In contrast to the North American selective distribution strategy, Loctite uses an exclusive distribution strategy overseas. Exclusive distribution is a situation in which only certain dealers are authorized to sell a specific product within a particular territory. By participating in exclusive distribution, again Loctite is able to maintain more control over the level of service provided. By granting exclusive distribution, Loctite maintains control over how its products are merchandized, marketed, and branded. In other words, Loctite is able to more tightly control its brand image. Unlike the 12 region structure in North America, overseas distributorships are structured into three regions—Europe, Latin America, and Asia/Pacific—each overseen by a region manager. The North American region is run by the president of Loctite, and he along with the other regional managers report directly to the COO.
Overseas, Loctite operates in each country differently. In Taiwan the distributor is a large conglomerate operating in many businesses besides industrial adhesives. The opposite is true in Indonesia, where the distributor is a small family owned business. Loctite grants exclusive rights in a territory and then provides as much support as needed. In order to keep a handle on its overseas