This document summarizes a presentation given to chemical engineers on strategic marketing. It discusses major changes in the chemical engineering field over the past 24 years due to globalization, deregulation, and new technologies. This has led to plant shutdowns, downsizing, and jobs being moved overseas. The presentation predicts that chemical engineering concepts will remain relevant but jobs will depend on global competition. It recommends that chemical engineers develop strategic marketing plans, portable skills, and continuously learn to survive future changes. Chemical engineers who think and act like brands, develop strategic plans, and keep learning will thrive in the 21st century.

1. Strategic Marketing
for the
21st Century Filipino Chemical Engineer
(Survive and Thrive
the Typhoons of Change)
Prof. Remigio Joseph De Ungria Jr.
Ateneo Graduate School of Business

2. Strategic Marketing
for the
21st Century Filipino Chemical Engineer
This
Is (Survive and Thrive
the Typhoons of Change)
Our
Story
Prof. Remigio Joseph De Ungria Jr.
Ateneo Graduate School of Business

3. Professor’s Note
This “Strategic Marketing” presentation was
shared with attendees of the 71st National
Convention of the Phil. Institute of Chemical
Engineers (PIChE) held at the DAP Conference
Center, Tagaytay on Feb. 18, 2010.
The conference theme was: Professionals in
Challenging Times… Emerging Opportunities.
With minor modifications, updates, this
presentation was also suitable for any professional
desiring to survive and thrive an uncertain future.
Prof. Bong De Ungria

4. What will OUR story tell?
A. Past disasters
B. Major changes for last 24 years
C. 4 Fearless Predictions
D. 4 Strategic Recommendations to
Survive and Thrive

5. Smart ChE define disorder as
ENTROPY
Disaster
Bad things that
Catastrophe happen to us
Cataclysmic Change
Bad Luck Bad= something
Karma we don’t want

6. Direction of change is to create
more disorder
A + BC AC + B
Until a temporary equilibrium
is reached,
Then, change happens again

7. Everyday news report everyday
disasters
Earthquake
Bad things that
Tsunami happen to us
Floods
Violent Crimes Bad= something
Climate Change we don’t want

8. 4 Characteristics of a disaster:
1. Worse off after it happens
2. Often unexpected
3. Life changes as we know it
4. Affects us & our loved ones

9. 4 Characteristics of a disaster:
1. Worse off after it happens
2. Often unexpected
3. Life changes as we know it
4. Affects us & our loved ones
2012: The Movie
The actual disaster was
Greater, wider, faster
than the prediction.
But more survived than expected

10. How did Typhoons Ondoy and
Pepeng affect you?
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;
flooding of 2 days to 2 months

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

12. Personal lessons from Ondoy
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.
Past performance does not guarantee future
results (typical financial planning advise)
12

13. Remember Mt. Pinatubo?
An inactive volcano for hundreds of
years
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

14. “Disasters” also happen in
business..
1. Lay-offs Why disasters?
2. Downsizing
3. Rightsizing
Lost jobs
4. Outsourcing
5. Sub-contracting
Lost income
6. Regionalization Affected workers
7. Globalization and their families
8. Recession
9. Deregulation
14

15. “Disasters” also happen in
business..
1. Lay-offs Why disasters?
2. Downsizing
3. Rightsizing
Lost jobs
4. Outsourcing What’s the
Differenceincome
Lost
5. Sub-contracting Between
6. Affected workers
Regionalization A RECESSION
And their families
and
7. Globalization
A DEPRESSION?
8. Recession
9. Deregulation
15

16. “Disasters” also happen in
business..
1. Lay-offs Why disasters?
RECESSION
2. Downsizing Is when
3. Rightsizing Your neighbor
Lost jobs
Loses his Job.
4. Outsourcing
5. Sub-contracting
Lost income
DEPRESSION?
6. Regionalization Affected
Is when workers
I lose my Job.
7. Globalization and their families
8. Recession
9. Deregulation
16

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

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

19. What I saw as a ChE…
1. Shutdown/ sub-contracted
2. Shutdown/ imported
3. Downsized/ competed globally
4. Sold to multinationals/ rightsized
5. Shutdown/ regionalized

20. Compare Top 10 corporations
revenues/ profits in 10 years
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/ 6B
Source: Philippines Top 7000 Corporations

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/ 6B
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

22. Double digit revenue growth but
single digit profit increase

23. 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%)

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
– MERALCO
4. Two newcomers came out of
nowhere to land in Top 10
– SMART, PASAR

25. What I’ve learned from past
1. Change will happen
2. Cant stop change
– Earthquake, flood
– Globalization, Regionalization, Technology
3. Can prepare for change
4. Must convert threat to opportunity

26. 2 Things chemical engineers need
to survive whatever future
1. Strategic Marketing Plan (5-20 year)
2. Financial Plan (5 - 30 year)

27. 4 Fearless Predictions for the 21st
Century Filipino ChE
1. 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. 4 Fearless Predictions for the 21st
Century Filipino ChE
2. Global competition will dictate
where ChE jobs will be
Local production only if strategic
advantage in:
• Supply
• Operations
• Proximitiy to Markets

29. 4 Fearless Predictions for the 21st
Century Filipino ChE
3. ChE will remain competitive. Will be
hired:
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

30. 4 Fearless Predictions for the 21st
Century Filipino ChE
4. Greater chance of success if you
have a strategic marketing plan

31. This
Is
IT!
Four Recommendations
for the
21st Century Filipino Chemical Engineer
(To Survive and Thrive
the Typhoons of Change)

32. 1. Think and act like a brand
YOU
Your expertise
Your professional
career

33. 12 Principles from Marketing Plan
for Life
Robert 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 & Risk
5. Weather PLC- Innovate Continuously
6. Balance Mix- Build My Brand

34. 12 Principles for a Marketing Plan
for Life
Robert Michael Fried
7. Expand Reach- Create My Legacy
8. Campaign Ad- Reawaken Creativity
9. Plan Distribution- Share Time & Energy
10.Achieve Sales- Reaching Goals
11.Analyze P & L- Keep Score
12.Seek Opportunities- Make Dreams Real

35. 2. Think and act strategically
Develop vision and mission
statements
Set annual goals.
Implement 5 to 20 year plans.
Align often.

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

38. Check out my learning blog…
www.josephdeungria.com

39. Concluding Notes-1
Great Changes are happening
The 21st century
has produced great challenges
And unprecedented opportunities
For the Filipino chemical engineer.

40. Concluding Notes-1
Some new companies have emerged
winners by changing the game

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

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

43. Concluding Notes-4
New opportunities emerged
On the other hand, new opportunities
Requiring the superior, differentiated
competencies of a chemical engineer
Have emerged in industries like
– Food
– Green Technology
– Energy, Power
– Internet
– Biotechnology

44. Concluding Notes-5
Strategic Marketing
Is a MUST
For the success of the brand
With your NAME on it.

45. 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
Survive and Thrive

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

47. Strategic Marketing
for the
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