An examination of Loctite's decision to launch Clarkson Lumber Co Executive Summary, its brand-new instant adhesive dispenser has heighted the fact that the dispenser would not be complementing the company's present line of product. The truth that Loctite is a leader in instant adhesives and runs in a market which has low price sensitivity suggests that offering a low priced adhesive under Loctite's name would just 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 Clarkson Lumber Co Executive Summary aside from the truth that the model of the brand-new invention has actually been established and is ready to be introduced under the company's name.
A recommended marketing mix in case the business chooses to go on with the launch recommends the price to be below $250 with the item being targeted at a specific niche sector such as that of the 'automobile repairs' so that the company does not end up losing the marketplace share of its high-end designs to Clarkson Lumber Co Executive Summary because of the product's low cost. Circulation through distributors is recommended according to the marketing mix rather than going with the sales group since the expense of each sales call is $120 which would not be an economically practical move for a low cost product. An advertising project can not be gotten rid of from the marketing mix given that the preliminary awareness needs to be produced in order to reach out to possible consumers in the targeted section.