An assessment of Loctite's decision to introduce Factory 539 China Star Technology Electronics Ltd A Executive Summary, its brand-new instant adhesive dispenser has heighted the fact that the dispenser would not be complementing the company's current product line. The reality that Loctite is a leader in immediate adhesives and operates in a market which has low price sensitivity shows that offering a low priced adhesive under Loctite's name would just be lowering the company's income in the long run. With threats of sales cannibalization and sales of Loctite's high end dispenser's being threatened by the brand-new potential launch, Loctite does not have a valid argument for launching Factory 539 China Star Technology Electronics Ltd A Executive Summary besides the fact that the model of the new development has actually been developed and is ready to be launched under the company's name.
A suggested marketing mix in case the company chooses to go on with the launch advises the price to be listed below $250 with the item being targeted at a niche segment such as that of the 'automobile repairs' so that the company does not wind up losing the market share of its high-end models to Factory 539 China Star Technology Electronics Ltd A Executive Summary because of the product's low cost. Distribution through suppliers is suggested as per the marketing mix rather than selecting the sales team because the cost of each sales call is $120 which would not be a financially possible move for a low cost item. A promotional project can not be removed from the marketing mix given that the initial awareness needs to be developed in order to reach out to prospective consumers in the targeted sector.