2125 Words9 Pages
Loctite, founded in 1956, has grown become the world’s leading manufacture and marketer of adhesives, sealants, and related products. During the 1980’s, their net sales increased 26.6% from 1983 to 1992. Their net income grew 32.7% in the same time period. Loctite stated in their 1992 annual report that “their growth had been based on a strategy of promoting diversity in end use markets and geographies for their core business.” Loctite educated potential new customers, and their sales team, of their products. By 1992, Loctite estimated its worldwide market share in industrial adhesives at 70%-80%. (Case Study p.1) The company is now a global firm, and their revenues have proved it.
Loctite uses multichannel marketing, which “occurs
…show more content…
Loctite usually granted exclusive rights in a new territory, and provided extensive support, visiting on a monthly basis.” (Case Study p. 7) Loctite is run in a decentralized fashion, so visiting their distributors is a must. Checking in, by person, assures that the company is being run the way it is suppose to be. This assures that their distributors are not selling below price, and therefore both the distributor and the company will have considerable profits. When working alongside the management team, a distributor will feel like he is actually a part of the company, and will strive harder to reach both their own goals and goals for the company. It is a proven fact that if someone likes their job, and who they work, for, they will strive harder. They will not steal, or put the company at risk. Overall, the company is happy, and sales will increase.
North America has a stable network of distributors. “87.5% of Loctite’s outlets have been distributors for the company for over ten years.” (Case Study p.6) Loctite proves to have dedicated workers, many never leave, and few are dismissed.
“By 1992, Loctite products were available through 1,600 outlets across North America. Distributors ranged from single-outlet distributors, to Loctite’s largest customer, Bearings Inc. Loctite believed that selective distribution allowed it to provide
Get Access