SYNOPSIS: Martin Marietta Materials is one of the largest producers of construction aggregates in the nation. Facing the downturn in the economy in 2001, they needed to increase their bottom line to raise stock prices and satisfy shareholders. Through insightful tactical decisions during the recession, Martin Marietta Materials' top management team feverishly acquired many of their competitor's production facilities. The result was a vastly increased logistical network combined with an increase in total aggregate production due to the acquisition of additional facilities. In 2002, the message from top management was "find new revenue streams" to help them increase profitability. Two years earlier, the Houston office had started a new project, but were unable to pursue this new revenue stream because they had a branding problem. They simply could not develop a brand name and identity that was powerful enough for this extremely important product launch.

This crucial project, a new paving system, involved a innovative new product called "Strata®." "Strata" is a one inch think, highly elastic asphalt-based interlayer that adds up to 10 years to the life of an existing pavement structure. The Strata® technology was the key to increasing the lifetime of roads and highways. It was the solution to one of the paving industry's most pervasive problems – reflective cracking.

Reflective cracking is a condition that prematurely degrades the quality of roads and highways. Reflective cracking is caused from extreme weather conditions and heavy traffic – both of which are exacerbated in congested cities with increasingly worsening traffic problems. Reflective cracking costs states hundreds of millions of dollars annually and heightens traffic congestion due to the need to continually repair or repave roads and highways. A comprehensive study in Texas revealed that Harris County, the city that Houston resides in, exemplified all of the conditions that increased the onset of reflective cracking. Heavy rains; a blazing summer climate with heat indices reaching 120 degrees; a vast highway system and ongoing traffic construction made this the perfect location to test this new paving process and introduce Martin Marietta Materials' new brand.

The Strata technology, licensed from Koch Industries, represents a monumental leap in technology that will revolutionize the paving industry. Martin Marietta's strategy was to implement this technology into their traditional HMA (Hot Mix Asphalt) paving system. Because they were paying Koch Industries a monthly licensing fee for almost two years, the pressure to show a return on investment was very high. This is when Martin Marietta Materials approached Mindcandy Studios to help them develop their new brand.

CHALLENGE: The development of the Milex paving system was extremely challenging because it presented Mindcandy Studios with a wide range of strategic considerations and branding scenarios. The first challenge involved a co-branding issue with Koch Industries' sibling brand – Koch Pavement Solutions. This involved an exhaustive and intense market research study on Koch Industries, it's sibling; Koch Pavement Solutions; and its family of six brands. Second, was the fact that Martin Marietta Materials was introducing a new sibling into their brand mix. Mindcandy Studios needed to consider both the parent brand as well as their other sibling brands, namely; Duraspan®, Flowmag™, and Cellguard™.

Third, we had to consider which would be the best division for this new sibling. Milex was part aggregate and part technology; part product and part process. We felt that it would not fit comfortably under either the aggregates division nor the composites division. Because of our vast experience in brand development, we saw this seemingly complex issue as a potential strategic asset. Knowing that creating a new category is the ideal situation for any branding endeavor, we advised Martin Marietta Materials that the best branding strategy was to create a new category. When you create a new category – by definition – you become the leader in that product category.

SOLUTION: Mindcandy Studios provided a multi-faceted brand development solution, including: strategic marketing consultations, brand name creation, brand identity design, positioning tag line creation and marketing communication design and consultations. We started with an intensely focused discovery period to determine the best strategy.

First, we asked, "what are Martin Marietta Materials short-term and long-term strategic goals and objectives?" Second, we performed a complete competitive landscape analysis to study the competition's strengths and weaknesses; their core competencies and product lines; and the legal status of their existing and developing brand names and trademarks. Third, we segmented our audience by defining the following three categories: specifiers, purchasers and influencers.

Based on our in-depth brand analysis of both Martin Marietta Materials and Koch Industries, we noticed some striking similarities between the privately-owned giant – Koch Industries – and the publicly-held corporation – Martin Marietta Materials. Our brand evolution study showed that Martin Marietta mirrored both Koch Industries' commitment to research and development and their investment into technology as a method to improve quality, enhance efficiency and define their distribution channels.

As one of the industry's earlier manufacturers of airplanes and missile systems, technology had played an important role in Martin Marietta's success. As such a pervasive part of their brand, we saw Martin Marietta as evolving into a materials-based technology company – much like Koch Industries some twenty years earlier. It was this analogous discovery that helped us prepare our strategic marketing consultation.

Mindcandy Studios' strategy involved redefining Martin Marietta Materials existing product offerings by adding a new division, simply named "technologies." Within this new division would reside all of Martin Marietta's technology-driven products and services, including both composite materials and magnesia chemicals. Knowing that innovation and obsolescence are inseparable, we advised Martin Marietta to create a new product category beneath the technologies division, which we appropriately named Pavetek™; a truncated name for "pavement technologies."

The logic behind these strategic recommendations is as straightforward as it is simple.

First, we reposition the parent brand – Martin Marietta Materials – from simply a producer of construction aggregates to a technology-based materials company; thereby leveraging their existing brand equity, altering public perceptions, increasing shareholder interest and raising the price of common stock – increasing the parent brand's net equity.

Second, we consolidate Martin Marietta's existing technology-based brands under one newly defined division; thereby increasing awareness of the parent brand's commitment to producing improved materials through innovation.

Third, we create a new product category. The creation of the Pavetek™ category of products would benefit the parent brand in three ways. First, and most importantly, it would insulate them from the inevitable technological obsolescence of the new brand – Milex Paving System. Second, it would allow Martin Marietta Materials to license additional pavement technologies from Koch Pavement Solutions, thereby nurturing their strategic relationship. Finally, by creating a new line of technology-based paving products it would allow Martin Marietta Materials to fulfill its long-term goals of creating new revenue streams and increased net profits.

During the brand development process, Martin Marietta Materials decided that they needed to brand their proprietary asphalt binder. Mindcandy Studios created the brand name "visimax". The Visimax™ binder is a specially produced HMA binder that reduces water back spray, increases visibility and improves traction, resulting in a superior experience for the driving community.

Mindcandy's final strategic contribution to Martin Marietta Materials branding problem was to help support the parent brand's position – "possibilities." Although wordy, Martin Marietta's existing positioning tagline – "It's not what we make, its what we make possible" – does a good job of positioning the company. In keeping with the parent brand's position, Mindcandy Studios created a tagline for the newly created product category, Pavetek™. We positioned Pavetek™ with the tagline "A World of Paveabilities™."

RESULTS: After extensive market research and exhaustive brand name exploration, Mindcandy Studios and Martin Marietta Materials made a final decision on the brand name – "Milex" paving system. The word "milex" is short, is phonetically easy to pronounce and it is easy to spell. It contains the word "mile" and connotes the words extension and expertise. Linguistically, it has a high-tech auditory tone. The brand identity is extremely strong both visually and conceptually. The implementation of the highway graphic captures the essence of the brand. The curvature and layers of the cross-section of the road symbolizes the elasticity of Strata® and the flexibility of the paving system; specifically the utilization of locally available aggregates to improve material quality and reduce construction costs.

Additionally, the importance and location of the Strata interlayer is prominently displayed in the identity, thereby satisfying Koch Pavement Solutions co-branding requirements.

Finally, the transition of the road into the brand name "milex" visually translates the systems multi-tiered pavement process. The concrete structure is first covered with the Milex interlayer. Next, it is topped with the Visimax™ binder, which is clearly displayed in the brand identity as the top layer in the word "milex." The black "line" that transitions from the brand identity into the word "milex" visually shows the actual Milex interlayer.

Because this is a highly specialized product with a narrowly defined audience, we advised Martin Marietta's management team to retain the services of one of the best public relations firms in Houston.

CONCLUSION: Mindcandy's strategy was to create a new category; become the leader in the category; utilize public relations to create a news story; issue press releases and stage a news event for local new agencies. This strategy will save tens of thousands of dollars in advertising expenses while ensuring a successful product launch. The creation of a new category is an extremely rare and desirable position to be in. Martin Marietta Materials is poised for a successful product launch.