Loctite Corporation Harvard Case Solution & Analysis

Situation # 4: MARKETING MIX

1.      PRICE

BAM 2000 will be launched under another company’s name so as to check it waters at the initial level and is also priced low as compared to other products in the market. BAM 2000’s launch must incorporate marketing campaigns to communicate its usability and also its compatibility with SUPERBOND. The two models, low pressure model and the high pressure model will be priced at $160 and $190 respectively. What LOCTITE needs to do is produce BAM 2000 first on a small scale and then launches it when the right opportunity knocks.

2.      PRODUCT

GLUEMATIC PEN is introduced as a low cost adhesive dispensing system in the target market, which will help the industry people to use this resource more efficiently. GLUMATIC PEN is a competitive product which that is also planned to be introduced at a competitive price. Moreover, BAM 2000 is introduced in two versions: a low-cost, low pressure model with plastic reservoir and a medium priced, high pressure model with aluminum reservoir.

GLUEMATIC PEN is also a product designed especially to dispense adhesives on hard surfaces, as compared to VARI DROPPER that was used to be dispensed at soft and smooth surfaces. However, a recommendation for the launch of BAM 2000 is that it should not be launched in the brand name of the parent company. A small sampling of the BAM 2000 will help the industry users to get a grip on the product use without wasting it. Further, both models (high and low) of LOCTITE will serve the market needs accordingly. Adding to its advantage is the detachable needle, which will help in dispensing-off less viscous adhesives.

3.      PLACE

LOCTITE plans to distribute its BAM 2000 through its effective 285 distributors, which will help LOCTITE in selling the product to the new and old users, along with communicating the benefits and compatibility of the BAM 2000 with SUPERBOND. It will be stocked on the 1400 outlets where LOCTITE products at present gets displayed to also gauge the sales of the product and the attitude of the consumer towards the product. However, LOCTITE must also utilize the other nationwide distributors implementing a push strategy to at least get the product in consumers hand for trial. LOCTITE should also focus on selective and more ideal distribution networks for more competent sales of the newly developed product.


LOCTITE should promote BAM 2000 with a strategy that will make BAM 2000 at least reach in the hands of its end users. For this they should go for a push strategy by giving discounts on an initial purchase and making a customer at least to try out the new BOND A MATIC 2000. Furthermore, LOCTITE must also conduct excessive marketing and advertising campaigns to create awareness on BAM 2000. This is costly though but once BAM 2000 hits the market successfully then these costs can easily be recovered by its excessive sales. Further, it will be promoted as a complementary product to SUPERBOND; which will further recover the marketing costs.....................................

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