The case of Loctite Corporation
Summary :
Table of Contents
- Introduction
- IPG's current position
- Market structure
- Locking device
- IPG's sales by product line
- IPG's objective and strategy
- Objective
- Comparison between adhesives and CA's
- Characteristics of distributors
- IPG strategy for CA
- Market attractiveness
- Role of BAM in IPG's product line
- Complementary versus substitute
- Loctite contribution data
- Product/company fit
- Likely reaction to BAM
- BAM Marketing Program
- Recommendations
- Product issues
- Pricing
- Communication
Abstract
loctite corporation was a leader in the development and marketing of high performance adhesives and sealants for industrial and consumer application.
This case can be analyzed in five parts based on Industrial Products Group (IPG); a division of loctite corporation
1. IPG's current position
2. IPG's objective and strategy
3. Bond-A-Matic (BAM)'s role in IPG product line (Product/Market and Product/Company Fit)
4. Likely reaction to BAM
5. BAM Marketing Program.
IPG was dealing with Adhesives and Cyanoacrylates (CA). However, as given in the case, Mechanical device market was four times bigger. Company was growing at 25% each year and 70% of revenues were from Anaerobics and CAs. Company had 3 divisions-
IPG- accounting for 25% of loctite Sales.
Woodhill Permatex- accounting for 34% of sales.
loctite International- accounting for 41% of sales.
This case can be analyzed in five parts based on Industrial Products Group (IPG); a division of loctite corporation
1. IPG's current position
2. IPG's objective and strategy
3. Bond-A-Matic (BAM)'s role in IPG product line (Product/Market and Product/Company Fit)
4. Likely reaction to BAM
5. BAM Marketing Program.
IPG was dealing with Adhesives and Cyanoacrylates (CA). However, as given in the case, Mechanical device market was four times bigger. Company was growing at 25% each year and 70% of revenues were from Anaerobics and CAs. Company had 3 divisions-
IPG- accounting for 25% of loctite Sales.
Woodhill Permatex- accounting for 34% of sales.
loctite International- accounting for 41% of sales.
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