Brand Management

Strengthening and Protecting

Caterpillar and Cat
Intellectual Property Owners Meeting
September 10, 2012

Ed Smith
Caterpillar Inc.

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 $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 Interbrands 2011 list of global brands
$5.5B Brand Value

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 Our Brand Portfolio Today

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 Keeping Our
Brand Strong
the Cat Brand
Experience

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 Touch Points = Brand Experience
Marcom and Brand Promotion Products & Services

Environments

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 Product Consistency - Within a Family

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 Product Consistency Across Families

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Trade Dress Extension to Packaging

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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 (24)

2012 (+15)

2013-14 (+40)

2015 > 100

Leveraging merchandise as a Marcom tool

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 Industry Recognition

Retail Sales History

#40 (in millions)

1200
1000 $1.1 B
800
600
400
200
0
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. 31
Competitive position
Outside U.S. 24
Distribution channels
Financial position
Willingness to invest in Cat program
Reputation, ethics

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 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
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 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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 Keeping our
brand strong
means delivering
every customer
touchpoint
consistently

and its everyones responsibility!

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 Thank You!

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