Marketing Case Study: Loctite Corporation

Executive Summary: Loctite Corporation mission is to become a premier worldwide marketer of instant adhesives for industrial. BAM should be introduced as a complementary product with the SuperBonder Cyanoacrylate (CA) instant adhesives. It is suggested to concern on the market for electrical and electronic equipments, Furniture and Chemicals, petroleum products (Exhibit 1). Moreover, as competitors are selling only the equipment at $483 per unit and not selling adhesives, we suggested having distributor to distribute our BAM in price of $550 for High pressure model & $510 for Low pressure model (higher than available competitor products), because for this market is not price sensitive and our image on the market is good quality and high price.
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. 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 grow Superbonder CAs at 30% vs the forecasted industrial market growth of 20% next year. 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. In order to maintain market and technical leadership in adhesives and in