Loctite Adhesive

4134 words 17 pages
Marketing Strategy BUS 37000 Saturday Section Bond-A-Matic Product Marketing Plan Partha Srinivasan
“I pledge my honor that I have not violated the Chicago GSB Honor Code during the Preparation of this assignment.”

Bond-A-Matic Marketing Plan
Executive Summary With the introduction of a unique low-cost adhesive dispensing product named as Bond-A-Matic (BAM), Loctite Inc is seeking to resolve dispensing issues such as clogging in smaller adhesive bottles. As a leader in development of high-performance adhesives and sealants for industrial and consumer applications, Loctite has a mission to become the premiere worldwide marketer of instant adhesives for industrial use by 1985. By increasing product awareness & brand recognition for
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Also provide them priority of sales (Super Bonder vs BAM) based on profitability of the product rather than sales generated from a given product. 7) Incentivize distributers to stock and sell BAM by providing a high profit margin (more detail under distribution strategy). Provide POP displays and other promotional material to the distributors and pursue them to actively work with plant and production engineers in the clientele. Pricing Strategy As explained under Product Strategy, low and high pressure models are priced differently to maximize contribution. We cannot do a value pricing based on the benefits as we do not have any quantifiable information about the benefits of using BAM. Though many industrial users are price insensitive (about 81% of surveyed users per Exhibit 3), we are not sure whether a higher price for the product would be attractive enough for small firms. So proposed pricing in Exhibit 10 is not changed but instead all the

accessories will be packed with BAM and priced together. If we add Gluematic tip, Vari-drop applicator and needle prices to the base price of $175 for BAM, the final price to end user would be around $199. At this price, the unit contribution towards fixed costs/profit would be about $88 via direct sales (drop shipment) and $58 via distributors giving 25% commission to distributors (see Appendix A-Price for more details). The high pressure model could be priced at $228 to make up for higher costs to provide

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