Lucozade athletics is an isosmotic athleticss drink aimed at the active and the wellness witting. every bit good as jocks. Its alone merchandising point is its hydration qualities which are designed to increase the endurance of jocks. It has established itself as the clear market leader in the athleticss drink industry in Ireland over the past 10 old ages. There are many factors impacting the current and possible hereafter success of Lucozade Sport. These include external factors such as rival activities and a swing to more health-orientated goods. Lucozade Sport pursues an incorporate selling scheme in which it harmonises its usage of the 4 P’s.
Much of its success can be attributed to the quality of its promotional runs which have created matchless trade name acknowledgment and created a connexion with the Irish market. Due to the success of its current and old selling runs it would be unwise to propose sweeping alterations. There is possible for betterment nevertheless in sectors such as increased targeting of the female and children’s markets. Lucozade Sport’s runs are chiefly targeted at males as there is a distinguishable deficiency of female athleticss stars backing the merchandise. while its high sugar content detracts from its entreaty to the children’s market.
Lucozade Sport is a athleticss and energy isosmotic drink. Its chief mark market is athleticss partisans and people involved in regular exercising. its athleticss trade name is made believable due to its alone scientific preparation ; that is “it is proven to widen jocks featuring endurance by 33 % longer than water” . ( Woodgrange Ltd. 2001 ) GlaxoSmithKline PLC is the parent company of Lucozade Sport which was launched in 1991 as the first major isosmotic drink in Ireland. and is now graded figure one in this class. harmonizing to Euromonitor International ( 2011 ) . Originally launched as an orange flavoured drink. it can now be found in a carbonated orange flavoured version and more late in non-carbonated summer fruits. summer berries and lemon and calcium hydroxide spirits.
Yellow and bluish are the primary colors of the Lucozade athletics label ( See Figure 1 ) . There is a silhouette of a adult male running incorporated into the Lucozade logo. The Lucozade name is embedded in a projectile form giving an semblance of velocity and the energy encouragement that the trade name is most associated with. Lucozade Sport is packed in an aerodynamic polyethylene bottle which is sleek and sporty. It has a bluish athleticss cap coloured light blue in maintaining with the subject of the logo.
Purpose of the Merchandise“Last longer finish stronger in the last 15 minutes” . as stated on the merchandise. This is Lucozade Sports motto which sums up the chief intent of this merchandise. It is of peculiar importance in replacing the fluid lost during exercising and therefore forestalling desiccation. Lucozade Sport besides provides saccharide ( 6. 4g per 100ml ) during exercising which supplies the organic structure with sufficient energy. It is a athleticss drink for endurance and concentration when the concluding push is needed most. Market Share
“Despite aggressive competition from Club Energise and Powerade. Lucozade Sport leads the athleticss drinks class at 66 % market portion. In add-on it now holds over 8 % of the Carbonated Soft Drinks market and. in footings of callback. is the No. 2 trade name across the full non-alcohol drinks category – merely after Coca Cola” ( Oglivy and Mather. 2007 ) .
Every twelvemonth since 2006. nevertheless. has seen Lucozade Sport regain market portion. steadfastly consolidating its place of market laterality in Ireland. This tendency endorses the quality of Lucozade Sport’s selling. as it is wining in contending off stiff competition. “Functional drinks is dominated by Lucozade trade name. with Lucozade Energy and Lucozade Sport entering a combined volume ( market ) portion of 54 % in 2009” as stated in Euromonitor International ( 2011 ) . Section 3: Current Selling Scheme
Market OverviewThe athleticss drink industry in Ireland is a extremely competitory market. with gross revenues of ˆ203. 2 million in 2009 and is predicted to turn to ˆ301mn by 2014 ( Euromonitor. 2011 ) . Lucozade Sport has successfully established itself as the clear market leader in the class. It is the driving force in the sector. and is mostly responsible for the 85. 9 % current value growing in the industry between 2004 and 2009 ( Euromonitor. 2011 ) .
Pestel analysis:
- Political: The authorities in recent old ages has made an attempt to cut down the sugar consumption of kids in schools and as such Lucozade Sport has been banned from some primary and secondary schools.
- Economic: The current recession is a clip of much economic turbulency. uncertainness and desperation. These factors will greatly impact Lucozade Sport’s gross revenues figures in the close hereafter as they are an inessential merchandise.
- Socio-Cultural: There has been an addition in gym departers in the last few old ages and with Lucozade’s strong stigmatization and market place this will take to increased gross revenues.
- Technological: Lucozade Sport has expanded to include a overplus of merchandises all of which focal point on the different facets of athletics which has led to greater market incursion.
- Environmental: With an increased concern for the environment comes higher monetary values for recycling plastics.
- Legal: Lucozade seems to be in order in footings of all legal factors. The lone possible gap for legal reverberations would be if any side effects arose in the hereafter.
Micro-competitive Analysis
The Company:GlaxoSmithKline is a big planetary corporation based in the pharmaceutical industry. They develop advanced medical specialties and merchandises that help 1000000s of people around the universe. Their chief mission is to better the quality of human life by enabling people to make more. experience better and unrecorded thirster. ( GlaxoSmithKline. 2011 )
Marketing Mediators:
The stigmatization of Lucozade Sport in Ireland relied to a great extent on Ogilvy and Mather. an international advertisement and selling bureau to make the Lucozade Sport trade name. “GSK had a antic merchandise ; their challenge to Ogilvy was to make an every bit powerful trade name. Our mission was to make a trade name for the alone Irish market that could go every bit celebrated as Lucozade Energy but that would non dominate or cannibalize it. ” ( Ogilvy and Mather. 2007 )
Television and wireless Stationss. along with newspapers and magazines. supply Lucozade Sport with a topographic point to publicize their merchandise.Customers:Targeted at active people. peculiarly those involved in athletics. It is less confined in the athleticss it targets than some of its rivals. Lucozade athletics has indorsements from jocks in a broad scope of athleticss. non mainstream athleticss such as rugger. GAA and association football. It besides sponsors good known jocks in other athleticss such as long-distance smuggler Mo Farrah. amongst others. It is hence targeted at a younger market. or at least those still involved in active exercising.
Rivals:In the early 2000’s. Lucozade Sport was the chief isosmotic drink being sold in the Irish market. However since that clip. Powerade was launched in 2002 and have since secured the official IRFU sponsorship. C & A ; C Club Energise launched in 2003 and has strong GAA ties. Gatorade is the world’s biggest athleticss drink and while it has no selling in Ireland it still presents a monolithic menace to Lucozade Sport. ( Ogilvy & A ; Mather. 2007 ) .
Lucozade in recent old ages was repositioned from a drink for sallow kids. a niche market with limited gross revenues growing. to the energy drink Lucozade Sport which is targeted at busy. active and sports-orientated people. This represents a much broader market. which is continuously turning. They achieved this shifting through first-class advertisement and famous person indorsement.
Lucozade athletics is a premium film editing border isosmotic athleticss drink and the market leader in the energy drinks industry. It is designed for the rehydration and to supply an energy encouragement to jocks when it matters most. “Proven to heighten physical endurance. Provides saccharide. fluid and electrolytes to assist fuel your musculuss and keep hydration” ( Lucozade. com. 2011 ) Lucozade athletics is positioned at the mature phase of the merchandise life rhythm. Gross saless have climbed and are now nearing a extremum. Gross saless publicities and runs have taken consequence.
The mark market is really cognizant of the merchandise and its benefits. Monetary value Lucozade athletics is perceived as a superior athleticss energy drink and this is communicated in the monetary value of the merchandise. Lucozade Sport use their pricing to strategically place themselves above their rivals. retailing at ˆ1. 45 in Tesco. which is somewhat higher than their chief rivals Club Energise and Powerade. This is consistent with its incorporate selling run followed in the other facets of its selling scheme. Topographic point Lucozade Sport really much utilises an intensive distribution policy. It is available in all supermarkets ( e. g. : Tesco. Supervalu. etc. ) nationwide.
Due to the figure of different extensions of Lucozade Sport. it has a heavy presence on store shelves. It tends to busy premier shelf location. i. vitamin E: at oculus degree. It is besides available in peddling machines in a assortment of locations such as schools and gyms. It is besides available online from the official Lucozade web site. World Wide Web. lucozade. com. which encourages majority purchasing by offering price reductions for big purchases.
The message that Lucozade Sport have been pass oning to its clients over a figure of old ages has been one of its ability to supply you with the excess energy you need. when you most need it. while besides bettering overall physical public presentation. Throughout this period. Lucozade Sport has besides been seen to be using a pull scheme to seek and do the mark market want to buy their merchandise. They have used many signifiers of advertisement and taken portion in many promotional runs to assist them to accomplish this scheme:
Events:Lucozade Sport have been seen to regularly sponsor many featuring events. increasing trade name repute every bit good as bettering their relationship with their consumers. The most recognizable event that Lucozade Sport has continuously sponsored has been the Barclays Premier League. An article on Arsenal F. C. ’s web site ( Arsenal. com. 2011 ) states “the Barclays Premier League who has once more selected Lucozade Sport as its Official Sports Nutrition Partner. an understanding that will add a farther three seasons to its 18-year term as the chosen fuel of the top flight.
Lucozade Sport has sponsored many well-known squads. beef uping its trade name acknowledgment. A perfect illustration of this can be seen with Arsenal F. C. which has a monolithic fan base. On Arsenal F. C. ’s website they discuss how “with the Club benefiting from adept athleticss scientific discipline support and entree to the full scope of 26 Lucozade Sport merchandises for every first squad preparation session and matchday. ” Lucozade Sport has besides sponsored the Munster Rugby squad and Chelsea F. C. among others. Magazines and Newspapers: An article on IPC’s web site discussed how Lucozade athletics. Confronted with credibleness issues over ‘a 33 % improved performance’ . utilised the battle and trust of Runners World magazine to heighten their message. doing it all the more credible ( See Figure 4 ) .
Television: Many of Lucozade Sports Television advertisement runs have included professional jocks such as Ronan O’Gara ( See Figure 5 ) . Steven Gerrard. Colm Cooper and Henry Shefflin. Having these successful jocks talk about the benefits of Lucozade Sport will do some people believe that Lucozade Sport has in some manner contributed to these professionals’ successes in the yesteryear. Lucozade Sport appeared on the tv3 show “The Apprentice” in late 2010 with the contestants being assigned the undertaking of making a hoarding for the launch of Lucozade Sport’s new trade name extension Lucozade Sport Lite. Internet:
On the Lucozade Sport online store. Lucozade Sport is invariably available in publicity offers. This is frequently used to promote bulk purchases. ( See Figure 6 ) Shops: In most of the stores that Lucozade Sport is sold in. there has in the past been a promotional offer to pull clients to purchase their merchandises. Examples in the yesteryear have been: Buy 2 500ml bottles of Lucozade Sport and acquire a 3rd for free.
Critique of the Marketing StrategyLucozade Sport succeeds in incorporating its usage of the 4 P’s to give a consistent message in its selling scheme. It places itself as the dominant merchandise in the athleticss drinks market through its promotional runs. This is reflected in its pricing scheme. which is somewhat higher than its rivals. while still staying competitory. This gives the semblance of high quality and quality. yet its monetary value scope is within the range of all consumers within the mark market.
An intensive distribution scheme regards this IMC as Lucozade Sport is readily available and seeable to all consumers in its mark market. Through this harmonization of merchandise. monetary value. publicity and topographic point. Lucozade Sport has become a power house in the energy drinks market. They have managed to contend off all rivals and now rank figure one in all energy drinks and figure two in carbonated soft drinks.
This is an first-class greening from the authoritative Lucozade which was preponderantly associated with infirmaries and retrieving patients to the cutting border market of jocks and athleticss fiends. Lucozade Sport’s promotional runs in Ireland have been peculiarly successful due to their focal point on Irish athleticss stars. recognizing that the Irish market would associate better to such personalities than entirely concentrating on British personalities. Lucozade Sport hence attributes much of its success to the national athleticss participants who endorse their drink such as Ronan O’Gara and Henry Shefflin. every bit good as many others. This targets the sense of national pride which is associated with their runs and these participants.
The success of these runs can non be disputed when the consequences are witnessed: “The return on investing generated by the communicating runs is estimated to be 515 % over the period 2001 to 2007” ( Ogilvy and Mather. 2007 ) Lucozade Sport has really high sugar content and is merely available up to a 750ml bottle. This may be a market chance that Lucozade has missed and could look into the hereafter. Lucozade Sport is non in the children’s or women’s markets and they target their merchandise at an older. predominately male market. These growing countries should be explored farther.
Over the class of the undertaking. we have discovered that Lucozade Sport has established a really strong trade name and is the dominant force in the energy drinks market. It is steadfastly established as the market leader. and has been with over 10 old ages. Lucozade Sport owes this success mostly to the success of its selling runs. Mottos such as “Lucozade Sport keeps top jocks traveling 33 % longer than water” and “Last longer. finish stronger in the last 15 minutes” are about universally known in Ireland. foregrounding how memorable these runs are. The usage of mention groups has proven to be really successful besides. Sports stars such as Steven Gerrard. Ronan O’Gara and Henry Shefflin have been used to great consequence. We besides found that the autochthonal athleticss stars of Ireland instil a sense of national pride onto the trade name. This helped proliferate the trade name into the Irish market.
Over the old ages Lucozade Sport has built up a strong trade name and repute. It successfully repositioned itself from bring forthing a medicative merchandise into a merchandise that has become the market leader of athleticss rehydration drinks. One of the chief recommendations that we would propose is to go on to make much of the same things that have brought about this success. A niche market may be the children’s and female markets which are non yet to the full explored by Lucozade Sport.
Lucozade Sport should see take downing the sugar content of their drinks as the high sugar content contributes to tooth decay. The publicity of Lucozade Sport is besides predominately aimed at the male market. highlighted by their usage of female famous persons in their runs being conspicuous merely by their absence. These types of merchandise thoughts could widen the Lucozade trade name to make a more extended market and. its current successful runs could be applied to these new possible sections.
