Loctite Company Essay

1) What is Loctites dissemination outline? What are the antithetical distribution channels which are used by Loctite?Loctites distribution strategy is to reach a worldwide barter capability in the chemical adhesives industry. Loctite wants to offer a full revolve of sealant and adhesive products which meet the different needs of its customers. The company provides a great support to allocators, training the distributors salespeople, demonstrating new products in seminars, and explaining cases where the product has been used. The different distribution channels are through case-by-case distributors, representative offices, exports agents, joint ventures, acquisitions of others distributors and subsidiaries.2) How does Loctites channel strategy differ in the midst of the domestic north-central American market and international markets?In North America, Loctite sells approximately through 1,600 outlets across all over the country. Distributors ranged from small outlets to Locti tes biggest customers. Loctite focused in selective distribution that is the reason for not macrocosm represented in most of the 50,000 potential outlets. The selective distribution allows a superior level of service for its customers, adding more value to the product. Loctite always looked for deuce or three distributors representing the same market, so its customers had the choice of a different supplier. Distributor had a attractive return, which is between 30% to 35% of margin. The industrial distributors were structured into 12 regions.The international market strategy was in few cases make by shipments under licensing agreements, e.g. in Japan. All products sales were made by overseas sales before the constructions of manufacturing plants. Some acquisitions and joint ventures helped to accomplish a faster international expansion. Loctite acquired equity interests in its distributors around Europe. Loctites strategy was to penetrate in a country market with arelationship wit h a distributor, and increasing stake in this market, and eventually getting the business ownership.3) What factors are driving Loctites acquisition of its international distribution channels?Loctites acquisitions of its international distribution are driven in the most of the cases by the slow sales increment. Once a distributor establishes its business and its market share, it gets satisfied with the margin of the sales, and many times do not reinvest its profits in the business. It generates neither a higher growth nor a raise in the market share. Some distributors do not allow Loctite to have an active participation in their sales, and cash run statements, so reinforcing Loctite to acquire the company.4) What should Loctite do about distribution in Hong Kong?Loctite should reward its policy in its distributor in Hong Kong. Loctite should try to work in concert with this local distributor, trying to explain Loctites policies and improve the communication. The business, the go als, and the results expected for that distributor has to be clarified.Loctites P.R.C joint venture should meet with the distributor so they could specify a price range where both of the companies could make a better profit. Both companies have to analyze the market penetration so it is not penalized because of high prices, and neither the quality because of price war between those two seller companies. And Loctite should start to sell in China market.