Indorama Ventures Plc Corporate Communications Dept Original creation date: March 2010 Global...

Indorama Ventures Plc

Corporate Communications DeptOriginal creation date: March 2010

Global Corporate Branding Plan (updated November 2011)

Why Brand?

“An orange is an orange… is an orange. Unless… that orange happens to be Sunkist, a name 80% of consumers know and trust.”

Russell Hanlin, CEO Sunkist Growers

Branding is not just a logo

A brand is a powerful communication tool

A brand means anything used to identify and distinguish a specific company, product or service

Brand image consists of all the information and expectations associated with a company, product or service

A brand is a complex symbol with up to 6 levels of meaning:Attributes: a brand reminds us of certain attributes. Indorama Ventures should suggest high quality, low cost, well-managed, great

service

Benefits: attributes must have functional and emotional benefits. The attribute Great Service has the functional benefit “I don’t have to worry that my shipment will arrive on time.” High quality has the emotional benefit: “I know that all PET is roughly the same, but Indorama Ventures’ PET makes me feel I am buying the best.”

Values: Indorama Ventures stands for both good quality and value for money.

Culture: Indorama Ventures’ brand reflects our culture – building strong and lasting relationships with our customers; exceeding their expectations and offering superior value.

Personality: Indorama Ventures’ brand suggests an encompassing, vibrant personality through circles and colors

User: the Indorama Ventures brand will suggest the kind of customer who buys or uses the product. We would expect an efficient and well-managed company with a strong global brand name to use our products

What This Corporate Branding Plan Contains

Why we need to brand the company

How to plan corporate branding

What are the corporate branding objectives

IVL brand equity

Target groups of the plan

Strategies for achieving corporate branding (5 years)

Tactics for corporate branding (1 year)

Measures to implement corporate branding internally and externally

5 IVL PowerPoint Slides Library v1.0

Why we need to brand the company

Rationale

Indorama Ventures (or IVL for short) will continue to grow and many more companies will join us in the future

We have to bring everyone together under one brand so that people associate quality and service with IVL

If every company were to think that it is independent and has a stronger brand than the parent, then the group would end up as a set of small, national brands rather than one global brand

One day, IVL will have to consider entering a related or even unrelated industry to continue growing. At that time, if IVL is a global brand, then anything with the IVL name associated with it will be “sellable”


The building blocks that were used to decide the direction of the plan

Building Blocks of Branding Decision-making

BrandNo Brand

Manufacturer BrandDistributor (private) Brand

Licensed Brand

Individual NamesBlanket Family Name

Separate Family NamesCompany Individual Names

Line extensionsBrand extensions

MultibrandsNew BrandsCobrands

RepositioningNo Repositioning

Branding Decision

Brand Sponsor Decision

Brand Name Decision

Brand Strategy Decision

Brand Repositioning Decision

Making ONE choice in each block illustrates the branding process. The decisions made in this branding plan are in yellow.

e.g. Indorama Ventures

e.g. Indorama Ventures’ Ramapet

e.g. Indorama Ventures’ Ramapet N1, N2

e.g. A global company based

in Thailand


What are our corporate branding objectives?

Branding Objectives

To increase the revenue of the group by creating a global brand people want to buy

Eliminate confusion about who are IVL, IRP, StarPet, Indorama Group, and etc.

Enable Indorama Ventures to move successfully into new businesses by evoking the feeling “If this business belongs to Indorama Ventures, I feel confident of its quality and success”

Give suppliers pride in the fact their customer is Indorama Ventures

Cut the cost of every business unit spending time on designing their own brands

Many Facilities, One Brand - Strategically

Ensure that the name Indorama Ventures, and the acronym IVL become synonymous with service and quality

Associate the logo and the name with positive qualities

Make the brand a “must have” for both suppliers and customers

Make the brand respected by investors and loved by shareholders

Allow the brand to expand into new businesses with full support of all stakeholders

What is Brand Equity?

A set of assets andliabilities linked to a brand’s nameand symbol that add or subtract

from the value provided by aproduct or service to a firm and/ or

that firm’s customers.

Aaker, David A. (1991), Managing Brand Equity: Capitalizing on the Value of a Brand Name, The Free Press, New York

Perceiving Indorama Ventures’ brand equity – what are we aiming for?

1. No brand loyalty – customer will change brands for price reasons

2. Customer satisfaction – no reason to change the brand

3. Customer satisfied and would incur costs by changing brand

4. Customer values the brand and sees it as a friend

5. Customer is devoted to the brand

Only 3, 4, 5 signify brand equity has been achieved. No. 2 does not mean you have brand equity (as some people think).

Indorama Ventures must aim for numbers 3-5!

5 keys to IVL’s Corporate Brand Equity

Purposes of Brand Identity

Differentiation

Relevance

EsteemKnowledge

Brand identity, as opposed to brand equity, includes the way we want to be seen by stakeholders and others.

Brand Identity

Sustainable Development

Social & nationalSustainability

EnvironmentalSustainability

EconomicSustainability

Credibility

Awareness

Understanding

Co-operation Role Model Supporting

Reliability

Indorama’s Brand Identity

Corporate Governance

Strong Foundation

Social Responsibility

Supports Local Economy

Professional / World-class Standard

Corporate Key Message: “Better Quality of Life”

Brand Story

A company with strong fundamentals in the petrochemical industry that produces and distributes PET (Polyethylene Terephthalate) Polyester Fibers and Yarns, PTA (Purified Terephthalic Acid) and worsted wool yarns. All of the products are closely related to a new generation of quality yet affordable products (food, beverages, household products, health products, clothing, and industrial products).

Through its good infrastructure and abundant petrochemicals, Thailand has been chosen by the company to be the headquarters of a global business with world class standards.

IVL is becoming a leader in presenting innovation according to customer needs and retaining its market leadership position through advanced technology and a global business network.

Brand Story

Indorama Ventures (IVL for short) is very successful in using strategy to develop the PET business through Greenfield Investments, Strategic Acquisitions and Brownfield Expansions

IVL builds strong and lasting relationships with all that surround it, such as customers, employees, the environment, investors, business partners and communities.

Vision, Mission, Values

Vision To be one of the leading global producers with key focus on people and processes thus making INDORAMA one of the most admired companies in the world.

MissionContinuously upgrade quality of products and services through people involvement and world class processes to attain customer delight thus becoming a preferred supplier and institutionalise people learning as a key factor for business growth.

ValuesPeople FirstWe believe that people are our core strength, be it our employees, suppliers, customers, shareholders and stakeholders. Their involvement and satisfaction are the key drivers for our success and growth. Customer DelightWe believe we exist because of our customers. We focus our activities to achieve customer delight and loyalty for a long lasting relationship.Social ResponsibilityWe believe in being responsible and caring for society; maintaining as well as enhancing the environment around us.Corporate GovernanceWe believe in transparency, accountability and ethics. We aim to achieve the highest degree of governance in accordance with best practice.

“All branding depends on the quality of the company’s

vision, its mission and the values it believes in.”

Brand Characters

The Caregiver

The Creator

The Explorer The HeroThe Innocent

The JesterThe Lover

The MagicianThe Outlaw

The Regular

The Ruler

The Sage

Brand Characters

22

The Caregiver

The Sage

Continuously upgrade quality of products and services through people involvement and world class processes to attain customer delight thus becoming a preferred supplier. Institutionalize people learning as a key factor for sustainable business growth

Being the expert and one of global integrated polyester chain producer and being “the top SET listed non-financial companies”

Being responsible and caring for society; maintaining as well as enhancing the environment around us, in which also believe in transparency, accountability and ethics that aim to achieve the highest degree of governance in accordance with best practice

The Creator

FAQ about Branding• Why can’t I make my own logo design for my company?• Indorama Ventures needs to build a world class image and requires strong branding. Indorama Ventures should stick to the model: many

factories, many products, one company. • Do I have to change the names of my products?• Not necessarily if you have a license to continue using the product name and as long as the product does not contain another company’s name

or logo. • My customers are accustomed to seeing the IRP/TPT/Starpet/SK Chemical/Eastman/INVISTA/Wellman International/FiberVisions

brand.• We are trying to build a global corporate brand. If every company we buy in future insists on keeping its name and branding, we will run the risk

of promoting those we buy from more than Indorama Ventures. Look at it from another point of view – these other brands became well-known over many years by ensuring they did not continue using the brands of businesses they acquired. We should do the same.

• I lost a major customer when they heard that IVL bought us. I should keep my old brand (so they will not know IVL is the owner!).• How will you keep it a secret that IVL is the owner, even if you continue to use the old brand? Eventually, everyone will know that the owner is

Indorama Ventures. That is the purpose of our public relations. It will be on our website, in our presentations and press releases!• If they feel that we are a competitor in another arena, then it is the job of customer relations/marketing/sales/executives to convince the

customer that we will serve everyone equally in your arena. Be proud of Indorama Ventures.• In my country/region it is my factory that has created a good image, not IVL.• By building a unique global brand, we will attract new customers and create pride in our suppliers and current customers to be associated with

such a large group. Scattering recognition among diverse factories creating different images is negative for global brand recognition: as we intend to buy more factories in the future, this could cause great confusion globally

• My factory’s logo is registered; therefore legally I have to use it.• Not quite true. Logo registration is done to prevent others from copying it. There is nothing (that we know of) forcing you to use your own logo.

Legal documents require the name and address of the company/factory and perhaps a company registration.• My customer/supplier won’t pay us/accept a bill from us because he saw the IVL logo on my invoice and said he can’t accept IVL,

only the local company.• The IVL logo is a logo, or picture. In itself, it represents a brand and is not a legal requirement for buying and selling services or products. The

IVL logo does not say Public Company Limited. Your company name (at the bottom of a letter) is your registered name for invoicing.• Is there a financial value associated with a brand?• Yes, a strong brand is associated with intellectual property, which generates earnings, and is an intangible asset that sits on the balance sheet.

Case Study: Maxtor

Maxtor site before Seagate bought it Maxtor site after Seagate bought it

Seagate bought Maxtor in 2006. After the deal was completed, the corporate brand of Seagate was imposed on everything

that was Maxtor.Maxtor was probably just as famous a

brand as Seagate but Seagate wiped out the branding. Why?


Target groups

Target Groups


Strategies for corporate branding (1-5 years)

Many products, many factories: ONE GLOBAL BRAND

No new subsidiary will use a corporate brand other than the official global brand Indorama Ventures

Irrespective of the brand equity created by a new acquisition in the past, after acquisition it becomes an Indorama Ventures asset and uses the Indorama Ventures corporate brand

In the short term, current subsidiary brands must not overshadow the corporate brand of Indorama Ventures and should be gradually phased out

In cases where subsidiary brands are used in corporate printed materials, they must be subordinate to the parent brand

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