The chemical industry is one of the most important and significant industries across the globe. The United States is the largest nationwide producer of chemical products globally.
In the petrochemical industry, organic chemicals that are produced in the largest volume are methanol, propylene, ethylene, butadiene, toluene, benzene, and xylenes. The future growth trajectory of the petrochemical industry is determined by the high demand for its derivatives in textile, automotive, construction, medical, industrial, electronics, pharmaceuticals, and consumer goods industries. Also, regulatory policies by Asian governments that are aimed at incentivizing chemicals manufacturing will play a significant role in attracting investments from overseas establishments. Rising shale gas exploration in North American countries such as the U.S. and Canada is expected to further compliment the growth of the petrochemical industry.
Although the petrochemical industry continues to be impacted by the globalization and integration of the world economy, several factors influencing the growth of the industry include:
- Technology: Manufacturing processes introduced in recent years have resulted in raw material replacement, shifts in the ratio of coproducts produced, and the cost. This has led to a demand and supply imbalance, particularly for smaller downstream petrochemical industry players. In addition, growing environmental concerns have expedited the development and commercialization of renewably derived chemical products and technologies previously considered economically impractical.
- Environment: Rising concerns over fossil fuel supply and consumption, with respect to their impact on the environment and health, have led to the passage of legislation globally that will affect chemical production and processing for the foreseeable future.
Several such factors are urging players in the petrochemical industry space to leverage the use of brand strategy solutions. Brand strategy solutions help firms uncover their essence and build an authentic brand that elevates and differentiates their business at every touchpoint. These solutions also help firms increase their focus on creating loyal customers to gain a competitive edge and capture a significant share of the market.
The Business Challenge
- The client: A leading company in the petrochemical industry
The client, a leading business in the petrochemical industry with manufacturing units spread across the globe, was facing predicaments in differentiating their products with that of their competitors. As a result, they wanted to quantify the value and authenticity of their firm and devise effective marketing campaigns to improve brand awareness.
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Infiniti’s brand strategy experts carried out an extensive research methodology with stakeholders in the chemical industry to help the client fine-tune their marketing strategies and maximize competitiveness. The brand strategy experts also compiled information from sources such industry forums, company presentations, and newsletters to help the petrochemical industry client enhance brand awareness.
The Solution and the Business Impact
With the help of Infiniti’s brand strategy engagement, the petrochemical industry firm gained better clarity into the competitive landscape and comprehended the strengths, weaknesses, competition, and target audience across the chemical industry space. The client also improved their brand recognition by building credibility and increasing their advertising effectiveness. This helped them enhance their overall brand performance.
As oil becomes less abundant, petrochemical industry firms will be forced to raise the price of fuel products making them less competitive in the marketplace.