An evaluation of Loctite's decision to launch Real Options Valuation When Multiple Sources Of Uncertainty Exist Executive Summary, its new immediate adhesive dispenser has actually heighted the reality that the dispenser would not be matching the business's present product line. The fact that Loctite is a leader in instantaneous adhesives and operates in a market which has low price level of sensitivity shows that providing a low priced adhesive under Loctite's name would just be decreasing the business's earnings in the long run. With dangers 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 Real Options Valuation When Multiple Sources Of Uncertainty Exist Executive Summary besides the fact that the prototype of the brand-new development has been established and is ready to be launched under the company's name.
A recommended marketing mix in case the business decides to go ahead with the launch suggests the cost to be listed below $250 with the product being targeted at a niche segment such as that of the 'automobile repair work' so that the company does not end up losing the marketplace share of its high-end models to Real Options Valuation When Multiple Sources Of Uncertainty Exist Executive Summary because of the item's low cost. Circulation through distributors is suggested according to the marketing mix rather than choosing the sales group since the cost of each sales call is $120 which would not be a financially possible move for a low cost item. A marketing project can not be gotten rid of from the marketing mix considering that the initial awareness has to be produced in order to reach out to prospective customers in the targeted section.