Loctite Corporation Industrial Products Group Harvard Case Solution & Analysis


The recommended price for BAM 2000 being a new product in the market and as discussed earlier will be launched as a separate entity should be placed as a low cost product. Prices should be such that the product penetrates in the market with its unique features and usability aspect. Therefore, the recommended price for the product of low pressure model will be $160. For the high pressure model, the suggested price will be around $190. The reason to keep such low prices is to make the product enter the market with success and right market. As not being a part of Loctite Corporation, BAM 2000 needs to be placed with low prices and compete in the market with other similar feature adhesives. Since the brand is not a part of Loctite Corporation; hence, keeping it low priced is the ideal scenario for the company to gain maximum benefits out of it.


As the case states, Loctite Corporation keeps down to 285 distributors for its premium products such as SuperBonder and 1,400 outlets where Loctite Corporation’s products are available. But since BAM 2000 is recommended to enter the market with a separate entity; hence, it should be distributed through all the distributors in the industry. In fact, the company should not solely rely on its own distributors but it should also look to target the product through the remaining 10,000 distributors in the industry. Penetrating its other distributors will make the product more successful and essential if it is available across the region and for all industry players. The role of dealers and sales force with the new product, BAM 2000 will be promoted to the clients who are actually looking for low priced adhesives. Once the sales force recognized the need for such a product by the client; consequently, they should offer BAM 2000. The ideal distribution system for BAM 2000 is to distribute it through selective channel. The reason for this is that, being a technical adhesive product it should be available at places where it needs to be. Secondly, through selective distribution the cost for the company will also be less.


The recommended strategy to promote BAM 2000 will be to promote it through push strategy. The reason to opt for a push strategy is entirely based on the kind of product and the strategy that the company is recommended, where they will be selling it as a separate entity. Therefore, in such a situation being a new product it needs to be sold through push strategy.  The recommended tool for BAM 2000 should be to sell it through an advertising campaign.

Although, this a costly move but since the idea is to penetrate in the market with BAM 2000 so the company has to make it popular for which advertising becomes a necessity. Along with this as the case states, Loctite Corporation already developed a media schedule therefore; it should now become a part to promote BAM 2000. The features, pictures of BAM 2000 should be positioned on all selected and industrial magazines, along with the brochures for the product...................................

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