Brand Extension

This presentation focuses on the brand extension of Lucozade by introducing a new energy drink, Lucozade Coffee Crunch, targeting the youth audience and sports persons. It discusses the existing brand values, the new product, the target market, key trends, PESTEL issues, analysis of the competitor, and concludes with the impact of brand extension on the competitive industry.

Brand Extension

Table Of Content
 Brand Introduction
 Existing brand values
 New Product
 Target Market
 Key Trends
 PESTEL Issues
 Analysis of the competitor
 CONCLUSION
 REFERENCES

Brand Introduction
 Lucozade is a energy and soft drink manufacturer
company headquartered in UK. It is a well
established brand founded in 1927. it have
diversified its network through GSK.
 This report focuses on the brand extension of the
company by introducing a new energy drink for the
target market. The new drink is Lucozade Coffee
Crunch which is focusing on targeting youth across
the worldwide.

Existing Brand Values
 Lucozade have maintained trust and commitment of their customers. Since its launch, the company have
always try to reposition their product either in the way of lost energy product or in the way of sports drink.
 The company have developed various marketing campaigns and have used market segmentation for
enhancing the awareness of their product across the globe. The brand is dynamic and bold in nature which
intents to develop a spirit of never say die and can do approaches for the consumers.
 The company focuses on the values of satisfaction for their customers, providing value added products and
establishing effective image of the brand in the complex industry.

New Product
 The brand is extending their product line by introducing an
energy drink namely Lucozade Coffee crunch. In this the
company is providing coffee flavour energy drink which
will target the youth audience and sports person.
 Lucozade is adopting the market development techniques
of Ansoff analysis for identifying new customers for their
products. The company focuses on the development of core
energy in their new brand extension to enhance loyal
customer base.

Target Market
 The company is focusing on the youth
audience for their new product. The company
manufacture for the sports drink and the youth
is their main focus.
 The company have adopted market
segmentation strategy in order to make their
marketing techniques effective. Also, the
company mainly focuses on developing the
product which will target the individuals of
every age group.

Key Trends
The key trends of Lucozade involves the
following:
 For the brand flavour innovation is the key to
success. The company manufacturers the sports
and energy drink so they must introduce new
flavours of soft drinks in their product range in
order to attract the large customer base.

PESTEL Issues
The company is facing some of the PESTEL issues:
 Political Factor: There were rumours that the
products of the company have the traces of alcohol
in high range which is not permitted by the food
laws. Due to which it have frowned by Muslim
communities which have restricted the limits of the
products of the brand in many international market.

Analysis of the competitor
 PowerAde is considered as the major competitor of Lucozade. The company focuses on the
implementation of effective marketing strategies in order to build competitive advantage.
 As the company is considered to be weak in terms of advertising as compare to PowerAde. Also, the
company can use diversified product range in order to enhance their market share.
 For this the company can use market development feature for their existing product and can apply
differentiation technique for new identified products in the external environment.

CONCLUSION
 From the above report it can be concluded that brand extension is a way for ensuring
continuous success of the brand.
 Also, the mentioned company focuses on the market development strategy. Also, there are
many PESTEL issues and key trends which are discussed above.
 The brand have introduced an new product in their diversified range. This have elevated
their position in the competitive industry.

REFERENCES
 Martinelli, E., De Canio, F. and Marchi, G., 2016. Retail brand extension: antecedents of attitude and
intention to buy. In International Marketing Trends Conference 2016 (pp. 1-12). Paris-Venice Marketing
Trends Asociation.
 Park, J. H. and Kim, S. I., 2018. Brand extension strategies for Efficient utilization on office space-A Study
on Brand extension of Starbucks. Journal of Digital Convergence, 16(2), pp.299-304.
 Sevova, P., Dmitrijenko, K. and Ishonova, D., 2016. Brand extension process.
 Swaminathan, V., 2016. Branding in the digital era: new directions for research on customer-based brand
equity. AMS review, 6(1-2), pp.33-38.
 TAŞKIN, Ç. and ÖZTÜRK, O., 2016. The Antecedents of Brand Extension Success and Research on an
Apparel Brand. Paradoks: The Journal of Economics, Sociology & Politics, 12(1).
 ZHU, C., WANG, X. F.,and GAO, S., 2017. Exploration of Brand Extension of 30 TCM
Enterprises. Guiding Journal of Traditional Chinese Medicine and Pharmacy, (10), p.8.