An evaluation of Loctite's decision to launch Robert Mondavi Corp Caliterra B Executive Summary, its brand-new instant adhesive dispenser has actually heighted the truth that the dispenser would not be matching the company's current product line. The fact that Loctite is a leader in instantaneous adhesives and runs in a market which has low price sensitivity indicates that using a low priced adhesive under Loctite's name would only be reducing the company's profits in the long run. With risks of sales cannibalization and sales of Loctite's high end dispenser's being threatened by the new prospective launch, Loctite does not have a valid argument for introducing Robert Mondavi Corp Caliterra B Executive Summary besides the fact that the model of the new development has been established and is ready to be released under the business's name.
A suggested marketing mix in case the business decides to go ahead with the launch suggests the rate to be below $250 with the product being targeted at a specific niche segment such as that of the 'automobile repairs' so that the business does not end up losing the marketplace share of its high-end models to Robert Mondavi Corp Caliterra B Executive Summary because of the item's low cost. Distribution through suppliers is recommended based on the marketing mix rather than selecting the sales team since the cost of each sales call is $120 which would not be a financially practical move for a low cost product. 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 clients in the targeted sector.