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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
the Typhoons of Change)
Prof. Remigio Joseph A. De Ungria Jr., ChE, ME, MBA
Ateneo Graduate School of Business
www.josephdeungria.com
http://strategicpinoyengineer.blogspot.com
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
5www.josephdeungria.com
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
6www.josephdeungria.com
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
7www.josephdeungria.com
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)
8www.josephdeungria.com
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)
9www.josephdeungria.com
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
10www.josephdeungria.com
“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
www.josephdeungria.com 11
“Disasters” also happen in
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
www.josephdeungria.com 12
DifferenceBetween
A RECESSION And
A DEPRESSION?
“Disasters” also happen in
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
www.josephdeungria.com 13
DEPRESSION?Is when
I lose my Job.
My strategic marketing perspective:
16 of Ateneo’s 150 years
14www.josephdeungria.com
Since 1994,
Industry by day, Academe at night
www.josephdeungria.com 15
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
16www.josephdeungria.com
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
20061.San Miguel 250B/ 10B
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
5.San Miguel 37B/ 6B
20061.San Miguel 250B/ 10B
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
www.josephdeungria.com 19
3 of 8 Top Corporations had
>50% decline in profit %
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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
22www.josephdeungria.com
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)
23www.josephdeungria.com
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
24www.josephdeungria.com
2. Global competition will dictate
where ChE jobs will be
Local production only if strategic
advantage in:
4 Fearless Predictions for the
21st Century Filipino ChE
Local production only if strategic
advantage in:
• Supply
• Operations
• Proximitiy to Markets
25www.josephdeungria.com
3. ChE will remain competitive. Will be
hired:
Less for ChE knowledge
4 Fearless Predictions for the
21st Century Filipino ChE
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
26www.josephdeungria.com
4. Greater chance of success if you
have a strategic marketing plan
4 Fearless Predictions for the
21st Century Filipino ChE
27www.josephdeungria.com
Four Recommendations
for the 21st Century Filipino Chemical Engineer
This This This This
Is Is Is Is
IT!IT!IT!IT!
21st Century Filipino Chemical Engineer
(To Survive and Thrive
the Typhoons of Change)
YOU
Your expertise
Your professional
career
1. Think and act like a brand
career
29www.josephdeungria.com
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.
32www.josephdeungria.com
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
33www.josephdeungria.com
Windows- has live updates
Me- now learning digital marketing
(internet, mobile) at 44 yrs old!
4. Continuously learn.
(internet, mobile) at 44 yrs old!
34www.josephdeungria.com
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
www.josephdeungria.com
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.
39www.josephdeungria.com
Today’s challenges of
• Globalization
• Deregulation
• Technological Advancements
Concluding Notes-2
Competition & Customers are
more powerful!
Have exponentially
– Increased COMPETITION and,
– Empowered the CONSUMER
40www.josephdeungria.com
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
41www.josephdeungria.com
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
42www.josephdeungria.com
Is a MUST
For the success of the brand
With your NAME on it.
Concluding Notes-5
Strategic Marketing
With your NAME on it.
43www.josephdeungria.com
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
44www.josephdeungria.com
Access this lecture 24/7 @
http://strategicpinoyengineer.blogspot.com
45
Strategic Marketing
for the 21st Century Filipino Chemical Engineer
Thank YOUVery Much!
21st 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