Transforming the brand to create a platform for sustained double-digit revenue and profit growth
By 2009, through acquisition and organic growth, Mexichem had become a $2.3 billion powerhouse, named at World Economic Forum as one of the 100 companies to watch. However, the company’s rapid growth led to an unwieldy multibusiness/multibrand portfolio and an unfocused go-to market strategy. MBLM was brought in to transform the Mexichem brand to facilitate the company’s aggressive growth strategy.
Established in 1998 as the result of a merger, Mexichem’s business is focused on the chemical and petrochemical sectors. The new company was founded to pursue a vertical integration business strategy that would move its business beyond the volatile commodities sector. This enabled Mexichem to become a manufacturer of value-added finished products and to expand beyond Mexico into Latin America.
The 2007 acquisition of Grupo Amanco, Brazil’s second largest pipes and fittings manufacturer, strengthened Mexichem’s expansion, adding production capabilities and a retail network throughout Latin America. This expansion doubled the size of the company and created a gap between Mexichem’s reputation as a commodities petrochemical producer and its new reality as a value-added products provider.
MBLM worked closely with Mexichem’s senior management to refocus and redefine the brand, establishing a single corporate brand to support the company’s realigned and restructured business units, companies and products. The brand promise that resulted, “Formulating solutions. Multiplying possibilities,” was designed to align Mexichem’s brand with its evolved business. MBLM then helped Mexichem establish a new vision, mission and values to help unify and inspire employees behind the company’s new direction. MBLM also designed Mexichem’s new corporate identity, developed a new design system for the brand and rationalized its brand architecture model, establishing clear levels for sector and commercial brands.
The new Mexichem brand was articulated through a comprehensive program that accelerated the integration of the different company cultures that were part of Mexichem, and helped drive the evolved vision of the conglomerate to both internal and external audiences. Inspired by the concept of several pairs of hands working together, the new brandmark communicates the inspiring qualities of determination, integration and transformation, thus supporting Mexichem’s goal of improving people’s lives. This transformed brand provides a more focused go-to-market approach for Mexichem that has proven to be a powerful platform for sustained growth.
Mexichem’s vertical integration business strategy, aided by the company’s refreshed and refocused brand, has enabled the company to achieve extraordinary results. Since 2009, Mexichem revenues have more than doubled, increasing by 139 percent. At the same time, profit has grown by a compound annual rate of 11 percent.
Today, Mexichem is a global company incorporating new industry sectors and product categories being sold in 90 countries. Now the world’s #1 manufacturer of pipes and fittings, Mexichem has grown to 20,000 employees, with operations at 108 sites in 34 countries.
MBLM is Mexichem’s brand agency, providing guidance on brand strategy, brand architecture and corporate identity. MBLM is helping to evolve Mexichem’s go-to-market strategy, focusing on the concept of Total Value to further strengthen and unify the brand, and is also developing the company’s new corporate website, which will launch in Q2 2015.