Monobrand Steering Committee April 2023

Agenda
Research Results Update
Design Updates
Next Steps
Updated Deliverables Calendar
MONOBRAND REFRESH // OBJECTIVES

Create one store design that is:

• Progressive
• Authentic
• Approachable

Consistent store experience,

regardless of continent or country
Cat Brand Strengths and Vulnerabilities
Reinforce the brand’s
Strengths: authenticity as the leader in
• Quality/Premium Vulnerabilities: heavy duty equipment
• Durability/Strength • Conservative
• Safety • Conventional
• Authentic Reinforce and • Global Coherency Overcome the brand’s
perception of being
• Dealer Capability amplify strengths, • Overpriced
• Industry Leadership • Arrogance conservative by embracing a
• Innovation overcome • Inhibited Passion
• Approachability modern, progressive approach
• Productivity
• Precision vulnerabilities. • Lacking Personality
• Established Brand Improve the brand’s
• High Awareness perceptions for being arrogant
• Global Scale
at times, by being welcoming
and approachable
INSPIRE & IGNITE
PASSION FOR THE
BRAND
Why are we here today?
SHARE AN UPDATE ON MONOBRAND RESEARCH

REVIEW TIMELINE FOR FINAL DESIGN

GET YOU ALL EXCITED FOR WHAT THIS NEW STORE

CAN DO FOR THE BRAND

1H23 Key Stories: Life June 16, 2021 6

Why did we do research?
We felt confident this process was going to deliver the
best expression of the Cat brand for retail.

But we heard your concerns.

We decided to pause and leverage research to ensure we

are delivering a store concept that meets our objectives
and alleviates your concerns.

1H23 Key Stories: Life June 16, 2021 7

RESEARCH UPDATE

Goal:
Ensure the store
design meets our
business goals

Qualitative
+
Quantitative
RESEARCH APPROACH

Qualitative: Chile
Understand brand recognition, perception, fit, interest in shopping – through Voice
of the Consumer
Really get at the why behind consumers’ reactions to the store design
• Why does it fit your expectations of the brand?
• Why would you or wouldn’t you shop this store?

Quantitative: Chile, China, Guatemala, US

• Measure statistically significant brand recognition, fit for the brand and
shopping intent, ability to breakthrough/get the consumer’s attention
• Ensure the new store design meets the brands' goals for: Progressive,
Authentic, Approachable
PROGRESSIVE

The new design signals a modern update to a familiar brand

Qualitatively, consumers used words like modern, current, and updated to describe the new concept –
in addition to forward-thinking words like innovative and inclusive.

Modern or Progressive (50%)

MODERN is the
#1 word associated with
the new store design
Quantitative Research
Conservative or Traditional (13%)

Word Association, % Selected (n=726)

PROGRESSIVE

The new design signals a modern update to a familiar brand

Quantitatively, consumers feel the new design is unique and different.

82% of consumers agree or strongly agree with “This

design feels unique and different from other stores
available to me”
Somewhat
Neither
11% “It is innovative to have this
Neither
11%
Somewhat
Disagree
Agree
46%
more open, brighter concept
Somewhat
6% Strongly
Agree as the generations change.”
Agree Strongly
Disagree 36%
46% 2%

Strongly Cat Customer,

Agree
36% Focus Group

Agreement, % Selected (n=726)

AUTHENTIC

The design does not feel like a deviation from our origin
Consumers said the look, feel, and mood of the Cat brand has been preserved through ”industrial” elements like an
exposed ceiling, concrete floors, and textures and graphics reminiscent of the machinery and factory settings for which
Caterpillar is known.

43% of consumers felt the new store

design was authentic and unique for Cat
Authentic or Unique (43%)
Generic (6%)
55% of consumers agree that
‘I can clearly see the
connection between the store
design and the Cat brand’

Word Association, % Selected (n=726) Caterpillar Connection, % Selected (n=726)

AUTHENTIC

The design feels like the Caterpillar brand

Consumers recognize the brand as Cat when no branding is included.

Nearly 4 out of 10
consumers recognized
the store (aided) as
Caterpillar
Associated the new
design with Cat from
a list of 18 brands
Brand Association, Aided (n=726)
APPROACHABLE
Its open, welcoming environment is likely to draw consumers in

Approachable, Open, or Welcoming (56%)

56% of consumers
described the new
store concept as
Approachable, Open or
Welcoming Uninviting or Tight (9%)

Word Association, % Selected (n=726)

APPROACHABLE
Its an open, welcoming environment is likely to draw consumers in

Somewhat Disagree
Neither

76% of consumers say

6%
15%

the new design is warm

Strongly Disagree
3%
Somewhat
Agree

and welcoming
42%

Strongly
Agree
34%

“This design feels

warm and inviting”
Agreement, % Selected (n=726)
APPROACHABLE
Its open, welcoming environment is likely to draw consumers in

80% of consumers say they

would be likely to go into the
updated store design
How likely would you be to consider going into this store to shop?

Likelihood to Consider, % Selected (n=726)

Initial design update between phases

“The colors are very

characteristic.
I feel it may just be a
matter of warmth.”

Cat Customer,
Focus Group

Lot of room for

Improvement
(Bottom 2 box)

Qualitative Stimuli
Initial design update between phases

61% of consumers
said the store front
is perfect and they
would not change
a thing.

Quantitative Stimuli
Initial design update between phases

“The colors are very

characteristic.
I feel it may just be a
matter of warmth.”

Cat Customer,
Focus Group

Lot of room for

Improvement
(Bottom 2 box)

Qualitative Stimuli
Initial design update between phases

58% of consumers
feel the materials
and finishes are
perfect and they
would not change
a thing.

Quantitative Stimuli
Next Steps
FINALIZE ANALYSIS OF THE QUANTITATIVE STUDY

REFINE THE DESIGN BASED ON RESULTS

FINALIZE MATERIALS AND SPECS

PUBLISH FINAL WORKBOOKS

1H23 Key Stories: Life June 16, 2021 21

Strong and

Updated Timeline
independent

Steering Committee June 2023:

Check ins (between Final
April: Quant study
now and Q1 2023) – workbook
OCT: First mood 3X to date results shareout
delivered to
boards shared with
partners
partners

Q4 2022 Q1 2023 Q2 2023

Q4 2022: Cat Inc, February/March May 2023:

SRI, WWW to work 2023: Consumer Share R3 of
with BBR on store research the store
concepts design

Expectation: all store refreshes and new store builds will reflect the new
design beyond Q3 of 2023
THANK YOU