...SuperBonder will increasingly be a varied group of small- to mid-sized industrial manufacturers interested in quality control, cost-effectiveness, ease of use and efficiency. With a strong reputation as a leader in the development and marketing of high-performance adhesives and sealants for industrial and consumer applications, Loctite is wellsituated to lead the growth in this new market by aggressively increasing efforts to educate a new group of endbuyers of the benefits of its products. Specifically, I propose that Loctite initiate production of BAM 2000 and concentrate on marketing it to small and mid-size firms within the SIC 35-39 industry groups who use between one and nine pounds of CAs annually. CUSTOMER ANALYSIS In FY 1978, SuperBonder adhesives captured a 34.64% share of the industrial market for CA and Quick Set 404 maintained a 5.36% share. While sales in CA were growing by more than 20% annually, the industrial segment grew even faster at 26.42%. Within the industrial segment, sales of SuperBonder adhesives grew by 47.47% from FY 1977 to FY 1978 indicating that SupeBonder was stealing share from competitors while attracting new users as well. If Loctite could sustain such growth, it would have no problem reaching its targeted goal of further increasing sales by 30.81% in FY 1979 to $4.5M. While the industrial segment within CA was highly fragmented and firm size was a poor predictor of CA demand, more than 50% of IPG’s current SuperBonder adhesive sales came from distributors...
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...By late 1978, Loctite Corporation had positioned itself as the leader in the development and marketing of high-performance adhesives and sealants for industrial and consumer applications, with a stated goal of becoming the premier worldwide marketer of instant adhesives for industrial use. To attain this goal Loctite executives are planning to bring to market a new application machine for their adhesives. They are hoping this new delivery mechanism will lead to increased adhesive sales as well as additional revenue from sales of the device itself. Jeffrey Fox, Loctite’s VP of Marketing, is debating the introduction of this new product, as he should be. The introduction of the Bond-A-Matic (BAM) would have detrimental effects to not only the Loctite brand image but also its overall place in the adhesives market. Loctite Corporation is market leader in various sectors of the adhesives industry. One of the reasons behind Loctite's current success lies in the superior quality product chain and imbedded support structure that has allowed Loctite to charge a premium versus its competitors. Loctite has leveraged its reputation to create a brand identity among its customer base as a high-cost, high-quality adhesive maker. The introduction of a low cost applicator such as BAM will undermine this reputation and put the company at risk, at a time when competitors are ramping up their own marketing strategies to erode Loctite’s market share. Reviewing Loctite by the BCG model we...
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...elements of Loctite’s value proposition? Name three of these elements and briefly explain why you consider them most important. (10 marks) An element that should be extremely important to Loctite is their brand imaging. The company has identified through a survey that they should not confuse “who do you go to first” with “who do you buy from”. They also identified that customers are likely to go to them first although they might not be the supplier of the customer’s final choice. There is great value in being the first supplier that a customer goes to. This means that they are recognized as the leaders in the industry and, if they managed their sales during those first interactions, could be the first and only choice of many consumers. When customers are in the industry of Loctite products they think Loctite first. Loyal users of the products were willing to pay a little extra for the Loctite brand because they knew that Loctite would ensure that the product would work. Another element of importance to Loctite’s value proposition is the quality of product being offered. This aligns with their brand imaging as well. They are known for quality product because they put out a high quality product. When placed against their competition, Loctite products would always be considered the best among its competition. The product worked, was dependable and got the job done for consumers. They put products that met or exceeded the...
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...Loctite Background US-based Loctite is the market leader in adhesives and sealants business, with Mexico and Permatex as subsidiaries and business operations in Mexico. The net earnings growth has been slowed down since 1987 amid economic downturn, to achieve greater growth, the management control system is being tailored to local environment to better align the behavior of employees with the objectives and strategies of the organization. Performance-based compensation system covers result controls that provide incentives to boost sales and also action controls, particularly behavioral constraints in this case restrict employees’ actions. Issues identified Talent Retainment - Due to the great reduce in tariffs imposed by Mexican government, there appeared significant competitors which not only directly drive away Loctite’s business but also their experienced salespeople. The larger expenses coming along with high quality and services render salespeople a disadvantage when talking to their clients for business. The standards of performance (SOP) set for extra compensation seem unrealistic, with 75% of salespeople earning no commission in the first half of 1992, and so conceivably, fail to motivate them. This makes the result control less effective as they failed to evoke the desired behaviors – achieving sales targets. Together with other offers by competitors, this resulted in high turnover rate. Profit Sharing - Result controls may serve well with congruence between...
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...educate non-current users of the advantages of CA adhesives (Super Bond) as well as the advantages of dispensing equipment, and to increase awareness of the BAM among current users. The plan will utilize direct mail that will be reinforced by future Super Bonder advertising. The BAM should not be considered as a stand alone product but as a complementary product to Super Bond adhesives. The focus of the plan is to use the BAM as a method of introducing new users to instant adhesives and to react to the expressed interest of current CA users in improved dispensing techniques. Brand loyalty will be strengthened once the end user begins to use the BAM in conjunction with Super Bond adhesives. Also, it is recommended to continue the use of the Loctite logo on the BAM to strengthen brand identity. In order to avoid competition with the Systems Division’s line of applicators, the plan will focus on small to midsized companies within SICs 20 through 39 that use less than five (5) pounds of adhesive per year. The assumption is that a company using five (5) pounds or more of adhesive per year are already using or have been introduced to the Systems Division’s applicators. The top 4 industries providing the highest percentages of potential users are selected to receive a mailing (see exhibit 2). This will result in mailing over 14,000 packets and, assuming a 10% sale conversion rate, will result in over 1400...
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...both original equipment manufactures (OEMs) and companies in the business of maintenance, repair, and overhaul (MROs). This group was also responsible for the majority of Loctites R&D. The Bond-A-Matic 2000 requires 1 lb. of adhesive to be used. Therefore, as a practical matter users would only see a large benefit using this product if their volume was large, most likely greater than 5-10lbs of adhesive. Lets calculate this exactly. The SuperBonder marketing plan was to increase sales to $4.5 million and a market share of at least 35% across SIC’s 20-39 Benefit to customer. One tip could be used for 12,000 dot applications before it needs to be replaced. One ounce of SuperBonder adhesive can e used for 850 applications. This means that a customer can process 14.12 gallons of adhesive before replacement is needed. This means that less than 11% of the market will need to replace the glucomatic tip yearly. Purchase Size Percent 10 lbs. or more annually 11% 1 to 9lbs 29% Less than 1 lbs. 60% The Bond-A-Matic 2000 Dispenser: Gluematic tip: Unique, low-cost adhesive dispensing system developed by the IPG systems divison following a leadership conference in which the difficulties of assembly line wrokds in dispensing CA from the standard one oune and smaller bottles. Loctite Corporation: Industrial Products Group Write-up Objective: Become the premiere worldwide marketer of instant adhesives for industrial use by 1985 Company: Leader in development...
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...Back Strategic Management. Preface: In 1992 Nokia’s main business units were Nokia Consumer Electronics (31 per cent of total sales), Cables and Machinery (25%), Nokia Mobiles Phones (20%), Nokia Telecommunications (17%) and Other Operations (7%). Nokia’s turnover was 3043 million €, and net losses 121 million €. (€ = EURO, 1€ ~ 1USD) “Nokia’s strategy is to invest in telecommunications and closely associated business operations. It focuses on industry segments and geographic regions that have good opportunities for growth and profitability” Jorma Ollila, the new chief executive officer, 1992. In 1999 Nokia had 100 per cent of its operations in the telecommunications and mobile phones, turnover was 19772 million € and net profit 2557 million €. In this assignment I focus on strategic analysis at Hefley Finland business unit level. Strategic Management All firms are faced with the need to create strategies and engage in strategic management. According to Porter unclear strategy is a guarantee for failure. Strategic management is the management of the process of strategic decision making. It can be dived in three parts: 1. Strategic analysis 2. Strategic choice 3. Strategy implementation In an organisation every person may (and should) has a strategy. But it is more common to classified organisational strategies in three levels: 1. Corporate level strategic decisions, which deal with - Overall purpose and scope - Portfolio issues. Adding value to shareholder’s...
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...Every MBA student needs it some day Monday, August 30, 2010 SEARCH HOME LOGIN SUBMIT FAQ SITE STATS New Solution Join Now Get instant access to over 67,000 case studies and MBA term papers. Most Recent Requests » general management » HBS no. 9 Responding to W » deutsche braueri » Nordstrom Case » Case studies on marketing » hrm case studies as well » mongolian grill case more.... Register FREE and post your request for FREE Saved Papers Save Paper to find them more easily. Newest Entries » Skype swot Analysis » IKEA invades America » Business management » Being Global: Good or Bad » IGGY’S BREAD OF THE WORLD Recent Topics • loctite • LG • Dominos • Human resource managem • Project Management Harnischfeger Corporation Questions 1. Identify all the accounting policy changes and the accounting estimates that Harnischfeger made during 1984. Estimate, as accurately as possible, the effect of these on the company´s 1984 reported profits. 2. What do you think are the motives of Harnischfeger´s management in making the changes in its financial reporting policies? Do you think investors will see through these changes? Answers 1. Identify all the accounting policy changes and the accounting estimates that Harnischfeger made during 1984. Estimate, as accurately as possible, the effect of these on the company´s 1984 reported profits. a. Changes that affect the Harnischfeger...
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...1. Einleitung Diese Fallstudie hat das Ziel, das Geschäftsportfolio der Henkel-Gruppe zu illustrieren. Auf der historischen Entwicklung der Henkel-Gruppe aufbauend, werden die unterschiedlichen Geschäftsfelder der Gruppe kurz vorgestellt sowie deren Bedeutung für den Konzern aufgezeigt. 2. Vorstellung der Henkel-Gruppe 2.1 Historische Entwicklung Den Grundstein der Henkel-Gruppe bildet die im September 1876 in Aachen von Fritz Henkel und zwei weiteren Kaufleuten gegründete „Universalwaschmittelfabrik“ Henkel & Cie. Bereits 1878 verlegte Fritz Henkel seine Firma nach Düsseldorf, wo heute noch der Sitz des Konzerns ist. Ab 1907 eroberte Henkel & Cie mit dem „selbsttätigen“ Waschmittel Persil die unangefochtene Führung auf dem deutschen Waschmittelmarkt. Der Erfolg von Persil ließ die Mitarbeiterzahl von 494 im Jahre 1909 auf 1799 im Jahre 1918 ansteigen und prägte das Unternehmen insgesamt als Markenartikelhersteller. In den ersten Jahrzehnten seines Bestehens wurde das Unternehmen durch die Entwicklung der Geschäfte im Deutschen Reich dominiert, wobei Fritz Henkel frühzeitig die Chancen und die Bedeutung einer länderübergreifenden Geschäftsausweitung erkannte. Von Beginn an (1878) verkaufte Henkel seine Waschmittel im Ausland, was auf der einen Seite durch firmeneigene Außendienstmitarbeiter erfolgte. Auf der anderen Seite schloss Firmengründer Henkel Verträge mit ausländischen Firmen ab, die die Erzeugnisse aus Düsseldorf importierten und auf den jeweiligen ...
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...average. In Super Bowl XLIX, ticket prices rose quickly, with the lowest-cost tickets reaching over $8000 by January 29. The average ticket price charged by brokers was $10,352, an increase of more than three times over the previous year’s prices. It has been reported that seats on the 50 yard line were a staggering $28,888. Also in Super Bowl XLIX, NBC set the sales rate for a 30-second advertisement at $4.5 million, a price $500,000 above the record set by two preceding Super Bowls. NBC also offered 15-second ad spots in which a large number of automotive advertisers have reduced their advertising during the game to be replaced by a wave of fifteen first-time Super Bowl advertisers, including Carnival Cruise Lines, Skittles Loctite, Morphine, amongst others. Also entering the high cost of ads were Paramount Pictures, Universal Studios, Walt Disney Studios, 20th Century Fox and Lionsgate paid for movie trailers to be aired. (www.nfl.com) Not only is the Super Bowl the most-watched television event of the year – in 2012 the game posted a record 112 million live viewers – but it’s also the biggest sports gambling event of the year. The American Gaming Association, which represents the country’s casino industry, predicts that there will be $100 million worth of legal action around this year’s Super Bowl. And that’s a minuscule fraction of the $3.8 billion in illegal bets expected to be placed this weekend. A big reason for that is the recent surge in popularity...
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...CORPORATE SUSTAINABILITY & HENKEL’S APPROACH There is a growing trend for big companies to use sustainable concepts as core business drivers For decades, many companies have typically responded to sustainability challenges by pursuing incremental operational improvements. But we are beginning to see an interesting new trend – businesses using sustainability as a tactic for long-term offense, rather than just short-term defence. Despite the uncertain economic outlook, leading international companies across diverse sectors are investing heavily in sustainable products and services. Others are making cross-industry partnerships to develop next generation products such as the elusive mass market electric car. Some are even enhancing their business models through mergers and acquisitions that seek to address, and capitalise on, sustainability trends. Drivers of Sustainability A number of factors are driving the adoption of corporate sustainability programmes in the global business community: * Regulatory Mandates: Growing regulatory pressures compel companies to reduce greenhouse gas emissions, industrial effluents, and other environmental hazards. * Operational Cost Efficiencies: Rising raw materials and energy prices incentivize businesses to invest in waste recycling, waste-to-energy, water conservation and related technologies. * Reputational Risks: Increasing scrutiny of corporate conduct induces managers to engage environmental,...
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...CORPORATE SUSTAINABILITY & HENKEL’S APPROACH There is a growing trend for big companies to use sustainable concepts as core business drivers For decades, many companies have typically responded to sustainability challenges by pursuing incremental operational improvements. But we are beginning to see an interesting new trend – businesses using sustainability as a tactic for long-term offense, rather than just short-term defence. Despite the uncertain economic outlook, leading international companies across diverse sectors are investing heavily in sustainable products and services. Others are making cross-industry partnerships to develop next generation products such as the elusive mass market electric car. Some are even enhancing their business models through mergers and acquisitions that seek to address, and capitalise on, sustainability trends. Drivers of Sustainability A number of factors are driving the adoption of corporate sustainability programmes in the global business community: * Regulatory Mandates: Growing regulatory pressures compel companies to reduce greenhouse gas emissions, industrial effluents, and other environmental hazards. * Operational Cost Efficiencies: Rising raw materials and energy prices incentivize businesses to invest in waste recycling, waste-to-energy, water conservation and related technologies. * Reputational Risks: Increasing scrutiny of corporate conduct induces managers to engage environmental,...
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...To be completed by students (typewritten) MODULE NUMBER | | MODULE TITLE | Managerial Accounting | SEMESTER | Fall 2012/2013 | SESSION | | ASSIGNMENT NUMBER | | SUBMISSION DATE DUE | 13.03.2013 | ASSIGNMENT TITLE | Financial performance evaluation of Henkel | INSTRUCTOR’S NAME | Goran Vasilev | To be completed by the front desk secretary or the course administrator SIGNATURE | DATE SUBMITTED | HOUR SUBMITTED | MATERIAL SUBMITTED | | | | Report Diskette/CD | | To be completed by the instructor SIGNATURE & DATE | MARK * | MARK AFTER ORAL (if applicable) | SUBMISSION | | | | On Time Late | | * fill in the slot in the covered area if blind second marking is required Other comments: STUDENT NAME(s) | Elena Donevska | Declaration: All sentences or passages quoted in this coursework from other people's work have been specifically acknowledged by clear cross referencing to author, work and page(s). I understand that failure to do this amounts to plagiarism and will be considered grounds for failure in this coursework and the module examination as a whole. STUDENT REG. NUMBER(s) | 9654 | To be completed by the 2nd examiner (if applicable) SIGNATURE | MARK | | | AGREED FINAL MARK | | STUDENT SIGNATURE(s) | | To be completed by students (typewritten) MARK | | to be completed by instructors...
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...Tutorial - Full Throttle Engine Most gas R/C models use a 2- or 4-stroke glow engine, sized specifically for that model. Most glow engines have a simple ignition system that uses a glow plug rather than a spark plug so there's no coil, magneto or points. The glow plug is heated by a batteryoperated glow starter. When fuel enters the combustion chamber, it's ignited by the heated glow plug and with that, the engine springs to life, instantly gaining the momentum to continue running after all the starter accessories are removed. The engine's carburetor supplies the fuel and air needed for combustion. It has several adjustments. A rotating throttle arm controls the AMOUNT of fuel and air that enters the combustion chamber. The high- speed needle valve controls the MIX or proportions of fuel vs. air at mid- to high-speeds. The idle mixture screw is similar to the high-speed needle valve, except that it controls the mix of fuel and air when the engine is only idling. When you've adjusted the highspeed and idle mixtures properly, your engine should operate smooth and steady throughout its speed range. Glow plugs A gasoline combustion engine uses a spark plug to ignite the fuel- air mixture within the compression chamber, so a glow or nitro engine uses a small glow plug. Although the plug needs to be heated up using a glow plug igniter initially, once the engine is running, the heat generated within the combustion chamber keeps the plug glowing constantly and is...
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...Introduction to Design for (Cost Effective) Assembly and Manufacturing Source: David Stienstra (Rose-Hulman) Purpose Statement To provide an overview of Design for Manufacturing and Assembly (DFMA) techniques, which are used to minimize product cost through design and process improvements. Objectives Participants will understand: – Differences and Similarities between Design for Manufacturing and Design for Assembly – Describe how product design has a primary influence – Basic criteria for Part Minimization – Quantitative analysis of a design’s efficiency – Critique product designs for ease of assembly – The importance of involving production engineers in DFMA analysis Design for Assembly Definition: DFA is the method of design of the product for ease of assembly. ‘…Optimization of the part/system assembly’ DFA is a tool used to assist the design teams in the design of products that will transition to productions at a minimum cost, focusing on the number of parts, handling and ease of assembly. Design for Manufacturing Definition: DFM is the method of design for ease of manufacturing of the collection of parts that will form the product after assembly. ‘Optimization of the manufacturing process…’ DFA is a tool used to select the most cost effective material and process to be used in the production in the early stages of product design. Differences Design for Assembly (DFA) concerned only with reducing product assembly cost – minimizes...
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