An assessment of Loctite's decision to introduce Phelps Dodge Corp Executive Summary, its new instantaneous adhesive dispenser has heighted the reality that the dispenser would not be matching the company's present product line. The fact that Loctite is a leader in instant adhesives and operates in a market which has low price sensitivity indicates that providing a low priced adhesive under Loctite's name would just be minimizing the business's profits in the long run. With threats 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 releasing Phelps Dodge Corp Executive Summary other than the reality that the prototype of the new creation has been established and is ready to be released under the company's name.
A suggested marketing mix in case the company decides to go on with the launch advises the cost to be listed below $250 with the product being targeted at a niche sector such as that of the 'motor vehicle repairs' so that the company does not wind up losing the market share of its high-end designs to Phelps Dodge Corp Executive Summary because of the product's low cost. Distribution through suppliers is recommended based on the marketing mix rather than selecting the sales group considering that the expense of each sales call is $120 which would not be an economically possible move for a low cost item. A promotional project can not be gotten rid of from the marketing mix since the initial awareness needs to be created in order to connect to prospective customers in the targeted section.