An examination of Loctite's decision to launch Cartwright Lumber Co Executive Summary, its new immediate adhesive dispenser has actually heighted the truth that the dispenser would not be matching the business's existing product line. The reality that Loctite is a leader in immediate adhesives and runs in a market which has low price level of sensitivity suggests that offering a low priced adhesive under Loctite's name would only be reducing the business's income in the long run. With risks 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 launching Cartwright Lumber Co Executive Summary besides the reality that the model of the new development has actually been established and is ready to be launched under the business's name.
A suggested marketing mix in case the company chooses to proceed with the launch advises the price to be below $250 with the product being targeted at a niche section such as that of the 'automobile repairs' so that the company does not wind up losing the market share of its high-end designs to Cartwright Lumber Co Executive Summary because of the item's low cost. Distribution through suppliers is suggested as per the marketing mix instead of opting for the sales team since the cost of each sales call is $120 which would not be an economically possible move for a low cost item. An advertising campaign can not be gotten rid of from the marketing mix since the initial awareness needs to be produced in order to connect to prospective consumers in the targeted sector.