What Chance for GSK’s Lucomalt? - 2008-10-20

GlaxoSmithKline’s Lucomalt was recently re-introduced into the market in what market watches refers to as a  second coming. Ralph Tathagata examines the reformulated Lucomalt drink and writes that despite several external competitors, the product has a chance to survive if internal forces do not scuttle it.

Malt nutritional glucose drink, Lucomalt, is not one of the tetra packs drinks that require demanding introduction in the Nigerian market. But when this rare brand with a plush blend of malt and glucose suddenly went into hibernation without questions rived the air on the reason for such an informal retreat. Could it be that the brand had succumbed to the crushing competition that characterizes the Nigerian market? But there was no evident competition. Who knows if the brand custodians had run out of innovation and creativity that should sustain the product? Etcetera etcetera.

Lucomalt is a product from the stable of GlaxoSmithKline Nigeria plc, the makers of Lucozade Glucose Energy Drink, a brand with generic legacy.

For those who are thoroughbred with product branding and its attendant complexities, line extension, no matter how prestigious the brand, is not a terrain that could be easily walked upon without having ones fingers burnt in the business. Examples abound that many successful brands have been line-extended to either outright death or (brand) euthanasia.

Nevertheless, line extension; like every fragile enterprise has its rules which if religiously followed could yield overwhelming result.

Considering a brand of harmless energy drink that is as old and worthwhile as the Nigerian market, Lucozade Glucose Convalescent drink, one cannot but say that the brand is fast becoming one of the most prolific in the market: Lucozade Boost, Lucozade Apple, and Lucomalt among others are successfully extensions emanating from good old Lucozade.

During the media relaunch of Lucomalt recently in Lagos, the product brandished a new lease of focused marketing which will most likely work to its advantage. One can also easily notice the imaginative leverage on the age-old and ubiquitous Lucozade heritage. The repackaged brand is also competing on size. Its innovative perimeter in terms of size has moved from the normal 250ml to 288ml pack. It must be pointed out that no tetra pack drink in Nigerian market has experimented on this size fringe at least for now. More importantly, a combination of glucose and malt is not common in the market and one is also tempted to say that there is no noticeable competition in that category at the moment.

However, questions are still pouring in torrents as stated earlier, from many marketing and communications quarters.  Why did Lucomalt withdrew from the market even when there was no apparent competition? Why did Lucomalt retreat from the market without any obvious threat? Should Lucomalt’s former loyalists expect any added value in this come back? Who are its new core target consumers? Are these line-extensions not going to bleed the generic brand (Lucozade) to death? What are the brand communications strategies in place to brazenly accord Lucomalt a generic status like its successful siblings?

These and many more questions took the front burner at the relaunch witnessed by eminent health nutritionists, including key officials of the  Nutritionist Society of Nigeria, who applauded the company for  its relevance and significant contribution to the state of health of Nigerian consumers.

Speaking at the event, the Marketing Director of GSK, Mrs. Hannah Oyebanjo, revealed that, Lucomalt is a wholesome, non alcoholic, nutritious glucose and malt health drink, fortified with essential micro nutrients, and provides nutrition and energy at the same time. The special fermentation process according to Mrs. Oyebanjo, gives it added flavour and texture.

“It has long-lasting health benefits and provides the nourishment needed for day to day living. The Vitamins B&C content is also an added advantage. Both of these vitamins are required for the proper function and maintenance of our intracellular make up. Vitamin C is also an important antioxidant in the human body fluid,” the Marketing Director claims.

Emphasizing on the added value Lucomalt parades as its brand promise, she maintains that "Vitamin B enhances learning, working capacity as well as appetite. The introduction of Lucomalt into the Nigerian market, according to her will make a significant contribution to the commendable global and national efforts to correct the deficiencies in our nutrition through the fortification of foods and drinks.

“We have also packaged it in an easily mobile form to fit into the lifestyle of active and highly mobile consumers. It is convenient for everyone, hence it cuts across. This is in harmony with the overall value system of GSK and its relentless commitment to world class quality and best practices. Our products touch lives and deeply connect with their consumers in a pack size, which gives 38ml more than competition in regular 250ml pack size,” she stated.

“Consumer research shows that Lucomalt is rated better than competition on the following attributes: richer taste, thicker (hence more nourishing), refreshing – makes you come alive and Gives you energy” says the Marketing Director.

Corroborating the Marketing Director, the Senior Brand Manager, GlaxoSmithKline Nigeria plc, Chika C. Adibo further explains that GlaxoSmithKline is a research-based company that prides itself in innovations. “The Lucozade line-extensions won’t cause any erosion because there are clear mark distinctions and product differentiation in all the Lucozade products. And there are clear positioning and communications to each target audience,” she said.

On why Lucomalt was withdrawn from the market, she emphasized that it was not for any negative reason than the fact that it was withdrawn and reformulated to add more value to the consumers. “Yes, Lucomalt was withdrawn and reformulated. As I said earlier, GSK is a research-based company constantly seeking to meet our consumer nutritional needs. So we reformulated the product and also increased the pack size. It used to be 250ml, but now we are offering our consumers more in 288ml pack size,” she enthused.

On the communications strategy, Femi Kolajo, Head, Corporate Communications, GSK Nigeria disclosed that GSK has a uniform standard the world over in terms of product quality. “And as a research-based company, we apply 360 degree communications strategy in all our products; Press/PR, Events sponsorship, in-store price promo, Billboard, Massive Sampling, Audio/Visual (Radio/TVC) among others.” The media launch will therefore be followed by the roll out of supporting communication materials. “All the necessary arrangement is underway for the TVC on Lucomalt. We want to assure our consumers that we shall constantly deliver on our brand promise,”

For Mrs. Oyebanjo, the initial market exit for the comeback brand was a strategic decision taken by the company to get it focused. Expatiating on this position, she explained “At some point we realized that there was a lot of demand on the master brand. You know we have Lucozade Boost, Lucozade Apple and the sparkling among other brands and the demand for all of them has been quite impressive. Because of the combination, I mean the constituents of Lucomalt, there was also unprecedented demand for it before it was withdrawn from the market.

Despite this, she added people were asking for the product .

“So the basic truth is that like a typical business, at a point, organizations need to sit back and ask, ‘where do we focus our attention for now?’ Although there are a lot of things you might be grappling with on the top level. But sometimes you just have to focus. With every contending issues resolved, GSK management thinks this is the most auspicious time to reintroduce brand back into the Nigerian market,” she said.

With the foregoing, and the visible brand positioning of Lucomalt as a blend of malt and glucose drink, it is relevant to suggest that if the necessary marketing requirements are met, the product will soon become another successful extension of the good old Lucozade stock.