Lucozade Company International Expansion Essay Example | Topics and Well Written Essays - 2500 words

Lucozade Company International Expansion - Essay Example Introduction Lucozade Company is a trademark name that is used to encompass a series of sports energy drinks, which are produced by the GlaxoSmithKline Company. The energy drink alongside Ribena is currently being produced in Royal Forest Factory in  Cole ford,  Gloucestershire, in the  Forest of Dean. Although Lucozade is presently known as Lucozade Energy, it was previously branded Lucozade. The drink contains a series of flavors, which depend with the taste, and preference of the individual consumer. It contains a series of still, fruit based, isotonic energy drinks, which are designed mainly for use to the original Lucozade sport and other physically demanding activities. Moreover, the company has developed a brand known as Lucozade sport lite, which is a sugar free substance and was launched in 2011 mainly for diabetic people. Other flavors that come along with this drinks include, Orange, Raspberry, Tropical, Cherry, Lite- Orange, Lite- Lemon & Lime, and Lite- Cherry. Bac kground Lucozade Company was started in 1953 in Brent ford, England. However, William Owe, a chemical analyst from Newcastle-Upon-Tyne, started the events that started the company in 1927. Owen’s original idea was to come up with a soft drink that would be primarily used by ailing patients to boost their energy. The product was marketed in UK under the brand name Glucozade but later, the product was rebranded to Lucozade. The company has rebranded severally since then, which has been informed by several breakthrough insights by consumer psychologist Roy Langmaid, who recognized that there was a need to shift the brand's associations away from illness and towards empowerment. Expanding In Saudi Arabia and Saudi Drink Sector Lucozade Company is a major sponsor of events and sports globally. The company also sponsors various athletes in different sports. The recommendation by most countries has cautioned the company not to exceed 700k Cal per liter and 0.01% ethanol. This has ma de the energy drink to be forbidden in most Muslim countries. However, the Muslim council made a ruling that it would be religiously safe to use the energy drink. However, it is recommended for people to take Lucozade in case they are suffering from diarrhea. This is because during this condition, a great deal of fluid and electrolytes are lost from the body. However, it is scientifically claimed that the drink does not contain enough electrolytes to be suitable for electrolyte replacement. The sports and energy drink industry in Saudi Arabia can be analyzed and depicted well according to the Porters Five Forces Model. Porters Five Forces Model is arguable the most important tool for analysis since it is based on fundamentals of competitive advantage. The model deals with forces outside the model which influences the nature of competition in the industry, which is the microenvironment and so, the industries likely profitability (Ekeledo, 2003, p.68). The Saudi Marketing Environment Lucozade Company has to understand the dynamics of the industry and the Saudi Arabian market in order to compete favorably and effectively in the marketplace. This model describes the forces, which describe the forces that drive competition (Madsen & Servais, 1997, p. 561). These forces include rivalry between existing sellers, influence of consumers on the market, seller-supplier influence, the potential threat of new market entrants as well as threat of substitute products (Zahra