Strategic Marketing for the - pichenet.org · Strategic Marketing for the 21st Century Filipino Chemical Engineer (Survive and Thrive the Typhoons of Change) Prof. Remigio Joseph

Strategic Marketing

for the 21st Century Filipino Chemical Engineer21st 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

Strategic Marketing

for the 21st Century Filipino Chemical Engineer

This This This This

IsIsIsIs

OurOurOurOur

StoryStoryStoryStory

21st Century Filipino Chemical Engineer

(Survive and Thrive


Prof. Remigio Joseph A. De Ungria Jr., ChE, ME, MBA




What will OUR story tell?

A. Past disasters

B. Major ChE changes for last 24 years

C. 4 Fearless Predictions for ChE

D. 4 Strategic Recommendations to D. 4 Strategic Recommendations to

Survive and Thrive

3www.josephdeungria.com

Smart ChE define disorder as

ENTROPY

Disaster

Catastrophe

Cataclysmic Change

Bad Luck

Bad things that

happen to us

Bad= something Bad Luck

KarmaBad= something

we don’t want

www.josephdeungria.com 4

A + BC AC + B

Until a temporary equilibrium

Direction of change is to

create more disorder

Until a temporary equilibrium

is reached,

Then, change happens again


1. Worse off after it happens

2. Often unexpected

3. Life changes as we know it

4 Characteristics of a disaster:

3. Life changes as we know it

4. Affects us & our loved ones


Greater. Wider.

Faster.

More survivable.

Me- 2 feet of water- P15,000 damage

A relative and 2 officemates- lost 200k

to 2 M worth of property

accumulated over many years;

How did Typhoons Ondoy and

Pepeng affect you?

to 2 M worth of property

accumulated over many years;

flooding of 2 days to 2 months


P 212 Billion to repair

and rehabilitate

- Dr. Yumul (90 minutes ago)

How did Typhoons Ondoy and

Pepeng affect you?

- Dr. Yumul (90 minutes ago)


Just 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.

Personal lessons from Ondoy

at worst possible time.

Past performance does not guarantee future

results (typical financial planning advise)


An inactive volcano for hundreds of

years

After its eruption

Remember Mt. Pinatubo?

After 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

2. Downsizing

3. Rightsizing

4. Outsourcing

5. Sub-contracting

Why disasters?

Lost jobs

Lost income5. Sub-contracting

6. Regionalization

7. Globalization

8. Recession

9. Deregulation

Lost income

Affected workers

and their families



business..

1. Lay-offs

2. Downsizing

3. Rightsizing

4. Outsourcing

5. Sub-contracting

Why disasters?

Lost jobs

Lost incomeWhat’s the Difference

5. Sub-contracting

6. Regionalization

7. Globalization

8. Recession

9. Deregulation

Lost income

Affected workers

and their families


DifferenceBetween

A RECESSION And

A DEPRESSION?


business..

1. Lay-offs

2. Downsizing

3. Rightsizing

4. Outsourcing

5. Sub-contracting

Why disasters?

Lost jobs

Lost income

RECESSION Is when

Your neighborLoses his Job.

DEPRESSION?5. Sub-contracting

6. Regionalization

7. Globalization

8. Recession

9. Deregulation

Lost income

Affected workers

and their families


DEPRESSION?Is when

I lose my Job.

My strategic marketing perspective:

16 of Ateneo’s 150 years


Since 1994,

Industry by day, Academe at night


1. Shutdown/ sub-contracted

2. Shutdown/ imported

3. Downsized/ competed globally

What I saw as a ChE…

3. Downsized/ competed globally

4. Sold to multinationals/ rightsized

5. Shutdown/ regionalized


Compare Top 10 corporations

revenues/ profits in 10 years

19961.NPC 75B/ 6B

2.Meralco 58B/ 5B

3.Petron 55B/ 4B

4.Shell 48B/ 3B

5.San Miguel 37B/ 6B


2.Petron 213B/ 6B

3.Meralco 190B/ 13B

4.TI 170B/ 5B

5.Shell 157B/ 4B5.San Miguel 37B/ 6B

6.Caltex 34B/ 1B

7.PAL 31B/ -3B

8.PLDT 29B/ 7B

9.Nestle 28B/ 2B

10.Texas Ins 25B/ 0B

5.Shell 157B/ 4B

6.PASAR 81B/ 3B

7.Chevron 77B/ 3B

8.PLDT 73B/ 24B

9.SMART 68B/ 22B

10.Nestle 67B/ 6B

17

Source: Philippines Top 7000 Corporations

2 Players dropped out of Top

70 & replaced by non-top 70

19961.NPC 75B/ 6B

2.Meralco 58B/ 5B

3.Petron 55B/ 4B

4.Shell 48B/ 3B



2.Petron 213B/ 6B

3.Meralco 190B/ 13B

4.TI 170B/ 5B

5.Shell 157B/ 4B5.San Miguel 37B/ 6B

6.Caltex 34B/ 1B

7.PAL 31B/ -3B

8.PLDT 29B/ 7B

9.Nestle 28B/ 2B

10.Texas Ins 25B/ 0B

5.Shell 157B/ 4B

6.PASAR 81B/ 3B

7.Chevron 77B/ 3B

8.PLDT 73B/ 24B

9.SMART 68B/ 22B

10.Nestle 67B/ 6B

18

NPC 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

but single digit profit increase


3 of 8 Top Corporations had

>50% decline in profit %


Interestingly, Chevron which shutdown its refinery

doubled its profitability and beat Petron & Shell

In profits as % of revenues. (4% vs. 3%)

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

Entropy of Top 10

Corporations (1996 vs. 2006)

3. 10%: profits decreased despite

double digit revenue growth

– MERALCO

4. Two newcomers came out of

nowhere to land in Top 10

– SMART, PASAR21www.josephdeungria.com

1. Change will happen

2. Cant stop change

– Earthquake, flood

– Globalization, Regionalization, Technology

3. Can prepare for change

What I’ve learned from past

3. Can prepare for change

4. Must convert threat to opportunity


1. Strategic Marketing Plan (5-20 year)

2. Financial Plan (5 - 30 year)

2 Things chemical engineers need to survive whatever future

2. Financial Plan (5 - 30 year)


1. Basic ChE concepts remain-

Perry’s ChE handbook (first published, 1934; 8th

edition 2007)

4 Fearless Predictions for the

21st Century Filipino ChE

• My dad used a 1959 edition

• I used a 1981 ed

• My son will use a 2015 ed


2. Global competition will dictate

where ChE jobs will be

Local production only if strategic

advantage in:



Local production only if strategic

advantage in:

• Supply

• Operations

• Proximitiy to Markets


3. ChE will remain competitive. Will be

hired:

Less for ChE knowledge



Less for ChE knowledge

More for skills & ability to think

beyond what eye can see

– Molecular and Atomic levels

– Differences in reactions & transformations

– Real value contribution to business


4. Greater chance of success if you

have a strategic marketing plan




Four Recommendations


This This This This

Is Is Is Is

IT!IT!IT!IT!


(To Survive and Thrive


YOU

Your expertise

Your professional

career

1. Think and act like a brand

career


12 Principles from Marketing

Plan for LifeRobert Michael Fried

1. Define Business- Who Am I?

2. Assess Market- Capitalize on Strength

3. ID PTM- Discovering Real Me

4. Launch Strategy- Find Niche & Risk4. Launch Strategy- Find Niche & Risk

5. Weather PLC- Innovate Continuously

6. Balance Mix- Build My Brand

12 Principles for a Marketing

Plan for LifeRobert Michael Fried

7. Expand Reach- Create My Legacy

8. Campaign Ad- Reawaken Creativity

9. Plan Distribution- Share Time & Energy

10.Achieve Sales- Reaching Goals10.Achieve Sales- Reaching Goals

11.Analyze P & L- Keep Score

12.Seek Opportunities- Make Dreams Real

Develop vision and mission

statements

Set annual goals.

2. Think and act strategically

Set annual goals.

Implement 5 to 20 year plans.

Align often.


Love your company and your product.

But, realize they may not be around 5

or 10 years from now.

3. Develop portable, flexible 7

relevant skills.

or 10 years from now.

Only the fittest survive


Windows- has live updates

Me- now learning digital marketing

(internet, mobile) at 44 yrs old!

4. Continuously learn.

(internet, mobile) at 44 yrs old!


Check out my learning blog…www.josephdeungria.com

35

Learn marketing blog x blog…www.coachbong.blogspot.com

36

Download or view

visual, “movie-like” lectures

37

IF GAP

EXISTS…COMPANY

MARKET

SHARE

PROFITSTARGET

market

OPPORTUNITIES

and THREATSSTRENGTHS and

WEAKNESSES

5 COMPANY

CONSIDERATIONS

when evaluating

opportunities

Vision

Entry

Barriers

WATCH OUT FOR

INDUSTRY FORCES:

COMPETITION

MKT SIZE , SEGMENTPOSITION USING 4Ps:

Price, Promo, Place,

Product

4 GENERIC WINNING

STRATEGIES LIKE:

NicheTRANSFORM

Features to

Benefits

CUSTOMER

NEEDS,

WANTS,

DEMANDS

REPEAT SALES

38


The 21st century

has produced great challenges

And unprecedented opportunities

For the Filipino chemical engineer.

Concluding Notes-1

Great Changes are happening

For the Filipino chemical engineer.


Today’s challenges of

• Globalization

• Deregulation

• Technological Advancements

Concluding Notes-2

Competition & Customers are

more powerful!

Have exponentially

– Increased COMPETITION and,

– Empowered the CONSUMER


Many factories

Where local chemical engineers used

to have lifetime careers have

– Closed down

Concluding Notes-3

People have lost ChE jobs…

– Downsized/ Rightsized

– Sub-contracted

– Transferred to regional centers


On the other hand, new opportunities

Requiring the superior, differentiated

competencies of a chemical engineer

Have emerged in industries like

Concluding Notes-4

New opportunities emerged

Have emerged in industries like

– Food

– Green Technology

– Energy, Power

– Internet

– Biotechnology


Is a MUST

For the success of the brand

With your NAME on it.

Concluding Notes-5

Strategic Marketing

With your NAME on it.


What did OUR story tell?

A. Past disasters

B. Major ChE changes for last 24 years

C. 4 Fearless Predictions for ChE

D. 4 Strategic Recommendations to D. 4 Strategic Recommendations to

Survive and Thrive


Access this lecture 24/7 @


45

Strategic Marketing


Thank YOUVery Much!


(Survive and Thrive


Prof. Remigio Joseph De Ungria Jr., ChE, ME, MBA




Strategic Marketing for the - pichenet.org · Strategic Marketing for the 21st Century Filipino Chemical Engineer (Survive and Thrive the Typhoons of Change) Prof. Remigio Joseph

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