Running head: Brand Extension Marketing Plan
1.0 Executive Summary
The Recipe Modifier is Lakelands most recent innovation that has great potential to generate revenue for Lakeland, “the home of creative kitchenware.” Lakeland products have developed strong demand and this will be the driving force behind this particular product. Lakeland was initially a kitchenware provider but has extended its brand to offer a wide range of products that fulfill consumers entertaining, storage, cleaning and gifting needs.
The Recipe Modifier appeals to virtually any individual that cooks at home using recipes. This product eliminates one of the major challenges of cooking with a recipe. It removes all the guessing out of cooking where measurements are concerned when dealing with a variation of serving sizes or guests. This product will require the user to enter the existing recipe and the desired number of servings. The Recipe Modifier will then make the needed calculations and modify the measurements to meet the identified serving size without changing the taste of the resulting dish.
Other benefits of the Recipe Modifier can be found in its innovative features which tightly integrate the technology in the form of a mobile hand held device. It’s easy accessibility to information/recipes either via the handheld or remotely through the individual’s customized web page. As a bonus the handheld and the website are available as a bundle package for a fixed cost which also serves to enhance products appeal. Exceptional customer service delivered from the initial acquisition process through the technical support services. All equipment is strong and durable to withstand rapid wear and tear to aid a long life span.
Market research indicates that a great demand exists for the Recipe Modifier. The target consumer for this product is creative and ambitious. There is a growing market for this product which can be attributed to the negative effects from the economy, multi cultural cooking and the need for healthier eating. There is very little direct competition for this product since they do not offer the fully comparable functions contained in the Recipe Modifier. Competitors do offer some of the features, such as nutritional calculations and measurement calculations but not the convenience of being in a single product. This product will also be capable of competing with software and websites that offer recipe creation, storage, and calculation features. If more competition enters the market, the product is still expected to maintain its market share with the wide range of innovative and convenience features.
Key marketing objectives are to sustain positive and stable quarterly growth. This is inclusive of a quarterly increase in market penetration. The established marketing mix will also produce an increase in brand awareness. A quarterly increase of .5 percent in profit margins and control of customer acquisitions costs will be monitored to ensure the budget is not exceeded. A primary financial objective is to achieve sales revenues of $559,920, with a breakeven point being achieved at $420,149. There is a projected increase in sales for the months of November and December.
2.0 SITUATION ANALYSIS
Lakeland is in the introductory stages on implementing the newest brand extension product, the Recipe Modifier. Lakeland products have developed a strong demand and household name since opening in 1963. Effective marketing of this new product is essential to continuing in the tradition of demand that is seen for other Lakeland products. There is a wide consumer market for this product and establishing product awareness to build brand equity is crucial to its success.
The target customer groups are males and females that cook their own meals and are open to eating a variety of cuisine. Reason being, these consumers have the need to conserve money and dining at home is the most cost efficient...
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