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Decent Essays

IPG should introduce BAM because there is a customer needs, it can be a complementary product to increase average order value per customer and customer life-time value, BAM fits well with IPG’s capability, and IPG can use existing distributor and drop shipment program to serve the new product need. In addition, IPG can use BAM to increase brand loyalty – you have a Loctite adhesive equipment, when you need adhesive, you use Loctite products.
Primary target for BAM should be current customers with assemble line, and the secondary target are non-customers with assemble line. More specifically, BAM should target plant and production engineers of manufacturing companies.
For product, they should position it as a complementary product to …show more content…

when they order SuperBond, add an amount to get BAM) and cross-sale as trial package (buy SuperBond and BAM package get a package price and trial) to non-users. In addition to the that, the company can also focus their product to companies with assemble lines within SIC#75 Motor vehicle services and #76 Appliance repair because these two segments have the highest percentage of user establishments.
IPG should use BAM as the strategic move to encourage brand loyalty of using Loctite adhesives: once you have that equipment, when you need adhesives, you thought of Loctite (similar to HP sells cheap printer but make money from ink; Kindle sell tablets but the market is in the app.) BAM serves different needs(one-ounce bottles) from Gluematic tip applicator (for 3-gram size) so it will not significant cannibalize Gluematic tip sales.
Company and Competitor Analysis
Company’s objective was to become the premiere worldwide marketer of instant adhesives for industrial use by 1985. Its strength (exh.1) includes brand (quality, history, service, knowledge etc) and good relationship with distributors. Its weakness includes inexperience in selling equipment and low sales commission incentive to store equipment. BAM should promote its 10% drop shipment program and increase equipment commission to provide incentives to distributors.
Low capital barriers to entry and expiration of some patents had attracted several

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