Loctite Corporation Harvard Case Solution & Analysis

Loctite Corporation

Customer Analysis

The basic role of Bond-A-Matic 2000 is to enter the industry with two models of adhesive dispensers. The two models include: the low pressure model and the other is the high pressure model. With these models the company should look to penetrate in the market that is on the verge of growth. Then the launch of BAM 2000 will help the company to increase its overall market share. The role of BAM 2000 is to satisfy and fulfill the requirements of all industry clients with affordable prices. Market segmentation will help Loctite Corporation to use BAM 2000 in a way to introduce new users to instant adhesives and by complementing it with SuperBonder will portray an improved version of the dispensing technology. This will also help in gaining acceptance by other non-users in the near future. It is seen that the business sector patterns are moving for Loctite Corporation as deals of Cyanoacrolates are developing by 20% yearly and that of the modern fragment are developing at a much speedier pace by 26.4%. Besides, between industries offers of Loctite Corporation's SuperBonder cements were seen to develop by 47.4% within one year, from monetary year 1977 to financial year 1978.

Company Analysis

The basic purpose of the most appropriate role of BAM 2000 for the company will be to provide Loctite Corporation to target a wider range of customers. Previously, the company was entirely focused on high quality and premium priced products, but since competition has increased therefore BAM 2000 will provide the company with an added advantage. BAM 2000 will launch with a positive image for the systems divisions because it will provide the company to enhance its reputation amongst competitors. The product is a low cost adhesive and to make it a successful entity, Loctite Corporation needs to be market it in a better way under the parent company’s brand name to increase the sales for this new product that is BAM 2000. The product should be distributed through all the distributors rather than the selected ones to penetrate accordingly. The economic advantage or the impact of Bond-A-Matic 2000 for Loctite Corporation will be a healthy and positive one. Although, BAM 2000 will be a cheap product as compared to other products by the company but still it can create and in fact increase revenues for the company at a larger scale. Cannibalization within IPG System Division applicator is not a problem for the company because it caters different levels. Along with this, it will not be a pragmatic for SuperBonder.

Competitor Analysis

BAM 2000 has been introduced as a low cost adhesive dispenser. Since, the competitors also have low cost adhesives; thus it will make it difficult for Loctite Corporation to penetrate in the market without proper marketing and operations. However, competitors do not have the technology to actually give tough time to BAM 2000, but with already available products in the market and by possessing the first mover advantage; the products of competitors will be preferred more by customers. Therefore, Loctite Corporation needs to present itself aggressively to compete accordingly. The only advantage that it will get in the industry is that it is a manual dispenser while all other adhesives are automated adhesives. Therefore, while allowing it to penetrate in the market and become a threat for competitors; it should offer customers with all the features and description of the product.

Question 02

Product Strategy

The basic idea of Loctite Corporation which will also be the position statement for the company is to launch a product, which is a low cost adhesive dispensing system manufactured by using Gluematic tip. Therefore, the company launched Bond-A-Matic 2000 (BAM) which is basically launched to overcome the problem of assembly line workers who are previously using CA for the small bottles and the one ounce. To overcome the problems of assembly line workers, the company introduced BAM 2000 with two models. One is the high pressure model with the aluminum reservoir and the other is low pressure model with the plastic reservoir. Based on the 3C analysis above the recommendation for the company is to develop BAM 2000 with the Gluematic tip to specifically dispense itself on hard and rough surfaces. For the purpose of helping it work on smooth surfaces, Vari-Drop applicator is developed by Loctite Corporation.

The recommendation for the company is to launch the product BAM 2000 with the name of parent company of Loctite Corporation. The reason that it should be launched with the parent company brand name is because it will give confidence to the customer to buy the product. Being a new product, people may hesitate using it since the launch will be as a sub-brand for Loctite Corporation;h hence, it will rather opt for it. The company should manufacture both the low and high pressure models because both will serve ......................................

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