Lucozade Marketing Strategy

Lucozade Marketing StrategyThe aim of this report is to evaluate the merchandise strategy of Lucozade in the united Kingdom. Lucozade is a successful confederacy in the industry of dexterity and gamings potableing. The exploding growth in the energy and sports grocery storeplaceplace place direction the needs of this winning of healthy food is increasing rapidly. It is becoming a popular food culture not only in the get together Kingdom but also the whole world.This report uses marketing melt as a tool to analyse the marketing strategy apply by Lucozade to understand how the social club promote its products. After that, by synopsising the market function and the performance, the fools position in competition is identified. Then, through comparing with Lucozades rival- exit strapper, strength and weakness are showed. SWOT epitome is used in this part. Next, the recomm nullifyations w unhealed be given to the ships company after the analysis to accession sales a nd expand market share.1.Overview of Lucozade1.1 History of LucozadeLucozade is a sports energy drink. It was offshoot launched in 1927 by a chemist in Ireland. At that time, its induce was Glocozade till 1929, it was bought by Beechams rebranded into Lucozade .From 2000 to present, it is owned GlaxoSmithKline pls which also produces healthcare products much(prenominal) as vaccines. It panoptic the brand into Lucozade pas seul, Lucozade Energy, and Lucozade marvellous (Wikipedia, nd).1.2 Lucozades AchievementLucozade is the true energy drink as well as the category driver. The sales of Lucozade Energy was one hundred fifty million in 2003 (Facebook, nd) and it went up to 229.3 million in 2004 and 253.3 million in 2005(Nielsen, 2006).In 2010, Lucozade appears on the list of Top Britains 100 Biggest Brands, ranking the 9th (Nielsen, 2010).22.1 Marketing MixBrassington F. and Pettitt (2006, p.30) shows that marketing mix as the combination of the major tools of marketing was f irst learned by Borden in 1964,and the mnemonic 4ps describing those tools was coined by McCarthy(1960).They also demos out that the marketing mix can help the company understand the nature of customers and their needs to act on the information, in bon ton to develop and implement marketing activities that actu all(prenominal)y deliver roughlything of value to the customer.2.2 4Ps analysis of Lucozade2.2.1 ProductLucozade is a glucose carbonated drink. The drink is a highly heavy source of energy which is quickly assimilated into the bloodstream. It is easily digested (Banyard and Philip, 1999, p.70).The company everlastingly whole kit and boodle hard on new product development since it is launched. Till 2010, it has four-spot product lines Lucozade, Lucozade Energy, Lucozade Sport and Lucozade Alert.Lucozade Energy Being launched in 1929, Lucozade Energy is the original product and is designed to provide an energy boost. It provides glucose fuel for physically alert people. It is available in the fol crusheding 6 flavours Original, Lemon, Orange, Apple, Cherry and Tropical (Facebook, nd).Lucozade Sport Lucozade Sport was first launched in 1991 and was the UKs first isotonic sports drink.(Lucozade Website,nd) It is developed to stir the needs of athletes, football player and those sports lovers. It also launched Lucozade Sport Hydro Active It is a new fitness water specially designed for exercisers and gym-goers(Facebook, nd). In 2010, Lucozade sport is attempting to ext give notice its potential audience with the launch of a new low calorie sports drink called Lucozade Sport Lite, which contains 50 calories and already appearedat the end ofMarchin shops in UK(UK Marketing News Online,2010).Lucozade Alert Lucozade Alert is designed to sharpen your mental performance, is low calorie 45 calories per nursing bottle and has a great refreshing lemon flavour. It contains caffeine to help modify Focus, Alertness and Concentration. (Facebook, nd)2.2.2 Pric eBeing a historical company, Lucozade has gained more experiences on how to reduce the cost of producing, hence, it is cheaper, compared with ablaze(p) Bull.Price/BottlePrice/100mlLucozade0.781.3010.0p20.5p ablaze(p) Bull1.352.0238.9p54.0p2.2.3 PromotionFor Lucozade, the recipe to success is science and product promotion.advertizing and sponsorshipLucozade is very good at using advertizement and sponsorship as tools for promotion. On one hand, in terms of ad campaign, their advertisements on TV always funding pace with their changing object market. To illustrate, it was used to boost ill or sick childrens energy at first and their target market was m other(a)s, hence, its first advertisement in 1960 was about a mall male child who was recovering from being ill and he drunk the Lucozade with his mother (Coursework, 2004).Nextthe company aimed at athletes and sports lover, therefore, the Olympic decathlon champion, Daley Thompson showed in the TV advertisement .In 2001,Lucozade w anted to target at new market segments which is teenagers, the company used Lara Croft who is a parting in the known video games called tomb Raider to cast teenagers and children since they all love the video games(Coursework,2004).On the other hand, the company also sponsor famous player and teams. For exampleDavid Jobber and John Fahy(2009236) points out that sponsorship of athletics by Smithkline Beecham for its Lucozade Sport brand reinforces and its market position and its energy associations.()Cooperation with IpodRecentlywith the increasingly big fans of Apple, young people are seen walking on the path with Ipod clipped on their belts, Iphone h white-haired in their hands. To violate promote and give compete, now individuals can find FitCoach which is supplied by Lucozade Sport on the iTunes transfer page. It is a free software for Ipod and can help people keep fit and lose weight.In addition, in September 2010, Lucozade Energy offers customers to seduce an Iphone ev ery hour. Everyone has a chance as long as he/she buys a bottle of Lucozade Energy.2.2.4 PlacePlace is a very impulsive and fast moving area of marketing. It covers a wide variety of enrapturing topics largely concerned with the movement of goods from A to B and what happens at the point of sell.(Brassington F. and Pettitt,2006,p.31)Lucozade is sold in many places in United Kingdom such as retail chains like ASDAschools, gyms, sports center, even in discontinue stores or bread stores.3. Competition position3.1 Energy and sports drink market sizeIn todays market, every industry and business is very private-enterprise(a) and tough with so many different brandss ,the historical ones, the news ones. However, in the cold market, the market of energy drinks boosts every year. The market has proved ecological niche proof and continues to perform impressively.Value sales of the sports/energy drinks market are image to grow from 941 million in 2008 to 1,035 million in 2009.Over the ne xt fivesome years the market will grow by 48% to puree 1.5 billion in 2014 (Mintel oxygen data, 2009, p.8) .3.2 Market share of LucozadeCara Traboulsi et al. (2004,p.6),gives an extensive translation on the market share that in 2003,Lucozade already had the largest market share(60%) followed by the major competitors such as Red Bull and Powerade with the value share of 27% and 4.50% individually .The rest of the market is made up with some small brands. It can be seen in the first pie chart.In 2010, Lucozade is the leader in United Kingdom for its market share in United Kingdom and Ireland is 90%(Bihua Ye,2010,p.19).The second pie chart shows the market share in Ireland. Lucozade still dominates the market with 75% value share (Begleys,nd).3.3 Compared with Red BullLucozade was the first energy, however, in the market of the energy drinks today, many Lucozades competitors have raised, the main(prenominal) and the most powerful competitor Lucozade has to face is Red BullRed Bull is an energy drink brand which was launched in Austria in 1987. In but 20 years it has gone on to become a global best-selling beverage brand ( ).It is cl advance(prenominal) to see that the two companies have some similarities. First, they both target young people .Second ,not just Lucozade, Red Bull is also very good at advertising . The company spent around 30 percent of its annual employee turnover on market and sponsorship( ).However, Shirisha Regani pointed out that Red Bull was unable to successfully extend its product line although a sugar-free version was introduced in 2003( ) ,which puts Lucozade into a more advantage position while competition since Lucozade has successfully extended their brand.StrategyRepositionLucoade used to be positioned as an invalids drink. ( )During the period 1974 to 1978 the sales of Lucozade declined consistently ( Banyard and Phillip,1999,p.70).The market changed that time, people had better medical technology and better living conditions which take the place of Lucozade. SmithKline Beecham, the brands owner, repositioned the brand from its original position as thea product for the sick to a brand which is essentially for the fit and healthy. ( )In the early 1990s,Lucozade successfully reinvented itself as a sports energy drink and by the end of the decad it was looking to step into the main stream and become a brand that would be sold out of the same fridges as Cock and Pepsi.( Tom Farrand, David Nichols, Tom Rowley,Matt Avery Journal Young Consumers P12 2006 Volume7 )SWOT analysisStrengthIt has many different flavors to meet the need of different kind of customers and attract customers.It tastes very nice.Lucozade still dominant the energy drink market.The company has good reputation. Lucozade was established in 1927,which means it was the first energy drink product, the longer history means the company has longer time to contour the brand into success.WeaknessLucozade always focuses on developing new products suc h as Lucozade Sport Lite, it can be benefit, however, people are particular(a) and always want to try new products, which will put the old products such as Lucozade Energy into dangerous position. Microsoft is an good example to applaud this, less people are using Windows xp after Windows 7 is launched.Lucozade is a soft drink but contains 0.01% ethyl alcohol to aid flavourer which goes against the concept that Soft drinks are non-alcoholic. (BBC News Online,2004)OpportunitiesLucozade has the potential to expand their market share.ThreatIt faces the threat of being substituted by Red BullRecommendationsLucoade has a great scientific team trying to work on how to develop peoples energy.The boosting energy market,expand the market share in the whole beverage other than in the energy drink market.Since Lucozade is already dominant in the energy drinks market, what the company should do now is try to remain the old customers and attract new customers.