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Loctite, founded in 1956, has grown become the world’s leading manufacture and marketer of adhesives, sealants, and related products. During the 1980’s, their net sales increased 26.6% from 1983 to 1992. Their net income grew 32.7% in the same time period. Loctite stated in their 1992 annual report that “their growth had been based on a strategy of promoting diversity in end use markets and geographies for their core business.” Loctite educated potential new customers, and their sales team, of their products. By 1992, Loctite estimated its worldwide market share in industrial adhesives at 70%-80%. (Case Study p.1) The company is now a global firm, and their revenues have proved it.
Loctite uses multichannel marketing, which “occurs when a single firm uses two or more marketing channels to reach one or more customer segments. An integrated marketing channel system used, which the strategies and tactics of selling through one channel reflect the strategies and tactics of selling through other channels.” (Kotler and Keller p.429) Loctite owns its own distribution network. Loctite starts as an independent distributor, then moves towards a more captive distribution, purchasing the company outright, or make it fully owned. When Loctite acquires a new distributor, they start them off with just a few core products, eventually moving them to direct sales off all Loctite’s products, depending on the market. Some, not many distributors are limited to the amount of products sold in a given distribution area. Loctite holds 100% equity in all countries except; Norway, Indonesia, People’s Republic of China, Taiwan, Thailand, and Venezuela ...