characterize DuPont’s Brand Equity?
• Brand Equity is the set of intangible asset that depends on the associations made by the
consumer.BRAND EQUITY
BRAND LOYALTY
BRAND AWARENESS
PERCIVED QUALITY
BRAND ASSOCIATION
OTHER BRAND ASSSET
• Brand Awareness– Radio commercial (Cavelcade of India ,1940 )
– TVC In 1957
– Sponsored so many Sporting and social events
– Sponsored NASCAR Driver Jeff Gordon
– Ingredient branding (Teflon, Corian etc.)
• Brand Loyalty • Serving 35 Customer since last 100 years
• Always believe in long tern relationship with channel members
• Brand Image – Brand Association
– Exposure to Brand Communications– Exposure to special initiatives and events build
around the brand
• Brand Personality» Innovative, individual, non-conformist, unpredictable
Q.1B What Factor Contribute the Company Equity?
• Consumer Perception
• Brand Association
• Longitivity
• Familiarity
• Brand Awareness
• Reliability of the parent Brand
Q.1C How Can DuPont Best Preserve that Equity?
Trust Authenticity TransparencyConfidenceConsistency
IntegrityAuthority
As AdvertisedReal & Sincere
Real PeopleInformal
Easy to DiscoverNo Secrets
Affirmation Listening ResponsivenessPlayback
ReinforcementCommunity
Accountability
HumilityAbsorbing Feedback
Follow-UpInvitational Marketing
Dignifying Feedback
The Six Drivers of Brand Preservation for DuPont
CORPORATE BRAND STRATEGY
Benefits:• Strong Consumer Association• Company’s Primary
Marketing Symbol• Represent the Organizations
Vision as a wholeDrawbacks:• If one product becomes
obsolete or fails: Its impact can witnessed on other products.
INGREDIENT BRAND STRATEGY
Benefits:• Helps in changing the
perception of consumer• An ingredient with multiple
use could be marketed as a component in more than one product.
• Direct Benefits to Manufacturers and Retailers
Drawbacks:• High risk of Brand Dilution
Q. 2: Compare the benefits and drawbacks of a corporate brand strategy with that of an ingredient brand strategy. Do you think
DuPont should emphasize on one strategy in the future?
No• DuPont Leveraged its corporate name with ingredient brands
– For Example DuPont Automotive Finishes, DuPont Flooring Systems etc.
• Parallel strategy of using Corporate Brand Strategy with Ingredient Brand
Strategy has helped the DuPont to establish awareness for its ingredient
brands.
• Its has helped the DuPont to change its Image from “Merchant of Death” to
the image of Socially Responsible, Environmental Friendly, and a
organizations which has made the millions of Life easier to live.
• It has helped DuPont to foster its relationship with their partners i.e.
Manufacturers and Retailers
Q.3 Evaluate the “Miracles of Science” tagline. Do you think this effectively communicates DuPont’s positioning as a premiere science company? Does it
support DuPont’s ingredient branding strategy? Do you think it has a potential to last as long as the “Better things for better living” tagline.
“Miracles of Science”• Introduced in April 1999 to reposition itself.• Twelve page Advertisement supplement in Wall street journal that showed its
ability to “Make miracles happen in every field from fashion- pharma-agriculture-aerospace”
• The ad indicated scientists develop major breakthrough that influenced life in 20th century.
• Estimated budget- $50mn.• The ad campaign attempted to show that it was a new company with a new look
& feel.• Helped in clarifying consumer & investor’s confusion that DuPont was neither
solely a chemical nor a biological research company but dedicated to science in general.
• The campaign captured more humane image & showed that DuPont is concerned with developing innovations that “Improve the Quality of Human Life”
Contd…
Yes, this effectively communicates DuPont’s positioning as a premiere science company
Yes, it support DuPont’s ingredient branding strategy• DuPont reshaped itself into a material science company that integrated
classical chemistry, biotechnology, information science, & the emerging fields of bioengineering & nanotechnology.
Yes, the new tagline has a potential to last for long. “Better Things for Better Livings”• It was viewed as too product oriented .• It conveyed an Image that DuPont was solely concerned with science to
improve its current products.• In reality the company emphasized on pure scientific research aimed at
“Breakthrough”.
Q.4 DuPont does not make many finished goods, instead supplying ingredient components to manufacturers through licensing agreements.
What are the risks in a business model such as this? Can DuPont mitigate these risks?
• Risks: Competitors Manufacturer dependent execution
• Yes, DuPont can definitely mitigate these risks Years of experience Strong R&D Brand Value