Marketing Strategies for Lucozade

This assignment delves into the marketing strategies employed by Lucozade, examining both its domestic and international approaches. The analysis considers various marketing concepts such as integrated marketing communication, global marketing, and social marketing. Furthermore, the ethical implications of Lucozade's marketing practices are explored, highlighting the importance of responsible and sustainable business conduct.

MARKETING PRINCIPLES
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TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
1.1....................................................................................................................................................3
1.2....................................................................................................................................................4
TASK 2 ................................................................................................................................................5
TASK 3 ................................................................................................................................................5
3.1....................................................................................................................................................5
3.2....................................................................................................................................................6
3.3....................................................................................................................................................7
3.4....................................................................................................................................................8
TASK 4.................................................................................................................................................9
4.1....................................................................................................................................................9
4.2..................................................................................................................................................10
4.3..................................................................................................................................................11
CONCLUSION .................................................................................................................................12
REFERENCES...................................................................................................................................14
2

INTRODUCTION
Marketing is defined as a business activity which helps an organization for accomplishing its
desired objectives in a productive manner (Kubacki and et.al., 2015). Advertising, brand promotion,
development of distribution channel and product designing activities come under the same.
Preferences of the purchaser also needs to be considered for formulating marketing strategies in a
systematic way. It is essential that proper market research should be done for identifying the needs
of consumers so that appropriate planning can be done as per the requirement of clients (CIM,
2016).
Present report is based on the firm, Lucozade, which is a leading sports drink company of UK.
Major products rendered by company includes energy drink, sports drink, glucozade and Lucozade
drink. The report describes about various elements of marketing process and benefits and costs of
marketing orientation for the cited firm have also been explained. In addition to this, various macro
and micro environmental factors that affect the marketing process are also mentioned. Furthermore,
segmentation criteria for various products of company in diverse market areas have been discussed.
Moreover, a targeting strategy for a selected product has been explained in the report. Along with
this, difference between domestic and international marketing has also been described and
marketing mixes for two different consumer segments have been planned.
TASK 1
1.1
Lucozade is the largest energy drink provider company in world and it offers quality
services to its consumers. Marketing is defined as a complex business activity that helps in
achieving the desired objectives of business firm (Cătoiu, Vrânceanu and Filip, 2010). Various types
of activities are included in the process like product design, pricing decision, advertising and
promotional strategies as well as selection of distribution channel. Major elements of marketing
process for the cited firm are as follows:
Research: It is the primary stage in which proper market evaluation is done for identifying
the opportunities and threats for Lucozade. It assists the firm in formulating strategies in an
effectual manner. Moreover, launching a new product and entering into a new market area requires
proper planning and market analysis (Kotler, 2008). Identification and analysis of consumer needs
can be done by identifying the requirement of consumers in that particular market area.
Formulation of the plan: It is required that an appropriate action plan should be formulated
for achieving the desired objectives of business. At the initial stage, new market areas are identified
3

by company for launching new products of enterprise. The information collected through research
help in accessing opportunities that can be availed by Lucozade. Proper marketing strategies are
needed to be formulated for accomplishing the common interest of business (Rosenbloom, 2012).
An appropriate evaluation needs to be done for the complete data collected in research process.
Marketing mix decisions: At this stage, management of Lucozade takes some effective
marketing mix decisions for selling their products in market in an efficient manner. All decisions are
taken in an appropriate and planned way for attracting existing and potential consumers for the
business (Daymon and Holloway, 2010). All decisions of enterprise related to its marketing
activities are taken at this stage for promoting and selling commodities of business. Price of the
product, distribution channel and promotional strategies are decided at this stage.
Implementation and monitoring of the action plan: After conducting proper research,
marketing strategies have been formulated and it is essential that all strategies should be
implemented in a proper manner so that required results will be achieved as per the needs of
enterprise (Mooij, 2013).
1.2
Lucozade is a leading sports drink company of UK that provides quality services and
commodities to its consumers. Market orientation has some cost and benefits associated with it and
management needs to consider all of them while formulating strategies for the business (Amasaka,
2011). Marketing orientation is defined as a process which focus on distributing the products in an
efficient way for meeting requirements of consumers. This approach focus on designing
commodities of enterprise as per the needs of its buyers. There are various costs and benefits
associated with marketing orientation technique and management of Lucozade needs to consider all
factors while developing marketing strategies for enterprise. Evaluation of requirements of
consumers is done by conducting a market survey in which a questionnaire can be given to various
buyers for filling (Lees-Marshment, 2009). Online survey is also conducted under which use of
internet and Emails can be taken for sending the prepared questionnaire. Response given by the
buyers are noted properly and detailed analysis of entire data is done for identifying the
requirements of consumers. Company invests funds for conducting market survey and money is
also invested in making improvements in the product quality.
Research and development (R&D) of Lucozade play a significant role in designing product
as per the requirement of consumers. Information collected through questionnaires is evaluated by
them and all the employees of department put their best possible efforts for making improvement in
commodities as per the requirement of consumers (Tiwari, 2012). Management encourages new
4

innovations that aid in making significant improvements in the products of corporation. It requires
some financial cost for conducting research and survey and thus, R&D department needs monetary
funds for carrying out their work for improving the quality of product. Many benefits have been
gained by the organization by investing in research activities. Superior quality sports drink are
offered by company to its buyers and quality of all products have been improved. Business of
corporation has increased and competitive advantages and sustainable growth have been achieved
by the organization (Baines, Fill and Page, 2013.). The initiative of company to invest for making
improvements in its product quality has proved beneficial for it. Financial revenue and profitability
of business has been increased and Lucozade became capable for offering new varieties and better
quality products to its consumers.
TASK 2
TASK 2 HAS BEEN COVERED IN POWERPOINT PRESENTATIONS
TASK 3
3.1
The term competitive advantage refers to superiority possessed by a company when it can
render the same value as its rivals but at improved quality or reduced cost (Eliaz and Spiegler,
2011). It provides favourable status to the corporation in market which results in gaining higher
profits than its competitors and efficiency to yield higher value for an entity and its shareholders. In
addition to this aspect, company can use innovative techniques and processes to develop effective
and unique products that help Lucozade in performing better than its rivals. In order to gain
competitive advantages in market, Lucozade can match its core competencies to the upcoming
opportunities in target area. The brand already holds a strong position in market resulting in high
customer acceptance around the globe (Ariff and Mohamad, 2012). In addition to this, Lucozade
holds a leading position in sports and energy drinks which has captured the market of more than 117
nations.
Company also has core competencies in terms of business links with medicine
manufacturers that support the firm in maximizing its sales. With the help of these competitive
advantages, firm can get edge over its rivals (Kotler, 2015). Other than this, Lucozade can improve
the quality of its health and sports drinks to build a strong position in market. Therefore, company
can add more flavours to the drinks that will grab the attention of maximum customers. At present,
organisation is offering only lemon and orange flavours so it can introduce mint, strawberry,
pomegranate, blueberry and other fruit flavours. Social media technology and other digital
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processes can be used by brand to generate awareness in the market. Furthermore, corporation can
focus on the concept of differential advantage to maintain its influential position in target areas
(Peattie, 2010). In this respect, Lucozade will develop distinct products than its rivals to compete
with Red Bull. Company is planning to introduce Lucozade alert plus with new flavours. Also,
organization can use patent protection to sustain its differential advantages. Thereafter, another
competitive advantage is like company can gain it in terms of improved technology. Therefore, new
processes can be used to improve packaging design of products such as tin cans, tetra packs and
sleek plastic bottles that can be designed for sports drink on different quantity ranging from 50 ml
to 500 ml. The skilled, knowledgeable and trained human inventory of company will also help in
maintaining the core competencies of brand (Blery, 2010). Therefore, employees must be trained to
design unique and superior quality products.
3.2
The term distribution can be defined as movement of products and services from the
production through a distribution channel directly to the final consumer. It is an effective method
that helps in spreading products to the entire market so that maximum number of individuals can
purchase the same (Zhang and Wu, 2008). The distribution system is used by Lucozade to provide
convenience to customers. It also enables entity in ensuring the maximum sales of its offerings on
prompt manner in the market at less cost than its rivals. In addition to this, effective distribution
system ensures maximum reach of products of the brand among customers. Company is likely to
fail if its products are not available for sale at a point where they can be purchased. There are
various channels that can be used for the distribution of products of brand. There are mainly three
categories of distribution, intensive, exclusive and selective. In intensive distribution, the offerings
of Lucozade will be stored in most of the outlets. Thereafter, selective distribution is a method
through which manufacturers depend upon selected negotiator to carry their offerings(Kotler,
2015).
On the other hand, exclusive distribution is a method where products are chosen for very
few intermediaries. Here, Lucozade can use intensive distribution to assure availability of its
products at maximum outlets. Further, corporation can use both online and offline channels for the
distribution of its products (Lina and Fengyong, 2010). In this respect, offline channels will help
Lucozade in distributing their brands through multiple outlets to assure their easy accessibility to
the consumers. Therefore, products of company will be easily available in gyms, energy drinks in
hotels, restaurant, kiosk and canteens of hospitals, colleges and schools. The retail outlets, shopping
or super marts will also have products of company. Furthermore, with growing dependency of
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customers on internet sources, it is important for the firm to offer its products through online
sources (Salavati and Karami, 2015). This will further help the product to reach at different
locations where retail stores are not present. Therefore, customers can purchase the product of
Lucozade through e-stores. It will also increase the convenience for buyers at product will be easily
available.
3.3
Price is the important components on which the success of product depends. The too high
price can prevent the price conscious customers to purchase the product while too low price can
keep away the status concerned customers. Therefore, it is important for company to determine the
prices of its offerings wisely (Lees-Marshment, 2009). The setting price is a method through
which organization ascertain the price at which it will offer its products and services. While
offering its products and services, Lucozade can use different strategy while selling its products and
services. Therefore, different strategy can be used by organization such as:
 Premium pricing: It is important strategy that will help business in setting prices higher
than its rivals. This strategy is generally adopted when the company is offering products
with unique attributes and brand enjoys competitive benefits. It is effective strategy that will
help the corporation in maximizing its revenue.
 Penetration pricing: It is effective strategy that mainly help in maximizing the market
share by entering the marketplace with a low price as compared to that of rivals so as to gain
attention of maximum customers (Baines, Fill and Page, 2013). However, company may
incur loss at initial stage but will help in improving the recognition in market.
 Economy Pricing: This is another effective strategy through which organization use low
cost approach to marketing. Therefore, company can do minimal reduction in the prices to
gain the maximum attention of the customers. This strategy is fruitful for Lucozade as it will
draw price concerned customers and thus boost the sales of company (Lina and Fengyong,
2010).
 Price skimming: It is best strategy that can be adopted by organization having core
competence. Therefore, company can charge high price in the introduction of product
having improved quality, features etc. Thus, corporation will be able to maximize its profits
as compared to its rivals start offering same kind of products (Peattie, 2010).
 Psychological pricing: It is important strategy through which company can set a price that
is considered as psychologically less in the perception of the customers such as $1.99 can
be charged instead of $2 for energy drink. Therefore this aspect will help the brand in
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keeping the prices lower than the round figure (Salavati and Karami, 2015).
Since, Lucozade owns a influential position in the market, it is important for company to
choose premium pricing policy. Since, customers are getting good quality health and energy drinks
that work as tonic it will be appropriate for brand for charging little higher prices. This will help in
earning more profits which can be used for future growth and success. However, it is feasible for
brand to keep track of the price charged by rivals for similar drinks to sustain the market share and
prevent customers from shifting towards other brand (Eliaz and Spiegler, 2011).
3.4
Promotion is the important aspect that can be defined as entire set of functions that
communicate the product, brand to customers. It is viable aspect that help in enhancing customer
awareness regarding a offering and thus generating sales and improving brand loyalty among
customers. Therefore, promotion is important factor that play major role in assuring the sales of
Lucozade products and services (Daymon and Holloway, 2010). The main objective of promotion
is to deliver the key information like, new product, improved features, discounts etc. to the
customers and others. In addition to this aspect, promotion play a vital role in improving the
demand of products of company leading to higher sales and revenue. Other than this, Lucozade can
use promotion as tool to differentiate its products in market. Therefore,company can develop its
brand position with the help of promotion (Cătoiu, Vrânceanu and Filip, 2010). Therefore, there are
varied promotional tools that can be used by brand to increase the sales. Such as,
Advertisement: It is paid form of communication through which company can promote the
products and services by providing information on television, radio, magazine etc. It is effective
method as it help in reaching the maximize audience at low cost (Kubacki and et.al., 2015).
Personal selling: It is important method through which company can use its sales personnel for
improving sales and customer relationship. Therefore, entity can use trade shows and other fitness
program etc. where the sales executive can explain the benefits of energy drinks of Lucozade.
Public relation: It is another promotion method that help in improving the reputation of brand by
developing sound relationship with the public by gaining favourable publicity. Since, brand I s
famous for improving the health of patients suffering from influenza and cold it is easy for it to use
public relation as promotional means (Menzel and Shrestha, 2012). In order to improve public
relation can also sponsor health events.
Direct Marketing: It is important promotion method through which company use digital
techniques such as, display advertisement, internet, mobile applications for improving the
promotion of its products. In addition to this aspect, company can use social media sites, official
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website for improving the promotion of its products.
Further, to assure maximum sales of its products, company an make use of all these
techniques. Therefore, integrated marketing will help in gaining the attention of wide range of
customers (Eliaz and Spiegler, 2011).
3.5
 Physical evidence: This aspect relates to the quality of services offered by the organization.
It also means the element that are incorporated in a services to ensure tangibility. Therefore,
the marketeers should emphasize more on the physical look of the retail outlets and e-store
that stimulate customers to visit the store and purchase the products offered by it (Amasaka,
2011). In this respect, Lucozade check the service staff of store are properly dressed,
products are displayed and labelled in the shelves, proper light in store etc. so that customers
get better shopping experience. The working environment of the enterprise needs to be safe
and protective so that all the staff members should work in an proper manner for
accomplishing objectives of the business (Tiwari, 2012).
Process: It refers to method that assist company in offering effective services to its
customers. In this respect, company use self services in its retail stores where customer can
select the product they require and purchase the same. It is essential that a systamatic and
effective process should be used for managing the functions of the enterprise. Proper
monitoring of overall processes is required for ensuring growth and sustainability of the
business. Positive relationship needs to be developed with the suppliers and retailers for
ensuring growth and success of the business (Peattie and Peattie, 2009). CCTV cameras can
be installed for monitoring the process and it will support in controlling overall business
functions of the enterprise.
People: It means the quality of human inventory used by company to influence customers.
For this aspect, Lucozade use trained staff that stand for the company image in market.
Thereafter, company ensure its employees have good soft and hard skills. Such as strong
communication skills help sales representatives in suggesting right product to customers as
per their needs(Menzel and Shrestha, 2012). Human resource are considered as most
important asset of the enterprise. Customer service executives of the enterprise that supports
in rendering quality services to clients needs to be trained properly. Management of the cited
firm takes significant initiatives for making improvements in skills and knowledge of their
staff members.
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TASK 4
4.1
Marketing mix is a effective tool that aid in selling the commodities of the enterprise in the
market place (Kubacki and et.al., 2015). Major elements of the marketing mix includes product,
place, price and promotion. The Lucozade company can plan diverse marketing mixes for two
different consumer segments. The major consumers for company's products include kids and
youngsters that uses sport drink while their playing session. The management can formulate various
types of marketing mixes for targeting these specific market segments.
Marketing mix for kids : Kids can be attracted by giving advertisements on cartoon
channels. It is a very effective medium for promoting products of the company (Cătoiu, Vrânceanu,
and Filip, 2010). Prices of the commodities needs to be kept lower so that school going kids can
purchase the sports and energy drinks from their pocket money. The shops nearby schools can be
approached for selling commodities of the enterprise. It is necessary that effective promotional
strategies should be developed for gaining attention of kids. Collaboration with various playing
academies can be done for selling energy drinks of the enterprise (Kotler, 2008). Competitions and
activities can be organized in schools and it includes sports activities, dance and some physical
activities. It will assist in doing brand promotion and awareness about products of the company can
also be created by making use of this method.
Marketing mix for young consumers : Young consumers can be attracted by doing
advertising on various social media platforms (Rosenbloom, 2012). There are millions of users who
actively visit various sites like Facebook, Twitter and Instagram. Lucozade can make use of these
sites for doing cost effective and time saving marketing. The company sponsor Premier football
league that is organized every year in the country. In addition to that it has become official drink
partner of the Football Association. All these activities aid in increasing brand promotion of the
enterprise and awareness about products of the company is also created (Daymon and Holloway,
2010). It is essential that targeted market areas should be approached for selling the energy drinks of
the company. Qualified and experienced people needs to be hired for for making effective
marketing strategies. Distribution channel needs to be effective and systematic for and proper
interaction needs to be done with the retailers and wholesalers of the business. Attractive discounts
and combo offers can be given on the energy drinks and attractive promotional schemes can also be
started for gaining more number of young consumers for the business. College campus and playing
stadiums can be targeted for posting banners and posters. Business letters can be sent to individual
young consumers in which detailed information about features of the product should be disclosed to
10

them (Mooij, 2013). Consumer representatives can be hired for doing door to door selling and they
should be sent to sell products of the firm at college campuses and playing grounds.
4.2
There is vast difference between between procedures of selling products of the company to
business rather than consumers (Amasaka, 2011). Lucozade firm needs to develop different
marketing strategies for selling their energy drinks to consumers and to the business. The major
difference between both is as follows-
Business to business marketing : In this method products of Lucozade company are sold
to some other organizations. Wholesalers and retailers also comes in this category to whom large
amount of products are sold (Lees-Marshment, 2009). Energy and sports drinks of the firm are sold
to another company and this technique aid in selling the commodities in bulk quantity. The
corporation needs to develop valuable relationship with their business partners for ensuring long
term partnership. More complex decision making process is involved in this type of marketing and
overall process is controlled by top management people. Initially sample of products are sent by
Lucozade to other firms (Lucozade, 2016). Interested companies reply through written documents
or by sending individual representatives. A legal contract is signed by both the parties under which
they agree on various terms and conditions of business (Tiwari, 2012). Risk associated with
business to business marketing is more as compared to selling products to individual customers.
The buyers are more rational and they are having more information about detailed knowledge about
features and attributes of products offered by the company. A complex and time consuming process
is involved in selling products of the Lucozade to another business firm.
Business to consumer marketing : In this method it is difficult to identify exact consumers
of the business. Operations of the Lucozade enterprise are spread in large market areas and
customers are located in diverse geographical areas. It becomes critical and complex for
formulating marketing policies to attract large number of consumers. Profitability and revenues of
the business depends upon purchasing parity of the clients. Economic condition of the country also
affects the marketing activities of the sport drink company (Baines and Page, 2013). It is essential
that satisfaction of the consumers should be achieved for ensuring sustainable growth of the
enterprise. Distribution channels of the company needs to be specific to target their existing and
potential consumers. More diverse and effective promotional strategies needs to be developed for
creating brand awareness and product promotion. No legal contract is signed under this method
between buyer and seller (Menzel and Shrestha, 2012). Loyalty of the consumers can be gained
through providing them quality energy and sports drinks.
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4.3
Operations of the Lucozade company are getting executed in United Kingdom. It is working
as leading energy and sports drink provider company of the nation. Products of the corporations are
also offered in outside UK and company is expanding its operations in international markets (Lee,
and Kotler, 2011). There is vast difference between domestic marketing and international marketing
and Lucozade makes different type of strategies for selling their products in these markets. The
basic difference is as follows-
Domestic market : The company started its operations in UK and the management is well
aware of various legal and regulatory frameworks formulated by the government. Taxation policy of
the state is followed properly and legal experts provide guidance to the management for executing
their desired operations (Peattie and Peattie, 2009). Less economical and political barriers are faced
by the company in domestic market. Cultural barrier is also less as fewer problems are faced in
understanding languages and problems of people. Risk associated with business is less as compared
to international market. Impact of political changes is less and major focus of management is
towards attracting local consumers and developing marketing strategies is easy for domestic
markets.
(Source- Petit, 2013)
International market : It is a complex and critical task to sell products of the Lucozade
company in oversees market. Many barriers are faced in the international market and proper and
appropriate planning is required for executing the operations of the company in global market areas.
Political factors play a vital role and influence overall activities of the enterprise, it is essential for
12
Illustration 1: Domestic and International marketing

the company to follow all the legal and regulatory framework formulated by state (Holden,
Kuznetsov and Whitelock, 2008). Cultural barrier is also faced as language, food and traditions of a
place differ from each other. It becomes difficult to control marketing activities of the company in
international area. Conducting market research for identifying requirement and preferences of
individual becomes essential for the company. The firm has Appointed a legal expert for taking
assistance in regulatory and political matters. Government intervention is high in outside nations
and high variation is observed in consumer choices and preferences. Risk factor is high in
international market and a deep research and understanding of market condition is required for
gaining success of business in international market areas (Peattie and Peattie, 2009).
CONCLUSION
Present report concludes that there are some basic elements of marketing process which
companies need to consider while taking their marketing decisions. Many cost and benefits are
associated with marketing orientation of Lucozade company. Different types of micro and macro
factors affect the marketing activities of the enterprise and it is critical to take effective measures for
reducing negative impact of these factors. Energy and sport drink Products of the company can be
developed for achieving competitive advantage. The management of the company can take initiative
for making improvements in distribution channel so that superior quality drinks can be offered to
consumer in an effective manner. Prices of the commodity needs to be set properly after analysing
market conditions so that profitability of the business can be ensured. There is wide difference
between domestic and international marketing and the firm should make effective marketing
strategies for gaining sustainable growth in these market areas.
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