Marketing strategies – Lucozade

The main purpose of this work is to identify the marketing strategy used by Lucozade to increase the demand for its products.

Lucozade is an energy drink which contains glucose syrup and caffeine. This energy drink was produced by GlaxoSmithKline plc.

The first Lucozade energy drink was manufactured in 1927 by a chemist in Newcastle. The chemist produced the drink with intent of giving energy to people who are sick.

The strategy

To increase the demand of its products, Lucozade had to change the packaging of its bottles, the large glass bottles with yellow a cellophane wrap, was discontinued.

Lucozade was repositioned in 1985 with a motive of providing an every day energy replacement drink to its consumers. The reposition was very successful due to celebrity endorsement

In 1999 Lucozade re-launched Lucozade energy, the marketing was very successful because it was represented by Lara Croft (an imaginary character who you can find in movies, cartoons and video games.).

The idea was to attract people who are fans of Lara Croft to drink and to purchase Lucozade because the catch phrase ” your brain your weapon”. This technique would make consumers believe that the drink will give them energy when they are in a tough situation or when they playing sports and get tired, the drink will give them energy.

Lucozade has also launched Lucozade Sport which is aimed at people who like sports such as Football, Athletes, Tennis and other sports.

Lucozade is now the UK’s number 1 sport drink because almost every athletes drink. The marketing strategy of this drink was very popular because the campaign was represented by so many different athletes.

How did Lucozade increase the demand of its products?

Lucozade aims, is to provide a complete product range to address the nutrition needs of athletes of all abilities, for performance, preparation and recovery within sport. The company’s research team believe that the right diet is a key factor to improve sporting performance and that’s why the Lucozade sport was launched.

The Lucozade Sport team has also approved that drinking Lucozade Sport drinks before, during, and after physical activity improves performance and endurance, increases hydration, reduces fatigue and aids recovery.

How did it work?

The company used one of the most successful strategies by launching a sporting drink product through celebrity endorsement. Since then Lucozade can be found in supermarkets such as Tesco, Asda, and Sainsbury’s…etc, you can also get Lucozade from corner shops and vending machines.

The company launched Lucozade drinks with different flavours and the new bottle has a new logo or catch phrase called ”Brain and Body Energy”. This technique makes people believe that they can get energy if they are stressed or tired, it’s one of the reasons why a lot of people purchase Lucozade drinks.

It’s now possible to find Lucozade drinks from any soft drinks vending machines, especially schools and leisure centres.

Lucozade has advertised through Premiership leagues such as Arsenal which is one of the most famous leagues in the UK. This technique had a huge impact on fans of football or other sports. Since then a lot people have purchased Lucozade drinks.

Marketing mix

Marketing mix is consisting of techniques which can used to improve the marketing performance of an organisation’s products or services.

The Ansoff’s matrix is another practical way of thinking about different growth strategies.

The main purpose of the technique above is to help businesses to decide their product and market growth strategy.

* Market penetration: the method involves selling existing products into the existing market or re-introduced the existing product into the existing market, increase usage by existing customers and secure dominance of growth markets. The main objectives are: increasing the market share of current products, this method is not applicable for a business which products are declining. E.g. Lucozade’s old bottle was discontinued and flavour had to be changed or reproduced to satisfy existing customers and to attract new customers,. If the company never changed the nature of its products then the company could possible go bust because nobody wants to purchase the old Lucozade drink flavour. That is why the company had to do some research to improve its products so that they meet customers’ need.

* Market development: is about selling new products to a new market, and the approach to this technique include: new geographical market, new packaging, new distribution channels and different pricing strategy. This is exactly what Lucozade has done to its new product; the product was aimed at a new market including athletes and people who like sports.

* Product development: this is a method used when a business wants to introduce a new product. Lucozade has changed its packaging from large glass bottles with a yellow cellophane wrap to 250ml bottles with re-sealable tops and then a new 300ml curvy bottle with Lucozade Energy logo. The flavour of Lucozade has also changed.

* Diversification: is about introducing a new product to a new market. This strategy is a bit risky because the company is moving into another direction, so it has to apply new marketing techniques. That is why market research is needed in order to introduce a new product in the market.

Application of the marketing mix

The objective of the marketing mix is to develop new strategies that will help a business to meet its customers’ needs.

Marketing mix consists of product, price, place, promotion and places.

* Product: the product itself is a key success for any business organisation, because if you develop poor quality products then you will hardly have anyone to purchase them. It’s very important to produce something which is unique so that other businesses will not compete with you. This is what Lucozade has done to it products. The company has done research carefully in order to find new energy drinks which are beneficial to athletes and other people who enjoy sports or those who want to live healthier lives. Lucozade’s products have new flavours and the packaging is different from what is used to be in the past.

* Pricing: pricing is very important because it will determine how an organisation’s sales are performing so that the business can meet its goals. The first thing to do is to check what competitors are pricing for their products. If you price your products higher than your competitors then you easily lose customers. Lucozade always make sure that their prices are the same as their competitors (Pepsi, Coca Cola…etc). if you purchase a bottle of Pepsi for 80p from a vending machine. Lucozade will also charge the same price. This can increase customers’ demand for the new Lucozade product.

* Place; the place shows how the customers obtains the product. Lucozade are sent to retailers who sell them to consumers but due to the new technology, it’s possible to find a Lucozade vending machine in most public places such as Pubs, leisure centres, corner shops supermarkets and schools.

* Promotion: there are so many tools available to promote a product and these include branding, personal selling, direct marketing, sponsorship, advertising, customer service and after sales services. I will focus on sponsorship and advertising.

Sponsorship

Lucozade pays to be associated with an event, cause or image. The company usually sponsors sports events. This strategy helps the business to get known from a wider range of population and this means that the sale might increase. E.g. Lucozade can sponsor Olympic Games and ask all the British athletes to wear a polo that has the logo Lucozade sport at the back and also drink Lucozade drinks before or after a game.

In order for a sponsorship to be successful it has to be combined with other elements of the marketing mix. E.g. Lucozade Sport’s Lions Tour sponsorship was linked with an on-pack promotion offering consumers the chance to win a trip for two to Australia to see the Lions in action. Special promotional bottles featuring the tagline ‘Catch the Lions in Oz’, were produced especially for the Lions Tour sponsorship campaign.

Advertising

Lucozade’s advertising strategy is through celebrity endorsement because this way the company can attract a lot of new customers. Especially fans of those famous people. The use of a highly respected and admired personality serves to enhance visibility of A new brand, and to establish sporting credentials with the target market.