rand wherever ed are not Asan 3M sstone for brand proposition to the ue model has the difference and pme value element pre or two points of bse value elements. plued by the target ements, falue management, ospective cus: fs resources, invest- brand building for nd iden: upon an¢ pare ack the requ BOX 4.4 Building the Infineon Technologies® Brand Siemens is a Germany-based, 160-year-old gant comprised of diverse businesses such a3 | felecommiinications, appliances, computers, ‘{ muclear power plants, trains, and medical “equipment In 1999, a decision was reached to ‘ave Siemens Semiconductor (SC) out of the iroup. Three reasons led to ths spin-off deci- ion: Firs, as a small part of the company {Gpercent of Siemens’ tal revenues), Siemens | Sc-id not have a separate identity and suf {ere from negative perceptions of Siemens as 1 slow-moving conglomerate. Secondly, being, part of a highly centralized organization lim fted its flexibility dramatically. For example, Stemens SC could not compensate its employ- ‘ees with stock options or aggressive compen sation plans as other high-tech component suppliers could. Finally, Siemens SC needed to Jhaveits own, more attractive stock to purchase sap companies and grow through mergers ‘Tomplement this decision and create an demtty for the new firm, senior managers Workshops in Europe and in the | TGhited States. They purposely selected a ‘workshop participants younger employees in fechnology or sales who were close tothe core activities and the customers, Workshop par- | eipants were asked to brainstorm about the | attnibutes ofthe new company, based on real- ity as well as desire. Words lke dynamic, ‘enthusiastic, innovative, passionate, flexible, and faleplable represented the character and values [that employees wanted the new brand to reflect the most, “The results ofthese workshops were crit Jeal in deciding upon the actual brand name Management chose Infineon as a blend of infinity, eternity (ean in Greek), and new (neon in Grech), Infinity relers to the scope of the Dusiness and the fat that Infineon is a global ‘company. Eternity conveys a sense of security for everyone: Infineon will be around for a Jong time. New reminds about the new start, thenew culture, and the new entrepreneurial spirit. The appropriateness of the Infineon thamé was thoroughly checked legally and Tinguistically. Management chose a tag line for the brand: “Never stop thinking.” Employees found this tag line exciting and engaging because it reinforced that the com- panty valued and encovraged their thinking “To announce the new brand and use it as a catalyst for launching a new culture, man- ‘agement decided to organize a huge party at teach of its sites worldwide. The 25,000 Infineon employees were invited to celebrate ‘on March 26,1989, when the CEO announced and explained the new name. A short adver tisement was played to introduce Infineon. Management explained why the company was sing public. The next day when people came Back to the office, they foind huge eanvasses along their buildings, displaying the images of the intial advertising campaign. Some of the messages were rather provocative. Referring to employees, one. stated: “On April 1, 1993, something happened .. and 25,644 people became completely OBSESSED." Referring to the CEO, another message gave a visionary image: "What kind of MANIAC CREATES something when NO ONE is asking for it” A third mestage emphasized the new entrepre ‘neurial culture ofthe global firm: “It seems that every famous high-tech company has started in a garage, Ours happens to park 24,983 cars ‘A team responsible for launching the new brand identity had some daunting tsks to perform, such a insuring that within a ‘week, all employees had new Infineon bus ness cards. Because the new name, brand identity, and the IPO were radical changes, cultural change did not happen overnight and some employees resisted. Nevertheless the brand has been a catalyst for a new att tude and the company has already achieved great progress A i2-per monitoring the n team is responsible for new firm's progress toward (Continued)BOX 4.5 MASER LTDA Develops a Program to Increases Its Share of Customer's Business in the Sugar Cane Industry Drawing on its analysis ofits share of cus- tomer’s business, MASER LTDA management decided to focus its efforts and target the sugar ‘ane industry as a market segment where it ‘could potentially achieve 100 percent of cus- tomer total purchase requirements, Three fac- tors contributed to this decision. Several large regional firms dominate the industry, and MASER found that it had its highest shares of customer's business with four ofthese firms. A second factor was the sugar cane industry considerable export business, which protect from downtums in the Colombian economy. Duta the same time exposes ito the pressures of global competition to modernize. The third factor was that the sugar eane industry Was part of the private sector, making it exempt from single-source supply legal proscription. ‘The main concern MASER faced when tanget- ing this industry was its cost-cutting mentality, which traditionally accounted for its lack of capital investment. MASER set its market strategy objective toachieve 100 percent shares of the sugar pro- ducers’ {otal laboratory purchase require: iments. Before crafting a positioning statement for this target that would guide its market strategy, MASER salespeople visited current ccistomers to learn more about their laborato- ries. They found out that sugar producers are focusing on increasing yield as a way to reduce total costs. Laboratory analyses are ‘crucial in this parsult, in monitoring the sugar content in the cane that growers supply and {in monitoring the by-products of the produc- tion process. Consequently, MASER formu Jated the following positioning statement: “To laboratories of sugar producers, MASER is the Jocal distributor of equipment and sup= plies, providing laboratory personnel with State-of-the-art technical support to select and implement optimal solutions for monitoring the sugar content of inputs and in-process materials Source: C University 1s Se Understanding Value -MASER niext developed a sales and mar ting plan designed to-achieye its objective “The firm allocated a dedicated salesperson to visit all targeted companies on a weekly bass, ‘while others served the rest of the customers in ther market segments to avoid losing current ‘sources of revenue. The objective ofthe visits twas to increase MASER’s share of the cus tomer’s mind to influence purchase decisions and to facilitate monitoring of competitor activity. MASER also used these visits to obtain {information for the development of an equip- ‘ment purchase economic justification model, ‘which it could tailor to particular customers, (MASER offered supplementary services that could either be sold separately as value- adding options with the equipment, or exchanged for a greater share of the cus: tomer’s business, These services included just-in-time inventory of required supplies, local availability of spare parts, technica! training, preventive maintenance and repairs, and equipment loaners. The company was lable to offer many of these services at eason- fable cost to itself by pooling resources across ‘similar customer requirements. Obtaining direct distribution for the equipment and sup~ plies used in targeted applications was also key to being price competitive “The measures of feedback in this program were the acquired share of customer total pur chase requirements, and customer and target ‘segment profitability. MASER is considering providing incentives for sugar cane customers fo further consolidate their laboratory business with MASER. These incentives might entail the provision of additional services that would be justified for those customers willing to com- zit to 100 percent of their laboratory purchase requirements to MASER, Finally, MASER plans to utilize the application expertise it equines to expand to other market segments Including, groweFs, sugar cane associations, ‘and users of sugar cane process by-products ieibuted by Research Associate Sanden Diaz, Kellogg School of Management, Northwestern