Swot Analysis Of Lucozade

2214 words - 9 pages

Table of Content

INTRODUCTION 2
SWOT ANALYSIS OF LUCOZADE 3
MARKETING OBJECTIVES 5
CONSTRAINTS 7
BIBLIOGRAPHY 8

Introduction

Lucozade has successfully built a positive image by showing itself as an energy drink provider. Our packaging is eye catching and is value for money to our customers. Lucozade has successfully built an image presenting itself as a drink full of energy and is appealing to people who do physical sports. To build this image Lucozade used well known sports celebrities and celebrities such as Michael Owen and Lara Croft to promote Lucozade (Lucozade, 2010). This has increased market ...view middle of the document...

Distribution - Lucozade delivers its products directly from manufacturing plants and warehouses to customer warehouses and retail stores. This is part of a three pronged approach which also includes employees making direct store deliveries of soft drinks and the use of third party distribution services.

Advertising – Lucozade spend huge amount of money to advertise its product because they have the funds.

Promotions – The company uses sports personality such as Alan Sheare and celebrities such as Lara croft to promote Lucozade products (Lucozade, 2010).

Packaging – Has attractive packaging as well as different packaging style such as multi packaging so people can buy big bundles and save money.

Weaknesses

Overdependence on supermarkets - Sales to supermarkets represent a large portion of Lucozade’s total net revenue. Supermarkets such as Tesco, Sainsbury, ASDA, and Waitrose are Lucozade’s largest customers. As a result Lucozade’s fortunes are influenced by the business strategy of supermarkets. Supermarkets low price themes put pressure on Lucozade to hold down prices (Johnson, Scholes and Whittington, 2009).

Limited flavours – Lucozade only have little variety of flavored drinks.

Not sold in bars not a mixer drink – This drink is not sold in nigh clubs and pubs.

Opportunities

Broadening of Product Base - Lucozade should continue to broaden its product base by marketing other products. These include over-the-counter medicines such as Gaviscon and Panadol; dental products such as Aquafresh and Macleans; smoking control products such as Nicorette and Niquitin; nutritional healthcare drinks such as Ribena and Horlicks (Lucozade, 2010). These initiatives will enable Lucozade to adjust to the changing lifestyles of its consumers.

International Expansion - Lucozade should expand its international markets in order to lessening its dependence on US and Europe sales. The company should invest and expand in emerging markets such as Bangladesh, Vietnam, Nigeria, Brazil and China.

Target elderly people - Lucozade is targeting elderly people to buy its energy drinks. This is to promote the idea that elderly people can lead a energetic life by drinking Lucozade drinks.

World Cup football 2010 – Lucozade should take advantage of 2010 FIFA world cup to promote its drinks and make footballers and fans drink it as a source of energy. This is expected to increase sales for Lucozade products.

Threats

Decline in Carbonated Drink Sales - Soft drink sales are projected to decline by as much as 2.7% by 2012 according to international surveys (Lancaster and Jobber, 2009). Lucozade is likely to feel the impact of the projected decline.

Potential Negative Impact of Government Policy - It is anticipated that newly formed coalition government between Conservative and Liberal Democrat in May 2010 will initiate regulations related to environmental, health and safety which might have a negative impact on Lucozade. For example,...

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