Strategic Marketing For The 21st Century Filipino Chemical Engineer PIChE blog

Strategic Marketing for the21st Century Filipino Chemical Engineer (Survive and Thrive the Typhoons of Change) Prof. Remigio Joseph De Ungria Jr. Ateneo Graduate School of Business

Strategic Marketing for the21st Century Filipino Chemical EngineerThis Is (Survive and Thrive the Typhoons of Change)OurStory Prof. Remigio Joseph De Ungria Jr. Ateneo Graduate School of Business

Professor’s Note This “Strategic Marketing” presentation wasshared with attendees of the 71st NationalConvention of the Phil. Institute of ChemicalEngineers (PIChE) held at the DAP ConferenceCenter, Tagaytay on Feb. 18, 2010. The conference theme was: Professionals inChallenging Times… Emerging Opportunities. With minor modifications, updates, thispresentation was also suitable for any professionaldesiring to survive and thrive an uncertain future. Prof. Bong De Ungria

What will OUR story tell?A. Past disastersB. Major changes for last 24 yearsC. 4 Fearless PredictionsD. 4 Strategic Recommendations to Survive and Thrive

Smart ChE define disorder as ENTROPYDisaster Bad things thatCatastrophe happen to usCataclysmic ChangeBad Luck Bad= somethingKarma we don’t want

Direction of change is to create more disorderA + BC AC + BUntil a temporary equilibrium is reached,Then, change happens again

Everyday news report everyday disastersEarthquake Bad things thatTsunami happen to usFloodsViolent Crimes Bad= somethingClimate Change we don’t want

4 Characteristics of a disaster:1. Worse off after it happens2. Often unexpected3. Life changes as we know it4. Affects us & our loved ones

4 Characteristics of a disaster:1. Worse off after it happens2. Often unexpected3. Life changes as we know it4. Affects us & our loved ones 2012: The Movie The actual disaster was Greater, wider, faster than the prediction. But more survived than expected

How did Typhoons Ondoy and Pepeng affect you?Me- 2 feet of water- P15,000 damageA relative and 2 officemates- lost 200k to 2 M worth of property accumulated over many years; flooding of 2 days to 2 months

How did Typhoons Ondoy and Pepeng affect you?P 212 Billion to repair and rehabilitate- Dr. Yumul, PAG-ASA

Personal lessons from OndoyJust because it did not happen in the last 25 years, does not mean it won’t.Disasters happen when we least expect it & at worst possible time.Past performance does not guarantee future results (typical financial planning advise) 12

Remember Mt. Pinatubo?An inactive volcano for hundreds of yearsAfter its eruption 1. Ash clouds that caused global COOLING 2. Drove out the US bases 3. Instantly wiped out villages 4. Continued destruction years after

“Disasters” also happen in business..1. Lay-offs Why disasters?2. Downsizing3. Rightsizing Lost jobs4. Outsourcing5. Sub-contracting Lost income6. Regionalization Affected workers7. Globalization and their families8. Recession9. Deregulation 14

“Disasters” also happen in business..1. Lay-offs Why disasters?2. Downsizing3. Rightsizing Lost jobs4. Outsourcing What’s the Differenceincome Lost5. Sub-contracting Between6. Affected workers Regionalization A RECESSION And their families and7. Globalization A DEPRESSION?8. Recession9. Deregulation 15

“Disasters” also happen in business..1. Lay-offs Why disasters? RECESSION2. Downsizing Is when3. Rightsizing Your neighbor Lost jobs Loses his Job.4. Outsourcing5. Sub-contracting Lost income DEPRESSION?6. Regionalization Affected Is when workers I lose my Job.7. Globalization and their families8. Recession9. Deregulation 16

My strategic marketing perspective:16 of Ateneo’s 150 years

Since 1994, Active Engagement in…Industry by day, Academe at night

What I saw as a ChE…1. Shutdown/ sub-contracted2. Shutdown/ imported3. Downsized/ competed globally4. Sold to multinationals/ rightsized5. Shutdown/ regionalized

Compare Top 10 corporations revenues/ profits in 10 years 1996 20061.NPC 75B/ 6B 1.San Miguel 250B/ 10B2.Meralco 58B/ 5B 2.Petron 213B/ 6B3.Petron 55B/ 4B 3.Meralco 190B/ 13B4.Shell 48B/ 3B 4.TI 170B/ 5B5.San Miguel 37B/ 6B 5.Shell 157B/ 4B6.Caltex 34B/ 1B 6.PASAR 81B/ 3B7.PAL 31B/ -3B 7.Chevron 77B/ 3B8.PLDT 29B/ 7B 8.PLDT 73B/ 24B9.Nestle 28B/ 2B 9.SMART 68B/ 22B10.Texas Ins 25B/ 0B 10.Nestle 67B/ 6B Source: Philippines Top 7000 Corporations

2 Players dropped out of Top 70 & replaced by non-top 70 1996 2006 1.NPC 75B/ 6B 1.San Miguel 250B/ 10B 2.Meralco 58B/ 5B 2.Petron 213B/ 6B 3.Petron 55B/ 4B 3.Meralco 190B/ 13B 4.Shell 48B/ 3B 4.TI 170B/ 5B 5.San Miguel 37B/ 6B 5.Shell 157B/ 4B 6.Caltex 34B/ 1B 6.PASAR 81B/ 3B 7.PAL 31B/ -3B 7.Chevron 77B/ 3B 8.PLDT 29B/ 7B 8.PLDT 73B/ 24B 9.Nestle 28B/ 2B 9.SMART 68B/ 22B 10.Texas Ins 25B/ 0B 10.Nestle 67B/ 6BNPC and PAL dropped out of the Top 70 Corporations in 2006.SMART and PASAR were not part of the Top 70 Corporations in 1996.Source: Philippines Top 7000 Corporations

Double digit revenue growth butsingle digit profit increase

3 of 8 Top Corporations had >50% decline in profit %Interestingly, Chevron which shutdown its refinerydoubled its profitability and beat Petron & ShellIn profits as % of revenues. (4% vs. 3%)

Entropy of Top 10 Corporations (1996 vs. 2006)1. 20% fell off Top 10 & off of Top 70 – NPC (#1), PAL (#7)2. 30% had profits decreased by 50% – SMC, Petron, Shell,3. 10%: profits decreased despite double digit revenue growth – MERALCO4. Two newcomers came out of nowhere to land in Top 10 – SMART, PASAR

What I’ve learned from past1. Change will happen2. Cant stop change – Earthquake, flood – Globalization, Regionalization, Technology3. Can prepare for change4. Must convert threat to opportunity

2 Things chemical engineers need to survive whatever future1. Strategic Marketing Plan (5-20 year)2. Financial Plan (5 - 30 year)

4 Fearless Predictions for the 21st Century Filipino ChE1. Basic ChE concepts remain- Perry’s ChE handbook (first published, 1934; 8th edition 2007) • My dad used a 1959 edition • I used a 1981 ed • My son will use a 2015 ed 27

4 Fearless Predictions for the 21st Century Filipino ChE2. Global competition will dictate where ChE jobs will beLocal production only if strategic advantage in: • Supply • Operations • Proximitiy to Markets

4 Fearless Predictions for the 21st Century Filipino ChE3. ChE will remain competitive. Will be hired:Less for ChE knowledgeMore for skills & ability to think beyond what eye can see – Molecular and Atomic levels – Differences in reactions & transformations – Real value contribution to business

4 Fearless Predictions for the 21st Century Filipino ChE4. Greater chance of success if you have a strategic marketing plan

This Is IT! Four Recommendations for the21st Century Filipino Chemical Engineer (To Survive and Thrive the Typhoons of Change)

1. Think and act like a brandYOUYour expertiseYour professional career

12 Principles from Marketing Plan for Life Robert Michael Fried1. Define Business- Who Am I?2. Assess Market- Capitalize on Strength3. ID PTM- Discovering Real Me4. Launch Strategy- Find Niche & Risk5. Weather PLC- Innovate Continuously6. Balance Mix- Build My Brand

12 Principles for a Marketing Plan for Life Robert Michael Fried7. Expand Reach- Create My Legacy8. Campaign Ad- Reawaken Creativity9. Plan Distribution- Share Time & Energy10.Achieve Sales- Reaching Goals11.Analyze P & L- Keep Score12.Seek Opportunities- Make Dreams Real

2. Think and act strategicallyDevelop vision and mission statementsSet annual goals.Implement 5 to 20 year plans.Align often.

3. Develop portable, flexible 7 relevant skills.Love your company and your product.But, realize they may not be around 5 or 10 years from now.Only the fittest survive

4. Continuously learn.Windows- has live updatesMe- learned digital marketing (internet, mobile, email) in 2010… Had to do it; else be left behind

Check out my learning blog…www.josephdeungria.com

Concluding Notes-1 Great Changes are happeningThe 21st centuryhas produced great challengesAnd unprecedented opportunitiesFor the Filipino chemical engineer.

Concluding Notes-1Some new companies have emergedwinners by changing the game

Concluding Notes-2 Competition & Customers are more powerful!Today’s challenges of • Globalization • Deregulation • Technological AdvancementsHave exponentially – Increased COMPETITION and, – Empowered the CONSUMER

Concluding Notes-3 People have lost ChE jobs…Many factoriesWhere local chemical engineers used to have lifetime careers have – Closed down – Downsized/ Rightsized – Sub-contracted – Transferred to regional centers

Concluding Notes-4 New opportunities emergedOn the other hand, new opportunitiesRequiring the superior, differentiated competencies of a chemical engineerHave emerged in industries like – Food – Green Technology – Energy, Power – Internet – Biotechnology

Concluding Notes-5 Strategic MarketingIs a MUSTFor the success of the brandWith your NAME on it.

What did OUR story tell?A. Past disastersB. Major ChE changes for last 24 yearsC. 4 Fearless Predictions for ChED. 4 Strategic Recommendations to Survive and Thrive

Access this lecture 24/7 @http://strategicpinoyengineer.blogspot.com

Strategic Marketing for the21st Century Filipino Chemical Engineer (Survive and Thrive the Typhoons of Change) Prof. Remigio Joseph De Ungria Jr., ChE, ME, MBA Ateneo Graduate School of Business www.josephdeungria.com http://strategicpinoyengineer.blogspot.com

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Strategic Marketing For The 21st Century Filipino Chemical Engineer PIChE blog

by Remigio Joseph DeUngria on Feb 18, 2010

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Strategic Marketing For The 21st Century Filipino Chemical Engineer PIChE blog — Presentation Transcript