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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
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Keeping Our
Brand Strong…
the Cat Brand
Experience
Global Brand Management
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Touch Points = Brand Experience
Marcom and Brand Promotion
Products & Services
Environments
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Product Consistency - Within a Family
Global Brand Management
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Product Consistency – Across Families
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Trade Dress Extension to Packaging
Global Brand Management
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Proper parts
branding builds
brand loyalty
(and generates
parts sales!)
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Dealer Identity
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Caterpillar Facility Identity and Branding
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Leveraging a Consistent Brand
Advertising, Web, Social Media,and Marketing Materials
Consistent look, tone and brand messaging
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Retail Business Development
FORGED BY WORK. DRIVEN BY LIFE.
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Why Do We Do This?
Builds Awareness and Connection
Promotes the Brand
Protects IP
100 million pairs Cat footwear!
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“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
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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
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Infringement and Counterfeiting
Parts
Product Identity
Packaging
Global Brand Management
Signage & Decals
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Counterfeit Licensed Merchandise
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- “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
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At Caterpillar
Brand Management is a TEAM Business…
…and the name on the front is more important
than the one on the back!
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Global Brand Management
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Keeping our
brand strong
means delivering
every customer
touchpoint
consistently
…and it’s everyone’s responsibility!
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Thank You!
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