LUCOZADE GLOBAL MARKETING

Global Marketing for Lucozade

Global Marketing for Lucozade

Introduction

Today is the era of the latest technology and innovation. In this age, only those companies survive that are constantly thrive on innovative products and able to devise marketing policies and strategies that possess the capacity to attract customers and appeal to them in a powerful way. This report revolves around the same phenomenon of the development of a product and devising its marketing strategies. In order to discuss the functionality and features in this report the product that has been chosen is the energy drink 'Lucozade'. This paper describes product development, functionality, features, marketing and promotional strategies of the energy drink in the market of India.

Task 1

Market Analysis in India

The Indian soft drinks market grew at a double digit rate during the period 2006-2010, as a result of strong sales growth across all the products categories. Although the overall market growth is expected to accelerate in the forecast period, the annual rate of growth is set to fall from a high of 10.1% in 2011 to a low of 7.6% in 2015. The Indian soft drinks market generated total revenues of $3.8 billion in 2010, representing a compound annual growth rate (CAGR) of 11% for the period spanning 2006-2010. In comparison, the Chinese and Japanese markets grew with CAGRs of 14% and 0.4% respectively, over the same period, to reach respective values of $28.6 billion and $54.1 billion in 2010 (Adams, 2001, pp. 75).

Market consumption volumes increased with a CAGR of 10.7% between 2006 and 2010, to reach a total of 6.7 billion liters in 2010. The market's volume is expected to rise to 10.1 billion liters by the end of 2015, representing a CAGR of 8.8% for the 2010-2015 period. The sales of carbonates drinks have proven to be the most profitable for the Indian drink industry in 2010. They generated total revenue of $ 1.9 billion which is equal to 50% of the overall market value. In contrast, the bottled water sales, in 2010, generated revenue of $991.3 million, which is equal to 26% of the aggregated market revenue (Armstrong & Kotler, 2009, pp. 4). The performance of the market is forecast to decelerate, with an anticipated CAGR of 9.1% for the five year period 2010-2015, which is expected to lead the market to a value of $5.9 billion by the end of 2015.

SWOT Analysis of India's Drink Industry

Following is the SWOT analysis of the drink industry in India.

Strengths

Foreign drink companies continue to target the Indian market, with sub-sectors such as soft, alcoholic and hot beverages benefiting from significant investment.

India's abundance of natural agricultural resources makes the market attractive to investors from all beverage sub-sectors.

India has an enormous population of 1.17bn and growing, with a rapidly expanding middle class (Campbell et al, 2002, pp. 39).

Weaknesses

Specific state-by-state legislation governing aspects of high-value business, such as alcohol taxes, hinders nationwide business strategies and can be time-consuming and cumbersome.

Alcoholic and soft drinks are still considered a luxury by a large ...