An evaluation of Loctite's decision to introduce Butler Lumber Co Executive Summary, its brand-new instant adhesive dispenser has actually heighted the fact that the dispenser would not be matching the business's current product line. The fact that Loctite is a leader in instantaneous adhesives and runs in a market which has low price level of sensitivity shows that using a low priced adhesive under Loctite's name would only be lowering the company's profits in the long run. With hazards of sales cannibalization and sales of Loctite's luxury dispenser's being threatened by the new prospective launch, Loctite does not have a legitimate argument for releasing Butler Lumber Co Executive Summary besides the truth that the prototype of the new creation has actually been established and is ready to be released under the company's name.
A recommended marketing mix in case the company decides to go ahead with the launch advises the rate to be listed below $250 with the item being targeted at a specific niche segment such as that of the 'automobile repair work' so that the company does not end up losing the marketplace share of its high-end models to Butler Lumber Co Executive Summary because of the item's low cost. Circulation through distributors is suggested based on the marketing mix rather than choosing the sales group considering that the expense of each sales call is $120 which would not be a financially practical move for a low cost product. A marketing project can not be gotten rid of from the marketing mix given that the preliminary awareness has to be created in order to reach out to prospective consumers in the targeted section.