Loctite Company Case Study

[pic 1]

[pic 2]

1. Identification of the problem

• Target market related: Loctite Company is not confident about the market potential and target customers for Bon-A-Matic, a low-cost adhesive dispensing system. And also not sure about the level of usage.
• Positioning related: They are also facing problems regarding whether to position it as primarily CA dispenser or both CAs and anaerobics dispenser and also speculative about the cannibalization of existing sales.
•  Sales team related: Company is not sure whether sales team is interested in learning to demonstrate Bond-A-Matic to the customers and also worried that in the given limited time of sales call whether they would ignore the new dispenser or push it at the expense of Loctite’s basic products.
• Product and Pricing related: They are also unsure whether to release both models (high pressure and low pressure) and whether vari-drop needle as well as gluematic tip to be included with each unit. Price of $175 is also a question which needs to be addressed. There were also queries whether Loctite name should appear prominently on each unit.
• Quality and Advertising related: Whether to go for 30-day free trial or a one-year limited warranty. There were also concerns regarding content of advertising whether price of dispenser to be included and up to what extent Loctite name to be placed. Also whether advertising to be used for raising awareness or to actively solicit inquire and orders. There is also consideration of direct mail as an alternative or supplement of advertising campaign.

2. Analysis of the situation

The present market is growing by 10% and a recent study has suggested that 26% users are telling that their usage is going to increase and 51% requires some improvement in the existing arrangements, hence the response of the market is definitely in the favour or this product.

Product analysis: The product which we have developed after the 1977 conference where several salespeople had highlighted the difficulties like clogging of nozzles of small bottles. It is developed after extensive testing in two variants for high pressure and low pressure application. It has no mess or wastage, short start up and shut down time, simple and inexpensive maintenance. It is powered by battery and is easy to mount and does not requires any extra electrical equipment, it weighs around 10 pounds and is very easy faster assembly. It decreases assembly error, increases product reliability and reduces scrap and rework costs. It provides with adjustable pressure range, handling and can handle most Loctite adhesive with varying viscosities.