An assessment of Loctite's choice to introduce The Craddock Cup Executive Summary, its new instant adhesive dispenser has actually heighted the reality that the dispenser would not be matching the business's current line of product. The reality that Loctite is a leader in instant 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 reducing the company's earnings in the long run. With threats of sales cannibalization and sales of Loctite's luxury dispenser's being threatened by the brand-new possible launch, Loctite does not have a legitimate argument for releasing The Craddock Cup Executive Summary besides the fact that the model of the brand-new innovation has actually been developed and is ready to be introduced under the business's name.
A recommended marketing mix in case the company decides to go on with the launch suggests the price to be below $250 with the item being targeted at a niche segment such as that of the 'automobile repairs' so that the company does not wind up losing the market share of its high-end designs to The Craddock Cup Executive Summary because of the item's low cost. Distribution through distributors is suggested according to the marketing mix rather than selecting the sales team considering that the cost of each sales call is $120 which would not be a financially feasible move for a low cost item. An advertising campaign can not be eliminated from the marketing mix since the initial awareness needs to be produced in order to reach out to possible consumers in the targeted segment.