WEYERHAEUSER BRAND STRATEGY

Background

Founded in 1900, Weyerhaeuser has grown to become the world’s largest private owner of timberlands. The company owns or controls more than 6 million acres of timberlands, primarily in the U.S., and manages another 14 million acres under long-term licenses in Canada. It is also one of the largest manufacturers of wood and cellulose fibers products. Approaching (US)$10 billion in revenues for 2013, the company’s growth has been conditioned by the reemergence of the construction market after the global financial crisis, and by key acquisitions.

Challenge

Weyerhaeuser’s Wood Products division represents the largest share of the company’s interests. The dimensional sawn lumber business is heavily commoditized as the product is specified and rated by industry standards, widely available and over-supplied. Competitors, desperate to generate cash flow, have drawn down pricing to unsustainable levels. In an effort to derive differentiation, steal share and support margins, various branded groupings of graded lumber were developed, including ingredient technologies for wood treatments. Additionally, the Oriented Strand Board business (flooring & sheathing) developed a variety of product grades and installation solutions that each had different brand names. Finally, Weyerhaeuser had a branded Engineered Wood Product (TrusJoist) that was thought to have some differentiated offers and premium value, though not quantified. Product branding for the portfolio was a fairly decentralized function, creating a “soup” of different names, logo identities and messages to the buyer, specifier and channel.

Weyerhaeuser engaged Stoke to determine the value of the “TrusJoist” brand, develop a brand position for Engineered Wood Products, and rationalize the entire wood products and solutions portfolio to support both market segment and corporate objectives.

Outcome

Stoke conducted qualitative and quantitative research, including a discreet choice analysis to evaluate product and service opportunities, and to isolate the price premium afforded to the TrusJoist brand name. For the first time, Weyerhaeuser was able to isolate the pricing leverage associated simply with a brand name. And, they understand (quantitatively) the factors of consideration and choice that cause channel partners to prefer and stay loyal to their brand.

Stoke developed the brand position for Engineered Wood Products, reflecting smarter building solutions, and made recommendations which were subsequently adopted for marketing, operations and customer support

Stoke conducted a comprehensive audit of the wood products portfolio including naming, architecture, nomenclature and visual identity. A variety of design solutions were developed, unifying the Weyerhaeuser brand, and quieting aspects of commodity portfolio so that the division’s brand expression reflects Weyerhaeuser’s strategic emphasis to customers and the channel.