Introduction Being the very first generation of sport drink, Lucozade originated in 1927 and used to be a kind of drink that can provide energy for people who had general illness. It was re-positioned in 1982(Brand Republic, 2005) and it has become the leader of sport drink market in UK since the brand was changed to Lucozade Sport in 1990 even there existed a intense competition(Brand Republic, 2005). Besides the normal operation, the company of Lucozade is also pay a close attention to its social responsibility. According to Lucozade (2015), The company not only set YES Foundation which aims to support both teams and individuals but also joined many charity programs, for instance: Cash for Kids, The Sir Bobby Robson Foundation and Birmingham …show more content…
Therefore the investment of energy drink is prospect and worthy. Moreover, Nowadays the extent of people’s consideration on food and drink safety is much higher than before. That leads to a change of their consumption habits. People tend to buy the goods with higher quality and safety. The use of Energy drinks are strict in some certain organizations due to its potential harms, and UK government launched ‘Sugar Tax’. Those all are contribute to the recipe innovation in energy drinks. So the ingredient of the designed energy drink is sugar-less or even all-natural. Branding Branding plays an essential role for a product. The more consumers like the brand the higher turnover the company will have. Definitely, it will make value of the brand. With brand development firms can improve the performance of a particular product or …show more content…
There are 2 advantages of the target cost pricing: one is setting the expected costs as the pricing basis can enhance the competitive power of commodity prices; the other one is that the target cost formulation has good elasticity that can help enterprises explore their potential. And on the side of consumer, company can price the product more acceptable. That would help to popularize Lucozade(Red). Profit Margins Profit Margin is a percentage of profitability calculated as Net Profit (Net Profit = Revenue-Cost) divided by Revenue. People use it to measure how much the company actually earn out of sales. It is used for comparing similar companies. The company with higher profit margin means it has a better cost-control. This ratio reminds company of suitable budgeting on cost and sale(Kong, 2007). Promotion According to Kettler (1988), promotion can be viewed as an essential motivational factor for making purchase, changing the sense of customers on price or product by adding extra benefits. Li (2001) claimed that promotion is an activity that encourage consumers to buy products or services. The purpose is to increase the sales volume in a