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