SOURCE: CoreBrand

June 13, 2007 11:00 ET

Dow Chemical Company Brand Equity Soars, FMC Drops Precipitously, 3M Holds Steady, According to CoreBrand Study

STAMFORD, CT--(Marketwire - June 13, 2007) - "When you think of the chemical industry you don't often associate it with dynamic and powerful brands. Yet, a commodity industry is exactly the kind that can create leverage and differentiation in its brand, which translates into tangible value," says James R. Gregory, CEO, CoreBrand www.CoreBrand.com, a global brand strategy and integrated communications firm which has tracked corporate brand equity since 1991.

According to Gregory, "The industry itself has mirrored the ebbs and flows of the Corporate Branding Index of 1,200 companies that we've been tracking their corporate reputations on a quantitative basis for the past 16 years."

--  Dow Chemical Company has grown its brand equity 34% over the past five
    years -- from 12.13% of its market cap to 16.22% (4.09 growth of brand
    equity)!
    
--  The drivers of brand equity for Dow are their consistent
    communications program. According to TNS Media advertising the Dow has
    grown from $3.6 million in 2001 to over $57.3 million in 2006 a significant
    commitment to the brand over the past five years.
    
--  In contrast, FMC Corporation has lost considerable brand equity over
    the past five years, with its brand equity dropping from 3.73% of its
    market cap to 1.16%.
    
--  FMC has been not committed any significant effort to building its
    brand, spending less than $1 million per year on its corporate brand over
    the past five years.
    
--  3M another major player in the category has been increasing its
    communications budgets modestly over the past five years, from $17.3
    million in 2001 to $31.2 million in 2006.
    
--  The effectiveness of 3M's spending is somewhat questionable since the
    corporate brand equity has remained relatively flat to somewhat down --
    declining from 13.21% to 11.65% from 2002 to 2007.
    
--  Rohm & Haas has increased significantly and consistently from 2.05% in
    2002 to 5.10% in 2007.
    
                           Chemical Industry Brand Review


Chemical Industry Overview

Year            Brand Equity as a          Brand Equity as a
                  % of Market Cap            % of Market Cap
             - Chemicals Industry   - All Indexed Industries
                                                     Average
              -------------------   ------------------------
1Q 2007                     4.37%                      6.79%
1Q 2006                     5.17%                      7.22%
1Q 2004                     5.99%                      7.57%
1Q 2002                     5.71%                      7.49%


Industry Company List

               Brand Equity   Brand Equity   Brand Equity   Brand Equity
                  as a % of      as a % of      as a % of      as a % of
                 Market Cap     Market Cap     Market Cap     Market Cap
Company           - 1Q 2007      - 1Q 2006      - 1Q 2004      - 1Q 2002
               ------------   ------------   ------------   ------------
3M Company            11.65          13.58          15.55          13.21
A. Schulman Inc.       0.97            N/A            N/A            N/A
Air Products &
 Chemicals, Inc.       0.47           0.90           1.85           1.03
Avery Dennison
 Corporation           3.29           4.51           5.29           4.66
Cabot Corporation      1.17           1.17           2.11           1.80
Dow Chemical
 Company              16.22          15.77          13.91          12.13
DuPont (E.I. du
 Pont de Nemours
 and Company)         15.21          15.90          16.26          15.30
Eastman Chemical       2.13           2.90           4.42            N/A
Ecolab                 1.64           2.20           3.28           2.88
FMC Corporation        1.16           1.92           2.77           3.73
Georgia Gulf
 Corporation           2.09           2.56            N/A            N/A
H.B. Fuller Company    2.45           2.90           4.35           4.11
Hercules Inc.          2.01           2.76           3.71           3.48
International
 Flavors & Fragrances  1.21           1.31           2.17           2.05
Lubrizol
 Corporation, The      1.06           1.98           2.99            N/A
Millipore Corporation  3.82           3.82            N/A            N/A
Monsanto Company       9.89          10.05           8.92            N/A
Olin Corporation       4.07           4.81           4.94           5.31
Pall Corporation       0.61           1.15           2.01            N/A
PPG Industries, Inc.   2.96           4.31           6.43           6.41
Praxair Inc.           1.76           2.21           3.58           1.47
Rohm & Haas Company    5.10           4.87           2.93           2.05
Sherwin-Williams
 Company, The         15.78          15.46          15.86          16.44
Sigma-Aldrich
 Corporation           1.73           1.96           2.42           0.97
Wellman Inc.           0.71            N/A            N/A            N/A
               ------------   ------------   ------------   ------------
Industry Average       4.37           5.17           5.99           5.71
Do B2B Brands Really Account for Anything?

If you think branding is just for companies that market to consumers, think again.

"B2B companies often have difficulty developing brand metrics that senior management understands. Measuring ROI can be daunting when it comes to gathering data over time, which might seem to be a challenging task even for the most ardent brand champion. We're often asked if it is worth the effort for B2B companies, like chemical manufacturers, since they aren't marketing to consumers," Jim Gregory, CoreBrand CEO.

"However, the connection between corporate branding and financial performance is well established, if not widely understood. If you are familiar with a corporation's brand, you are more likely to buy that firm's products and services, increasing its cash flow. You are also more likely to buy the stock of a company that you are familiar with and which you trust. Unfortunately, understanding these simple truths is often cause for tremendous anxiety between marketing and financial departments. The unfortunate consequence is that in many B2B companies, brand management does not get the attention or the resources it deserves," said Gregory.

About CoreBrand

CoreBrand (www.CoreBrand.com) is an independent, global brand strategy and integrated communications firm specializing in measuring, crafting and expressing corporate brands. Headquartered in Stamford, CT, with offices in New York City and Tokyo, the company works with many of the best-known brands in the world.

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