Loctite Hbr Case - Executive Summary Essay

1641 Words Dec 23rd, 2012 7 Pages
Loctite Corporation – International Distribution Fifty years of business has been good to Loctite, a manufacturer and marketer of adhesives, sealants, and other related products. Most recently, the company has started thinking about its international distribution strategy in Hong Kong; Loctite has turned to its already-established and successful ventures in other foreign countries to explore its potential strategies and find a model for success in Hong Kong and ultimately greater China. Currently, Loctite’s distribution strategy is composed of different levels, all building up to the eventual acquisition of equity in the international distributor in order to set its core brand and marketing mix. The first stage of expanding its …show more content…
Loctite’s channel strategies do not differ significantly around the world, and thus its North American strategy and its international strategies are similar. However, there are some key differences, mainly because Loctite cannot own 100% of the dealership business in six countries because these countries’ laws don’t allow 100% ownership by private enterprise. Instead, Loctite has formed joint ventures with companies in Norway, Indonesia, The People’s Republic of China, Taiwan, Thailand, and Venezuela. It should be noted that in all other countries, Loctite owns 100% equity in the distributors. In North America, Loctite’s distribution strategy is selective, only allowing its products to be carried by two to three distributors in the same market. The industrial distributors are narrowed into 12 regions overseen by President of the company. This structure allowed Loctite to focus on its distributors and their strategies while giving the customer a choice of three distributors to purchase from. Using this structure, Loctite can focus more of its attention on providing a superior level of service to its customers, adding more value to its products. Although this structure limits Loctite’s presence in market outlets, by using two or