Strategic Marketing creates opportunities for those who expect and prepare for the inevitable change and wreaks havoc on those who dont. The 21st Century Filipino needs to survive and thrive these disasters of change.

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

2. Professor’s Note
The original version of 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.
This revised version is useful for the 21st Century
Filipino professional desiring to survive and thrive a
definitely uncertain future.
Prof. Bong De Ungria
2

3. 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

4. Everyday news report everyday
disasters
Earthquake
Bad things that
Tsunami happen to us
Floods
Violent Crimes Bad= something
Climate Change we don’t want
4

5. 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

6. 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

7. 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

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

9. 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)
9

10. 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

11. “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
11

12. “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
12

13. “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
13

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

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

16. What I saw happen to Filipino
companies 1994 to 2011
1. Shutdown/ sub-contracted
2. Shutdown/ imported
3. Downsized/ competed globally
4. Sold to multinationals/ rightsized
5. Shutdown/ regionalized
6. New companies opened and thrived

17. 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

18. 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

19. Double digit revenue growth but
single digit profit increase

20. 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%)

21. “Changes” in Top 10 Filipino
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

22. 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

23. 2 Things 21st Century Pinoys need
to survive the future…
1. Strategic Marketing Plan (5-20 year)
2. Financial Plan (5 - 30 year)

24. 1st Fearless Predictions for the
21st Century Filipino Professional
1. Basic concepts remain-
Perry’s ChE handbook
(first published, 1934; 8th edition 2007)
• My father used a 1959 edition
• I used a 1981 ed
• My son will use a 2015 ed

25. 1st Fearless Predictions for the
21st Century Filipino Professional
1. Basic concepts remain-
Philip Kotler’s Marketing Management textbook
• I used a 1993 edition
• 1999: 10th edition
• 2008: 13th edition
25

26. 2nd Fearless Predictions for the
21st Century Filipino professional
2. Global competition will dictate
where jobs will be
Local production only if strategic
advantage exists in:
• Supply
• Operations
• Proximitiy to Markets

27. 3rd Fearless Predictions for the
21st Century Filipino professional
3. Filipinos will remain globally
competitive. Will be hired:
Less for knowledge
More for skills & ability to think
beyond what eye can see
– Real value creation and contribution
to business and shareholder value

28. 4th Fearless Predictions for the
21st Century Filipino professinoal
4. Greater chance of success if you
have a strategic marketing plan

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

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

31. 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

32. 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

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

34. 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

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

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

37. Concluding Notes-1
Great Changes are happening
The 21st century
has produced great challenges
And unprecedented opportunities
For the world class Filipino.

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

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

40. Concluding Notes-3
People have lost jobs…
Many Filipino and Philippine based
companies
Where local professionals used to
have lifetime careers have
– Closed down
– Downsized/ Rightsized
– Sub-contracted
– Transferred to regional centers

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

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

43. What did 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

44. Access this lecture 24/7 @
http://hypermarketing2.com

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