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

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Presentation to the 71st National Convention of the Phil Institute of Chemical Engineers at DAP on Feb 18 2010

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

  1. 1. 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
  2. 2. 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
  3. 3. 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
  4. 4. What will OUR story tell?A. Past disastersB. Major changes for last 24 yearsC. 4 Fearless PredictionsD. 4 Strategic Recommendations to Survive and Thrive
  5. 5. Smart ChE define disorder as ENTROPYDisaster Bad things thatCatastrophe happen to usCataclysmic ChangeBad Luck Bad= somethingKarma we don’t want
  6. 6. Direction of change is to create more disorderA + BC AC + BUntil a temporary equilibrium is reached,Then, change happens again
  7. 7. Everyday news report everyday disastersEarthquake Bad things thatTsunami happen to usFloodsViolent Crimes Bad= somethingClimate Change we don’t want
  8. 8. 4 Characteristics of a disaster:1. Worse off after it happens2. Often unexpected3. Life changes as we know it4. Affects us & our loved ones
  9. 9. 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
  10. 10. 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
  11. 11. How did Typhoons Ondoy and Pepeng affect you?P 212 Billion to repair and rehabilitate- Dr. Yumul, PAG-ASA
  12. 12. 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
  13. 13. 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
  14. 14. “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
  15. 15. “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
  16. 16. “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
  17. 17. My strategic marketing perspective:16 of Ateneo’s 150 years
  18. 18. Since 1994, Active Engagement in…Industry by day, Academe at night
  19. 19. What I saw as a ChE…1. Shutdown/ sub-contracted2. Shutdown/ imported3. Downsized/ competed globally4. Sold to multinationals/ rightsized5. Shutdown/ regionalized
  20. 20. 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
  21. 21. 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
  22. 22. Double digit revenue growth butsingle digit profit increase
  23. 23. 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%)
  24. 24. 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
  25. 25. 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
  26. 26. 2 Things chemical engineers need to survive whatever future1. Strategic Marketing Plan (5-20 year)2. Financial Plan (5 - 30 year)
  27. 27. 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
  28. 28. 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
  29. 29. 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
  30. 30. 4 Fearless Predictions for the 21st Century Filipino ChE4. Greater chance of success if you have a strategic marketing plan
  31. 31. This Is IT! Four Recommendations for the21st Century Filipino Chemical Engineer (To Survive and Thrive the Typhoons of Change)
  32. 32. 1. Think and act like a brandYOUYour expertiseYour professional career
  33. 33. 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
  34. 34. 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
  35. 35. 2. Think and act strategicallyDevelop vision and mission statementsSet annual goals.Implement 5 to 20 year plans.Align often.
  36. 36. 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
  37. 37. 4. Continuously learn.Windows- has live updatesMe- learned digital marketing (internet, mobile, email) in 2010… Had to do it; else be left behind
  38. 38. Check out my learning blog…www.josephdeungria.com
  39. 39. Concluding Notes-1 Great Changes are happeningThe 21st centuryhas produced great challengesAnd unprecedented opportunitiesFor the Filipino chemical engineer.
  40. 40. Concluding Notes-1Some new companies have emergedwinners by changing the game
  41. 41. Concluding Notes-2 Competition & Customers are more powerful!Today’s challenges of • Globalization • Deregulation • Technological AdvancementsHave exponentially – Increased COMPETITION and, – Empowered the CONSUMER
  42. 42. 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
  43. 43. 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
  44. 44. Concluding Notes-5 Strategic MarketingIs a MUSTFor the success of the brandWith your NAME on it.
  45. 45. 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
  46. 46. Access this lecture 24/7 @http://strategicpinoyengineer.blogspot.com
  47. 47. 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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