Loctite Corporation – International Distribution Background 1. Loctite Corporation was founded in 1956; Headquartered in Hartford‚ Connecticut. It had grown to become the global leading manufacturer and marketer of adhesives‚ sealants‚ and relative products‚ especially the impressive growth during the 1980s. It had achieved Fortune 500 status in 1990‚and in 1991 was ranked 477 in revenue‚ 190 in profits‚ 24 in profit as a percentage of sales‚ and 18 in per share annual growth over the previous
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Loctite Company de México case The case of Loctite Company de Mexico presents an example of an inefficient incentive system that leads to lack of motivation‚ high employee turnover and internal competition. Given the need of keeping salesmen motivated Loctite used a MCS based on result control by establishing compensations based on performance. According to Merchant and Van der Stede (2012)‚ result control influence actions because they make that employees will be concerned about the consequences
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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
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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
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Case #4 Zac Palet MKT 460 1:00pm 1. Should IPG introduce the BAM? Why or why not? I do not think Loctite should launch the Bond-O-Matic 2000 (BAM). Loctite manufactures high quality equipment and adhesives and the BAM would dilute this quality. Consumers are willing to pay a premium price for Loctite’s products because they know they are getting a high quality product. The BAM could damage the company’s image because it is priced well below the company’s normal pricing at $175. This could
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Loctite is faced with a decision on whether to continue to improve their operational processes in the equipment line or discontinue the product altogether and focus just on adhesives. There are several issues currently faced‚ and these issues must be addressed in order to successfully build out the “lean thinking” initiative and improve the overall success and growth of the business. As outlined above‚ Loctite prides itself on consistently providing high quality products and service to its customers
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DOING INTERNATIONAL BUSINESS © International Trade Centre‚ August 2010 Model Contracts for Small Firms: International Distribution of Goods Contents Foreword Acknowledgements Introduction Chapter 1 International Contractual Alliance Introduction ITC Model Contract for an International Contractual Alliance Chapter 2 International Corporate Joint Venture Introduction ITC Model Contract for an International Corporate Joint Venture Chapter 3 International Commercial
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product named as Bond-A-Matic (BAM)‚ Loctite Inc is seeking to resolve dispensing issues such as clogging in smaller adhesive bottles. As a leader in development of high-performance adhesives and sealants for industrial and consumer applications‚ Loctite has a mission to become the premiere worldwide marketer of instant adhesives for industrial use by 1985. By increasing product awareness & brand recognition for Super Bonder‚ a CA adhesive product line‚ Loctite has improved sales revenue in 1978 over
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BBM – Case 3 Loctite Corporation - International Distribution Case Assignment Questions 1. What is Loctite’s distribution strategy? Loctite’s distribution strategy is to have their sealants and adhesive products reach world wide demographic segments. Loctite offers industrial products and consumer based products. Loctite’s strategy is a work from the bottom up plan. They first focus on what their consumers want‚ and then they build up a distribution network from there. They do not start
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LOCTITE CORP. INDUSTRIAL PRODUCT GROUP Dadang Beny Kurniawan Regular Class of July 2005 Marketing Company Background: Founded in 1953 by Vernon Krieble‚ Ph.D In 1956‚ sales totaled $7‚000 though net income was at a deficit of $17‚000 by 1964‚ sales had reached nearly $2 million and net income jumped to $220‚000 On October 26‚ 1976‚ Loctite’s stock was admitted to listing on the New York Stock Exchange Loctite merged with International Sealants in 1970 and also acquired
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