Case Study

Brief

To explore new digital revenue streams for Lucozade Sport.

Strategy

Digital agency Worth, knew that serious sports participants made up a significant percentage of Lucozade’s sales, and so would be an ideal group to target online.

The agency developed a direct sales channel in the form of an online shop that would deliver significantly increased revenue on each and every sale. Worth then developed specific CRM and loyalty programmes to drive loyalty and increased order value.

This pioneering project was GSK’s first e-commerce initiative, not just in the UK, but worldwide.

Execution

Worth’s work on the Lucozade Sport shop ran from 2005 to 2009 and included strategy, consumer research, online branding, e-commerce, customer relationship marketing, email marketing, online advertising and customer support.

In 2005 the agency launched Lucozade’s first online store.

In 2006 they launched a portal exclusively for the Association of Tennis Professionals (ATP). Any player could receive their order within three days, wherever they were in the world.

In 2008 they launched a trade store, selling direct to smaller trade customers who would normally buy from cash and carries.

Also in 2008 they launched a loyalty scheme, driving loyalty through improved CRM and email marketing. The scheme rewarded customers based on building the value of their purchases over time.

An enhanced store was launched in 2009, to support an expanded nutrition range as well as the traditional drinks. The consumer journey was organised into training need states, with five distinct areas: hydration, fuel, focus, recovery and strength.

Results

The Lucozade Sport shop has become an important revenue stream for the brand; sales growing at an impressive rate year on year.

Worth delivered fantastic returns on spend from email and search marketing. Email campaigns delivered a ROS that often topped 326%, and ongoing paid search generated returns in excess of 480%.