An assessment of Loctite's decision to launch Sanderson Farms Executive Summary, its brand-new instantaneous adhesive dispenser has actually heighted the truth that the dispenser would not be matching the business's present line of product. The fact that Loctite is a leader in instantaneous adhesives and runs in a market which has low price level of sensitivity shows that offering a low priced adhesive under Loctite's name would only be minimizing the business's profits in the long run. With risks of sales cannibalization and sales of Loctite's high-end dispenser's being threatened by the brand-new prospective launch, Loctite does not have a valid argument for launching Sanderson Farms Executive Summary besides the reality that the prototype of the new innovation has been developed and is ready to be released under the company's name.
A recommended marketing mix in case the business chooses to proceed with the launch advises the rate to be below $250 with the item being targeted at a niche sector such as that of the 'automobile repairs' so that the company does not end up losing the market share of its high-end models to Sanderson Farms Executive Summary because of the item's low cost. Distribution through suppliers is recommended based on the marketing mix rather than selecting the sales group because the expense of each sales call is $120 which would not be a financially practical move for a low cost product. A promotional campaign can not be eliminated from the marketing mix considering that the preliminary awareness has to be developed in order to reach out to prospective customers in the targeted sector.