Abstract
Plethora of reasons weighs for a company’s choice of marketing and to a large extends operation. While many of these factors such as the presence of resources, capabilities, and knowledge are internally driven, other factors, however, arise outside of the entity. This paper explores Leaping Lizard’s marketing strategy for the new soft drink aimed at competing with established brands like Red Bull and Monsters. The company embarks on a campaign to use online tools such as social media to reach the market.
Introduction
Leaping Lizard is a new company in the beverage industry that has introduced the new Leaping Lizard drink. The company has a strong mission, which is to offer clients with every day solution to their endeavors and at the same time provide them with energy. The energy drink motivates individuals who work early in the morning and late at night (Hardy, 2010). The company’s choice of introducing energy drinks had led to competition from other companies. These companies include Red Bull, Monster, and other similar energy drinks producing companies in the market (Paul, 1997).
Company’s Target Market: an Application of the Concepts
The main challenge that Leaping Lizard Company faces is how to introduce Leaping Lizard drink to the market. The company is now struggling to establish marketing methods that will see its product compete well in the market. Since this product is intended mostly for the middle class workers, the company wants to reach as many low-income earners as possible. For that reason, there is a dire need to include very many work places in the marketing strategy. This calls for a well-defined organizational objective plan.
Leaping Lizard’s primary strategy for its soft drink is to aim at the general family, with specific emphasis on athletes, young, married, high-income earners. Both lower price and higher price will be added to help expand the product line. The company will raise its average price line with 2%. To enhance product awareness in the industry, the company will employ integrated marketing communications. In particular, intensive advertising campaigns and sales promotion will be used to influence potential customers’ perception. The company will use viral marketing strategy. It will employ positioning strategy by product use or application.
The Psychology of your Target Market
What makes the item for consumption more recommendable to many is that it contains no additive and it is not addictive. That means it has zero percent of caffeine. Another advantage is that it is not continuous and only works at the time of use (Paul, 1997). Leaping Lizard energy drink is a natural product and has no side effects despite its rapid action in boosting energy. Identification of the market where the company wants the product get an upper hand is an ingredient of market segmentation. Presently, many energy drinks are highly addictive and contain components that are addictive to the user. To those who fear chemicals and value natural products, leaping lizard is their ultimate choice (Hardy, 2010).
Company’s Competition: an Application of the Concepts
Leading Lizards can compete within the market share of non-alcoholic drinks, soft drinks, and energy drinks. Some of the Leading Lizards competitors are products of larger brands. Some of the most known competitors of Leading Lizards include Red Bull and Monster Natural. Monster natural comes in an 8 ounces size with 100 calories. Monsters strengths include its relatively bigger size (twice the size of Redbull) for the same price as Red Bull. In addition, Monster is known for its activity of sponsoring athletes. For example, Monster has sponsored BMX Rider Mike Spinner and skater Dorien Walker. Like Leaping Lizard, Monster Energy targets youthful and energetic adults. In 2003, Monster launched the “Absolutely Zero” zero calorie drink and introduced Monster Java that infused coffee. This brand flopped after a short instant hit. However, Monster has the limitations of having additives such as gruana that have been evaluated by FDA.
The Psychology of your Competition
Red Bull is a slightly carbonated energy drink that improves mental and physical activity. It is a combination of minerals found in the body with caffeine and other minerals. The company holds 55 percent of the market share in the energy drink industry. Red Bull targets middle age people between ages 35-65 years. For advertisement, the company used different media channels to build a highly loyal customer base. Red Bull aims to expand its customer base by venturing into other social groups in the society.
Rationale for Choosing Channels
Leaping Lizard has three aims that it seeks to realize with its strategy. This includes:
Increase interest in Leaping Lizard among ages 18-35
Increase revenue growth for the company
Position Leaping Lizard as an alternative to Monster and Red Bull energy drinks
The Messages
Leaping Lizard aims to reach its online customer base by employing online media. Because the majority of the target market is online, Leaping Lizard believes that online marketing would be an effective method of reaching its customer base. Because of the influence of the social media in the net, Lizard aims to use social media as an effective way to gain exposure and brand recognition to a highly target market segment. Lizard uses common social networks such as Facebook, Twitter, and YouTube amongst others. Some of the reasons why Lizard uses social media are because social media groups such as Facebook enables Lizard to target specific users by age, interests, location and education level. By using Facebook pages, Lizard would be able to pin point target market s through Facebook adds as relatively cheaper and more efficient ways than using television adds (Kleinmann, Tobias, et al, 2010).
Social media also have the advantage of creating trust between customers and business. By sharing information and interacting online, Leaping Lizard will be able to build a network of trust with its social media network. The trust will be enhanced with Leaping Lizard’s capacity of viewing applications such as likes (Facebook), comments, and posts on Leaping Lizard’s social page. In addition to building social network, social media are a informative in spreading the word of mouth about new technologies across the globe. Users of the social media sites can take the picture of new smart phones, comment about new technologies, or write criticism about new phones. The social media’s ability to connect people would be the strongest and cheapest method that Leaping Lizard can use to expand its international connection and market.
In addition to increasing market base and serving as a promotional tool, the social media are a valuable tool for improving workers relations. Social media allow for workers to communicate internally about business issues as well as outside business thereby creating teamwork. In addition, workers can stay in touch with old customers that can make it possible to acquire new customers. Moreover, workers can be useful in acquiring new markets for the firm across the world using their online friends.
Implementation and Measurement
Social Media has made it possible for open communication between Leaping Lizard and its customers. Because of social media, Leaping Lizard’s customers can complain online and channel their complaints as a group or as individuals. In addition, Leaping Lizard can make use of applications such as twitter‘s (Customer Relationship Management). CRM allows Leaping Lizard to communicate directly with its customers and resolve any standing disputes.
In case a customer is dissatisfied, Leaping Lizard’s online representative can be handy to respond to the customer’s need. This whole process could take less than five minutes, and the customer would be satisfied. In addition, the conversation is saved, and other company officials can be able to trace the history just in case something goes wrong.
Conclusion
The most crucial aspect of marketing is ensuring that there is the availability of the product to all the clients who want it. This means that the consumer can easily find Lizard products whenever they want it. Using social media will make it possible for the company to acquire low levels and mid level income earners like college students and young adults. The social media will present a detailed analysis on where the products can be available such as local kiosks, shopping malls and others.
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