Loctite Corporation
Executive Summary
This case analysis is to recommend the initiation of a marketing plan for the Bond-A-Matic 2000 (BAM) in 1979. The objective of the plan will be to support the capture of 35% market share for SuperBonder by increasing the Loctite brand awareness, educating non-current users of the advantages of CA adhesives (SuperBond) and the advantages of dispensing equipment. The plan will utilize direct mail and media that will be reinforced by future SuperBonder advertising.
Company Analysis
Loctite Corporation is a market leader in development and marketing of adhesives and sealants with a clearly stated objective to become a premier worldwide marketer of instant adhesives for industrial use by 1985. To reach this objective Loctite uses a high quality, high price strategy. It maintains a clear company structure by dividing the market under three profit centers and faces no internal competition between divisions. (See Exhibit 1)
70% of IPG sales are from newer technologies (anaerobic and CA) which share no severe problems (contrary to mature technologies in adhesives market). Loctite is enjoying the patent in the anaerobic market with 85% share of the market having limited customers who have not quite accepted the obvious advantages. On the other hand, Loctite looks forward to participate in the forecasted industrial market growth of 26.42% next year in the CA market. The company maintains clear differentiation and adjusted pricing strategy between 2 of its CA products by using market penetration to increase purchase volume of SuperBonder users and on the other hand by using market skimming to maintain the brand loyal users of QuickSet404.
Customer Analysis
The BAM should be positioned not as a stand alone product but as a complementary product to Super Bond adhesives. SuperBonder adhesives will be used with Bond-A-Matic emphasizing connection when advertised, positioning of Bond-A-Matic as additional tool for the SuperBonder adhesives not vice
This case analysis is to recommend the initiation of a marketing plan for the Bond-A-Matic 2000 (BAM) in 1979. The objective of the plan will be to support the capture of 35% market share for SuperBonder by increasing the Loctite brand awareness, educating non-current users of the advantages of CA adhesives (SuperBond) and the advantages of dispensing equipment. The plan will utilize direct mail and media that will be reinforced by future SuperBonder advertising.
Company Analysis
Loctite Corporation is a market leader in development and marketing of adhesives and sealants with a clearly stated objective to become a premier worldwide marketer of instant adhesives for industrial use by 1985. To reach this objective Loctite uses a high quality, high price strategy. It maintains a clear company structure by dividing the market under three profit centers and faces no internal competition between divisions. (See Exhibit 1)
70% of IPG sales are from newer technologies (anaerobic and CA) which share no severe problems (contrary to mature technologies in adhesives market). Loctite is enjoying the patent in the anaerobic market with 85% share of the market having limited customers who have not quite accepted the obvious advantages. On the other hand, Loctite looks forward to participate in the forecasted industrial market growth of 26.42% next year in the CA market. The company maintains clear differentiation and adjusted pricing strategy between 2 of its CA products by using market penetration to increase purchase volume of SuperBonder users and on the other hand by using market skimming to maintain the brand loyal users of QuickSet404.
Customer Analysis
The BAM should be positioned not as a stand alone product but as a complementary product to Super Bond adhesives. SuperBonder adhesives will be used with Bond-A-Matic emphasizing connection when advertised, positioning of Bond-A-Matic as additional tool for the SuperBonder adhesives not vice