Loctite Corporation
LOCTITE CORP.
INDUSTRIAL PRODUCT GROUP
Dadang Beny Kurniawan
Regular Class of July 2005
Marketing
Company Background:
Founded in 1953 by Vernon Krieble, Ph.D
In 1956, sales totaled $7,000 though net income was at a deficit of $17,000
by 1964, sales had reached nearly $2 million and net income jumped to $220,000
On October 26, 1976, Loctite's stock was admitted to listing on the New York Stock Exchange
Loctite merged with International Sealants in 1970 and also acquired several of its overseas distributors throughout the 1970s
Loctite products include anaerobics, cyanoacrylates, silicones, polyurethanes, epoxies, acrylics, and UV rapid curing sealants for use in engine, transaxle, climate control, powertrain, steering, passenger restraint, sound system, body, and headlamp componentry.
Consumer Information:
Consumer Type:
A. Consumer
Concern on Price
Reliability of the product
User Friendly
B. Industrial
Equipment
User Friendly
Sales by Product Line:
A. Anaerobics : $17.2 mil
B. CAs
SuperBonder (91.8k lbs@37.45) 3.44 mil
Quick Set (14.2k lbs@129.40) 1.84 mil 5.28 mil
C. Equipment
System Division accounted for at least $4.8 mil ($32 mil x.3 x .5)
SWOT Analysis
Strength Weakness
1. Distributor holds 50% Superbonder sales.
2. Relationship with distributor is highly valued.
3. BAM offer many advantages to end user. 1. Commission percentage on equipment is lower than adhesives
Opportunity Threat
1. The product, BAM 2000, is low cost product
2. They are demand from marketing group From the side of competitor, Loctite have some potential competitors which are
1. 3M Company, for Anaerobic Adhesives product. 3M has highly trained sales force in promoting anaerobic and CAs aggressively.
2. Parmabond Division of National Starch and Chemical, Inc. It is a Unilever subsidiary.
General Strategy ( as a Loctite Corp. )
Maintain share in
INDUSTRIAL PRODUCT GROUP
Dadang Beny Kurniawan
Regular Class of July 2005
Marketing
Company Background:
Founded in 1953 by Vernon Krieble, Ph.D
In 1956, sales totaled $7,000 though net income was at a deficit of $17,000
by 1964, sales had reached nearly $2 million and net income jumped to $220,000
On October 26, 1976, Loctite's stock was admitted to listing on the New York Stock Exchange
Loctite merged with International Sealants in 1970 and also acquired several of its overseas distributors throughout the 1970s
Loctite products include anaerobics, cyanoacrylates, silicones, polyurethanes, epoxies, acrylics, and UV rapid curing sealants for use in engine, transaxle, climate control, powertrain, steering, passenger restraint, sound system, body, and headlamp componentry.
Consumer Information:
Consumer Type:
A. Consumer
Concern on Price
Reliability of the product
User Friendly
B. Industrial
Equipment
User Friendly
Sales by Product Line:
A. Anaerobics : $17.2 mil
B. CAs
SuperBonder (91.8k lbs@37.45) 3.44 mil
Quick Set (14.2k lbs@129.40) 1.84 mil 5.28 mil
C. Equipment
System Division accounted for at least $4.8 mil ($32 mil x.3 x .5)
SWOT Analysis
Strength Weakness
1. Distributor holds 50% Superbonder sales.
2. Relationship with distributor is highly valued.
3. BAM offer many advantages to end user. 1. Commission percentage on equipment is lower than adhesives
Opportunity Threat
1. The product, BAM 2000, is low cost product
2. They are demand from marketing group From the side of competitor, Loctite have some potential competitors which are
1. 3M Company, for Anaerobic Adhesives product. 3M has highly trained sales force in promoting anaerobic and CAs aggressively.
2. Parmabond Division of National Starch and Chemical, Inc. It is a Unilever subsidiary.
General Strategy ( as a Loctite Corp. )
Maintain share in