Posted: September 16th, 2017

Marketing Strategy

Marketing Strategy

Case Study
Loctite Corporation: Industrial Products Group
Please read the case Loctite Corporation: Industrial Products Group and answer the following questions. Answer should be limited to 5 pages (single-sided) of double-spaced text with a font size of 12 pts and 4 pages of Exhibits.
Loctite Corporation: Industrial Products Group
The Case Situation
The Industrial Products Group (IPG) of Loctite Corporation markets adhesives and adhesive dispensing equipment for industrial users. IPG is considering whether to introduce a simple adhesive dispensing system tentatively named Bond-A-Matic 2000 (BAM).
In answering the questions, please spend sufficient time reading the case and exhibits provided, analyzing the information and then writing up the answers.
Questions:
1. Should the Industrial Products Group of Loctite Corporation introduce the new adhesive dispensing system? In answering the above question, please consider the following:
(a) Customer Analysis:
– Identify the target market and calculate the target market size? Provide appropriate qualitative and quantitative analysis (3 points)
– What is the role of BAM in growing adhesive demand for the target market? Consider different possible ways and provide a justification for your answer using case information. (6 points)

(b) Company Analysis:
– Enumerate strengths and weaknesses of the IPG division in an exhibit. (1 point)
– What is the role of BAM in the product line? (1 point)
– How does it fit with the Corporate Image for the Systems Division? (1 point)
– How does it fit with the current distribution system? Please keep the target market selection that you have made in mind. (2 points)
– Economic analysis: o Evaluate the economic impact of introducing BAM on the profits of your product portfolio? Please consider both cannibalization and complementarity. (4 points)

(c) Competitor Analysis: Evaluate the role of BAM as a basis for competitive advantage in the market (you can also use inputs from your Competitive Strategy class to answer this question)? (2 points)

2. Regardless of your answer to question 1 (go, no-go), if the Industrial Products Group is to introduce the new adhesive dispensing system, provide specifics of the marketing mix that they should use. In answering the question, please consider the following:
(a) Product Strategy:
– Write down the positioning statement for your target market. (2 points)
– Make recommendations for the name, models, needles, warranties and trial offers. Justify your decision based on the 3 C analysis above and the positioning statement that you have selected. (3 points)

(b) Pricing Strategy:
– What price would you recommend for BAM? Justify your answer using appropriate consideration of customer, company and competitor factors that influence your choice. Provide appropriate analysis. (4 points)
– Do you recommend a skimming or penetration pricing strategy? Justify your answer based on your strategic analysis above. (1 point)

(c) Distribution strategy:
– What changes in the distribution structure do you recommend? Provide a justification by linking back to the role of BAM and the current distribution strategy for the division. (3 points)
– What is the role of the dealers and sales force in your recommendation? (1 point)
– Will you choose an intensive or selective distribution system? Justify your answer. (1 point)

(d) Promotion strategy:
– Would you emphasize a pull strategy or push strategy? Justify your answer based on your previous analysis (2 points)
– Recommend the specific tools you would use among the ones mentioned in the case and state the reasons for your selection. What budget would you allocate for each of these tools? Justify your recommendation. (2 points)
– Based on your positioning statement, can you come up with a potential advertising message for the target market? (1 point)