Corporate Brand Strategy of Dupont and its analysis. How a Corporate Brand affects other product brand of the same company, what are the risk and how a brand can mitigate those risk under Corporate Branding

1. PRESENTED BY:
NISHANT VARSHNEY…………..13
ANKUR GOYAL……………......33
SNEHAL JADHAV……………….34
SHIVRAJ MANE………………….54
DUPONT:
MANAGING A CORPORATE
BRAND

2. • 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

3. “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.”

4. Introduction to the Case
DUPONT: Managing the
Corporate Brand

5. 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

6. PRODUCTS

7. Source: Dupont. 2001. 2000
Databook

8. Source: Dupont. 2001. 2000
Databook

9. Source: Dupont. 2001. 2000
Databook

10. Source: Dupont. 2001. 2000
Databook

11. Source: Dupont. 2001. 2000
Databook

12. Source: Dupont. 2001. 2000
Databook

13. Source: Dupont. 2001. 2000
Databook

14. Source: Dupont. 2001. 2000
Databook

15. • DuPrene to neoprene….Careful Sub-Branding.
• Protection of Brand name/ Trade mark.

16. • 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.

17. • 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

18. The Teflon Ingredient Brand

19. • 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.

20. 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

21. • 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

22. • Result
– Beyond Expectation
– Out of 60% stain resistance carpet sold ¾ sales belonged to
DuPont Stain Master
Stain
Resistance
Carpet
60%
Non Stain
Resistance
Carpet
40%
Sales of Carpet

23. Other Ingredient Brand

24. • 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

25. 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”

26.  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.

27. 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.

28. BRANDING EFFORTS INTO THE FUTURE
Explosive
1802
Chemical
1902
Biological
1998

30. 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 )

31. 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

32. 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)

33. Global Patent Filing by DuPont’s R&D Department
0
500
1000
1500
2000
2500
3000
2000 2001 2002 2003 2004 2005
Approx. Patent's Filed
Approx. Patent's Filed

34. Net Sales and Net Income by Year
0
5
10
15
20
25
30
2000 2001 2002 2003 2004 2005
Net Sales
Net Income

35. 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

36. • 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

37. • 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

38. Q.1B What Factor Contribute the Company Equity?
• Consumer Perception
• Brand Association
• Longitivity
• Familiarity
• Brand Awareness
• Reliability of the parent Brand

39. Q.1C How Can DuPont Best Preserve that Equity?
Trust Authenticity Transparency
Confidence
Consistency
Integrity
Authority
As Advertised
Real & Sincere
Real People
Informal
Easy to Discover
No Secrets
Affirmation Listening Responsiveness
Playback
Reinforcement
Community
Accountability
Humility
Absorbing Feedback
Follow-Up
Invitational
Marketing
Dignifying Feedback
The Six Drivers of Brand Preservation for DuPont

40. CORPORATE BRAND
STRATEGY
Benefits:
• Strong Consumer
Association
• Company’s Primary
Marketing Symbol
• Represent the Organizations
Vision as a whole
Drawbacks:
• 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?

41. 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

42. 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”

43. 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”.

44. 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