An examination of Loctite's choice to introduce Robert Mondavi Corp Caliterra A Executive Summary, its brand-new immediate adhesive dispenser has actually heighted the truth that the dispenser would not be complementing the company's existing 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 income 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 legitimate argument for introducing Robert Mondavi Corp Caliterra A Executive Summary other than the truth that the model of the new development has actually been developed and is ready to be introduced under the business's name.
A suggested marketing mix in case the company chooses to go on with the launch suggests the price to be listed below $250 with the product being targeted at a niche section such as that of the 'motor vehicle repairs' so that the company does not end up losing the market share of its high-end designs to Robert Mondavi Corp Caliterra A Executive Summary because of the product's low cost. Distribution through suppliers is recommended according to the marketing mix instead of selecting the sales group since the expense of each sales call is $120 which would not be a financially practical move for a low cost product. A marketing campaign can not be removed from the marketing mix considering that the preliminary awareness needs to be produced in order to connect to possible consumers in the targeted section.