An examination of Loctite's choice to introduce Using Advertising And Price To Mitigate Losses In A Product Harm Crisis Executive Summary, its new instantaneous adhesive dispenser has actually heighted the reality that the dispenser would not be matching the company's existing product line. The fact that Loctite is a leader in instantaneous adhesives and operates in a market which has low price sensitivity indicates that offering a low priced adhesive under Loctite's name would only be lowering the company's revenue in the long run. With dangers of sales cannibalization and sales of Loctite's high end dispenser's being threatened by the brand-new possible launch, Loctite does not have a valid argument for releasing Using Advertising And Price To Mitigate Losses In A Product Harm Crisis Executive Summary aside from the reality that the model of the new invention has been developed 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 advises the rate to be below $250 with the item being targeted at a niche sector such as that of the 'automobile repair work' so that the business does not end up losing the market share of its high-end designs to Using Advertising And Price To Mitigate Losses In A Product Harm Crisis Executive Summary because of the item's low cost. Distribution through distributors is suggested as per the marketing mix instead of going with the sales team because the cost of each sales call is $120 which would not be a financially possible move for a low cost item. An advertising campaign can not be removed from the marketing mix considering that the initial awareness needs to be developed in order to connect to potential customers in the targeted segment.