An evaluation of Loctite's choice to release Acme Hardware Executive Summary, its brand-new instant adhesive dispenser has actually heighted the truth that the dispenser would not be matching the business's present line of product. The fact that Loctite is a leader in instantaneous adhesives and runs in a market which has low price level of sensitivity indicates that using a low priced adhesive under Loctite's name would just be reducing the business's revenue in the long run. With threats of sales cannibalization and sales of Loctite's high-end dispenser's being threatened by the new prospective launch, Loctite does not have a legitimate argument for introducing Acme Hardware Executive Summary other than the fact that the prototype of the new innovation has been developed and is ready to be released under the business's name.
A suggested marketing mix in case the business decides to go on with the launch advises the price to be below $250 with the product being targeted at a specific niche section such as that of the 'automobile repairs' so that the business does not wind up losing the marketplace share of its high-end designs to Acme Hardware Executive Summary because of the item's low cost. Distribution through distributors is suggested as per the marketing mix rather than going with the sales group considering that the cost of each sales call is $120 which would not be an economically possible move for a low cost item. A marketing project can not be eliminated from the marketing mix since the preliminary awareness has to be produced in order to reach out to prospective clients in the targeted segment.