An examination of Loctite's decision to release Dividend Policy At Fpl Group Inc A Executive Summary, its brand-new immediate adhesive dispenser has actually heighted the fact that the dispenser would not be matching the business's present product line. The reality that Loctite is a leader in immediate 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 decreasing the business's profits in the long run. With dangers of sales cannibalization and sales of Loctite's luxury dispenser's being threatened by the brand-new potential launch, Loctite does not have a valid argument for releasing Dividend Policy At Fpl Group Inc A Executive Summary other than the fact that the prototype of the brand-new development has been developed and is ready to be introduced under the company's name.
A recommended marketing mix in case the company chooses to proceed with the launch advises the price to be below $250 with the item being targeted at a specific niche sector such as that of the 'motor vehicle repairs' so that the business does not end up losing the market share of its high-end models to Dividend Policy At Fpl Group Inc A Executive Summary because of the item's low cost. Distribution through distributors is recommended based on the marketing mix instead of selecting the sales team since the expense of each sales call is $120 which would not be an economically practical move for a low cost item. An advertising campaign can not be gotten rid of from the marketing mix considering that the preliminary awareness needs to be created in order to reach out to potential clients in the targeted sector.