Essay on Loctite Corporation

Decent Essays

Executive Summary
Loctite Corporation should introduce the new adhesive system Bond – A – Matic 2000 (BAM) as complementary product to the SuperBonder adhesive line. The target customers are plant managers in companies using more than 1 lbs. of instant adhesive per year. Loctite should employ a direct mailing campaign for BAM’s marketing efforts. The new adhesive system will support the company’s strategies to capture 35% of the CA market with the SuperBonder line.
Customer Analysis 1. Market Potential Analysis
Based on the numbers for 1978, the market for cyanoacrylates totaled to 890,000 pounds sold between industrial and consumer market. Using the forecasts for 1979 for the industrial market (335,000 lbs.), I calculated an …show more content…

Finally, considering that users of CAs are divided in three purchasing buckets (greater than 10 lbs., between 1 and 9 lbs., and less than one lbs.) and the average price of Superbonder ($37.45) is far less than the price of BAM to end user ($175), for the BAM customer to make financial sense for such a purchase, he will need to buy more than a lbs. of CA a year. Hence, Loctite target companies for the BAM equipment should be firms who purchase CAs more than once a year (size of the company irrelevant based on case information).
Note: Continuation to the market potential analysis.
Based on my current analysis and the calculations in Exhibit 4, the potential market for BAM assuming the 35% market share goal is 2,826 products (777 + 2,049).
Company Analysis
Loctite Corporation is a market leader which is able to command customer retention through innovation and exceptional products. BAM, being introduced to new consumers as a complement to SuperBonder products, represents a good product-company fit because it creates a response to a consumer interested in improving dispensing technology (1977 Market Study). By employing a highly qualified sale force, training facilities and “labmobiles” Loctite is able to successfully respond to the customers interested in technical service in their choice of instant adhesive supplier. Furthermore, by matching BAM with SuperBonder products the company is able to maintain a fit with current strategies; BAM and

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