Deep decoding of Thaimec Chemical’s sales strategy empowerment

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In-depth Decoding: How Sino-Thailand Meike Chemical’s Sales Strategy Drives Success Author/Source: Sino-Thailand Zero Distance Date: May 13, 2022 Clicks: 11 Domestic and international sales form an integral part of the strategic partnership between Sino-Thailand Meike Chemical and BASF. By establishing pricing models for domestic and international product sales as well as a robust price review mechanism, significant advancements have been made in sales strategies, achieving a high degree of balance between principles and flexibility. As a result, Sino-Thailand Meike Chemical and the international chemical giant BASF have formed a community that shares interests and risks, thereby ensuring the high-quality development of the upstream and downstream industries related to petrochemicals, with BDO as its key product. Overcoming the issue of limited product variety and achieving on-site conversion, the Meike Chemical Industrial Park has, through its phases 1, 2, and 3 of development, established a production capacity of 270,000 tons per year for BDO. How to mitigate the risk of a single product line and enhance market competitiveness has become a hurdle for the high-quality development of Meike Chemicals. Mek Chemical seeks to form strong partnerships with outstanding domestic and international enterprises through an open mindset and a win-win approach. In January and June 2016, Meike Meou and BASF Meike began operations within the Meike Chemical Park. In this joint venture, Meike Chemical held 51% and 49% of the shares respectively. Leveraging its technical advantages, Meike Chemical supplied BDO, methanol, hydrogen, and other essential materials to these two companies, thereby establishing a supply chain relationship with the chemical giant BASF – one that allowed for complementary strengths and joint development as part of a community sharing common interests and goals. During the process of joint construction and sharing within the industrial park, Zhongtai Meike Chemicals successfully developed a new model for on-site sales and conversion of BDO. It established a strategic alliance with BASF that is interdependent, strong as rock, and focused on moving forward together, thus opening a new chapter characterized by resource sharing, complementary strengths, and industrial expansion. Seizing development opportunities to gain a competitive edge in the market: In 2020, Hainan was the first to enact plastic bans through legislation, and subsequently the whole country gradually embarked on a determined campaign to combat \"white pollution.\" As a key raw material in the production of biodegradable plastics, the BDO industry saw significant changes as a result. “We must firmly hold the initiative in sales in our own hands! ”How to seize opportunities and take advantage of the momentum has become a key topic in Meike Chemical’s daily safety meetings. “Adaptability ensures success, and consistency leads to longevity.” At the beginning of 2021, Meike Chemical changed its existing distribution model by establishing a marketing center at an early stage. While conducting research to get closer to its customers, it assessed the market situation carefully. \"When high prices in the domestic market had not yet affected the foreign market, and while continuing to supply our long-term clients as usual, we decided to suspend exports.\" ”Yang Jian, the sales supervisor at the marketing center, explained. Meike Chemical took proactive measures, seized sales opportunities, and set clear tasks and deadlines. By working day by day and week by week, it managed to achieve a sales revenue growth of 81.48% compared to the planned figure in the first quarter of 2021, reaching the best level ever since the establishment of Zhongtai Meike Chemical. The company’s annual sales revenue also reached a new record high. Expanding into international markets: Western-bound freight trains are gaining momentum. On November 27, 2021, the China-Thailand-Mexico chemical industry freight train running from Korla to Ludwigshafen in Germany was successfully dispatched, enabling the transportation of liquid chemical product BDO to Europe by rail. This established a land-based transport route for tank containers carrying liquid chemicals between China and Europe, thus opening up the European market for such liquids. Moving from the surface to the core, from within to without, is the general trend. Relying on policies aimed at deepening supply-side reforms, as well as its existing experience and advantages in international cooperation, the Meike Chemical Industrial Park makes full use of the advantages of the core area under the Belt and Road Initiative. It actively promotes the integration of the domestic and international markets as well as two different economic cycles, striving to turn this industrial park into a strategic base for high-quality chemical new materials that can compete on an international level. “Through the exploration of new models for international freight transport, Zhongtai Meike Chemicals strives to establish logistics routes connecting Xinjiang and Europe, turning them into major channels that link resources, products, and markets between the East and the West. In the future, we will further expand our production capacity, establish an efficient international logistics system, promote the regular operation of export trains for liquid chemicals, and enhance the ability of Zhongtai Meike Chemicals to compete in the international market. ”Zhang Binwen, deputy general manager of Zhongtai Meike Chemical, said. Empowering sales to overcome challenges and forge new paths for development; it’s easy to attack but difficult to defend. Currently, with the increasing production capacity of BDO across the country and falling prices for BDO, securing high-quality customers and leveraging sales strategies to develop new sources of growth have become new challenges for Zhongtai Meike Chemicals. “Zhongtai Meike Chemical makes optimal use of various railway transportation options, continuously adjusts freight delivery methods, and develops customized shipping plans for each client, employing multimodal transport via road, water, rail, and air to minimize the impact of pandemics and weather conditions. ”said Zheng Handuo, deputy manager of the marketing center at Zhongtai Meike Chemicals. In the face of the current complex international situation and severe pandemic prevention and control challenges, Zhongtai Meike’s chemical products are exported to Malaysia, Europe, and other places. Choosing to face challenges head-on and fulfill domestic and international sales targets requires not only courage but also wisdom. “\"One customer, one solution\" is not simply 1+1, nor is it about following the same old approaches; rather, it involves innovating sales models in challenging circumstances to achieve the best outcomes and long-term benefits. Zhongtai Meike Chemical’s sales management adheres to the \"three zeros\" philosophy: zero inventory, zero accounts receivable, and zero distance. Through frequent visits and regular communication, it maintains strong strategic relationships with long-term clients. By utilizing a review mechanism in conjunction with market conditions, the selling price of BDO in the first quarter of 2022 was 99.1% in line with the prices listed on the AnxinSi website. Even during a period of declining market conditions, the average selling price of BDO in April was still 0.33% higher than those listed on the AnxinSi website!