Agenda

Slide 2:Agenda

Creating a value proposition which addresses diverse customer needs Understand how Dow Corning built and launched both a new brand and new business model Learn some �dos and don�ts� in global naming. Learn some common pitfalls of brand management.

Slide 4:Industries We Serve

Automotive Beauty & Personal Care Chemical Manufacturing Construction Electronics Healthcare Household and Cleaning Imaging Compound Semiconductor Industrial Lubrication Oil and Gas Paints and Coatings Plasma Power and Utilities Pressure Sensitive Products Rubber Fabrication Textiles and Leather Services

Slide 5:New Approach Needed

After nearly 60 years of success, driven by innovation and R&D investments, we faced new pressures: Increased competition Parts of our business maturing Differentiation more difficult Global economic slowdown �New economy� sours

Slide 6:Implications for Dow Corning

Success much more difficult Increased financial pressures Inward focus must change; corporate culture change required Rethink our traditional approach to serving customers; must become more flexible to address diverse customer needs Must think holistically, but segment appropriately

Slide 7:The Groundwork

$100 million in SAP-based global IT platform Reengineered company- people and processes Redesigned business/commercialization processes Laser beam focus to improve our understanding of customer�s needs: Researched their needs on a global basis Conducted segmentation surveys Measured customer satisfaction Extensive external benchmarking in industry and out Branding audits

Slide 8:Strategic Direction

Realigned products and services based on growth rates and future potential Shifted resources to fast-growing, high-potential businesses Enhanced partnerships With customers With complementary product and service providers Offer total solutions

Slide 9:Result:

One Company. Two Diverse Business Models Many Customer Choices. Revitalized Master Brand Newly Created Offer Brand.

Slide 11:Solutions for Customer Needs

Innovative solutions, based on cutting-edge technologies and expertise in getting products to market Grow Reliably, using proven solutions tailored for customer�s application Drive Costs Down, using Dow Corning technology to improve process efficiency or outsource specialized applications NEW BRAND X For customers who know exactly what they need, order in large volumes, and don�t need all the frills

Slide 12:New Brand and New Business Model

Global introduction in March 2002 � launched in 50 countries simultaneously Fully utilizes our SAP� backbone, HAHT software and business process efficiencies Offers our customers choice, low cost, and an easy way to do business online Target customers are those who buy in large volumes and know what they need

Slide 13:How Does BRAND X work?

Simple, clear business rules Online order entry electronically linked to global real-time production planning Defined shipping units Facilitates management of supply chain Transparent, dynamic �real-time� pricing Based on global supply and demand Brand X customers encouraged to use web Surcharge for rush orders, manual order entry Delivers clarity, choices and the tools to help our customers succeed

Slide 14:Building the New Global Brand

Slide 16:Brand Positioning and ValuesBrand X becomes XIAMETER�

Energetic OpenHonest Empowering Trail Blazing 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 Brand Drivers: Clarity, Choice, Freedom to Succeed. Brand Drivers: Clarity, Choice, Freedom to Succeed.

Slide 17:Tips on Global Naming - DO

� Consider the long-term strategy for the name you�re developing. Do you want something highly descriptive to play along a narrow front (Silastic� for silicone rubber), or a more generic or coined name to allow for brand expansion across categories (Virgin�) � Consider how the new brand name will fit into your firm�s brand architecture and brand hierarchy systems. Will it be a master brand on its own? A sub brand?

Slide 18:Tips on Global Naming - DO

� Consider the real fixed and potential costs involved in creating, registering and defending a new name. � Keep an open mind to all possible names. Generate a lot of options, hundreds if possible Seek out and use one of the many specialized naming consultancies to help navigate the �land mines� and pitfalls associated with the naming process.

Slide 19:Tips on Global Naming - DO

Conduct native speaker linguistic checks. Look for similar meanings Look for similar sounding names that run counter to your goals or worse could be embarrassing to your business. Look for slang words that are similar that could negatively impact you. Look for any problems in pronouncing your brand name in other languages and balance against your objectives. Consider any potential conflict with surnames in various countries in which you plan to operate.

Slide 20:Tips on Global Naming - DO

� Set up a defined criteria as to how names will be judged in the process and stick to it. Some criteria I�ve used recently include: ability to articulate the brand�s attributes ability to translate well into other languages ability to pronounce in other languages ability to own the name outright and define the word ability to be protected: domain, trademark, etc � Avoid confusion by deleting names that have negative double meanings or are hard to pronounce in key languages, or contradict your positioning

Slide 21:Tips on Global Naming - DO

Communicate how the name fits into the overall strategy for the business. Discuss internally how the name fits the business model and how customers will come to know and experience the name. Allocate the proper amount of time and resources to adequately communicate your new brand name to your intended target audiences to build equity in your new investment.

Slide 22:Tips on Global Naming � Don�t

Fall in love with any specific name early in the process. Have too many people involved in the name selection process. This is not to say avoid testing, but final selection of the name should be done by a smaller number of people.

Slide 23:Tips on Global Naming � Don�t

Have the conversation again. Once the name has been selected do not communicate what the second choice or other options on the list were. Short cut the process, sooner or later shortcuts will come back to bite you and could be potentially expensive and embarrassing to your company.

Slide 24:Tips on Global Naming � Don�t

Overlook the availability of Domain URLs for the name you�ve chosen. If the name you�ve chosen is not available, it is not the end of the world. Disclose your interest in a URL that has already been taken, but not developed. Have a third party negotiate on your behalf and keep your identity to yourself until after you own the name.

Slide 25:Tips on Global Naming � Don�t

Rule out an alternate domain name if the one you�re after is already taken. If another company already has possession of a domain name in which you�re interested, consider creating an alternate version. Rush the process. Naming done well and on a multi-country or global scale takes time. Allow time to conduct the proper checks and balances ahead of launch, as mistakes caught after introductions are far more costly to correct.

Slide 26:Introducing the XIAMETER� Brand Internally

Slide 32:Customers Have Choices

Flexible ship dates Materials delivered in all sizes and quantities Extensive services and solutions from Dow Corning E-commerce services Innovative, proven & cost-effective solutions Technology and R&D Personal customer service Lead time requirements, average 7-20 days Large volume orders Guaranteed shipping dates No technical service Web-enabled business Commonly used silicones Lowest base price Dedicated sales force Dow Corning� XIAMETER�

Slide 33:Building Our Brand Equity

Successfully migrated customers�and they�re staying with us. Winning new customers Opening new geographic markets Contributed significantly to Dow Corning�s sales performance Halved industry average for working capital �Best in class� inventory and strong A/R performance Achieved investment payback 3 months after launch Little cannibalization of Dow Corning business Before and after audits show dramatic impact

Slide 34:Common Pitfalls in Managing Brand Equity

Not having clear picture and purpose for the brand before promoting it. Not having all employees understand the brand promise and committed to fulfilling it. Extending the brand for short-term sales gain vs long-term asset build. Not properly controlling the brand�s visual identity, brand voice, and other branding elements. Being so tight with the brand that it loses relevance with customer base. Need to balance consistency with change. Not auditing brand performance and setting clear brand metrics.