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Brand Management Strengthening and Protecting Caterpillar and Cat Intellectual Property Owners Meeting September 10, 2012 Ed Smith Caterpillar Inc. Global Brand Management Caterpillar Confidential Yellow • $60B in sales in 2011… projected $68-70B in 2012 • >50% sales outside the USA • $19.7B US Exports in 2011 • 125,000 employees • Global manufacturing, logistics • 23,000 suppliers in 90 countries • >1000 machines/engines • 191 independent dealers globally • 3,313 stores • 140,000 employees • Customers in >180 countries • 64th on Interbrand’s 2011 list of global brands • $5.5B Brand Value Global Brand Management Caterpillar Confidential Yellow Global Brand Management Caterpillar Confidential Yellow Our Brand Portfolio Today Global Brand Management Caterpillar Confidential Yellow Keeping Our Brand Strong… the Cat Brand Experience Global Brand Management Caterpillar Confidential Yellow Touch Points = Brand Experience Marcom and Brand Promotion Products & Services Environments Global Brand Management Caterpillar Confidential Yellow Product Consistency - Within a Family Global Brand Management Caterpillar Confidential Yellow Product Consistency – Across Families Global Brand Management Caterpillar Confidential Yellow Trade Dress Extension to Packaging Global Brand Management Caterpillar Confidential Yellow Proper parts branding builds brand loyalty (and generates parts sales!) Global Brand Management Caterpillar Confidential Yellow Dealer Identity Global Brand Management Caterpillar Confidential Yellow Caterpillar Facility Identity and Branding Global Brand Management Caterpillar Confidential Yellow Leveraging a Consistent Brand Advertising, Web, Social Media,and Marketing Materials Consistent look, tone and brand messaging Global Brand Management Caterpillar Confidential Yellow Retail Business Development FORGED BY WORK. DRIVEN BY LIFE. Global Brand Management Caterpillar Confidential Yellow Why Do We Do This? Builds Awareness and Connection Promotes the Brand Protects IP 100 million pairs Cat footwear! Global Brand Management Caterpillar Confidential Yellow “How clever you are to advertise your boots on the side of those big yellow machines!” Brand attributes of Cat equipment are the foundation for merchandise. Authentic Tough Proud Bold Durable Quality Authentic Tough Proud Bold Durable Quality Authentic Tough Proud Bold Durable Quality Ongoing Efforts to Strengthen the Cat Brand Licensed Merchandise Retail Stores YE 2010 (10) YE 2011 2012 (24) (+15) 2013-14 (+40) 2015 > 100 Leveraging merchandise as a Marcom tool Global Brand Management Caterpillar Confidential Yellow Global Brand Management Caterpillar Confidential Yellow Industry Recognition Retail Sales History #40 (in millions) 1200 1000 800 600 400 200 0 $1.1 B 2006200720082009201020112012 Global Brand Management Caterpillar Confidential Yellow How Are Licensees Selected? • • • • • • • • Offer high quality products and adequately promote them History of brand building capabilities Dedicated sales team Regional coverage 2012 Licensees Strategic orientation Within U.S. Competitive position Outside U.S. Distribution channels Financial position – Willingness to invest in Cat program • Reputation, ethics Global Brand Management Caterpillar Confidential Yellow 31 24 Quality Control Process • High-quality products with stringent standards • Brand attributes • Identity standards • 3-step approval process (>26,000 reviews/yr) • Concept, pre-production, production Global Brand Management • Production audits, random sampling • Approvals processed in Peoria, IL • Electronic reviews for overseas customized orders • Samples are archived either in Peoria or with licensee • Financial penalties if process not followed Caterpillar Confidential Yellow Infringement and Counterfeiting Parts Product Identity Packaging Global Brand Management Signage & Decals Caterpillar Confidential Yellow Counterfeit Licensed Merchandise Global Brand Management Caterpillar Confidential Yellow - “Carton No.” will match one of 1,089 numbers (provided) GENUINE COUNTERFEIT - Logo will match transparencies (provided) - Edge of “C” is rounded – not squared - Edge of “T” blocked – not pointed - Address and label positions located UNDER label Global Brand Management Caterpillar Confidential Yellow At Caterpillar Brand Management is a TEAM Business… …and the name on the front is more important than the one on the back! Global Brand Management Caterpillar Confidential Yellow Global Brand Management Caterpillar Confidential Yellow Keeping our brand strong means delivering every customer touchpoint consistently …and it’s everyone’s responsibility! Global Brand Management Caterpillar Confidential Yellow Thank You! Global Brand Management Caterpillar Confidential Yellow