MARKETS
Dodecylbenzenes H e a d Detergents Supply now close to 300 million pounds . . . Methanol in more active demand from antifreeze trade -ousiNESS of making and selling syn-*~* thetic detergents is becoming more of a chemical activity than ever. Ten years ago just the mention of dodecyl benzenes would have drawn blank stares. Their production was one of the better kept secrets. Production of dodecylbenzenes by chemical and petroleum companies last year leaped ahead by some 91 million pounds to a total of 297,286,000 pounds. Two of the makers are chemi cal, four are petroleum refiners: Mon santo Chemical Co., Shell Oil Co., At lantic Refining Co., National Aniline Division of Allied Chemical and Dye, Standard Oil of California, and Conti nental Oil Co. Total of almost 300 million pounds for these materials, which includes keryl benzenes, was also accompanied by lower costs. Of this large production 276.2 million were sold at a cost which averaged out at 11 cents a pound. In 1952 the sales average was 13 cents. Raw Materials. In detergent indus try dodecylbenzenes are considered the most important raw materials or starting materials for manufacture of alkyl aryl sulfonates, and their output by chemical and petroleum processors is expected to gain further in years ahead. Their importance can be seen in gov ernment report which places produc tion of all surface active agents at 921.5 million pounds. Of this amount (made in 1953) the dodecylbenzenesulfonic acid types accounted for 364.2 million. Detergents have taken larger amounts of other raw materials as well as the dodecylbenzenes, next most im portant group being the sulfonated pe troleum aromatic compounds. Supply of these is around 129 million pounds. They are followed by sulfated and sul fonated alcohols and esters with a pro duction of almost 127 million. Sulfonated aromatics have come up quite fast, the total of 129 million pounds just mentioned comparing with 84.5 million the year before. These intermediates as well as the dodecylben zenesulfonic acids have a sales price average of around 14 cents a pound, whereas the alcohols and esters work out at approximately 20 cents. Though the antifreeze market is lively, some cautious formulators and canners seem to be, waiting till fall to get the feel of the situation before filling their needs completely. Some price shading has been reported; although 3008
methanol is by no means in short sup ply, clemand is good. M e t h a n o l Active. This is the time of year when most of us are concerned with air conditioners and cool shady spots. O n e important section of the chemical industry is concerned with manufacturing antifreeze for next win ter's needs. It is selling these products, methianol and ethylene glycol, to a very competitive business, the trade that formulates and cans antifreeze for retail distribution. TL·ere is lively competition also a m o n g those who supply methanol to this trade, as might be inferred from recent price cuts for synthetic methanol plus larger supplies than in former years. Antifreeze sellers exchange the s a m e trusting glances one might find b e t w e e n two used car dealers. Right now7, however, methanol mar ket is active and price situation gener ally is somewhat steadier than it was last June when prices were slashed 5 cents p e r gallon. T h e tank car quota tion for synthetic methanol remains at 27 cents, and the carlot price for drums at 4-2 cents, freight allowed. These are for Z o n e 1. JVlore Methanol M a d e . Figures are only available for methanol production covering the first four months of 1954, and they show that industry has even in rJhat short time turned out some 10 million pounds more than it did in the s a m e period last year. Production was 353-, 128,000 pounds this year as against 343,030,000 pounds in 1952. Greater amounts of · methanol, of course, enter resins through formalde h y d e than go into antifreeze. The dif ference is not so great as it was in for m e r years, however, due to expansion which has taken place in consumption of radiator methanol. It is estimated t h a t of 1952 methanol production some 4 0 % went into formaldehyde and about 309k disappeared into antifreeze. N e w Products. According to star tling figures discussed some time ago before the ACS Division of Chemical Marketing and Economics, more than 909c of all new products placed on the market are failures. More recently the problem of marketing new items was taken u p by the National Industrial Conference Board in a study. This study concluded that the major reason for the high percentage of new p r o d u c t failures, in the opinion of executives, lies in poorly conceived and C H E M I C AL
insufficiently tested market plans. At the ACS group discussion referred to, one manufacturer said practically the same thing in citing his experience with three new products. These were not chemicals as t h e term is understood in the industry, but rather household items based o n chemicals. Products A a n d Β were singularly suc cessful because they had been given plenty of careful planning and market study. Product C fell flat on i t s face even during test campaigns in Florida cities where well-heeled buyei;s are not scarce. Product C had been amply financed as to promotion, but the manufacturer concluded that money in this instance failed to compensate for careful plan ning. It happened to be a simple shoe polishing device employing tissues for application of the polish and for the "shine" operation. Value of Planning, NICB study showed that while most products have apparent advantages in t h e laboratory or design stage, lack of a d e q u a t e sales planning and testing results in failure of the product t o meet sales expectations. After development, according to NICB, a n e w product goes through five stages in planning and introductory period. These are: (1) tests for product from viewpoints of both user reaction and technical quality; ( 2 ) project re view to consider profitability, market opportunities, company policy, avail ability of producing facilities and mate rials, and timing; (3) campaign plan ning to establish distribution policy, brand name, price and package design, followed by development of sales and advertising plans and budgets, and scheduling of material purchase and production; (4) test marketing to per mit company to assess its campaign at limited cost and improve it on basis of results; (5) product introduction. Some of tbose participating i n survey pointed out that undue haste in early stages of product introduction i n an at tempt to meet seasonal d e m a n d peaks, competition, and similar factors, may result in trouble in later stages. Because all major departments a r e involved in product introduction, executives em phasized need for adequate coordina tion of departmental activities. Committees and informal contact be tween department heads are t h e most commonly used techniques for achiev ing satisfactory coordination. Although introduction of new prod ucts offers a substantial opportunity for company growth and increased earn-*,, ings, past experience shows, NICB con cludes, that the majority of new prod ucts coming to the market are doomed to failure. AND
ENGINEERING
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