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LUCOZADE ADVERTISING & MARKETING CASE STUDY

LUCOZADE ADVERTISING & MARKETING CASE STUDY · Since its launch Lucozade has been the market leader in the energy drink category with just under 60% value share of the category. Key

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Page 1: LUCOZADE ADVERTISING & MARKETING CASE STUDY · Since its launch Lucozade has been the market leader in the energy drink category with just under 60% value share of the category. Key

LUCOZADEADVERTISING&MARKETINGCASESTUDY

Page 2: LUCOZADE ADVERTISING & MARKETING CASE STUDY · Since its launch Lucozade has been the market leader in the energy drink category with just under 60% value share of the category. Key

https://www.campaignlive.co.uk/article/superbrands-case-studies-lucozade/232378?src_site=brandrepublicSuperbrandscasestudies:Lucozade

TheUKtotalcolddrinksmarketislargeandcompetitive,withmanypowerfulandfamousbrandswithlargemarketingbudgetscompetingforshare.Asaresult,themarketcanbeanever-evolvingtestforbrandsthatwishtocontinuetogrowinacategorythatiscurrentlyworth£3.55bn.

Withinthecolddrinksmarket,increasesinthesoftdrinkscategoryhavebeenslowing.However,growthhasbeendrivenconsiderablybytheEnergydrinksector,whichwasworthanestimated£940millionin2003andhasgrown+26%since2001.(Source:MintelEnergy&StimulantdrinksMarketReportAugust2003).Theenergydrinkcategorycontinuestogrowatpacewithbrandextensionsandnewentrantstothemarketemergingeveryyear.Thisrepresentsbothachallengeandanopportunityforthecategory'sleadingbrands.

SinceitslaunchLucozadehasbeenthemarketleaderintheenergydrinkcategorywithjustunder60%valueshareofthecategory.KeycompetitorsincludeRedBullandPoweradewith27%and4.5%valuesharerespectively.2003alsowitnessedtheintroductionofseveralPrivateLabelsportandenergydrinklaunchesfromthemajorgrocers.Therestofthemarketismadeupwithaplethoraofsmallerbrands,predominantlyoperatinginthestimulantdrinkssector,anddistributedviatheImpulsechannelandtheon-tradeenvironment.(Source:Nielsenvaluesharedata,MATtoDecember27th2003).Achievements

Launchedin1927asaproviderofenergyduringrecoveryfromillness,Lucozadeistheoriginalenergydrinkandhasbeenthecategorydrivereversince.LucozadeEnergyiscurrentlythecategoryleaderwithsalesworth£150millionin2003.

In1982Lucozadewasrepositionedfromadrinkthataidedrecoverytoadrinkthatreplacedlostenergy.Asaresultofthis,togetherwithstrongadvertisingandnewproductdevelopment,thebrandhasconsistentlyenjoyedover10%year-on-yeargrowththroughoutthedecade,cementingitspositionastheclearcategoryleader.

Launchedin1990tophenomenalsuccess,LucozadeSportwastheUK'sfirstmainstreamsportsdrink.Thebrandnowhasa17%valueshareoftheEnergycategoryandistheUK'sleadingsportsdrink.Therangehasalsobeenextendedtoincludeanutritionbarandcarbohydrategel.

Furtherinnovationfollowedin2003withthelaunchofLucozadeSportHydroActive,anewfitnesswaterspeciallydesignedforexercisersandgym-goers.

History

1) TrueorFalse–thecolddrinksmarketisworthover£3b

2) Truefalse–theEnergyDrinks

Sectorisdeclining3) NamesomeofLucozade'smain

competitors4) WhenwasLlaunched?5) salesfiguresfor2003?6) Howdiditrepositionitselfin

1982?Whatdoyouthink‘repositioning’means?

7) NOTINTEXT–basedontheinfo

sofar,whatdothinkwasthebrand'sidentityinthe1960s?

8) Howdiditrebranditselfinthe

1980sand1990s?9) Whatwasthemainoriginal

Page 3: LUCOZADE ADVERTISING & MARKETING CASE STUDY · Since its launch Lucozade has been the market leader in the energy drink category with just under 60% value share of the category. Key

ApharmacistinNewcastleformulatedLucozadein1927.Hewantedsomethingtohelphischildrenduringtimeswhentheymightbesufferingfromacoldortheflu.Heformulatedapalatable,easilydigestibleglucosedrinkthatcouldhelprecoveryfromsicknessbyprovidingthemwithenergywhentheydidnotfeellikeeatingfood.

In1938thebrandwasboughtbyBeechamandwasdistributednationwide,soonbecomingrenownedacrossthecountryasatrustedsymbolofrecovery.

The1950sand1960ssawLucozadebeginheavyweightnationaladvertisingsupport.Theresultwasclassicadvertisingoftheagedepictingsickchildrenenjoyingthe'nicepartofbeingill'.

However,bythe1970stherewasadecreasingroleforLucozadeinpeople'slivesasthegeneralpopulationbegantogrowhealthierastheincidenceofillnessbecamelessfrequent:Thedaysoftheheavyannualcoldandtheepidemicsoffluwereinsignificantdecline.Asaresult,salesofLucozadebegantodrop.Aninitialbrandrepositioning,whichremainedrootedinhealthandrecovery,soughttopositionLucozadeasahealthyproviderofenergytohelppeoplerecoverfromthenaturaldailylullsinenergytheymightsufferduringtheday.Thiswasnotagreatsuccessandthebrand'sfuturelookedtobeinjeopardy.

Itwasin1982,however,thatthemostsignificantandsuccessfulre-positioningtookplace.'Aidsrecovery'wasremovedfromthebottleandwasreplacedwith'Replaceslostenergy'.Lucozadebecameabrandthatcouldprovideenergetic,busyandsuccessfulpeoplewiththeenergytheyneededtoperformtotheirfullpotential.UsingtheOlympicDecathleteDaleyThompsonasabrandicon,Lucozadewentfromstrengthtostrength.Withasuccessionofnewflavourlaunchesandinnovationsinpackaging,thebrandbecameoneofthe1980sfamoussuccessstories.

In1990theLucozadebranddiversifiedfurtherwiththelaunchofLucozadeSport,arangeofisotonicsportsdrinks.Inbalancewithyournaturalbodyfluids,thebrandpromisedto'gettoyourthirst,fast'.LucozadeSportwasthefirstbrandtolaunchwithasportssponsorshipdealnamelyBritishAthleticsandtheFACarlingPremiershipandcontinuestobeendorsedbysomeofBritain'sleadingathletesincludingMichaelOwenandJonnyWilkinson.

LucozadeSportHydroActive,launchedin2003,ispositionedasafitnesswaterforpeoplewhoexerciseorgotothegym.ThiscarriesonatraditionforLucozadeSportincreatinganewsectorthatisintunewithchangesinlifestylesandreflectsthedevelopmentofsport&physicalactivity.

ingredient?Connectionwiththebrandname?

10) howdidtheoriginal50&60s

advertisingmarketthebrand?

11) Whydidsalesdropinthe1970s?12) Whatismeantbyproduct

'repositioning'?

13) Whydoyouthinkitwasawisestrategytochangeitsmotto/tagline'AidsRecovery'inthe1980s?

14) Whendidsalesrevive?Why?(give3reasonsforitssuccess)

15) nametwosponsorsandtwoendorsersinthe1990s

16)Whatisthewordforbranchingoutandlaunchingnewproducts?GiveexamplesrelatingtoLucozade.

Page 4: LUCOZADE ADVERTISING & MARKETING CASE STUDY · Since its launch Lucozade has been the market leader in the energy drink category with just under 60% value share of the category. Key

Product

Sinceitslaunchin1927Lucozadehasremainedatthecuttingedgeofenergyprovisionwithimprovedformulations,newproducts,scientificdevelopmentand,forLucozadeSport,researchintheLucozadeSportScienceAcademy(LSSA).

Lucozadeprovidesanumberofdifferentproductsinitsrangetocaterforallenergyandhydrationneeds:LucozadeEnergy,LucozadeSportandLucozadeSportHydroActive.

LucozadeEnergy,theoriginalenergyproduct,isacarbonatedglucosedrinkthatisafastandeffectiveproviderofenergytothebodyandbrain.ItisavailableinitsclassicOriginalflavouraswellasinTropical,Lemon,Orange,CitrusClearandnewWildBerry,availablesinceApril2004.LucozadeEnergyisalsoavailableintabletformtomakeenergyprovisionconvenientwherevertheconsumermaybe.ThetabletsareavailableinOriginal,Orange&Lemonvarieties.

LucozadeSportisanisotonicsportsdrinkthathelpsboostperformancewhenconsumedbefore,duringandaftersport.Asacrucialpartofsportingpreparation,LucozadeSportcomesinanumberofflavours:Orange,Lemon,MixedCitrusandBerry.

LucozadeSportHydroActiveisalowcarbohydratefitnesswatercontainingelectrolytes,vitamins&calciumdesignedtoprovidebetterhydrationthanwaterduringexercise.

LucozadeEnergycontinuestodrivecategorygrowththroughadvancesinconsumerunderstandingsowhenconsumers'revealedtheywerelookingforenergyfortheirbrainaswellastheirbodies,LucozadeEnergysetaboutscientificallyresearchingthisneed.

TheresultwasevidencetodemonstratethatLucozadeEnergyisaneffectiveproviderofenergyforthebrainaswellasthebodywithproveneffectstobenefitconcentration,focusandalertness.

LucozadeSport'sroleas'essentialpreparation'forsporthascreatednewopportunitiesforthebrand.Ofparticularnote,wasEngland'svictoryattheRugbyWorldCup2003.TheEnglandrugbyteamuseLucozadeSportandMattDawsonandJonnyWilkinsonarebothsponsoredbythebrand:Whatbetterdemonstrationofthebrand'sbenefitsthanenduring100minutesofhardWorldCupFinalrugbyandstillhavingtheabilitytodrop-kickthemostimportantkicksinEngland'shistorytowin?

ThelaunchofLucozadeSportHydroActivehascreatedanewsub-brandandmarketsectoroffitnesswater.LaunchedinMay2003,LucozadeSportHydroActivehashadanimmenselysuccessfulfirstyear

Promotion

16) Howdidthebrandcontinueto

appealtoconsumersafter2003?

Page 5: LUCOZADE ADVERTISING & MARKETING CASE STUDY · Since its launch Lucozade has been the market leader in the energy drink category with just under 60% value share of the category. Key

TheLucozadebrandhasahistoryofbold,memorableandiconicadvertising.

Heavyweightadvertisingstartedinthe1950sand1960s,communicatingthebenefitsLucozadeofferedduringrecoveryfromcoldandflu.Typically,poorlychildrenweredepictedbeinggivenLucozadeattimeswhentheyweresufferingwithcoldsandLucozadebecameknownas'thenicepartofbeingill'.

WithseveralfluepidemicsduringthetwodecadesLucozadeestablisheditselfasatrustedhouseholdname.

Itwasinthe1980s,however,thatLucozadeadvertisingreallycameintoitsownwiththefamousandgroundbreakingDaleyThompsoncampaign.

AstheOlympicgoldmedalwinningdecathlete,Daleywasanidealembodimentofsomeonewhoneededseeminglylimitlessamountsofenergyinordertoperformandthecampaign,alongwithitsstirringIronMaidensoundtrack,isstillrememberedfondlybypeopletoday.

SincethenLucozadehasusedanumberoficonicfiguresinadvertisingincludingLinfordChristie,theOlympic100mSprintgoldmedalwinner,and,mostrecently,theTombRaiderheroineLaraCroft.Theresulthasbeenasignificantaccelerationintheincreaseinsalesfollowingtheintroductionofeachnewiconwiththebranddoublinginsizesince1988.

LucozadeSport'sadvertisinghasfeaturedsomeofBritain'sleadingsportingicons.

ThebrandwaslaunchedusingtheEnglandandLiverpoolfootballerJohnBarnesandsincethenadvertisinghasfeaturedthethenEnglandfootballcaptainAlanShearerduringthelate1990swhenLucozadeSportfirstadvertisedthefactthatitcould'keeptopathletesgoingfor33%longer'.

The2003campaigncapturesasportingtruththathasneverbeenusedbyasportsbrandbefore--theimportanceofpreparation.

Theadvertisingdepictsanumberofmenandwomeninthemidstofpreparingfortheirsport,whetherajoggerstretchingorMichaelOwenmomentsbeforeleavingthechangingroom.

Themessageissimple-whateveryourlevelorsport,preparationiskey,andLucozadeSportisanessentialpartofthis.LucozadeSportHydroActive'sadvertisingisdifferentagain.Theiconiccampaignfeaturesafemalefiguremadeofwaterrunning,flipping,divingandswimming.

ThecampaignusesleadingedgetechnologytocommunicatehowHydro

Promotion17) Whatfactorshelpedtomakeita

trustedsuccessfulfamilybrandinthe1950s&1960s?

18) Whichathletebecame

associatedwithitinthe1980s?Whywashisinvolvementsoiconic?

19) Howdidthe2003adcampaign

differfromothers?20) Listthemainproduct'sbrand

Page 6: LUCOZADE ADVERTISING & MARKETING CASE STUDY · Since its launch Lucozade has been the market leader in the energy drink category with just under 60% value share of the category. Key

Activehasbeenspecificallydesignedforexercise,offeringmorebenefitsthanwateralone.

Brandvalues

WhilstLucozade'simagemayhavechangedsince1927,Lucozadehasremainedatrustedbrandthatpeoplehavereliedonfortimeswhentheyneedenergy.Constantlytestinganddevelopingnewwaystohelppeoplewiththeirenergyandperformanceneeds,Lucozadeisaninnovatorwithinitsfieldandaimstocontinuetobeso.

Lucozadeisaboldanddynamicbrand,withanindependenceofspirit,a'can-do'attitudeanda'never-say-die'approachtolife,whichiscoupledwithitsrichheritageinhealth,andconvalescence.Asaresult,consumershaveawarmthoffeelingforthebrandnottypicallyassociatedwiththeenergydrinkcategory.

UltimatelyconsumerstalkabouttheLucozade'magic':anindefinablequalitythatsumsupLucozade'staste,thicknessanditsabilitytodeliverenergywhenyouneedit.

ForLucozadeSport,thevaluesareclosertothoseofarealsportsman.Thebrandisgutsyandcommittedandtrulysavvy,offeringrealperformancebenefits.Magicdoesn'tworkwithsportsparticipants:theywanttoknowwhatLucozadeSportwillactuallydofortheirperformanceonthefield.

LucozadeSportHydroActivetakesaslantontheLucozadeSportvaluesbutwithmorefocusonexercisebenefitsratherthansportingperformance.Exercisersorthosewithactivelifestyles,wantabrandthatisspiritedandaliveandinlinewiththeirperspectiveonexercise-thatitisameanstofeelingandlookinggreatandakeypartofanactivelifestyle.HydroActiveisaforward-thinkingbrand,meetingtheexpectationandvaluesofitstargetaudience.

©2004SuperbrandsLtd

valuese.g.confidencecan-doattitudeONASEPARATESHEETA) Writedownthe5most

importantpointstotakeawayfromthisarticle

B) ‘Aproductbasicallyremainsthe

same;onlytheimagechanges’HowtrueisthisfortheLucozadebrand?

C) Howdoesthemarketingand

promotionofLucozadereflectchanginglifestylesandsocialtrends?

D) Explainthesuccessof

Lucozade’smediamarketingovertheyears.

E) Find3examplesofLucozade’s

printadvertsfromacrosstheyearsandshowhowtheypresentachangingimageofthebrand.

FLookatLucozade’sonline‘Ibelieve’adcampaigns–howdotheypresentthebrand?Whatdoestheytellusaboutchangingaudiencesandsocialtrends?GWhatcanadvertisingtellusaboutsociety?

NOWWRITEUPTHISCASESTUDY–FULLSENTENCES–ALL20QUESTIONS+A-G