chemical marketing in the competitive sixties - ACS Publications

Technical Service and Applications Research for Inorganic and Heavy Chemicals R. A . SPRINGER and G . F. R U G A R

Downloaded by EAST CAROLINA UNIV on January 3, 2018 | http://pubs.acs.org Publication Date: June 17, 1959 | doi: 10.1021/ba-1959-0024.ch016

Diamond Alkali Co., Painesville, Ohio

Technical service and applied research, which had their beginnings in the early twenties, have come to the forefront since the end of World War II. In the competitive sixties, expansion of new products and processes will be even greater than in the past. Thus, successful marketing will depend more and more on improving application research and technical service, both of which will be more needed. There are at least two reasons for this. Overcapacity will continue for several heavy inorganic chemicals and foreign competition will be an important factor.

T e c h n i c a l service is as o l d as the c h e m i c a l i n d u s t r y itself. W e h a v e n o r e c o r d of the service t h a t w a s rendered b y J o h n W i n t h r o p , J r . , i n connection w i t h his e a r l y c h e m i c a l m a n u f a c t u r e . H e is c r e d i t e d w i t h b e i n g the first entrepreneur i n the c h e m i c a l field i n c o l o n i a l d a y s . H o w e v e r , w i t h o u t a c h e m i c a l process i n d u s t r y a v a i l a b l e we c a n be sure t h a t J o h n h a d to w o r k w i t h a n d for h i s c u s tomers a l o n g the lines of w h a t t o d a y w e c a l l t e c h n i c a l service. T h i s service h a d t o be based o n a c t i v i t i e s i n the a r e a n o w k n o w n as a p p l i c a t i o n s research. Measured by present-day standards, W i n t h r o p ' s program was very small and d i d not encompass a w i d e range of uses, b u t a c t u a l l y i t w a s the b e g i n n i n g of t o d a y ' s t r e m e n d o u s effort. T h e h i s t o r y of t h e c h e m i c a l i n d u s t r y i n t h i s c o u n t r y shows t h a t there w a s l i t t l e service offered p r i o r t o W o r l d W a r I . A l t h o u g h the i n d u s t r y began t o flourish i n t h e e a r l y t w e n t i e s , there seems to h a v e been v e r y l i t t l e o r g a n i z a t i o n for t e c h n i c a l service a n d a p p l i e d research. W e c a n r e m e m b e r v e r y w e l l t h a t i n the late twenties a d v e r t i s e m e n t s began to a p p e a r offering help i n the use of p r o d u c t s a n d suggesting uses based o n a p p l i c a t i o n s research. A s the twenties l e d i n t o the t h i r t i e s , w i t h the d o w n t r e n d i n business, w a y s a n d means were sought t o slow u p a n d e v e n t u a l l y t o stop the decline a n d , h o p e f u l l y , t o reverse the t r e n d . M a n y c h e m i c a l companies o r g a n i z e d a n d set u p t e c h n i c a l service d e p a r t m e n t s a n d s u p p o r t e d t h e m w i t h a p p l i c a t i o n s research l a b o r a t o r i e s . W e r e c a l l one c o m p a n y t h a t d i r e c t e d i t s a t t e n t i o n t o the p u l p a n d p a p e r i n d u s t r y a n d i n p a r t i c u l a r to t h e b l e a c h i n g of p u l p a n d p a p e r . I t s o b j e c t i v e , 117

CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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ADVANCES IN CHEMISTRY SERIES

of course, w a s t o enlarge the sale of i t s p r o d u c t s to t h i s i n d u s t r y . I t hoped t o do t h i s b y d e v e l o p i n g new m e t h o d s of b l e a c h i n g w h i c h w o u l d use c h l o r i n e a n d c h l o r i n e - b a s e d b l e a c h i n g agents more efficiently; the net r e s u l t t o the p a p e r m a k e r w o u l d be a decrease i n cost for a desired brightness. T h e s t u d y , w h i c h d i d l e a d to i m p r o v e d b l e a c h i n g processes, w a s p r o p e r l y c a l l e d a p p l i c a t i o n s r e search. T h e t e c h n i c a l service c a m e l a t e r — i n t a k i n g these new ideas t o i n d i v i d u a l p a p e r companies a n d d e m o n s t r a t i n g to the prospects' s a t i s f a c t i o n t h a t t h e y w o u l d benefit e c o n o m i c a l l y b y c h a n g i n g to these new methods. T h i s t o o k p l a c e i n the p e r i o d j u s t before 1935 a n d v e r y l i t t l e t h o u g h t w a s g i v e n t o a f o r m a l o r g a n i z a t i o n or n a m e for w h a t w a s b e i n g done. A j o b h a d t o be done a n d people were p u t on i t a n d d i d i t . T i m e sped a l o n g a n d we became i n v o l v e d i n W o r l d W a r I I . F r o m t h e s t a r t of t h i s holocaust, there w a s no need for t e c h n i c a l service as we t h i n k of i t t o d a y . I t w a s d o w n r i g h t r e m a r k a b l e h o w usable a n d s a t i s f a c t o r y a n y grade of c h e m i c a l w a s i n t h a t p e r i o d . T h e r e m a r k has often been m a d e t h a t a s m a l l decrease i n p r i c e c a n i m p r o v e the q u a l i t y of a p r o d u c t i m m e n s e l y or render i t s i m p u r i t i e s h a r m l e s s , b u t i n the p e r i o d we are t a l k i n g a b o u t p r i c e w a s i n c o n s e q u e n t i a l ; t h e p r o b l e m w a s t o get t h e m a t e r i a l . T h a t s i t u a t i o n w a s m u c h too good t o l a s t a n d e v e n t u a l l y i t c a m e t o a n end. D u r i n g t h e w a r , the A m e r i c a n c h e m i c a l i n d u s t r y e x p a n d e d b y leaps a n d bounds t o s a t i s f y the needs of o u r o w n w a r effort a n d those w h o were fighting w i t h us. T h a t sounds a l i t t l e o d d , b u t I guess i t is correct, because w e are s t i l l fighting w i t h some of t h e m . I n a n y case, as the w a r b o o m e d t o t h e e n d , c h e m i c a l m a n u f a c t u r e r s r e a l i z e d t h a t there w o u l d be a s u r p l u s of m a n y of t h e i r p r o d ucts a n d some p l a n s h a d best be m a d e t o find w a y s t o m a r k e t t h e m . M a n y companies set u p p l a n n i n g d e p a r t m e n t s t o c h a r t p r o g r a m s for the p o s t w a r era a n d a t t h i s t i m e t h e i d e a of t e c h n i c a l service c a m e t o t h e foref r o n t . T h o s e c o m p a n i e s w h i c h h a d such groups e x p a n d e d t h e m , w h i l e others e s t a b l i s h e d a n d p l a c e d t h e m i n v a r i o u s l o c a t i o n s i n t h e corporate s t r u c t u r e . P e r h a p s the best evidence of t h e r e c o g n i t i o n of the p a r t t e c h n i c a l service w a s t o p l a y i n the c h e m i c a l i n d u s t r y w a s the f o r m a t i o n of the T e c h n i c a l S e r v i c e G r o u p i n 1943. A f t e r a few y e a r s i t became t h e C o m m e r c i a l C h e m i c a l D e v e l o p m e n t A s s o c i a t i o n a n d i n t u r n w a s responsible i n large measure f o r t h e C h e m i c a l M a r k e t i n g a n d E c o n o m i c s D i v i s i o n of t h e A m e r i c a n C h e m i c a l S o c i e t y . W e do not need t o r e m i n d a n y o n e here t h a t the C C D A has h a d a r e m a r k a b l e g r o w t h i n m e m b e r s h i p a n d influence a n d t h a t t h i s d i v i s i o n h a s h a d the steepest g r o w t h c u r v e of a n y d i v i s i o n i n the S o c i e t y . So m u c h for h i s t o r y , where d o we go f r o m here a n d w h y ? W e are g o i n g to h a v e m u c h m o r e of b o t h t e c h n i c a l service a n d a p p l i c a t i o n s research i n the c o m p e t i t i v e sixties. T r e n d s i n m a r k e t i n g m e t h o d s are i n d i c a t e d b y the themes used i n a d v e r t i s i n g . O n e i n o r g a n i c a n d h e a v y c h e m i c a l s c o m p a n y has been r u n n i n g a series of a d v e r t i s e m e n t s d i r e c t e d b o l d l y t o t h e help i t s t e c h n i c a l service c a n p r o v i d e . T h e first i n the series w a s a l i t t l e s t a r t l i n g t o us c o n s e r v a t i v e s ; i t f e a t u r e d a m a g i c i a n , w h o , of a l l t h i n g s , w a s c o n j u r i n g u p a b e a u t i f u l b r u n e t t e f r o m a s i l k h a t . W e hope our friends i n the sponsoring c o m p a n y w i l l n o t resent our h a v i n g a l i t t l e f u n a t t h e i r expense; t h e y c o u l d u n d o u b t e d l y find s o m e a d v e r t i s e m e n t s of ours w h i c h a m u s e d t h e m a n d other people, too. H o w e v e r , t h i s p a r t i c u l a r series of advertisements seems t o us t o p o i n t the d i r e c t i o n w h i c h t e c h n i c a l service a n d a p p l i e d research w i l l t a k e i n the c o m p e t i t i v e sixties.



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W e w a n t t o l o o k seriously at s e v e r a l of the services w h i c h are offered. B u t before d o i n g t h i s , i t w o u l d seem desirable to enumerate the c h e m i c a l s t h a t are u n d e r d i s c u s s i o n : soda a s h , c a u s t i c soda, c h l o r i n e , b i c a r b o n a t e of s o d a , m u r i a t i c a c i d , c a l c i u m carbonate, b i o c h r o m a t e of soda, s i l i c a t e of soda, s u l f u r i c a c i d , n i t r i c a c i d , p h o s p h o r i c a c i d , s a l t c a k e , n i t r a t e of soda, s o d i u m phosphates, caustic p o t a s h , p o t a s h , c a l c i u m c h l o r i d e , a n d others. These c h e m i c a l s are m a r k e t e d i n large v o l u m e at r e l a t i v e l y low prices. T h e r e are several producers of each of t h e m a n d if we are r e a l i s t i c we m u s t a d m i t t h a t q u a l i t y is s i m i l a r , regardless of w h o the producer is. A n o t h e r p o i n t to keep i n m i n d is t h a t p r o d u c t i o n f a c i l i t i e s are close to the m a j o r c o n s u m i n g areas. I n a d d i t i o n , prices c u s t o m a r i l y are on a d e l i v e r e d basis. T h e s e c o n d i t i o n s pose some t o u g h p r o b l e m s i n m a r k e t i n g . I n f a c t , t h e y were l a r g e l y responsible i n the first p l a c e for t e c h n i c a l service a n d a p p l i c a t i o n s research. Technical Service T e c h n i c a l service a n d a p p l i c a t i o n s research h a v e been discussed as one subject. T h i s a p p r o a c h w a s t a k e n because b o t h are a d j u n c t s to the sale of p r o d u c t s . T o delineate p r o p e r l y the f u n c t i o n s of these t w o a i d s to t h e sales effort, we m u s t define the t e r m s t e c h n i c a l service a n d a p p l i c a t i o n s research. W e consider t e c h n i c a l service a d i r e c t a i d t o sales because the m a j o r p o r t i o n of i t s w o r k l o a d comes d i r e c t l y f r o m the customer. T h e sale of the p r o d u c t v e r y often depends u p o n the a b i l i t y of the t e c h n i c a l s e r v i c e m a n to solve the c u s tomer's c u r r e n t t e c h n i c a l p r o b l e m s . A p p l i c a t i o n s research is p r i m a r i l y a l o n g - r a n g e a i d to sales a n d m o s t of the ideas for p r o d u c t s are generated w i t h i n the seller's o r g a n i z a t i o n . T e c h n i c a l service p r o b l e m s , o r i g i n a l l y specific for one customer, m a y e v e n t u a l l y h a v e a p p l i c a t i o n s for others, or even a n entire i n d u s t r y , t h e r e b y b e c o m i n g a r o u t i n e t y p e of o p e r a t i o n . A p p l i e d research p r o b l e m s , u s u a l l y general to s t a r t w i t h , m a y s u p p l y answers t o o n l y a few customers. T h e one b i g i d e a t h a t r e a l l y p a y s off on a n a p p l i c a t i o n t o the entire c o n s u m i n g i n d u s t r y m a y not o c c u r oftener t h a n once i n t w e n t y . T h e f u n c t i o n s of t e c h n i c a l service are as d i v e r s i f i e d as the n u m b e r of chemical products manufactured. T h e i n d i v i d u a l technical serviceman must h a v e a comprehensive k n o w l e d g e of the p r o d u c t he is s e r v i c i n g i n order t o c a r r y o u t the basic r e s p o n s i b i l i t i e s of his j o b . S u p p l y i n g t h e p h y s i c a l a n d c h e m i c a l c h a r a c t e r i s t i c s a n d specifications of p r o d u c t s is o n l y one of the essential r e q u i r e m e n t s for the sale of a n y c h e m i c a l . T h e t e c h n i c a l s e r v i c e m a n m u s t p r o v i d e i n f o r m a t i o n o n the safe h a n d l i n g a n d storage of c h e m i c a l s , a d v i c e on t h e grade a n d f o r m to use, m a t e r i a l s of c o n s t r u c t i o n r e q u i r e d for process e q u i p m e n t , a n d h a z a r d s t h a t m a y be encountered. T e c h n i c a l a n d sales b u l l e t i n s m u s t be p r e p a r e d , r e v i s e d , a n d k e p t u p t o date. T h e e d u c a t i o n of t h e t e c h n i c a l a n d o p e r a t i n g staff a n d of prospects a n d r e g u l a r customers m u s t be a c c o m p l i s h e d . A l l of these basic d u t i e s , w h i l e a i m e d p r i m a r i l y a t customer service, also a c c o m p l i s h one more m a j o r o b j e c t i v e — t h e e d u c a t i o n of t h e producer's sales staff as w e l l as m a k i n g the entire c o m p a n y customer conscious. A n o t h e r i m p o r t a n t f u n c t i o n of t e c h n i c a l service is to o b t a i n p u b l i c i t y a n d good w i l l for t h e c o m p a n y . A t t e n d a n c e a n d p r e s e n t a t i o n of papers a t t e c h n i c a l a n d t r a d e association meetings, p u b l i c a t i o n a n d d i s t r i b u t i o n of t e c h n i c a l b u l l e t i n s , a n d e n t e r t a i n m e n t of customers are o n l y a few w a y s of k e e p i n g t h e c o m p a n y ' s n a m e i n f r o n t of the consumer. T h e t e c h n i c a l s e r v i c e m a n , because CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


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of his t r a i n i n g a n d b a c k g r o u n d , also has access to places a n d people i n c o n s u m i n g i n d u s t r i e s t h a t sales personnel cannot r e a c h . T h e s e contacts p r o m o t e business a n d m a k e the salesman's j o b easier. I n these w a y s the t e c h n i c a l s e r v i c e m a n p r o v i d e s l i a i s o n between sales a n d the customer. P e r h a p s more i m p o r t a n t , t e c h n i c a l service is the c o n n e c t i n g l i n k between sales a n d m a n u f a c t u r i n g a n d between the customer a n d m a n u f a c t u r i n g . T h e t e c h n i c a l s e r v i c e m a n is best q u a l i f i e d t o h a n d l e c o m p l a i n t s for i t is his r e s p o n s i b i l i t y to k n o w the p r o d u c t , its use, a n d t h e customer. T h e s e r v i c e m a n m u s t protect " o p e r a t i o n s " f r o m o v e r e n t h u s i a s m b y the sales force a n d y e t be the g u a r d i a n of p r o d u c t q u a l i t y for the s a l e s m a n . T o the sales d e p a r t m e n t , the customer is never w r o n g a n d t o m a n u f a c t u r i n g , the p r o d u c t is a l w a y s p e r fect. F o r m a n a g e m e n t , the s e r v i c e m a n is the referee or the u m p i r e . A n o t h e r f u n c t i o n of t e c h n i c a l service is t o k n o w w h a t c o m p e t i t i o n is d o i n g , has been d o i n g , or w i l l be d o i n g . T h i s " k e e p i n g u p w i t h t h e J o n e s e s , " so t o speak, c a n become v e r y expensive. T h e r e s h o u l d be a c o n t r o l of these o p e r a t i o n s , b u t the b i g q u e s t i o n w h i c h confronts t h e business m a n i s — W h e r e do we stop? W e do n o t believe t h a t a n y f o r m a l r u l e c a n be established t o p l a c e d e f i n i t e l i m i t a t i o n s on t h i s service. E a c h i n d i v i d u a l case m u s t be e v a l u a t e d to determine w h a t effect the t e c h n i c a l service o p e r a t i o n w i l l h a v e on the i m m e d i a t e a n d l o n g - t e r m business r e t u r n s . C o n s i d e r a t i o n m u s t be g i v e n to the a m o u n t of business t o be g a i n e d f r o m the p a r t i c u l a r p l a n t r e q u e s t i n g the s e r v ice, other p l a n t s of the same c o m p a n y , other p r o d u c t s used i n a d d i t i o n t o t h e one b e i n g s e r v i c e d , a n d finally, a p p l i c a t i o n of t h e same p r o d u c t or process t o other companies. T e c h n i c a l service is l i k e a n y other p a r t of a business v e n t u r e , i t m u s t b r i n g a f a i r r e t u r n on the i n v e s t m e n t ; therefore, a c a r e f u l c o n t r o l t e m pered w i t h l o n g - r a n g e p l a n n i n g m u s t be m a i n t a i n e d . I n a d d i t i o n t o the a b o v e basic duties of a t e c h n i c a l service d e p a r t m e n t , the c h e m i c a l producers h a v e f o u n d i t necessary t o m a i n t a i n a staff of specialists. T h e s e experts m u s t k n o w specific i n d u s t r i e s , methods of m a n u f a c t u r e p e c u l i a r to those i n d u s t r i e s , a n d t o a m a j o r degree, the personnel i n the field i n w h i c h the p r o d u c e r wishes t o s o l i c i t business. B a s i c a l k a l i producers m a i n t a i n s p e c i a l ists i n the c o n s u m i n g areas of glass, c h e m i c a l s , p u l p a n d p a p e r , w a t e r t r e a t m e n t , detergents, f o u n d r y , nonferrous m e t a l processing, p a i n t , r u b b e r , p l a s t i c s , a n d others. T o serve a l l i n d u s t r i e s , a n expert m a t e r i a l s h a n d l i n g group is r e q u i r e d , t o offer service i n the design a n d engineering of systems to h a n d l e a n d store the p r o d u c t s the customer is p u r c h a s i n g .

Applications Research A p p l i c a t i o n s research c a n n o t be measured b y factors i n v o l v i n g i m m e d i a t e r e t u r n on t h e i n v e s t m e n t . T h i s t y p e of service is a i m e d a t b r o a d i n d u s t r i a l fields, r a t h e r t h a n specific customers a n d as such m u s t be e x p l o i t e d over a longer p e r i o d of t i m e . T h r o u g h a p p l i c a t i o n s research uses a n d a p p l i c a t i o n s m u s t be f o u n d for o l d l i n e , m o d i f i e d , a n d new p r o d u c t s . T h i s group m u s t determine the needs of i n d u s t r y a n d t r y to meet those needs w i t h o l d or new p r o d u c t s . I f a c o m p l e t e l y new c h e m i c a l is needed t o s a t i s f y a r e q u i r e m e n t , the project is t u r n e d over to the research d e p a r t m e n t . I n t h i s w a y , a p p l i c a t i o n s research f u n c t i o n s as a guide to the research a c t i v i t i e s . C o n v e r s e l y , new p r o d u c t s g e n e r a t e d b y basic research m u s t be t u r n e d over to a p p l i c a t i o n s research to d e v e l o p uses, m a r k e t s , a n d sales p o t e n t i a l . J u s t as t e c h n i c a l service is " t h e



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l i a i s o n " between m a n u f a c t u r i n g , sales, a n d customers, t h e a p p l i c a t i o n s research department is the connecting l i n k among research, the semicommercial p l a n t operations, a n d t h e p o t e n t i a l consumer. O n c e n e w uses a r e d e v e l o p e d , t e c h n i c a l service w i l l go i n t o a c t i o n t o e x p l o i t t h e m . H o w e v e r , a p p l i c a t i o n s research m u s t c o n t i n u e w i t h t h e o b j e c t i v e of finding a d d i t i o n a l n e w uses i n order t o m a i n t a i n t h e modest g r q w t h r a t e t h a t m o s t of t h e h e a v y c h e m i c a l s e x h i b i t . T h e purpose here i s t o strengthen t h e p o s i t i o n of t h e c h e m i c a l p r o d u c e r r a t h e r t h a n t o d o t h e research w o r k of t h e consumer. T h e r e i s n o w a y t o get n e w p r o d u c t s o n t h e m a r k e t w h e n t h e c h e m i c a l i s a s u b s t i t u t e f o r e x i s t i n g m a t e r i a l s , except t h r o u g h a v i g o r o u s p r o g r a m of a p p l i c a t i o n s research a n d t e c h n i c a l service. T h i s i s a necessary a d j u n c t of t h e t r u e research f u n c t i o n , f o r w i t h o u t t h e c o m m e r c i a l i z a t i o n of n e w p r o d u c t s t h e costs of research represent a n expensive h o b b y . A s l o n g as t h e a p p a r e n t uses h a v e p r o m i s e a n d are e c o n o m i c a l l y s o u n d , m o n e y m u s t be p u t i n t o t h i s phase a t a r a t e t h a t w i l l ensure speedy acceptance of t h e p r o d u c t . I t is false e c o n o m y t o operate a t a r a t e such t h a t sales f o r t h e c h e m i c a l w i l l be d e l a y e d f o r a n y c o n s i d e r a b l e p e r i o d of t i m e . T h e o l d m a x i m " t o s t r i k e w h i l e t h e i r o n i s h o t " s h o u l d be a p p l i e d a t t h i s p o i n t . E s t a b l i s h i n g of m a r k e t s p r o m p t l y often m e a n s t h e difference between a h i g h l y successful project a n d complete f a i l u r e .

The Future W i t h t h i s b a c k g r o u n d , w e w i l l proceed w i t h o u r l o o k i n t o t h e f u t u r e . O u r c r y s t a l b a l l i s a b i t h a z y a n d u n c l e a r , b u t t h a t seems t o be one of i t s i n h e r e n t c h a r a c t e r i s t i c s a n d w e w i l l d o o u r best u n d e r these c i r c u m s t a n c e s . I n t h e c o m p e t i t i v e sixties, i t appears t o u s , t h e r e w i l l be greater emphasis on a p p l i c a t i o n s research a n d t e c h n i c a l service i n t h e m a r k e t i n g of c h e m i c a l s . T h e r e a r e least t w o a n d perhaps m o r e reasons f o r t h i s . O v e r c a p a c i t y w i l l be w i t h us f o r s e v e r a l of t h e h e a v y i n o r g a n i c c h e m i c a l s . O n e of t h e o b v i o u s w a y s for a l l producers t o i m p r o v e t h e i r o w n positions a n d of course t h a t of i n d u s t r y is t o increase sales b y c r e a t i n g a n d e x p l o i t i n g n e w uses. T h e companies w i t h the most i m a g i n a t i o n , w h i c h a r e a l e r t t o n e w ideas a n d c a n w o r k o u t n e w a p p l i c a t i o n s , w i l l be t h e ones w h o w i l l benefit most. I n m a n y instances t h e increased sales w i l l come t h r o u g h other means t h a n f r o m t h e d e v e l o p m e n t of new uses. W e w o u l d l i k e t o m e n t i o n t h e success t h e D i a m o n d A l k a l i C o . h a s h a d w i t h t h e s l u r r y storage of soda a s h . I t h a d been e v i d e n t f o r a l o n g t i m e t h a t i m p r o v e m e n t s i n h a n d l i n g a n d s t o r i n g soda a s h w o u l d be a boon t o t h e p a p e r i n d u s t r y . T h e p r i n c i p l e of c o n v e r t i n g d r y s o d i u m c a r b o n a t e i n t o a storable s l u r r y h a d been k n o w n f o r m a n y y e a r s . I t i s m e r e l y one of t r a n s f o r m i n g d r y soda a s h w i t h a b u l k d e n s i t y of 35 p o u n d s p e r c u b i c foot i n t o a w e t s o d i u m c a r b o n a t e m o n o h y d r a t e w i t h a d e n s i t y of 65 pounds p e r c u b i c foot. I t w a s n o t u n t i l recent y e a r s t h a t t h i s p r i n ciple w a s f u l l y e x p l o i t e d b y D i a m o n d a n d a p r a c t i c a l s y s t e m f o r s t o r i n g soda ash as s l u r r y w a s perfected. A s l u r r y storage s y s t e m a l l o w s t h e consumer t o store soda a s h a t a m u c h h i g h e r d e n s i t y t h a n i s possible w i t h s o l u t i o n o r d r y storage. A 10,000 g a l l o n t a n k w o u l d h o l d 75,000 pounds of soda a s h as s l u r r y , 47,000 pounds as d r y m a t e r i a l , a n d o n l y 33,000 pounds as s a t u r a t e d s o l u t i o n . T h e storage v o l u m e s needed f o r a 3 5 - t o n c a r of soda a s h are i l l u s t r a t e d i n F i g u r e 1. CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.


122

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Pneumatic pilot plant T h e c a p i t a l i n v e s t m e n t r e q u i r e d t o store 1 t o n o f soda ash as d r y m a t e r i a l is a b o u t $46, c o m p a r e d t o $27 t o store a t o n i n the s l u r r i e d f o r m . T h i s s a v i n g , a l o n g w i t h m a n y o p e r a t i n g a d v a n t a g e s , has enticed 2 6 soda ash consumers t o i n s t a l l D i a m o n d ' s s l u r r y storage systems w i t h a t o t a l storage c a p a c i t y of 20,000 tons. F o r s u p p l y i n g engineering d e t a i l s of the s y s t e m ( F i g u r e 2 ) a n d f o l l o w i n g u p w i t h service o f t h e i n s t a l l a t i o n , D i a m o n d has been r e w a r d e d w i t h t h o u s a n d s of tons of soda ash business, w h i c h i t m i g h t not h a v e o b t a i n e d otherwise. T h i s i l l u s t r a t e s the sort of t h i n g t h a t i n the next decade w i l l h a v e t o be done m a n y times.

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Types of storage

A second e x a m p l e i l l u s t r a t e s even more p o i n t e d l y h o w good a p p l i c a t i o n s research a n d t e c h n i c a l service c a n m a k e i t possible f o r a c o m p a n y t o o b t a i n a n d h o l d a f a v o r e d p o s i t i o n f o r a p e r i o d of m a n y y e a r s . P r i o r t o 1920, t h e b l e a c h i n g of shellac h a d been done b y the use of b l e a c h i n g p o w d e r o r of c h l o r i d e of l i m e . L i q u i d c h l o r i n e h a d r e c e n t l y become c o m m e r c i a l l y a v a i l a b l e a n d i t occurred to W m . J . W e e d at the E l e c t r o - B l e a c h i n g G a s Co., N i a g a r a F a l l s , t h a t there w a s a p o t e n t i a l use for i t . I n a b o u t three y e a r s , M r . W e e d a n d h i s associates w o r k e d o u t a process for m a k i n g s o d i u m h y p o c h l o r i t e f r o m l i q u i d c h l o r i n e a n d c a u s t i c soda a n d d e m o n s t r a t e d i t s a d v a n t a g e s t o t h e shellac producers. T h e y were so pleased w i t h the process a n d results t h a t i t became t r a d i t i o n a l i n the i n d u s t r y t h a t B i l l W e e d ' s c o m p a n y w a s p r a c t i c a l l y t h e o n l y one t o be c o n sidered a s the source o f c h l o r i n e a n d c a u s t i c soda f o r b l e a c h i n g shellac. A n d t h i s p r a c t i c e persists even t o d a y .

Foreign Competition O v e r c a p a c i t y w a s m e n t i o n e d as one of the basic reasons f o r s t r o n g c o m p e t i t i o n i n the sixties. F o r e i g n c o m p e t i t i o n i s g o i n g t o be t o u g h also. I n a d d i -



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t i o n t o o u r concern r e g a r d i n g the E u r o p e a n C o m m o n M a r k e t a n d t h e p l a n s of E n g l a n d , F r a n c e , G e r m a n y , R u s s i a , a n d J a p a n t o t a k e t h e i r share of t h e w o r l d m a r k e t s i n A s i a , A f r i c a , a n d S o u t h A m e r i c a , w e s h o u l d heed t h e w a r n i n g s of several w r i t e r s w h o h a v e r e c e n t l y p o i n t e d o u t t h a t t h e S t . L a w r e n c e S e a w a y is a t w o - w a y street. T h e ocean going ships t h a t t a k e o u r m a n u f a c t u r e d goods f r o m t h e G r e a t L a k e s p o r t s w i l l n o t come i n e m p t y . T h e y a r e b r i n g i n g i n c h e m i c a l s f r o m countries where costs of m a n u f a c t u r e are lower t h a n those i n t h i s c o u n t r y a n d t h e y c a n u n d e r s e l l o u r domestic producers. T h i s adds u p t o another headache f o r t h e c h e m i c a l m a r k e t e r i n t h e c o m p e t i t i v e sixties. T o meet t h i s challenge, t h e U . S. c h e m i c a l i n d u s t r y w i l l have t o stress several facets of t e c h n i c a l service a n d a p p l i c a t i o n s research. I m p o r t a n t a m o n g these w i l l be ease of c o m m u n i c a t i o n a n d p r o m p t a t t e n t i o n t o customer needs. T h e r e w i l l a l w a y s be d e l a y s a n d the p o s s i b i l i t y of m i s u n d e r s t a n d i n g t h e p r o b lem. O u r experience h a s been t h a t r e l a y i n g i n f o r m a t i o n f r o m one p a r t of a n o r g a n i z a t i o n t o another c a n result i n loss of a c c u r a c y a n d i n some cases t h e p r o b l e m is c o m p l e t e l y m i s u n d e r s t o o d . T e c h n i c a l service, w o r k i n g w i t h t h e p r o d u c t i o n d e p a r t m e n t a n d the traffic d e p a r t m e n t , c a n w o r k out d e l i v e r y s c h e d ules w h i c h c a n n o t be m e t b y foreign c o m p e t i t i o n . D u r i n g t h e p a s t decade, w e h a v e seen n e w c h e m i c a l c o n s u m i n g processes come i n t o b e i n g , such as u r a n i u m r e f i n i n g i n t h e a t o m i c energy process, r o c k e t fuels, ore beneficiation f o r copper, i r o n , a n d m a n y r a r e m e t a l s , d r i l l i n g m u d s , new p u l p i n g processes, new p a p e r p r o d u c t s a n d a p p l i c a t i o n s , vegetable o i l r e fining, p r o t e c t i v e coatings, etc. A p p l i c a t i o n s research a n d t e c h n i c a l service h a v e expanded t o meet t h e challenge of these new developments a n d h a v e a d a p t e d t h e i r p r o d u c t s t o meet t h e demands. T h e c o m p l e x i o n of these services w i l l be changed c o n s i d e r a b l y i n some of the more m a t u r e i n d u s t r i e s . I t seems t o h a v e been t r u e t h a t t h e t e c h n i c a l s e r v i c e m a n w h o w a s b a c k e d u p w i t h a t o p - n o t c h a p p l i c a t i o n s research group h a d m u c h t o offer the c u s t o m e r ; he h a d a b r o a d e r t r a i n i n g a n d i n m a n y i n stances a better i n s i g h t i n t o the t e c h n i c a l p r o b l e m s of a p a r t i c u l a r i n d u s t r y . W i t h t h e passage of y e a r s the m a n i n i n d u s t r y has developed t o t h e p o i n t where now he m a y be t h e expert a n d have t h e greater k n o w l e d g e . I n t h i s new s i t u a t i o n , t h e process i n d u s t r i e s w i l l l o o k t o t h e c h e m i c a l s u p p l i e r f o r v e r y l i t t l e service o n o l d c h e m i c a l s a n d a great d e a l more o n new chemicals. T h i s w i l l require less a c t i v i t y b y t h e c h e m i c a l companies o n established uses f o r e s t a b lished c h e m i c a l s b u t a n increase i n a c t i v i t y o n a p p l i c a t i o n s research o n new c h e m i c a l s . A s technology continues t o a d v a n c e a n d t h e q u a l i t y of t e c h n i c a l service a n d a p p l i c a t i o n s research advances, t h e q u a l i f i c a t i o n s of personnel e n gaged i n these a c t i v i t i e s w i l l become more e x a c t i n g . T h e people w h o c a r r y out a p p l i c a t i o n s research w i l l be better t r a i n e d i n t h e i r f o r m a l e d u c a t i o n a n d w i l l need y e a r s of experience i n t h e i r o w n p l a n t s a n d i n t h e c h e m i c a l process i n dustries. T h e y w i l l h a v e t o h a v e t h e b r o a d experience a n d a c t i v e i m a g i n a t i o n t h a t w i l l suggest m a n y uses for t h e n e w c h e m i c a l s t h a t research w i l l develop. I n t h e c o m p e t i t i v e sixties, t h e expansion of i n d u s t r y w i t h n e w p r o d u c t s a n d processes w i l l be even greater t h a n i n t h e past. T h e r e w i l l be o p p o r t u n i t y for increased business, a n d i t i s therefore necessary f o r t h e basic c h e m i c a l i n dustries t o p l a n a h e a d a n d prepare t o meet these t e c h n i c a l r e q u i r e m e n t s . S u c cessful c h e m i c a l m a r k e t i n g , i n o u r o p i n i o n , w i l l depend more a n d more o n i m p r o v e d a p p l i c a t i o n s research a n d t e c h n i c a l service. CHEMICAL MARKETING IN THE COMPETITIVE SIXTIES Advances in Chemistry; American Chemical Society: Washington, DC, 1959.

chemical marketing in the competitive sixties - ACS Publications

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