Leaping Lizard is newly established company that operates in the beverage industry. Recently, it introduced into the market leaping lizard drink. With the company’s 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 has a capability motivating individuals who work early in the morning and late at night (Hardy, 2010). Major industry beverage competitors include red bull and monster. This paper is therefore devoted to the financial and marketing objectives of Leaping Lizard. Besides, it highlights the company’s marketing strategies.
Leaping Lizard aims to have a steady growth in its revenue. In particular, the company has a financial objective of earning an annual rate of return of 20% on its investment over the next five years in business. Year after year, the company aims to grow its profits by 25%. Specifically, it aims to produce $2,000,000 in profits during the first year in operation. Leaping Lizard also strives to produce a cash flow of $3,000,000 during the first year in business. In successive years, this should increase by 25%.
Marketing objectives
In order for Leaping Lizard to achieve its financial objectives, it has formulated SMART marketing objectives. It aims to occupy 10% of the market share by selling 4 million units during the first year in business. Similarly, it aims to achieve $25,000,000 in revenue from sales in its first fiscal year. Leaping Lizard aims to increase the level of awareness of its energy drink brand from 5% to 20% over the planning period. The company also aims to expand its distribution outlets by 20% annually.
Marketing strategy
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.
Positioning will entail communicating the product image and position. The product brand will be highly associated with a specific product use or application. The company will increase its departmental stores nationally in order to expand its distribution outlets. 20% of the earnings will be used for further research and development to enhance the quality of Leaping Lizard’s soft drink. Also, 10% of the earnings will be channeled for marketing research. Specifically, it will be used to monitor the competitors’ moves and to assess the consumers’ buying behaviour.
Resources:
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Kotler, P. & Armstrong, G. (2011). Principles of marketing. 14th edition. Prentice Hall Inc.
Kotler, P. & Keller, K. (2006). Marketing Management.12th edition. New York: Pearson Prentice Hall.
Kotler, P. (1994). Marketing Management: Analysis, Planning, Implementation and Control. 8th edition. Prentice Hall Inc.
