Marketing and Sales in the Chemical Industry, 2nd Edition

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Added to Your Shopping Cart. View on Wiley Online Library. This is a dummy description. Written by a global team of top managers and senior McKinsey experts, this expanded and completely revised second edition provides a wide-ranging manual on the subject of value creation in the chemical industry.

Drawing on extensive first-hand management experience, several hundred consulting engagements, and in-depth research projects, the authors outline the key ingredients for managing chemical companies successfully. The book addresses in detail key issues of strategy and industry structure, describes best practice in the core functions of the chemical business system, looks at the state of the art in organization and post-merger management, and covers a selection of the most important current topics such as industrial biotechnology, the role of private equity, and the chemical landscape in China.

Although mainly directed at executives and managers in the chemical industry, the knowledge contained in this comprehensive overview will also benefit scientists, engineers, investors, students, and anyone else dealing with management issues in this sector. He co-leads the firm's European Chemicals Practice and has served a large number of chemical clients on strategic, organizational, and operational issues, with an emphasis on capital market-oriented corporate strategy.

Marketing and Sales in the Chemical Industry | Wiley Online Books

What took time was ensuring that everybody, from top management to frontline salespeople, bought into the new approach, understood what to do, trusted the findings, and acted on them. Consumer companies like Amazon are leading the way in the customer-experience field with their constant efforts to make interactions more convenient and delightful. The same approach can give chemical companies a real competitive edge, particularly by standing out from their low-cost rivals.

Digital presents companies with the means to delight customers by smoothing and simplifying their customer journeys at every step, from providing instant quotes via dynamic deal scoring at the supplier-selection stage to monitoring equipment remotely and offering preventive-maintenance recommendations at the service stage.

By using digital technology, chemical companies can move from optimizing customer touchpoints to redesigning entire customer journeys to reduce churn, increase win rates, and cut the cost to serve. It then redesigned and automated error-prone manual processes to address 16 of the 20, while also bringing together critical information in an easy-to-use digital interface that helped customer-facing personnel to enable seamless customer journeys.

An Introduction to Industrial Chemistry

Customer satisfaction soared. Selling, general, and administrative costs are expected to fall by 20 to 30 percent initially and by as much as 60 percent once digitization is complete. To choose where to focus digital efforts, companies can look at the scale of each opportunity and consider how it applies to their business:. Cost to serve can fall by 15 to 50 percent through e-commerce, the digitization of processes, and the use of big data to allocate salespeople.

https://viptarif.ru/wp-content/top/4314.php By capturing this immediate benefit, a typical company could save enough money to finance the rest of its digital transformation—and create enough buy-in and excitement to keep up the momentum. This opportunity is largest in specialty and crop-protection chemicals but still attractive in basic chemicals, petrochemicals, and distribution.

Companies can, on average, raise their margins by two to three percentage points of return on sales by shifting from traditional pricing and margin management to digitally enhanced methods. Most of the value comes from introducing a dynamic-pricing engine that factors in data from plant utilization, storage levels, real-time customer demand, and so on.

Fast-mover companies that want to position themselves to use digital tools and capabilities to capture business from their less nimble rivals can raise the growth of their revenues by up to twice the market average. The most important initiatives are likely to include creating a best-in-class online sales channel; using advanced analytics to reduce customer churn, identify new customer leads, and support upselling; and developing customer journeys that attract new business, foster loyalty, and boost share of wallet.

Using digital to make sales processes more efficient and the experience of customers more engaging can enhance their satisfaction by as much as 20 to 30 percent. We see four steps business and commercial leaders should take to start extracting value from digital:. Begin by identifying and quantifying tangible commercial opportunities for your company.

Start your transformation by galvanizing the team around these—and only these—priorities. Set clear monetary targets and follow up on implementation and capturing value. Successful transformations have dedicated leaders from the business side who work closely with IT experts on multiple rounds of rapid prototyping.

Supply chain management in the chemicals industry

Great teams include facilitators who help the company address its culture and ways of working by supporting the organization as it shifts to a dynamic work environment where people are comfortable with constant experimentation, fast adaptation, and learning from failure as much as from success. At the same time, companies need an agile, fast technology platform.

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Ensure that both your traditional IT projects and your digital marketing and sales transformation get proper IT support. Success in such transformations depends on agility, rapid adaptation, and piloting—not hallmarks of IT departments geared to routine B2B commercial operations.

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Companies can build an agile digital IT support cell on top of the existing IT infrastructure to help meet both legacy and new requirements without disrupting the business. If solutions require large investments or long development times, outsource noncore activities and partner up with the pros. This is even more important in digital, where things move fast. Ask who is the natural owner of the technology you need and how you can secure access by partnering up.


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A successful partnership brings advantages to both partners and ensures the rapid delivery of projects. When implementing a program, first run a test on a small part of your customer and product portfolio before going full scale. Expanding regulatory requirements for drinking water and wastewater quality, expanding manufacturing output, and improving municipal water treatment infrastructure will support gains in developing regions.


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In more mature geographical markets for water treatment chemicals, specialty water treatment chemicals such as corrosion and scale inhibitors will be used to prevent damage to water treatment equipment and other equipment. Additionally, the use of membrane systems in water treatment will support the use of coagulants and flocculants in pretreatment steps. Regulatory requirements will also promote a transition to higher value products that are more efficient and less environmentally hazardous. While water treatment equipment may directly compete with some chemicals, its use is generally complementary with others.

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