Lucozade Presentation V2

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Lucozade Presentation V2

  1. 1. The Lucozade Pitch
  2. 2. MarketInsight
  3. 3. UK Consumer Insight Uk Consumer Insight Large number of substitutes results in low customer loyalty Increasing health awareness 16 million UK consumers willing to pay extra for drinks containing healthier ingredients/low sugar/calorie content. Need for convenience
  4. 4. Competition Energy drinks - Red bull, Powerade, Rockstar, Burn, Monster, Full Throttle… Coffee - Instant (at home & office), Starbucks, Costa, Café Nero… Soft drinks (Sweet and sugar free) - Coke, Sprite, Ribena, Schweppes, Tango, Pepsi Vitamin/ herbal drinks - Bio Synergy Skinny Water, Feel Good, Glaceau Vitamin water, V Water, Healthier options - Water, fruit juices, smoothies, hot tea, J2o, Lipton Ice Tea, Appletiser, Schloer, Aloevera drink
  5. 5. • Energy – classical/ well established• Sports – current/ well established• Alert – comparatively low market share• Advertising ‘Pièce de résistance’ is the ability to engage in close conversations with its customers (example of the 10m Britons campaign).
  6. 6. Key Issues & Challenges• Combating Possible Market Shift towards Health Drinks.• New Entrants/Substitutes.• Strength of Competition (Across all PL’s)• Confusion Between Energy and Stimulant Drinks & Negative Connotations of the Use of Stimulant Drinks (Both Physical and Social Basis)• Alert Brand- Crude BRAND EQUITY.
  7. 7. Campaign Vision
  8. 8. Target Segment & Consumer InsightTarget Segment• Young Professionals (20 – 35 age demographic)• Size: 6.2 Million (circa 10.7% of the UK Population- ACORN)Consumer Insight• Achievement orientated individuals facing their toughest employment market for twenty years.• Carry the responsibility of driving Britain forward and returning it to Economic Growth.• Strong brand association with the performance enhancement capability of the Lucozade brand.
  9. 9. Communications Objectives Chosen Product Line to Promote: Highlight Brand Equity Components we will leverage: 1. Achievement/Performance Association 2. British Heritage Primary MessageTo position Lucozade Alert as a Performance Booster rather than fuel (i.e.Red Bull). Focus on Educating the customer and building Brand Engagement. Secondary MessageTo comfort the customers that drinking Lucozade is ‘worth the 45 calories.’
  10. 10. the Big Idea
  11. 11. Unleash Your Potential
  12. 12. MediaPlanning
  13. 13. • Time Poor (online shopping & impulse lunch) • Traveling time utilised • Information Rich (Different Level of Norm) • Social Interaction Key TA important with socialin Mind networks key connecting personal lives
  14. 14. Focusing on transportation targeting young professionals on the move in positive mindset. Key cities - Tube, Train Station, Bus & Billboard Outer key cities - Train StationOutdoor
  15. 15. Print• Can be used wisely to build brand awareness as well as long term brand engagement.• The Metro - Reach & Morning Mindset• The Independent & the Guardian - Right TA & Brain Stimulation Community Building (Sponsorship of New Idea Column)
  16. 16. Unleash the Digital Potential• Digital planning from a consumer’s point of view - are we Adding Value?• Outstandingly effective in building engagement and gaining consumer insights. Engagement &• Engagement through viral & Consumer Insight community building ideas that captures brand essence.• Consumer insights through digital tracking as well as digital PR.
  17. 17. Strategic Selection of Channels• Major consideration with media Outdoor Print Digital channel Split PR • Media our TA are most likely to 7% be exposed to 16% • TA’s frame of mind when being 35% targeted• In-line with communications objective of raising brand awareness, educating and encouraging brand engagement 42%• Timing
  18. 18. Measurement
  19. 19. Measuring Effectiveness Importance of Testing: Why we believe we need to measure? -Avoid costly mistakes Text Text -Evaluating Alternative strategies -Increase the efficiency of advertising -Meeting Objectives Test Unleash your potential
  20. 20. How  we  will  actually  measure Pre- Testing Concept testing: The correct ideaInternet surveys: Target market understand our message Felch formula: Maximize message Post-TestingMeasure the campaign during implementation & evaluation
  21. 21. Return on Investment Diffusion of Messages - Stages Year 1 Year 2 Year 3 Awareness 80% 85% 90% Knowledge 65% 75% 85% Liking 45% 55% 65% Preference 25% 35% 40% Conviction 20% 25% 30% Purchase 15% 20% 25% Regular Re-Purchase 6% 8% 10% Repeat Value* Campaign ROMI (per £ Customers Spend spent) Year 1 (6%) 372,000 £2,232,000 £1,500,000 £1.49 Year 2 (8%) 496,000 £2,976,000 £1,200,000 £2.48 Year 3 (10%) 620,000 £3,720,000 £1,200,000 £3.1* Based on 30 purchases per year with 20p NET margin p/can (SRP: £0.99 - VAT (20%) - Retail Margin (25%) - DistributionMargin (5%) (=£0.57) - Production & Cost to Serve (65%))
  22. 22. References• ACORN, (2010). Acorn Demographic Data. London: Acorn. Available from: http://www.businessballs.com/freespecialresources/acorn-uk-demographics- figures-2010.pdf [Accessed 28th Janruary 2011]• Mintel, (2009). Sports and energy drinks uk. London: Mintel. Available from: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/ display/id=394414• Mintel, (2009). Market re-forcasts drink. London: Mintel. Available from: http:// academic.mintel.com/sinatra/oxygen_academic/search_results/show&/ display/id=445316• Datamonitor, (2007). Functional food and drink consumption trends. London: Datamonitor. Available from:http://www.scribd.com/doc/6417416/Functional-

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