Processes and Methodologies for Creating a Global Business-to-Business Brand.

Randall S. Rozin is Global Manager of Branding and Marketing Communications at Dow Corning Corporation, a leading performance enhancing materials company pioneering the use of silicones, siliconbased materials, and service solutions. Mr. Rozin serves on the editorial board of the Journal of Brand Management as well as on the Business-to-Business Marketing Communications Board of the U.S. Association of National Advertisers. Randall holds an undergraduate degree in journalism and a Masters degree in international business and marketing management. Liz Magnusson is a Senior Director with Landor Associates, a global branding consultancy and design firm. Since joining Landor six years ago, Liz has consulted for a variety of clients, such as HP, Visa, NBC and the Los Angeles Times. Her cross-industry experience has helped clients develop "best practices" models specific to their situations that also leverage insight from other industries. Prior to joining Landor, she worked in consumer brand management. Liz holds an undergraduate degree in linguistics and a graduate degree in business. ABSTRACT: The intent of this article is to detail the steps and decisions one industrial company faced when creating a new global brand and the processes and methodologies involved to put the developed stra tegy into practice. The paper describes the application of business-tobusiness market segmentation and product lifecycle analysis to inform brand stra tegy. Also described is a comprehensive framework and process for creating a new global business-to-business brand including details on naming; legal screening; identity development; web architecture; and deployment to internal and external stakeholders. INTRODUCTION: Marketing thinking should not begin with a product or even a product class, but rather with a need. 1 It is the premise of beginning with a need that has driven Dow Corning Corporation to reinvent itself as both an innovator and producer of material technologies and services and an innovator in 2002 Dow Corning Corporation

marketing material technologies and services. The drive to fulfill customers needs in this case has two primary challenges based on the same element a maturing product line First, while Dow Corning continued to grow and innovate new products and applications over its nearly 60-year history, many of the companys earlier material introductions had begun to reach the mature phase of their lifecycle. As the silicone market innovator, Dow Corning had become used to developing new silicon-based products, bundling them with value-added services and marketing them to end business customers. Both Dow Corning and its thousands of worldwide customers prospered via this business arrangement for decades. As the market for silicone and silicon-based materials grew, many of the companys customers were also innovating and growing their own businesses using Dow Corning materials as a starting point. Second, competitive pricing pressures and familiarity with older product technologies combined to reveal a segment of customers who knew what materials they wanted, were knowledgeable about how to use the materials, and sought out the most competitive prices to get them. Not only were Dow Cornings products maturing, but its customers business markets and applications were also maturing. As markets matured, many of the companys customers value-to-price ratio began to change. Customers in these maturing markets, needed Dow Corning not only to innovate new product technology, but also to help them lower costs in their own maturing product lines in order to stay competitive. Dow Corning faced a serious challenge in defending it position at the premium end of the silicone marketplace with its innovative line of silicon-based materials and services, which for the most part came bundled together. At the same time, the companys brand was being at tacked at the low end of the market by a variety of competitors, foreign and domestic, and many who did not invest in innovation or long-term plant capacity and global service and support operations. At the end of the day, the price of the material became a much more salient characteristic for a sizable segment of the market. To satisfy Dow Cornings desire for continuous innovation and current customer needs, a new strategy was required. This st rategy would have to meet the growing needs of the companys customer base while empowering the company to continue to innovate and grow the market overall. 2002 Dow Corning Corporation

BACKGROUND: Dow Corning Corporation was established in 1943 specifically to explore the potential of silicones. It was created as a joint venture between Corning Glass Works (now Corning, Incorporated) and The Dow Chemical Company, which continue to own equal shares today. Dow Corning pioneered the development of silicones for commercial applications. Silicones are a diverse family of materials that combine the temperature and chemical resistance of glass with the versatility of plastics. They are used to enhance the performance of thousands of products in virtually every major indust ry from Automotive, Construction and Rubber Fabrication to Electronics, Beauty and Personal Care, Chemical Manufacturing and Textiles. Today, Dow Corning is the world leader in silicone technology and production. The company is expanding the boundaries of silicon technology, building on its expertise in silicones to tap the commercial potential of a much broader array of silicon-based materials. Simply stated, the companys research efforts are aimed at developing new products that exploit the technology of silicon-based chemistry to help its customers succeed in the marketplace. As the owner of a premium brand of silicone raw materials and technologies the Dow Corning brand- the company was facing the fac t that certain aspects of its business had reached the mature phase of the product life cycle. Based on recently completed market segmentation work, the company believed a segment of customers existed, across many diverse industries, that view some of its mature products as commodities and use this commodity viewpoint when making a purchase decision. This is to say that these customers were less likely to value the corresponding technical and other services normally offered as part of the total value package of purchasing from the Dow Corning master brand. In order to take advantage of this mature segment without detracting f rom the value of the Dow Corning offering, the company decided to establish a separate business unit to offer these customers a clearly defined set of products via limited, web enabled services to provide the most competitive prices. The tone of this business would be a no f rills approach with clear business rules, clear product offerings of high quality, reliable supply, and low prices.

2002 Dow Corning Corporation

The new unit will offer a wide range of silicon-based products, manufactured by Dow Corning, which are perceived as commodities by customers. Given that this business model is the direct opposite of what the Dow Corning brand stands for, a new separate brand was needed under which to sell these product s. PROCESS FOR SETTING THE STRATEGY A global, multi-industry, multi-functional team was formed to develop a business plan containing market and needs-based segmentation; value proposition; marketing mix including channel implications; organizational plan including cost st ructure and profitability for the cost-driven mature product segment(s) served by Dow Corning Corporation. While Dow Corning is a multi-billion dollar company, it acted quite nimbly with quick team formation, decision-making and move to implementation allowing the company to fully complete the planning phase of this company-redefining project within 40 days. Around the globe, specific customer and competitive situations were assessed. Many examples revealed that Dow Corning had lost business to competition in product applications in the mature stage of the life cycle. The analysis showed that although Dow Corning positioned the value of its services beyond the products that are provided to the customer, in some cases, the customer was not valuing those services and was purchasing products primarily based on the lowest price, as long as the supply was perceived to be reliable. The companys needs based segmentation process followed the following seven steps. (Exhibit 1) Steps in Segmentation Process 1. Needs-Based Segmentation Description Group customers into segments based on similar needs and benefits sought by customer in solving a particular consumption problem. For each needs-based segment, determine which demographics, lifestyles, and usage behaviors make the segment distinct and identifiable (actionable) Using predetermined segment at t ractiveness criteria, determine

2. Segment Identification

3. Segment At t rac tiveness

2002 Dow Corning Corporation

the overall at t rac tiveness of each segment. 4. Segment Profitability 5. Segment Positioning Determine segment profitability (net marketing contribution) For each segment, create a value proposition and product-price positioning stra tegy based on that segments unique customer needs and characteristics. Create segment storyboards to test the at t ractiveness of each segments positioning strategy. Expand segment positioning st rategy to include all aspects of the marketing mix: product, price, place, and promotion.

6. Segment Acid Test

7. Marketing Mix St rategy

Exhibit 1 Key Steps in a Needs-Based Market Segmentation Process. 2

Using this model with its own purchasing department as an internal consultant, and validating against existing customer experiences, Dow Corning use a needs-based segmentation model and criticality grid. (Exhibit 2) H Critical / Security Strategic / Partnership

Risk Standard / Market Convenience Driven / Low Cost L Spend H

S tandard/Convenience:

Many suppliers, low value. Traditional buy and sell relationship. Segments Goal = Minimize effort

2002 Dow Corning Corporation

Market Driven/ Low Cost: Many sources, high volume. Leverage relationships. Segments Goal = Minimize cost. S t ra tegic/Partnership: Technology driven, high value. Collaborative / alliance Relationship. Segments Goal = Competitive advantage. Critical/Security: Single source. Collaboration. Segments Goal = Reduce risk.

Exhibit 2: Dow Corning Criticality Grid

Using the criticality grid and needs based segmentation exercises, two segments were identified where Dow Corning had the most significant issues with its mature product offering. The primary segment targeted was the Market Driven / Low P rice segment with the following behaviors or firmographics 3 Customer has a high awareness of readily available product substitutes with little or no differentiation; Customer can easily switch from one product to another; Customer has a good knowledge regarding the product/application/use; Customer purchases are considered a significant cost for the company; Competitors are intense in their rivalry to obtain customers; Supplier selling power is relatively weak.4 The key needs within this segment are lowest price and supplier operational excellence including reliable quality and supply. A business can create a source of competitive advantage with a low price, and hence, lower the cost of purchase. Businesses with a lowcost advantage in markets in which price is an important determinant of customer value can utilize a low price as a basis for product positioning. 5 Given the behaviors of customers purchasing its mature products, and definition of the Market Driven/Low Price segmentation, the company set up stated objectives for creation of a new business model and a new brand. These objectives included reduction of total non-product cost s to allow the company to achieve the following points of parity: largest global supplier with most reliable supply chain offering customers the lowest base cost on commonly used silicone materials. The reduced pricing would allow for additional share gain, more

2002 Dow Corning Corporation

efficient capacity utilization, improved return on net assets, sales growth and overall company profitability. The new product offering, business model, and pricing structure that was developed does not exist elsewhere in the marketplace for the purchase of silicone materials and is truly a unique selling proposal for end customers. This image/positioning needed to be very different from that of the Dow Corning brand. The new brand would be an edgy, yet approachable, no-nonsense, no-frills supplier of high quality silicon-based raw materials. The business model would offer standard (mature) products; at the lowest base prices ; providing quality products and reliable supply; baseline supply services with simple and limited customer interface. The approach would be cost-relentlessness with supply excellence and strict enforcement of business rules to keep cost s (and there fore prices) low with a t rader/broker mentality. The customer interface will be web enabled; tele-sales support; and limited personal visits, if any. Since the new product offering was to be a stark contrast to Dow Cornings premium product line and full complement of service offerings, the design team determined that a new brand was needed to avoid confusion with customers and among Dow Corning employees. The subsequent new branding creation project became known internally as P roject Brand X until a full brand st ra tegy, identity and launch plan could be developed. In addition to launching Brand X, the company embarked on a concurrent program to revitalize its master brand Dow Corning. While equally important, the revitalization component was a separate process and is not fully described as part of this discussion. PROCESS OVERVIEW It is very easy for companies to become engrossed in the process of building a global brand. Not only is it wildly interesting, but terribly complex. Critical factors for a successful branding project of the scale described here include having: 1) a senior management mandate and ongoing support, 2) a small core team, resourced and empowered to bring the entire project together, 3) an experienced branding partner with a proven process and capabilities, and finally, 4) a deadline and commitment to stick to it.

2002 Dow Corning Corporation

In our case, this project became a corporate priority; a core team of four people was assembled to drive the project. This core team was made up of the new Units Commercial Director, the Companys Commercial Brand and Marketing Communications Manager, a Marketing Communications Coordination Specialist, and an E-Business/IT professional. The leadership of the Business Unit Executive Director was also essential to help as a liaison with top management and as a facilitator with resource orchest ration across business units. Landor Associates, a top branding and identity consultant put together a very aggressive critical path and timetable to help the project meet its aggressive timeline and strategic objectives. The end-result was to treat branding as a process-driven discipline, grounded in empirical research and strategy. For Brand X, the objective was to build a new brand with a uniquely ownable identity and brand proposition that was immediately distinct from Dow Corning and f rom competitors. The program to build Brand X began with development of a st rategic plat form, based on understanding the Brand X business st ra tegy and vision, assessing key competitor brands, integrating the findings of segmentation research, executive interviews and recent customer research. We also incorporated data from Young and Rubicams Brand Asset Valuator (BAV ) study, which measures a brands st rength and stature, that is, its value as an asset capable of creating wealth. BAV will be discussed in more detail below. A brand strategy plat form was developed consisting of brand values, a brand driver 6 , positioning, and architecture. A brand driver is defined as a simple, unique and insightful and even aspirational idea that drives and unites all brand actions and expressions. Additionally, as part of the st rategic plat form, we identified the relevant communication applications most significant to the customer experience. These power applications were determined to be: web site, sales collateral, trade print and online advertising, business papers, packaging, and public relations. According to Keller, there are three main ways to build brand equity: 1) selection of brand elements, 2) the brand marketing program mix employed, and 3) through secondary associations. 7

2002 Dow Corning Corporation

In the case of Brand X, the branding elements employed included: naming, brand line, brand voice, nomenclature, design, look and feel (typography, color palet te, and imagery style), design extension, web, and branding guidelines. The brand marketing program included a direct, web-enabled sales channel, the lowest base prices for high volume commonly-used silicone materials, and a promotional plan encompassing a mix of collateral, t rade print and online advertising. In addition, significant public relations plans including global news conferences with business and t rade media, participation as keynote and panel speaker positions within industry and business conferences were also employed. As is the case in most companies, the significance of employees as brand ambassadors cannot be overlooked. In our case, significant internal brand training was conducted once the brand elements had been developed and documented. All marketing materials produced for external use were repurposed and used to demonstra te success via third party validation to company employees eager to learn about the launch of the new brand. When a firm introduces a new product, it has three main choices for its brand name: 1. It can develop a new brand name. 2. It can apply one of its existing names. 3. It can use a combination of a new brand name with an existing brand name. 8 To increase B rand Xs chance of success in the marketplace, the new brand would have its own newly created name while leveraging the secondary associations of Dow Corning it self via an endorsement st rategy. This endorsement st rategy and rationale will be detailed more fully in the section below on brand lines.

2002 Dow Corning Corporation

Building a Leadership Brand9

Brand X Business Strategy & Vision Brand Strategy Platform
Brand Driver Attributes & Values Positioning Architecture

Visual and Verbal Identity

Advertising

Customer Service

Web

Business Papers

Sales Collateral

Public Relations

Target Audiences

2002 Dow Corning Corporation

LINKING BRAND STRATEGY TO BUSINESS STRATEGY As the core team approached the challenge of creating the new brand, key questions surfaced. How can the brand position itself to meet the business objectives and build a sustainable brand for an uncertain future ? The team knew that creating relevant differentiation is key. Both the st ra tegic rigor and creativity of the identity work heavily focused on creating differentiation. The team also worked to ensure that the brand strategy supported the business st ra tegy. Everything that an organization says and does is a re flection on the brand. Brand assets require significant financial investment that can only be made if the brand strategy is in alignment with the long-term business st rategy. The payoff of a st rong brand is a st ronger business. Two fundamental tools employed in the Brand X project to link branding st rategy to business st rategy were Young and Rubicams proprietary Brand Asset Valuator S tudy and Landors Brand Driver process. Both tools will be discussed within Brand S t rategy Plat form development. The key value of these tools lies in its ability to be true to what the brand is today and to where the brand needs to go in the future. In addition to creating a new brand that is distinct from Dow Corning and from competitors, the new Brand X also needed to be credible as a global supplier of commonly-used silicones and as a "value" brand. The new brand would support the business objectives of delivering quality products, low price, high volume and an opportunity for Dow Corning to grow mature businesses. For Brand X as a new business unit of Dow Corning, the business growth st rategy was to reinforce relationships with current customers, enter new markets, and position the company for offerings beyond the core business. The business growth st ra tegy was grounded in the present, yet very much forward-looking.

2002 Dow Corning Corporation

Reinforce relationships with current customers To reinforce relationships with current customers, we leveraged brand architecture. Brand X as the primary brand signals a distinct offering f rom the Dow Corning master brand. Endorsement by the master brand provides instant credibility and a unique value proposition. The key brand equities of Dow Corning, quality and reliability of global supply, differentiated Brand X from competitors, while establishing the viability of the new brand on the Internet. These key equities established for Dow Corning offline are given even greater meaning in the uncertain, dynamic realm of the online world. Importantly, research showed that all key competitors use a monolithic brand architecture that leverages one brand across all channels and products. A bisected branding approach, using Brand X for low price and the Dow Corning commercial brand for high value, allows Dow Corning and Brand X to out flank competitors at both the premium and low ends of the market. This branding approach creates two distinctly positioned alternatives within the same market space. To minimize customer confusion and potential cannibalization, the branding elements needed to communicate a dramatic difference between the two offerings. Enter new markets Traditional marketing theory suggest that there are a few common methods of building product demand: 1) Get current customers to consume more 2) Find new uses and users for the product 3) Take share from the competition and 4) Grow the market overall. The Brand X project, in concert with the Dow Corning master brand stra tegy, was designed to do all four. The new lower price point for commonly-used silicone products makes this class of high performance materials open to a larger customer base, some who currently use silicones, but in limited quantities due to the price, and to new customers who previously had not considered formulating with silicones. To penetrate these markets, we positioned Brand X as differentiated from Dow Corning on price/service (low price/low service) and differentiated from competitors (reassurance) by way of the Dow Corning endorsement and leveraging Dow Cornings secondary associations. At the other end of the continuum for reassurance was fear, uncertainty and doubt (FUD). FUD characterized customer response to competing low price brands that were inconsistent on quality and reliability of global supply.

2002 Dow Corning Corporation

Position beyond the core business To position the company for offerings beyond the core business, we leveraged the brand message to differentiate Brand X as more than silicones but a new business model as well. Examples of other brands that have positioned beyond their core businesses include: Microsoft is more than a software company , it s an enabler of productivity FedEx is more than overnight, its optimized delivery services IBM is more than technology, its smart solutions In addition, we considered analogous brand pairings from other industries regarding how to leverage brand expression to differentiate the Brand X business model from the Dow Corning brands business model.

For example: Singapore Airlines and Southwest Airlines, but not Continental Lite Full service bank teller (Dow Corning) and ATM or On-line Banking (B rand X) Gap and Old Navy, but not Gap Outlet (which is perceived as cheap) US Trust and Charles Schwab, but not Quickbucks.com Dow Corning master brand and Brand X, but not Dow Corning Lite
Research Review A research review informed the st rategy development. To differentiate Brand X from Dow Corning, it was important to first understand the st rength and position of the Dow Corning master brand. Recent research around the Dow Corning Corporate positioning as well examination of many years of customer satisfaction studies provided valuable information about the importance and differentiating at t ributes that may define the performance enhancing materials (PEM) category in the future. Additionally, insight was gleaned into customer and prospect terminology that would influence the development of the Brand X product nomenclature system.

2002 Dow Corning Corporation

Competitive Analysis While today the key competitors for Brand X include other silicone suppliers, the future brandscape may be significantly different depending on how the industry evolves and react s to Brand X. Particularly for an online brand, low barriers to entry may invite nontraditional competitors and unexpected alliances or mergers. A review of current competitor brand strategies and branding elements guided the development of a gap, or opportunity analysis. Given an uncertain future, the research review and competitive analysis were not sufficient to develop an ideal image profile for Brand X. We needed an empirical tool that was forward-looking, so we turned to the Brand Asset Valuator study for insight. Brand Asset Valuator Study The development of the st rategy plat form relied on several branding tools and processes, including Brand Asset Valuator (BAV) and Brand Driver. Both help identify the at t ributes that highly differentiate a brand in a relevant way for its audiences. Differentiation is the most critical success fac tor for a new brand seeking to become a leadership brand. The BAV S tudy is a global, empirical model for understanding brands. Just as the stock market values companys stocks for their potential to deliver profits in the future, brand assets should be valued in the same way, not for their past results. BAV gives us a forward-looking way of valuing brands and is a useful tool for creation of profitable growth by building, leveraging, protecting, and managing of those brands. Insights from BAV create an important advantage in a brandscape in which it is increasingly difficult to build brands due to increased competition, product parity, rapid imitation of product advantages, companies crossing segments, brand proliferation, global expansion, and customers who are more sophisticated, demanding and diverse.

Four Pillars of Brand Equity10

Brand Asset Valuator demonstrates that brands are built in a very specific progression of four consumer perceptions: Differentiation, Relevance, Esteem and Knowledge. Differentiation Relevance Perceived Personal 2002 Dow Corning Corporation distinctiveappropriateness of ness of the brand the brand Esteem Regard for the brand Knowledge Understanding of what the brand stands for

INITIAL FOCUS

BUILT OVER TIME

Differentiation: the perceived distinctiveness of the brand and thus the basis for customer choice. It measures the uniqueness of the brand's promise to customers. It is the first and most essential pillar; it is how brands are born. Differentiation is a brands ability to stand apart from others; it is the degree to which the public finds a brand unique, different and distinctive. Without differentiation, products might sell briefly, but there is no compelling idea that allows the brand to endure and survive market, cultural, and technological change, as well as product evolution. Relevance : the perceived usefulness of the brand and its ability to meet consumers' needs. It therefore provides an indicator for a brand's market penetration. Relevance is closely related to the four P's of marketing (product, promotion, place, price). Relevance is appropriateness: is this brand meaningful to me? Without broad relevance, a brand cannot achieve high penetration. Relevance can be a choice, since a highly differentiated brand with low relevance can still be successful as a niche brand. Differentiation and Relevance together define Brand S t rength. Brand st rength is a measure of a brands ability to exist as a viable entry, to defend itself from competition and to help drive margin and earnings. New brands typically build strength by increasing Differentiation and then Relevance. Generally, brands that achieve high levels of both Differentiation and Relevance lead or even define their category. Growth in brand strength is associated with operating income. Most brands work on growing their Relevance. Those brands that have the foresight to grow both their Relevance and their Differentiation show increases on operating 2002 Dow Corning Corporation

earnings and net earnings. Those let ting their Differentiation decline, show decreases on both of these key financial measures The next two pillars are Esteem and Knowledge, which, when combined, define Brand S tature. Brand Stature is the extent to which a brand has been successful in building a base of knowledge along with respect. Leadership brands excel in both Brand St rength and Stature. Esteem: the extent to which the brand commands the respect and regard of consumers. Esteem measures the degree to which your target audiences feel good about your brand. This is the emotional pillar. Esteem is that warm feeling which tells the customer that your brand is a good thing. Esteem is comprised of two components; quality and popularity. That is, the basis of Est eem can be generally though of as a balance between popularity and quality. For example, in Japan, regard for a brand has more to do with it s popularity that its quality while in the UK the opposite is true. In the US, esteem is comprised of equal parts of quality and popularity. Esteem endures in bad times and helps a brand survive the ups and downs of public relations crises, bad press, and poor choices. Knowledge: the depth of customers' understanding and experience of the brand. Knowledge is not awareness. Awareness is a subcomponent of Knowledge. Knowledge also measures whether there is a t rue understanding of what your brand stands for, what your products and services are, your positioning, your promises, and your values. If a brand has established relevance with differentiation and customers come to hold it in high esteem, brand knowledge is the outcome. Knowledge is the end result of all of the marketing and communications efforts and experience customers have had with the brand.

2002 Dow Corning Corporation

Leadership brands
Brands develop strength through Differentiation before developing the stature necessary to be a leader
Niche/ Growing

Increase in Differentiation

Leadership

Brand Strength (Differentiation & Relevance)

Brand X New Undefined

Declining

Brand Stature (Esteem & Knowledge)

In the Y&R Power Grid above, Brand St rength is the vertical axis and Brand Stature the horizontal axis. The Power Grid serves as a tool for brand tracking. We used the BAV data to empirically and independently develop a list of image at t ributes for Brand X that correlate highly with leadership brands for the brand equity metrics of Differentiation and Relevance. We specifically looked at leadership brands in the following categories: industrial, on-line (Internet channel, e-commerce) and value brands to determine directionally the appropriate brand values for Brand X.

2002 Dow Corning Corporation

Brand X Brand Values & Supporting Attributes

Brand Values
Open Honest Energetic Trail Blazing Empowering

Industrial High Quality Reliable Trustworthy Best Brands Worth Paying More

Internet Dynamic Innovative Progressive High Performance

Internet Distinct Original Authentic Independent

Value Industrial Good value Down-to-earth Cares for customers Simple

The brand values are meant to identify a distinctive personality of the brand. The collection of values re flect t he diverse characteristics of an organization. These values are intended for internal use to develop a meaningful and differentiated brand expression. Importantly, customer acceptance of the brand values as well as the business model at t ributes is facilitated by the very presence of Brand X in the Internet channel for e-commerce. By association with the online environment, Brand X inherits customer perceptions that the brand is likely to be innovative and daring. The Dow Corning endorsement line helps imbue the brand with a robust brick and mortar credibility level for large dollar volume transactions. Business Model Attributes Direct Fast Ef ficient S t raight forward Business Rules Always Open

2002 Dow Corning Corporation

The at t ributes of the business model needed to be true to the actual customer experience with Brand X, whether on-line or by telephone, fax, or in person. While e-commerce was an important part of the business model, Brand X is not exclusively an internet brand or business. The estimated proportion of transactions over the Internet for the first year varied significantly by geography. The BAV data helped form the foundation for the Brand X strategic plat form, which included a Brand Driver. The Brand Driver is a simple, unique and insightful, idea that drives and unites all brand actions, behaviors, and expressions. It is a dynamic and aspirational concept, a call to action. It connects brand to business st rategy. Development of the Brand Driver benefited from the broad participation of the core Brand X project team and all of the key agencies, including the brand identity, advertising, and strategic communications partners. Typically the Landor branding consultant in person would facilitate a brand driver session with key members of the client team, including agency representatives, either at the clients offices or other conference center location. Ironically, this web-enabled brand was developed in a web-enabled fashion. Due to the events of September 11 th 2001 and the subsequent stopping of nearly all business travel, the core team had to develop alternate st rategies to conduct the brand driver session. This was accomplished using web conferencing technology that allowed participants in many multiple locations to join a common meeting telephonically and view all the flipcharts images, and Power Point presentations in real-time by virtual means. The end result of the virtual brand driver meetings was a very successful session proving viable a new way to conduct multiple location meetings without need for travel. Brand Driver: Clarity Choice Freedom to Succeed The Brand Driver is based on what is unique about the brand across five dimensions: role, reason to believe, personality, performance, and versatility. Positioning Statement Brand X gives industrial materials customers a direct connection to the materials and services they need, with an unmatched combination of 2002 Dow Corning Corporation

value, simplicity, and Dow Corning reliability. From large corporations to small manufacturers, customers always get the full quality and reliability of Dow Corning products with Brand X efficiency and prices. Way to Describe Brand X Emotionally: Think of everything you know about buying silicone materials. Now free yourself. There's a bet ter way. A cheaper way. A quicker way. Brand X The shortest, fastest path to high quality silicone materials. You choose it. We supply it. Globally. Reliably. It's that simple. The quickest route. The most direct connection. The shortest distance. Brand X. The new measure of value. From Dow Corning. Linking Brand Strategy to Channel Strategy The brand strategy plat form drives brand expression across all channels. For Brand X, part of our mission was to develop and execute effec tive tactics that leverage the additional branding opportunities the Internet environment af fords. Brand X is an innovator of a new business model for the Internet channel that also extends to the physical world. We could assume no separation of global audiences: neither Dow Corning/Brand X audiences nor physical world/virtual world audiences. Likewise, on the Internet we could not assume separation of audiences 2002 Dow Corning Corporation

by region or function. The same organization, or even the same individual, may purchase Dow Corning and Brand X in different situations. While a significant proportion of year one Brand X volume will be purchased over the Internet, acceptance of e-commerce for these products varies by geography. Acceptance is highest in the U.S., followed by Europe, then Asia. Non-acceptance is due to a variety of fac tors, including lack of access to the Internet, cultural norms, concerns regarding security, and personal preference to conduct business in person, by telephone, or fax. We accommodated this diverse experience set as we introduced Brand X. Based on experience with competitors and other non-competing business models, customers have expecta tions for on-line commerce. Customer service is extremely important, since one driving reason to go to the Web site is convenience. If they become frust rated or confused, customers can select an alternative brand with a single click. The overload of information, visual cues, and purchase choices on the Web elevate the importance of being different enough to break through the noise in a way that is meaningful and delivers perceived value. One of the key reasons online businesses fail is customer dissatisfaction with the gap between the brand promise and the actual customer brand experience. Brand equity in highly recognizable brand expressions, such as the Brand X signature with Dow Corning endorsement, create value in the cluttered environment of the Web. Likewise, real value takes place in a st raightforward transaction, endorsement, customer service, or other conveniences, such as email confirmation of an order. The entire customer experience of Brand X is extended through the usability and functionality of the Web site.

CREATIVE: Linking Brand Strategy to Brand Expression Our project began in earnest in August of 2001 with a targeted soft launch or beta test with selected global customers by January 7, 2002. Accomplishing this required modification of several process steps to run in parallel timing. For example, the name, look and feel, and Web interface were developed simultaneously rather than sequentially, as is typical practice in identity design.

2002 Dow Corning Corporation

In an unusual twist, the look and feel development began first, with the core signature inserted at a later date. Creative development of new names began at the same time as the look and feel, but took as long to gain closure on legal and cultural checks. Given the timeline, applications had to be developed using the placeholder signature 'Brand X' as the name, until the final name and core signature were approved. The placeholder signature 'Brand X' inadvertently, but successfully, became the visual standard by which the final core signature candidates were judged. The look and feel contained the building blocks for a powerful core signature. Once a final name had been approved, we could do final process steps on color and typography. VERBAL EXPRESSION: Naming, Brand Line, Brand Voice, and Nomenclature Naming: As part of the st rategy and analysis phase of the program, the names and nomenclature systems of competitors and other companies in the B2B industrial marketplace were reviewed and categorized. One observation was that many companies had relied on highly descriptive corporate names. For several reasons, a descriptive naming approach was not optimal for the development of Brand X. We recognized that this was an historic change in business models, not only for Dow Corning, but for the specialty materials (business-tobusiness industry). Unsure of how the business may evolve, we had to ensure that whatever choices were made, we could adapt and grow as the industry inevitably changes.. Descriptive names are inherently indistinct. These observations paralleled other aspects of the competitive set, such as identity and brand voice (i.e. verbal tone and manner). The first phase of creative development included the broadest possible range of name types to ensure that the core team was in a position to vet subjective perspectives on specific names. The name styles included semi-descriptive, suggestive, and expansive names. Certain directions were immediately rejected, such as the semi-descriptive approach and names that linked too closely to silicone.

2002 Dow Corning Corporation

Following feedback from the first wave of name development, we drilled deeper into the different directions that seemed promising. Names with energy, and names that helped tell the new and exciting story about Brand X, rose to the top. The Story Behind the Name As part of the creative development, we explored metaphors, symbols, and fresh ways of expressing 'speed' and 'directness.' These re flected both their brand values and the business model. A word that was discussed during this process was 'diameter.' A 'diameter' goes directly through a circle, bisecting it, just as Dow Corning was bisecting its own branding approach. A diameter is also a st raight line and a word used in scientific vocabulary. In addition, we wanted to capture the notion of 'speed'. As a sound, the let ter d which begins diameter is relatively slow and heavy. We changed the sound by changing the first let ter to an 'x' , which is pronounced z, as in xylophone. This gave us an entirely new word, 'Xiameter.' Rationale for XIAMETER Name -The most direct path across a circle is a diameter - Association with 'diameter' connotes 'direct, fast, st raight/st raightforward' -Meter is used globally as a unit of measure -Xiameter is a new word that will come to mean "the measure of value" -Concept unique to Dow Corning -Associates with language of science, reinforces precision -X adds speed, energy, technology, and trailblazing associations -Highly distinctive and memorable compared to competitive set -Ownable Legal Screenings We developed over 2,500 names for the Brand X program. More than 150 were put into preliminary legal screening for U.S. and European online trademark databases. Of the 150 names, 41 cleared the preliminary search. One of these was Xiameter. Internet domain name clearance was also done at this time. Of the 41 names that cleared preliminary trademark screening, 12 domains were available. With the leading candidates now in front of the core team, we selected a group of 18 finalists to go into full global legal clearance. Those without clear domains would either be sought for purchase or would be modified by adding a descriptor to the name, such as Xiameteronline.com

2002 Dow Corning Corporation

Naming Process
Creative Development
Preliminary Legal Search Full Legal Search Native Speaker Check Final Selection 2500 15 + 1 18 1

Native Speaker Check As many examples of poor global name choices (ex: Chevrolet NOVA means no va or Does Not Go in Spanish) st ruck deep into minds of the core team significant time and resources were invested to secure a name without negative connotations either as a direct t ranslation, as a sound alike name, or as a slang expression in any of more than a dozen prioritized languages. Therefore, at the time that the names were in full legal search, an exhaustive native speaker check across key markets was conducted. It is important with a coined word to make sure that audiences in key global markets can pronounce it and can do so without unintended, inappropriate associations with words in other languages. We conducted an exhaustive native speaker check on leading candidate names. There were no inappropriate associations for Xiameter uncovered during our process. Xiameter was a breakthrough name, as evidenced by rapid trademark clearance and lack of any "hits" in an Internet search on the name. The name therefore succeeded as differentiated, available, and as a means to suggest the brand story. We knew that 'X' beginning a word was unusual, but there were successful precedents, such as Xerox.

2002 Dow Corning Corporation

Brand Line A brand line is typically appropriate for communicating the positioning of a new brand, a spin-off, merger, acquisition, revitalization, or any other need to significantly change or expand perception of the brand. A brand line plays a key role in establishing and maintaining brand identity. It is a cost-efficient means of messaging the brand to build understanding of what the brand now stands for, particularly if advertising budgets are modest and the target audience is diffuse across industries and geographies. The purpose of a brand line is different f rom an advertising tagline. Whereas the tagline reinforces a campaign idea or theme, the brand line is treated as a lock-up with the core brand signature over several years to communicate the overall brand identity. Unlike advertising, a brand line can be applied across a variety of applications. For example, FedEx leverages the brand line The World on Time across its delivery vehicles, packaging, and web site. Conceptually, there are several types of brand lines. A few examples follow.

Ingredient Lucent Technologies. Bell Labs Innovations Heritage Agilent Technologies. Innovating the HP Way. Primary Focus Frito-Lay. Food for the fun of it. Aspirational Bausch & Lomb. See the Wonder. Revitalize and Expand Brand Per ception Xerox. The Document Company Lilly. Answers that Matter.
With the name Xiameter approved and in place, the next task was developing a brand line. We explored a number of creative direct ions to re flect the business, its benefits, their scope, and the spirit of the brand itself. Through as series of joint work sessions between agency and client, The new 2002 Dow Corning Corporation

measure of value. From Dow Corning. emerged as the most appropriate line.

Brand Voice To be memorable and compelling, brand expression needs to be consistent across the entire customer experience of the brand, including visuals as well as writ ten and spoken words. Brand voice includes the tone, manner, and style of brand communication, driven by the Brand St rategy Plat form. Brand voice requires definition and documentation to ensure employees, channel, and vendors use it daily as brand ambassadors. The manner in which Xiameter would communicate needed to be as unique and distinctive as the brand itself. We leveraged the brand values to create a unique and ownable tone for Xiameter's communications. Like the brand, the brand voice would be 'edgy, energetic, vibrant, st raightforward, direct and efficient.' It would also be 'informative.' The spirit of the brand comes through in the Web site copy (www.Xiameter.com). For example, "Our cost ef ficiencies save you serious money." - has more at titude than the competitive set of brands and accurately re flects the Xiameter brand voice. The brand voice was codified into guidelines for use internally at Xiameter and externally by their partner agencies. Nomenclature Model As in other elements of the identity program, the product nomenclature for Xiameter needed to be distinct from Dow Corning. Both from a branding and business st rat egy point of view, distinct product nomenclature was critical to minimize confusion and cannibalisation of higher value-added Dow Corning offerings. The architecture also allows flexibility to diversify product offerings. Descriptive product naming and alphanumerics (example: Mercedes CLK430 Cabriolet) keep the focus on Xiameter and reinforce the value proposition.

Brand Nomenclature [XIAMETER] + [Dow Corning Endorsement] [XIAMETER] + [The New Measure of Value. From Dow Corning] Product Nomenclature
2002 Dow Corning Corporation

[XIAMETER] + [alphanumeric + descriptive product name]

Examples: [XIAMETER] +[PMX-0001 + SILICONE FLUID 350CST] where PMX = Polydimethylsiloxane [XIAMETER] +[SLT-5100 + SEALANT ACETOXY] where SLT = Sealant

VISUAL EXPRESSION: Meaning of the Identity and Visual System The core signature and the visual system all reflect and reinforce the Brand St rategy Plat form, including the brand values, business model, Brand Driver, and positioning.

The two orange vertical bars, known as the gateway motif , have the flexibility to communicate multiple ideas. First, the motif represents a gateway, an open door, suggesting that Xiameter provides choice and encourages customers to look beyond the traditional ways of purchasing silicone products. Second, the motif, when used as a f raming device, communicates focus and clarity Xiameter is the central access point, the web-based marketplace for standard silicone products. And finally, the motif can be seen as a measuring device, which communicates that Xiameter is focused on giving its customers the best value for the price. Xiameter is the shortest, fastest path to high quality silicone materials. The three ways that the two vertical bars may be used is consistent with the Brand Driver of Clarity, Choice and Freedom to Succeed. Depending on the needs of the communication, the bars may be used in any one of these three ways and have the flexibility to be used as a super-graphic in a very promotional way (advertising) or in a very understated, elegant way (corporate st ationery).

2002 Dow Corning Corporation

A brilliant orange is the primary color for the Xiameter identity system. Its hue expresses concentrated powerful focus. The intent is for Xiameter to "own" the color orange in all communications, even using the color orange in imagery where appropriate. This is a differentiating stra tegy from the competition. Not only is the orange color differentiating relative to the cool color palet te of the Dow Corning teal/black, it is also distinguishing from the identity colors of key competitors. The Xiameter typography, Univers Condensed, supports the brand with its ef ficient, modern appearance. The use of all capital let ters in display and headlines is powerful and bold, reinforcing that Xiameter is the simplest, fastest and most direct means of conducting business. It feels new and different: Dow Corning is not conducting business as usual. The Xiameter imagery style is somewhat irreverent: it has distinct at titude and "edge," and meaning consistent with the brand values. The imagery uniquely expresses the brand, without conventional industryrelated photography. The Xiameter brand is about clarity, newer choices and the freedom to succeed. Once the look and feel and Xiameter personality were approved, a Web Site Map, the overall information architecture, and the basic user interface (UI) design was developed. This was particularly challenging as the website UI was being developed even before the final name had been established. This timing made the brand driver and brand at t ribute definition and understanding doubly important. Due to the implementation timeline, we turned over HTML templates for integration with the content management system before the name had been approved, so no final core signature yet existed. After the name was approved, we revised the page header to place the final name in its core signature. When the header was revised, concurrent with integrating the final name we integrated the brand line to complete the picture.

2002 Dow Corning Corporation

IMPLEMENTATION: Graphical User Interface Integration and Extension For many businesses, the user interface (UI) will be one of the most significant elements of the customer brand experience. Building brand loyalty depends upon ensuring that the brand experience is consistent with the Brand Drivers (Clarity. Choice. Freedom-to-Succeed). Therefore, we focused special at tention on making the application interface as consistent as possible with the spirit of the Brand Drivers. We developed the UI for the e-commerce application itself, a thirdparty, off-the-shelf software system. As provided, the software interface was not intuitive and lacked flexibility in its graphical design. To explore the limits of what was possible in improving the interface, we developed a point-by-point critique of the main task flows of the application. Once the team had agreed and listed the major areas for improvement in the interface, the software vendor was given a copy of the review. With input from the vendor and the development team, the list was prioritized to maximize positive impact of the changes and minimize risks associated with their implementation. Driven by the tight timeframe for the project, as well as budgetary constraints, the final list of modifications was presented and approved. The focus of these modifications within the narrow limitations was to visually modify the interface and adjust some functionality to make it consistent with the Brand St rategy Platform and make it more userf riendly. For example, we adjusted contrast levels to better emphasize key information and match brand colors. We also grouped and visually differentiated key functional buttons for clarity. Consistent placement and treatment of key user inter face elements was also of critical importance in making the transactional interface as understandable as possible. To improve the user experience, instructional and help text for the application was also cra fted.

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NOTE : Above is sample illustration. For publication, crisper art will be provided. INTERNAL LAUNCH For brand launch, a Web-based presentation to employees was developed, designed, scored, and animated. This presentation introduced the new brand name and visual identity together with text elements to clarify what the brand stood for and where it was going. The presentation described the values, business objectives, identity and visual expressions of XIAMETER. Other internal deployments of the new brand name and visual identity included: 1. An employee screen saver 2. Posters and Banners displayed at company sites around the globe 3. Table tent cards in employee gathering locations such as meeting rooms and cafeterias. 4. Regular stories on the Dow Corning intranet, which opens up automatically each time an employee logs onto their computers. 5. Recorded audio messages with scrolling scripts were recorded by each industry business manager and functional manager as a means to bring the branding messages home to individual industry groups of employees with real examples that had meaning to them. 6. As third party validation of our new brand and business model came in from customers and the media, these were posted

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prominently on the employee intranet site to further stir motivation and rallying around the brand. Face-to-face communication, employee-to-employee, was also a critical success factor in introducing the new brand to the company, as well as helping to redefine what the Dow Corning commercial brand stood for. These personal techniques included: 1. Global Leadership teleconferences with the top managers in each geography with the Chief Executive Officer, Executive Vice President, Executive Director of Marketing, Director of the new Xiameter Business, and Commercial Director and Commercial Brand Managers. These teleconferences, held for each region of the world helped calibrate all area managers on the new branding elements, at t ributes, voice, and visual identity. It also provided a forum for questions and answers as to how all the pieces of the branding puzzle fit together and each managers role in helping to deploy it to their organizations. 2. A network of several hundred Ambassadors was established, around the world, to be the first wave of employees to receive information on the New Dow Corning: the Xiameter brand and the revitalized Dow Corning brand. These ambassadors were armed with frequently asked questions and answers, prepared presentations, discussion guides, and other brand aids to help them convey the brand essence of both the Xiameter and Dow Corning brands to employees. CONCLUSION: A few months after launching the new Xiameter brand and revitalizing the Dow Corning commercial brand a statistical sampling from among the 7500 plus employees, representing both the Dow Corning and Xiameter brands, was done to gauge the effec tiveness of internal communications around the brand. The survey demonstrated that: 1. Seventy eight percent (78%) of employees believe they understood the new corporate st rategy. Understanding was tested and in the following manner: a. Eighty three percent (83%) understood the Xiameter brand promise

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b. Seventy percent (70%) understood the Dow Corning brand promise helping to define follow-up actions for the brand team. c. Seventy five percent (75%) of employees understood their individual responsibilities and how they can contribute to making the st rategy successful. 2. Sources of information employees preferred to learn about the branding strategy (in order of priority) included: a. Relying on manager / supervisor: 73% in Americas; 85% in Asia; 74% Europe. b. Audio messages on the intranet by managers to employees 71% in Americas; 59% in Asia; 59% Europe. c. Group meetings: 63% in Americas; 48% in Asia; 59% Europe. d. Other colleagues: 41% in Americas; 38% in Asia; 21% Europe. Externally, a base-line market research study was planned and implemented in six countries with a mix of current and prospective customers. This research was done ahead of major communication initiatives to determine pre-launch awareness of the Xiameter name, brand associations, salient characteristics, personality, and functional considerations. Additional research is planned as a follow up to measure impact of specific communication objectives. CRITICAL SUCCESS FACTORS Utilizing a global, multi-industry, multi-functional team to develop a comprehensive business plan containing Segmentation; Value P roposition; Marketing Mix including Channel Implications; Organizational Plan including Cost S t ructure and Profitability for the cost-driven mature product segment(s) served by Dow Corning Corporation was a vital component in starting the entire process. Additional critical success factors included: Having a corporate mandate from the CEO to make the project happen. Assembling a small empowered and resourced team to develop, manage, and implement the branding program. Se t ting a specific, non-negotiable timetable, to keep scope and deadline creep from becoming a factor in execution of st rategy. 2002 Dow Corning Corporation

 Working with highly skilled agency resources. Company input, but with secrecy in the naming process to keep schedule and consistent with brand strategy. Once the final name was selected, no alternative names were ever discussed outside the core team. Buy-in to the Xiameter name was complete. There was no need to rehash the names not chosen. Full and complete internal launch with brand ambassadors, materials, management forums, site visit s all coordinated and integrated by all arms of the global communications team including: corporate, internal, marketing, management, and site communications. Integrated enterprise wide business st rategy, business model, and priority. Coordinated external launch of the brand in various media and markets. Launching a global brand is a complex task, but with the right mandate, process, and discipline it can be done. The initial launch of the new Xiameter brand has been extremely successful in not only positioning the new brand, but also, in achieving the substantial sales targets set for the brands launch. At the time of press, customers have applauded the move, competitors have had to re-evaluate their st rategies, and the general press has embraced the concept and business model with interest and with coverage.

Kotle r , Phi l ip, ( 1988 ) Ma rketing Management Analysis, P lanning, Implementation, and Control, P rentice Hall, p. 347. 2 Best, Roger, ( 2000 ) Ma rket- Based Management P rentice Hall, p.110 3 Best, Roger, ( 2000 ) Ma rket- Based Management P rentice Hall, p. 107 4 Based in part on Porte r , Michael E. ( 1980 ) Competitive St rategy Techniques for Analyzing Industr ies and Competitors F ree P ress, p. 24-25 5 Best, Roger, ( 2000 ) Ma rket- Based Management P rentice Hall, p.161 6 B rand Dr i ve r is a trademark of Landor Associates

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7 8

Kelle r , Kevin Land, (1998 ) St rategic B rand Management, P rentice Hall, p. 68 Kelle r , Kevin Lane, ( 1998 ) St rategic B rand Management, P rentice Hall, p.67 9 Landor Associates, 2001 10 B rand Asset Valuator, Young & Rubicam's propr ietar y tool for bui lding and managing brands

2002 Dow Corning Corporation