An examination of Loctite's decision to launch Redhook Ale Brewery Executive Summary, its new instantaneous adhesive dispenser has heighted the reality that the dispenser would not be complementing the business's current product line. The reality that Loctite is a leader in instantaneous adhesives and runs in a market which has low price level of sensitivity indicates that offering a low priced adhesive under Loctite's name would only be minimizing the business's revenue in the long run. With threats of sales cannibalization and sales of Loctite's high end dispenser's being threatened by the new prospective launch, Loctite does not have a legitimate argument for introducing Redhook Ale Brewery Executive Summary other than the fact that the prototype of the brand-new development has actually been developed and is ready to be released under the company's name.
A suggested marketing mix in case the business chooses to go on with the launch advises the rate to be below $250 with the item being targeted at a niche sector such as that of the 'motor vehicle repair work' so that the business does not wind up losing the market share of its high-end designs to Redhook Ale Brewery Executive Summary because of the product's low cost. Circulation through distributors is suggested based on the marketing mix instead of choosing the sales team given that the cost of each sales call is $120 which would not be an economically practical move for a low cost product. A promotional campaign can not be gotten rid of from the marketing mix because the initial awareness needs to be created in order to connect to prospective customers in the targeted section.