Marketing Case Study: Loctite Corporation

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Executive Summary: Loctite Corporation mission is to become a premier worldwide marketer of instant adhesives for industrial. BAM should be introduced as a complementary product with the SuperBonder Cyanoacrylate (CA) instant adhesives. It is suggested to concern on the market for electrical and electronic equipments, Furniture and Chemicals, petroleum products (Exhibit 1). Moreover, as competitors are selling only the equipment at $483 per unit and not selling adhesives, we suggested having distributor to distribute our BAM in price of $550 for High pressure model & $510 for Low pressure model (higher than available competitor products), because for this market is not price sensitive and our image on the market is good quality and high…show more content…
The focus of the plan is to use the BAM as a method of introducing new users to instant adhesives and to react to the expressed interest of current CA users in improved dispensing techniques. The target audiences for the plan are small to midsized companies using more than 1Lb of CA annually that are non-users and companies that are CA users that will benefit from using the BAM; (highlighted in ExhibitA). The industries in this classification range are characterized by smaller usage; their products are subject to frequent design changes and hence are best suited for BAM (with Gluematic tip) which works with any Loctite Adhesive. Moreover, the Systems Division’s applicators cater to the need of larger firms which cannot be met by BAM. Thus Loctite would be focusing on its customer based on their needs increasing the purchase volume and avoid the product line cannibalization. Competitor Analysis: Competitive reaction Based on the available information, the competitors for the dispensing equipment are small firms and do not have the required sales force/distribution channels. So Loctite does not have any significant competitor threat for equipment sales in the near future. However, larger adhesive competitors such as 3M could enter this market and compete aggressively on price and other benefits. Loctite has to actively monitor the competitive landscape and make sure their product strategy would meet the competitive challenges.

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