Loctite Corporation
Udara Bandara
Written case analysis ¡V LOCTITE CORPORATION
Marketing Management
1. Product Policy Issues a. Positioning: Should the BAM be promoted as a dispenser for instant adhesives, anaerobic, or both?
At the initial launch of the product BAM should focus more on anaerobic market as this market is the one that caters to the industrial users. Only 30% of the users are industrial users in the instant adhesives market and the product features and the cost of the product will suggest to the consumer that BAM is for industrial users and not for the occasional consumers. However, the industrial users of instant adhesives market are growing in a rapid pace where it will overtake the consumer market growth soon. Therefore BAM should be introduced in both instant adhesives and anaerobic markets. b. Name: Should the name ¡§Bond-A-Matic¡¨ or an alternative such as the Model 206¡¨ be used? The name ¡§Bond-A-Matic¡¨ suggests to the market that it is a new product with added and better features as it differentiates from other products of the company which have names like Model 200, Model 205 etc. This will give BAM a unique selling proposition from the company¡¦s other similar products. The name ¡§Bond-A-Matic¡¨ will also help with the introduction to the instant adhesives market as it will stimulate SuperBonder sales by association. By choosing a name like ¡§Bond-A-Matic¡¨ will also help to avoid market cannibalization of the existing products of the company as it gives product differentiation to the market.(At least by name) Should the Loctite name the prominently displayed on the BAM? The Loctite name should be prominently displayed on the brand for it to get brand recognition from the market. It helps for a new product to have a popular brand name at the initial launch stage for it to grab the market quickly as a reputed brand will give customer some mental assurance of the product quality. c. Models: Should both high -
Written case analysis ¡V LOCTITE CORPORATION
Marketing Management
1. Product Policy Issues a. Positioning: Should the BAM be promoted as a dispenser for instant adhesives, anaerobic, or both?
At the initial launch of the product BAM should focus more on anaerobic market as this market is the one that caters to the industrial users. Only 30% of the users are industrial users in the instant adhesives market and the product features and the cost of the product will suggest to the consumer that BAM is for industrial users and not for the occasional consumers. However, the industrial users of instant adhesives market are growing in a rapid pace where it will overtake the consumer market growth soon. Therefore BAM should be introduced in both instant adhesives and anaerobic markets. b. Name: Should the name ¡§Bond-A-Matic¡¨ or an alternative such as the Model 206¡¨ be used? The name ¡§Bond-A-Matic¡¨ suggests to the market that it is a new product with added and better features as it differentiates from other products of the company which have names like Model 200, Model 205 etc. This will give BAM a unique selling proposition from the company¡¦s other similar products. The name ¡§Bond-A-Matic¡¨ will also help with the introduction to the instant adhesives market as it will stimulate SuperBonder sales by association. By choosing a name like ¡§Bond-A-Matic¡¨ will also help to avoid market cannibalization of the existing products of the company as it gives product differentiation to the market.(At least by name) Should the Loctite name the prominently displayed on the BAM? The Loctite name should be prominently displayed on the brand for it to get brand recognition from the market. It helps for a new product to have a popular brand name at the initial launch stage for it to grab the market quickly as a reputed brand will give customer some mental assurance of the product quality. c. Models: Should both high -