An evaluation of Loctite's decision to introduce Huaneng Power International Inc Raising Capital In Global Markets Executive Summary, its new instantaneous adhesive dispenser has heighted the fact that the dispenser would not be matching the company's existing line of product. The truth that Loctite is a leader in immediate adhesives and operates in a market which has low price level of sensitivity indicates that offering a low priced adhesive under Loctite's name would only be reducing the company's earnings in the long run. With threats 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 launching Huaneng Power International Inc Raising Capital In Global Markets Executive Summary besides the truth that the prototype of the brand-new innovation has been developed and is ready to be introduced under the company's name.
A suggested marketing mix in case the company decides to go on with the launch suggests the cost to be below $250 with the product being targeted at a specific niche segment such as that of the 'motor vehicle repair work' so that the business does not wind up losing the marketplace share of its high-end designs to Huaneng Power International Inc Raising Capital In Global Markets Executive Summary because of the item's low cost. Circulation through distributors is recommended according to the marketing mix instead of choosing the sales team given that the cost of each sales call is $120 which would not be a financially practical move for a low cost item. An advertising project can not be eliminated from the marketing mix given that the initial awareness has to be developed in order to reach out to possible clients in the targeted segment.