An evaluation of Loctite's choice to launch Globalizing The Cost Of Capital And Capital Budgeting At Aes Executive Summary, its new instant adhesive dispenser has heighted the reality that the dispenser would not be matching the company's current product line. The fact that Loctite is a leader in instantaneous adhesives and operates in a market which has low price sensitivity indicates that offering a low priced adhesive under Loctite's name would only be lowering the company's revenue in the long run. With hazards of sales cannibalization and sales of Loctite's high-end dispenser's being threatened by the new potential launch, Loctite does not have a valid argument for launching Globalizing The Cost Of Capital And Capital Budgeting At Aes Executive Summary besides the reality that the model of the new development has actually been developed and is ready to be introduced under the company's name.
A suggested marketing mix in case the business chooses to go on with the launch suggests the cost to be below $250 with the product being targeted at a specific niche sector such as that of the 'automobile repair work' so that the company does not end up losing the market share of its high-end models to Globalizing The Cost Of Capital And Capital Budgeting At Aes Executive Summary because of the product's low cost. Distribution through suppliers is recommended based on the marketing mix instead of going with the sales group because the expense of each sales call is $120 which would not be a financially feasible move for a low cost item. An advertising 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 possible customers in the targeted section.