Price to End Price to Price to End User

` User Distributor (Outsourcing)

Variable Cost 75 75 75
Assembly Cost per unit 17.5 17.5 15.75
Total Variable Cost 92.5 92.5 90.75
R&D Cost 24000 24000 24000
BAM Advertising Cost 25908 25908 25908
Direct Mail Advertising 34495 34495 34495
Total Fixed Cost 84403 84403 84403
Total Cost 84495.5 84495.5 84493.75
Price 250 187.5 250
Break Even Value 535.9 888.5 530.0

Direct Mail Cost Fixed Cost Names Covered Fix price / letter
List 1 225 2678 3
List 2 675 14740 3
List 3 305 5177 3
22595

Magazine Ads.
Price to
Distributor Breakeven on High Price to Price to Price to End User
(Outsourcing) Pressure BAM End User Distributor (Outsourcing)
75 Variable Cost 105 105 105
15.75 Assembly Cost per unit 17.5 17.5 15.75
90.75 Total Variable Cost 122.5 122.5 120.75
24000 R&D Cost 24000 24000 24000
25908 BAM Advertising Cost 25908 25908 25908
34495 Direct Mail Advertising 34495 34495 34495
84403 Total Fixed Cost 84403 84403 84403
84493.75 Total Cost 84525.5 84525.5 84523.75
187.5 Price 250 187.5 250
872.4 Break Even Value 662.0 1298.5 653.0

Variable Cost
8259
44895
15836
68990
Price to Distributor
(Outsourcing)
105
15.75
120.75
24000
25908
34495
84403
84523.75
187.5
1264.5
IPG

in 1978

Anaerobics

Adhesive market -->

Forecast in 1979
Objective --> Increase in sales
--> Increase in awareness and trial'

Gluematic pen was to be intrduced in Jan 1979

Bond-o-matic with $175 might jeopardize Loctite's image
If Bond-o-matic didnt prove successful, then $175,000 spent
on ads of SuperBonder will be wasted
25% of Loctite sales
25% growth rate each year
$32 million
70% of IPG revenues from anaerobics and CAs 22400000
$4 of mechanical lock devices for every $1 on adhesives
Loctite share 85%
its CA --> Superbonder -->

10% growth each year

CA Sales 20%

335000
$4.5 million
industrial sale increment in pounds 29650
Avrg SP $37.45 per pound
Variable cost($) 19.474
Marketing and selling expenses 30% of dollar sales
Sales in 1978 $3.44 million

Bond-o-matic
High Pressure Model Low Pressure Model
48122.5 48090.75
 20% growth
Industrial
CA Sales Forecast 1979 335000 Revenue
SIC 20-39 target volume 35%
(Superbonder) 55387.5

Revenue Target from SIC 20-39 $ 2,074,261.88 2million

IPG sales forecast (million) 40

<--- lbs per
Total sales projection Superbonder 1979 110160 1.7508792542 establishment
Industrial Revenue 4131000 4.13 million

Pounds/Machine (Low Pressure) 126.27 50.204313084

Pounds/Machine (High Pressure) 87.12
avg percentage
Number of establishments SIC 20-39 62916.96 users 16.8272727273
Total Requirement 158250
LBS/Establishment 2.5152200615
 4.13
4131000 million Superbonders (20% growth)
Total sales projection Superbonder
1979 (lbs) 110160
Pounds/ Breakeven Machine (Low
Pressure) 126.2749
Pounds/Breakeven Machine (High
Pressure) 87.119889
Number of user establishments SIC
20-39 62916.96
Total Requirement 158250
LBS/Establishment 2.5152201

out of 50 potential
customers (SIC 20-39) I
have to sell it to 1 to
breakeven 1 sale out of 50.204313