loctite ipg case
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 current adhesive products, such as SuperBond and use up-sale(to current customers) and cross-sale(to new customers). BAM should provide warranty since IPG is known for its quality. For price, BAM should prices close to $250, which is the amount plant and production engineers often had purchasing authority to approve.
For Promotion, BAM should use both push and pull strategies. BAM should provide trainings for distributors. BAM should run branding ads on magazine before product launch and run product-specific ads after launch. BAM should use magazine to drive awareness, consideration and trial, and BAM should use direct mail to drive trial and purchase. Price should not be featured on the ad since it’s not very important for purchase decisions. Instead, the benefit of product and the service of the company should be featured. Trial should be used since the sales are inexperience in selling equipment. Trial also fits well with company’s good service reputation.
For Place, BAM should continue use distributors since most users purchases from distributors. BAM should provide higher commission to distributors and promote shipment program since distributors don’t like to stock equipment.
Customer Analysis
This product was
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 current adhesive products, such as SuperBond and use up-sale(to current customers) and cross-sale(to new customers). BAM should provide warranty since IPG is known for its quality. For price, BAM should prices close to $250, which is the amount plant and production engineers often had purchasing authority to approve.
For Promotion, BAM should use both push and pull strategies. BAM should provide trainings for distributors. BAM should run branding ads on magazine before product launch and run product-specific ads after launch. BAM should use magazine to drive awareness, consideration and trial, and BAM should use direct mail to drive trial and purchase. Price should not be featured on the ad since it’s not very important for purchase decisions. Instead, the benefit of product and the service of the company should be featured. Trial should be used since the sales are inexperience in selling equipment. Trial also fits well with company’s good service reputation.
For Place, BAM should continue use distributors since most users purchases from distributors. BAM should provide higher commission to distributors and promote shipment program since distributors don’t like to stock equipment.
Customer Analysis
This product was