Τ hi E CHEMICAL WORLD THIS WEEK

R. L. Savage, symposium chairman, talks it over with speakers H . J. Barrett of E. I . du Pont and R. D . Aylesworth of Emery Industr ies, Inc.

Case Histories Used fo Develop Market ing Techniques C&EN REPORTS: American Institute of Chemical Engineers' Symposium

C L E V E L A N D . - T h e scene of the devel­opment of markets for new chemical prod­ucts, one of the most recent fields to en­list the aid of the chemist and chemical engineer, is admittedly still in the data-gathering phase. The large number of meetings of technical men recently de­voted to the problems of market research and development bear ample evidence to the earnestness with which these data are being sought and assimilated. The latest of such meetings, sponsored here on April 14 by six middle western sections of the American Institute of Chemical Engineers, presented several more development case histories to add to the store of knowledge from which the product development men hope ultimately to derive some basic principles or formulas to guide them in this field of endeavor.

Representing Emery Industries, Inc., Robert Aylesworth described his organi­zation's procedure in presenting their new dimer acid to the industry. At the start of their presentation, dimër acid in com­mercial quantities was completely new. It is a dimeric polymer consisting pri­marily of dilinoleic acid. Its commercial availability was made possible by the per­fection of a medium pressure polymeriza­tion process.

Emery's first step was to define the po­tential market for the dimer and these preliminary investigations revealed a large number of possible uses. Problem two was the pricing of the product during its de­velopmental period. Two courses are open in this mat ter : pricing well above the expected final commercial price in order to liquidate or at least support the de­velopment cost; or rjricing at a level thought to b e in keeping with the ex­pected production cost at full production. Emery chose the latter course but the speaker pointed out that their choice was

simplified by the nature of the production process which permit ted fairly accurate estimation of large scale production costs.

In a later paper , Harold J. Barrett of Du Pont, commenting on the problem of pricing, warned tha t such an anticipatory approach requires careful and dependable market research to avoid the eventuality of selling at prices based on a million-pound production in a thousand-pound market.

In the first th ree years of this develop­ment Emery m a d e very little publ ic an­nouncement of the new product . T h e small product ion of their pilot plant caused them to limit their samples to a few key customers and to potential users discov­ered through personal contact. Even such a modest program cost the company b e ­tween $30,000 and $40,000, according to Aylesworth's estimate.

The follow-up on the samples distrib­uted, however, was quite concentrated. A direct personal letter was tried b u t proved to be expensive and yielded only 15 to 2 5 % returns. A double post card with a check-list brought in 50% returns b u t provided inadequate information. T h e final scheme involved a form letter con­taining a check list followed at a rea­sonable interval b y a double post card check list. This approach net ted 75 to 80% returns.

As the da te for eventual commercial operation came in sight, Emery began to circulate conventional data sheets and finally expanded the program to include advertising in a broad-coverage technical periodical.,

A similar procedure was outlined by Paul Logan, describing Monsanto's p ro ­gram in promoting isocyanates in the United States. Although these compounds enjoyed considerable application in Ger­many they were virtually unknown in this

country. After the w a r Monsanto under ­took their production based upon war t ime experience and pilot p lant studies of Ger­man practice.

In contrast to t h e Emery procedure , Monsanto announced the availability of certain of these compounds in advertise­ments in a number of industrial chemical journals as soon as pilot plant product ion was achieved. About this t ime uses for the compounds began to appear in t h e patent literature. T h e company followed up with a technical bulletin, an article in Chemical Reviews, and the translation of a current German article on the sub ­ject which was distr ibuted by direct mail .

On the basis of the reaction to these efforts, octadecyl isocyanate was chosen as the most promising of the compounds and promotional efforts were concentra ted on this particular i tem under the t r ade name, Persistol VS. Subsequently, o ther compounds in the series were singled ou t for special at tention. This latter phase of the development w a s supported by adver­tising and direct personal effort of t h e sales department.

A third development was described by H. J. Barrett of D u Pont. Although this speaker devoted m u c h of his comment to a discussion of t h e problems of achiev­ing commercial product ion of a series of furan compounds, h e pointed up an awk­ward situation which sometimes develops in the introduction of new chemical p rod­ucts. He reported that a l though most of the furan compounds under discussion were now being sold regularly in d r u m lots and two of them—tetrahydrofuran and 1,4-dichlorobutane—in tank cars, in many cases D u Pon t does not know w h a t t he consumer is us ing them for. Such a relationship tends t o " take t h e ball a w a y " from the producer 's product development department .

In closing his ta lk Barrett set up four rules for successful product development which perhaps t e n d to approach the rules and formulas so dear to t he hearts of his technical audience. First, Barrett said, you must develop unique chemicals. I t is not enough t h a t they b e n e w com­pounds which will do a job already be ing done by established materials . T h e n you must make the n e w compound available in sizable quanti t ies a n d in good quali ty. Third, determine and provide extensive, pertinent technical data . Last , r educe prices as rapidly as pract ical in order to interest the broadest possible market .

Reasonably enough, the author empha­sized that t h e last rule is t he most difficult with which to comply.

Ραη-Am Southern fro Add Unit of Arkansas Refinery

Pan-Am Southern has signed a contract with the Foster-Wheeler Corp . to con­struct a second fluid catalytic cracking and vapor recovery uni t at t he E l Dorado , Ark., refinery.

The construction of these facilities is a

1486 C H E M I C A L A N D E N G I N E E R I N G N E W S

THE CHEMICAL WORLD THIS WEEK

major step in a large construction program at this refinery to expand operations for increased crude capacity and improved product quality. Last September it was announced that a new cooking unit was started and this unit is approximately 35% erected with completion scheduled for September.

The new catalytic cracking facilities include all the latest proved innovations in design and will process 9,000 bbl. a day of gas oil to high-octane gasoline and furnace oil. These facilities, together with the coking unit now under construction, will increase the refinery crude capacity about 20% or to 30,000 bbl. a day and permit production of 16,500 bbl. daily of motor gasoline.

Foster Wheeler expects to complete the catalytic cracking and vapor recovery facilities within 12 months.

Gulf Sal t Co. Resumes Operations

The Gulf Salt Co. is back in operation again at its Blue Ridge mine near Houston, Tex., after filling up a crater 200 feet square by 50 feet deep which was made on Christmas Eve, 1949, destroying the warehouse and completely halting opera­tions. The company had been in opera­tion only three weeks when this crater-ing occurred as a result of the rotten caprock which prevails in the area, and an expenditure of more than $100,000 was necessary for repairs and improve­ments in connection with resumption of operations. A new warehouse, a new brine well, equipment changes, and new storage tanks were involved in this program.

The Blue Ridge area was the scene of two former operations, both unsuccessful. The first failed due to difficulties in min­ing, and the second, that of Imperial Salt Co. (C&EN, May 17, 1948, page 1448) because of technological difficulties. Gulf bought all physical equipment from Im­perial and is now manufacturing 99.66% pure salt for table use, for water soften­ing, and in three types of cattle blocks (sulfur, plain and mineralized). Output is from 80 to 100 tons per 20-hour day.

Food Problems Highlight Meeting of UNESCO Commission

Plans for an international campaign to focus public attention on world food prob­lems highlighted discussions at a recent meeting of the U. S. National Commission of the United Nations Educational, Scien­tific, and Cultural Organization. The campaign, taken up at the eighth semi­annual meeting of the Commission held recently in Washington, D. C , is the first worldwide discussion program con­ducted by this group.

In discussing the program for 1951, the Commission recommended continued efforts directed toward increasing educa­tional activity and establishing interna­tional research centers. It noted with

approval the steps which have been taken to utilize the services of UNESCO in programs of technical assistance for eco­nomic development. At present, UNESCO has scientific field stations in Uruguay, China, India, and Egypt, a re­search project in the Valley of the Ama­zon, and is studying the creation of an Arid Zone Institute to explore the re­sources and possibilities of the great desert areas of the world. UNESCO also cooperates closely with the International Council of Scientific Unions and has made annual grants of about $200,000 to its member organizations. These grants have

helped the realization of 120 projects, the meeting of approximately 450 scientists at about 50 international conferences, aided the work of some 30 scientific services and laboratories, and allowed the publication of numerous reports.

The Commission also set up a commit­tee to study problems of world trade as they affect the food supply situation.

The National Commission, an advisory group to the State Department on UNESCO affairs, will participate in the General Conference of UNESCO sched­uled to meet at Florence, Italy, from May 22 to June 18.

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