B2B ASSIGNMENT

Case Analysis | Group 1

Group Members:
Abhishek Kumar 2019PGP017
Amandeep Prasad 2019PGP049
Aniket Anand 2016IPM013
Devesh Kumar Salvi 2019PGP489
Sourav Debbarma 2019PGP415
Subhrodeep Das 2019PGP422
Swarnadeep Bhadra 2019PGP431

IIM INDORE
Rau-Pithampur Road, Prabandh Shikhar
Introduction:

Loctite Corporation is a global and leading manufacturing company of adhesives, sealants and
relative products. It was founded in the year 1956. The company is located in the United States
with its headquarters in Newington, Connecticut. The company achieved tremendous growth in
the adhesive market as it performed extremely well in the 1980s. Currently, the company is
located in more than 33 countries other than the United States. Majority of the company’s
revenue comes from outside of the U.S.

Problem:

Loctite Corp had to decide whether they wanted to go ahead with the full scale launch of the
Bond-A-Matic and finalize the marketing strategy for the same.

Situational Analysis:

Loctite Corporation was a leader in the development and marketing of high-performance

adhesives and sealants for industrial and consumer application with over 300 products.

3 Major Profit Centers –

· IPG: Industrial Customer in US and Canada; Accounted for 25% overall sales

· Woodhill Permatex Group: North America DIY market with 34% overall sales

· Loctite Corporation: Accounted for 41% Sales outside North America

LOCTITE stands as a pioneer in the instant adhesive market at present and stands number one
amongst its three competitors. It accounts for 47.5% of the share in the CYANOACRYLATES
industry. It also manufactures automatic adhesive dispensing equipment to elevate sales of
CYANOACRYLATES in the market. Moreover, more than 15% sales of IPG (industry products
group) in the fiscal year 1978 were contributed by LOCTITE. Further to retain and establish a
strong image in the mind of consumer, particularly large firms, it sold its automatic equipment at
33% premium. The introduction of BOND A MATIC 2000 and the GLUEMATIC TIP to cater
the difficulties of clogging faced was a competitive landscape achieved. It increased precision
and reliability in their work and helped them go beyond standard one-ounce usage. It proved to
be purposeful, high quality product with a novel design. In addition to this, the BOND A MATIC
2000 helped IPG to boost its growth in new markets with a revenue growth rate of 70%.

Objectives of the company:

1. The company has planned to achieve at least 35% market share for Bond-A-Matic.
 2. The company has to educate the individuals who are not using CA adhesives about the
benefits of the product.

Recommendations:

1. Loctite can look for Co-branding opportunities with similar products to increase the
visibility of the product in the target market.