Loctite Corporation Essay

Executive Summary
Loctite Corporation should introduce the new adhesive system Bond – A – Matic 2000 (BAM) as complementary product to the SuperBonder adhesive line. The target customers are plant managers in companies using more than 1 lbs. of instant adhesive per year. Loctite should employ a direct mailing campaign for BAM’s marketing efforts. The new adhesive system will support the company’s strategies to capture 35% of the CA market with the SuperBonder line.
Customer Analysis 1. Market Potential Analysis
Based on the numbers for 1978, the market for cyanoacrylates totaled to 890,000 pounds sold between industrial and consumer market. Using the forecasts for 1979 for the industrial market (335,000 lbs.), I calculated an …show more content…
Based on the break-even analysis, presented in Exhibit 5, and the market potential analysis depicted in Exhibit 4, it is clear that Loctite can easily implement BAM and cover its costs.

Competitor Analysis
Despite that barriers to entry are low and new competitors could enter the market, the brand recognition that the name Loctite carries represents a far greater advantage. Furthermore the equipment competitors are only serving regional markets and none caries CAs. Form the 1977 Market Research we can conclude that the bargaining power of buyers is low due to price not representing a barrier to the use of instant adhesives, the complement product to BAM.
Product Strategy
As previously stated, BAM should be introduced as complimentary equipment to SuperBonder products for new Loctite CA consumers.
From Exhibit 3 we identified which SuperBonder products corresponds to the industries we targeted with BAM. Considering that SuperBonder 430 and 414 can be used both, with the high-pressure BAM model as well as with the low-pressure one, and the SuperBonder 420 and 495 represent half of existing sales, it is my recommendation to only use the low-pressure plastic reservoir model. This strategy will result in increased margins for Loctite and lower break even volume due to the lower material costs. Since SuperBonder 416, the only product that requires the high-pressure BAM model, is not the only SuperBonder product used in SIC 39, the

Show More

Related Documents: Loctite Corporation Essay

Loctite Hbr Case - Executive Summary Essays