MG412: Lucozade Brand Extension - Applying Marketing Principles Report

This report analyzes Lucozade's brand extension strategy, examining its existing brand value, target market, and the broader market trends. It explains the new product offering, focusing on protein-rich milk-based drinks for athletes and fitness enthusiasts. The report also assesses the competitive landscape, emphasizing the importance of cost-effectiveness and differentiation to retain customers. By considering political, economic, social, technological, legal, and environmental factors, the analysis aims to provide a comprehensive understanding of the opportunities and challenges associated with Lucozade's brand extension. Access more solved assignments and past papers on Desklib to enhance your understanding.

MG412 Principles of
Marketing

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
METHODOLOGY..........................................................................................................................3
FINDINGS.......................................................................................................................................3
Existing brand and brand value....................................................................................................3
Description of the target market..................................................................................................3
Analysis of the new market, including trends..............................................................................4
An Explanation of new product...................................................................................................5
Competition..................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing principles or the principles of marketing is the broad concept which helps the
companies to bring new and innovative ideas for making the effective marketing strategy. This
report will outline the brand extension of Lucozade. The marketing and branding of new
products helps the company to increase its sales. This repost includes the existing brand values,
description of target market, analysis of target market, explanation of new product and
competitors of new products.
METHODOLOGY
This research is done by the secondary data in the market which shows about the
competitors and their price in the market.
FINDINGS
Existing brand and brand value
The existing brand is the Lucozade which has two brands under that. The brand is
successfully operating since 1927 in Europe. This company basically sells out the soft drinks and
energy drinks for the people. It has many types of flavours and packaging under the one brand
name. The main thing about this brand is that it is available over the 15 countries around the
world. Recently, it has added water in the production of their products. The brand sold about the
6.8 billion cans of the drinks in year 2018 around the 15 countries in the world. This brand is
basically focused on the sports market and this brand is more valuable to the persons who love to
have soft and energy drinks. This brand includes the selling of the drinks and premium water. It
has partnership with the different players included in the marketing campaign of the
organization.
Description of the target market
Target market is the group of people which has some characteristics that the company
must identify for their potential customers (Syafril and Hadziq, 2021). This market can be
divided and categorized by the age, location, income and lifestyle of the customers. This also
includes the hobbies, interest and careers of the customers in the market. The packaging and
distribution of the product or brand should be very good and frequent. The target market of the
new product that is Lucozade are the sports persons, body builders, people who went through the
physical activities and work and the customers who basically prefers the to consume fat free
protein after doing exercise. As this is the energy drink it will mostly taken by the sports persons

or gym lovers in the market. The company must have good target market in order to have good
profitability. The target customers of the brand makes the brand to increase reputation and
productive in the market.
Analysis of the new market, including trends
Analysis of the market can be done through the focusing on the environmental factors of
the market. The company can do the PESTLE analysis of the new products which makes the
company to know about the different factors of PESTLE. This analysis includes the following
factors which are as follows:
Political factors: This factor includes the rules and regulations imposed by the
government for introducing the new product in the market (Taylor, 2020). The company must
analyse the political factor before introducing the new product.
Economic factors: These factors have a direct impact on the growth of the company.
With the increasing in the inflation it may decrease the profitability of the company. The new
product that is Lucozade must have a good impact on the target market during the pandemic time
also.
Social factors: It includes the social environment of the market which are cultural trends,
population, demographics etc. The company must focus on the social values of the society which
helps them to grow in the competitive market.
Technological factors: It includes the innovation of the new products and services in the
competitive market. As the company has introduced the new product it must check that the
external environment will accept that the market is favourable or not with the new and
innovative product.
Legal factors: These factors are based on both external and internal sides of the company.
Legal analysis must be considered by the company for launching the new drink in the market.
Environmental factors: These factors are related to the environment which includes the
climate, geographical location, weather and global changes (PESTLE analysis, 2021). In order to
bring the new drink the company must have good weather so that the people can have that
drinks.
As people are very health conscious the ingredients used in the drinks must be according
to the diet and health consciousness of the people. This things may affect the business of the new
product in the market.

An Explanation of new product
The new product brought by the company should have uniqueness which attract the
potential customers (Swanson, 2019). As the company has introduces the new product that is the
milk items for the protein gain for the body builders and the sports persons. The company uses
the cow milk or camel milk to make the drinks. The milk used by the company will be fat free
and contains the low lactose. The company must have the good packaging which attract the
customers to buy that drink. This makes the customers to have energy after having that drink.
Competition
Before introducing the new product in the market the company must do external analysis
of the market (Hajjat, 2020). From doing the analysis of the competitive market, the company
has understood that there are many choices in the market and the customers can easily shift to the
other brand. For retaining the customers on their new brand the company can reduce the cost of
their product as compared to their competitors. Thus, by doing this the company can introduce
the new product and increase the profitability.
CONCLUSION
From the above report it is summarized the existing brand and brand value and
description of the target market. Further it will evaluate the analysis of the new market including
the trends and also evaluates the explanation of the new product that is Lucozade and at last it
describes the competitors of the new product.

REFERENCES
Books and Journals
Hajjat, F. M., 2020. Using marketing for good: An experiential project on cause-related
marketing in a principles course. Journal of Education for Business. pp.1-10.
Swanson, S. R., 2019. The defining dozen: undergraduate students preconceived views of
marketing. Marketing Education Review. 29(1). pp.3-16.
Syafril, S. and Hadziq, M. F., 2021. Islamic Principles in Marketing: An Overview of Islamic
Marketing mix in Social-Media Campaign. El-Qish: Journal of Islamic
Economics. 1(1). pp.69-82.
Taylor, R., 2020. Reframing Delivery of Principles of Marketing: Moving Bored Students to
Board Room Employer-Needed Kick-Ass Skilled Grads. Academy of Business Research
Journal. 2. pp.52-66.
Online
PESTLE analysis. 2021. [Online]. Available through:
<https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-
analysis-factsheet#gref>