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“Ingredient Brandingat DuPont”
Carol GeeGlobal Brand Manager
DuPont Textiles & InteriorsMSI Conference
March, 2002
All rights are reserved. Members of MSI and academic researchers may make limited copies of this presentation, electronically or in print, solely for their internal, non-commercial use. Any other use of this presentation—including reproduction for purposes other than those noted above, modification, distribution, or republication—without prior written permission of the Author is strictly prohibited.
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The Power…and the Challenge
The Power: DuPont makes products that go into other productsThe Challenge: We are invisible
We overcome this challenge with a two-pronged attack:– Nurturing a strong corporate brand…the DuPont
name and oval– Leveraging successful product or “ingredient” brands throughout
the value chain
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• Operates in ~ 200 countries• Markets ~ 2,000 trademarked products in literally every existing SIC
code
1802 1830 1850 1900 1925 1945 1990 2000 2050 2090
Viability
Birth
Growth
Maturity
Birth
Growth
Maturity
Birth
Maturity
ExplosivesChemicals,
Energy
Chemistry, Biology... knowledge-
intensive solutions
Growth
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Tyvek®
flexible sheet products
Stainmaster®
carpeting
SilverStone®
non-stick coatings
Coolmax®
performance fibers
Centari®
automotive and refinish products
Teflon®
fabric protector
Supro®
isolated soy proteins
Tynex®
filaments
Mylar®
polyester film
SustivaTM
efavirenz
Lycra®
elastane
Sontara®
spunlaced fabric Accent®
herbicide
Cozaar®
antihypertensive
Cordura®
nylon
Nomex®
brand fiber and paper
Ti-Pure®
titanium dioxide
Surlyn®
resins
Delrin®
acetal resins
Suva®
refrigerants
Corian®
surfaces
Kevlar®
brand fiber
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Branding History
200 years of branding experience, demonstrating the interplaybetween corporate and product branding.
Highlights:1808 – “DuPont” becomes company trade name
1909 – DuPont superbrand born – connects all product brands to the DuPont name. Oval finds its form.
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Branding History
1934 – 1936 – Shaping image around name/oval increasingly important– From “Merchants of Death” to “Better Things for Better Living
through chemistry”– Trademark or generic issues arises - DUPRENE® vs. neoprene,
cellophane
1939 – Nylon introduced at World’s Fair, not trademarked
1946-1960 – Post-war boom/burst of product innovation– Antron® nylon, Orlon® acrylic (1948), Dacron® polyester (1950),
Nylon carpet fiber (1957), LYCRA® (1960)
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Branding HistoryLate 1980’s/1990’s — Term “ingredient branding” in vogue, with
DuPont widely regarded as the pioneer– “DuPont should be credited as the first industrial supplier to
promote its inputs as recognized brands” -Journal of Business and Industrial Marketing, 1993
1994 — Brand manager hired for TEFLON®
-Brand licensing starts
1999 — The miracles of science created to reflect shift from chemicals to science and knowledge-intensive processes
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Corporate Branding Today
• Strong belief that the DuPont name adds value acrossbrand portfolio– Increases purchase intent for new brands and
existing brands with low awareness– Linking the name to strong brands strengthens
the corporate reputation without negative impact on the brands
• A product-endorsed, ingredient-branding strategy leverages our corporate and product brands for mutual benefit is key to our success
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Ingredient branding definedOne of a growing number of brand partnership options…
Co-brands — complementary products or services add value to one another (American Express® and an airline)
Component brands — relates components which have identities of their own within larger, more complicated product offering(Bose® stereo in luxury cars)
Manufacturer-initiated ingredient brands — Manufacturer usesestablished brands in an effort to communicate quality or value in its own products. Inputs are marketed by their producers as separate end-products. (Hershey’s® syrup in Betty Crocker®)
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Ingredient branding - why?
Goal is to build awareness and preference along the value chainfor the suppliers’ brand of ingredient - everyone benefits. • Supplier:
– Better profit margins from large volume, non-price differentiation
– Stability and variety in customer demand (TEFLON® alternate uses)
– Longer term supplier-buyer relationships• Manufacturer:
– Shared product promotion costs– Increased access to distribution channels– Competitive advantage - overall quality enhanced by ingredient quality– Shared production and development costs
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Ingredient branding - why?
• Retailer– Better operating margins (STAINMASTER® carpets
command price premium)– Faster-turning inventory/better consumer acceptance– Additional promotional support
• Consumer– Salient value-added in a readily identifiable way– Simplified purchase decision based on brand familiarity
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Ingredient branding - when?
1. Ingredient should be a substantial innovation and/or advantage over existing alternatives (defensible patents a great plus) – And the consumer needs to care! (CORFAM®)
2. Versatile in current and future use - leverage investment across products and categories (LYCRA®)
3. Sales potential for final product high - revolutionize a category (STAINMASTER®)
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Ingredient branding - how?
Research Consumption Behavior
Directconsumerpromotion
Expansion of manufacturerusage base
Collaboration with manufacturer in non-promo areas
Collaboration with manufacturer
in promotion
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LYCRA® case study - getting it right
• Based on valid and significant consumer needs— better comfort and fit in apparel
• Decades of effective consumer promotion
1959
1974
1980
1997
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LYCRA® case study - getting it right• Consistent collaboration with manufacturers
and retailers in promotion
• ...and collaboration in non-promotional areas– Liz Claiborne cut and sew guidelines
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LYCRA® case study - getting it right
• Expansion of manufacturer user base— LYCRA® Assured
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LYCRA® case study - getting it rightResults : LYCRA® now among the world’s top ten apparel brandsalongside heavy hitters such as Armani, HUGO BOSS, and Levis®.
Despite expiration of its patent on spandex several years ago,DuPont retains roughly 2/3 worldwide demand
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Success requisites
• Understanding the dynamics of the market segment value chain
• Identifying where the power is in the value chain• Clearly identifying DuPont as the hero, provider or
supporter at every step in the chain• Clearly defining the product brand attributes, benefits,
and position that will comprise the brand franchise• Pursuing a marketing and communications plan that
creates purchase preference• Maintaining continuity and consistency of face and
voice over time
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DTI Business / Strategy ModelConsumers Retail Garment Fabric Yarn Distribution DuPont Suppliers
Processing
Lycra®
Teflon®
Cordura®
Thermolite®
Coolmax®
Stainmaster®
Supplex®
Tactel®
Value Chain Alignment
- System Cost Efficiencies- Speed
Spandex
Nylon Nylon
Polyester
Other
CorporateCapabilities Alliances
Market Back Approach•Opportunity Identification•Offering Development•Value Capture
Branding• Benefit Platforms
Innovation• In - house• 3rd Party
11,000 people 10,000 customers 30 plant locations 10 R&D laboratories 15 JVs $3B revenue
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Market-Back Dynamics
Consumer brand portfolio
RESEARCH
Science-based core
PRODUCT INNOVATIONRobust pipeline (fabrics, garments, newness)
MARKETINGINNOVATION
CREATIVE & STRATEGICPUBLIC RELATIONS, ADVERTISING & PROMOTION
Sophisticated marketing
MANUFACTURERS RETAILERS CONSUMERS MEDIAIndustry leadership/ partnership
CONSUMER INSIGHTS
Consumer-driven insight
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A new model of ingredient branding
Kevlar® Cordura®
Strength Tough
Tactel®
Fabric(touch)
Silhouette Aesthetic
COMFORT EASY CARE DURABILITY STYLE
Teflon®
Wash &
Wear No Iron
Stain
Stainmaster®
Lycra®
Movement
Supplex®
Cottony Soft
Coolmax®
Thermolite®
Micro- climate
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Parent Brand
innovation/quality/
commitment/performance
DTI Brand Architecture
Cool Comfort
COMFORT DURABILITY STYLEASSURANCEEASY CARE
Warm Comfort
Cordura®Teflon® Stainmaster®
Cottony Soft
ConsumerDesires
Lycra® Tactel®
Touch
Coolmax®
Rugged Durability
Thermolite®
HomeQuality Seal
Enhanced Livability
Kevlar®
Lightweight Strength
Carefree Living Resists
Stains
Supplex®
Freedom ofMovement
Portfolio of Potential Licensed Brands
Enviroreact®, High Trek®, Metropolis®, Micromattique®, SolarMax®, Optique®, Adoration®, Cool-Loft®, Duralife®, Eloquence®, Microloft®, Sleepsmart®, The Huggable Pillow®, Thermastat®, Bodycare®, Energywear®, Skincare®, 501®, Orlon®, Ballistic®, Colorlink®, Coloursafe®, Duratech®, Grand Luxura®, Steamguard®, Xtralife®, Cosmetique®, Great Feelings®, LightSpirit Blend®
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Conclusion
As our new ATS structure demonstrates, the DuPont approach to branding is an evergreen process.
– De-link brands from specific ingredient products– Link to broad market-relevant needs– Means of leveraging knowledge portfolio
The future is today.
