Switching Behaviour

Lucozade Ribena Suntory is a soft drinks brand representing the popular sports and energy drinks of Lucozade and the beloved fruit drink, Ribena, among others. The company was formed in January 2014 when Japanese food and beverage company Suntory acquired the Lucozade and Ribena brands. To learn which promotions influence shoppers to move away from the LRS brand and which promotions entice shoppers to purchase LRS products.

Key learnings regarding switching behaviour on the mySupermarket Platform

THE BRAND
Lucozade Ribena Suntory is a soft drinks brand representing the popular sports and energy drinks of Lucozade and the beloved fruit drink, Ribena, among others. The company was formed in January 2014 when Japanese food and beverage company Suntory acquired the Lucozade and Ribena brands.

THE CHALLENGE
To learn which promotions influence shoppers to move away from the LRS brand and which promotions entice shoppers to purchase LRS products.

THE APPROACH
Baskets that contain LRS products have a much lower rate of switching behaviour than average on mySupermarket. There are three types of promotions offered within the mySupermarket Swap & Save feature:

  • Simple Save ­ Shoppers who switched to a different product (within the same quality level) and saved money
  • Bulk Up ­ shoppers who increased quantity of the same product and saved money per item
  • Downshift ­ shoppers who shifted from Branded to Own Brand and saved money

LCZ

Customers in four categories – energy drink and sports drinks (Lucozade) and shelved drinks and squash (Ribena) – were given the opportunity to switch brands and save money. Lucozade and Ribena shoppers were offered switches within the brand and to other brands; shoppers of other brands were offered to swap to Ribena or Lucozade.

When a customer added a product from one of these categories into their basket, they were shown a pop up ad that offered a swap and save promotion to click and use on the spot.

THE IMPACT
Energy Drinks:
6% of shoppers accepted a Swap and Save, with bulk up promotions being the most popular. Because Lucozade consumers display a high brand loyalty, the most popular swap and save choices involved swapping one Lucozade product for another (simple save) or one Lucozade product for many (bulk up).

Recommendation ­ For energy drinks, LRS learnt that focusing on Bulk Up promotions enabled increased purchases from single to multi packs.

Shelved Drinks:
Ribena has a stable share in the market that is hardly affected by price changes. Its average price is higher in the category. Shoppers, at general level, would rather shift to a smaller pack in order to pay less.

Shelved drinks shoppers are also highly receptive to bulk up offers, especially among Ribena’s main competitors, suggesting that bulk up promotions are a useful tool in increasing market share in this category. Ribena shoppers show a greater tendency to choose a downshift offer over other shoppers. Bulk up promotions drew other shoppers who had not chosen Ribena originally to make the switch, suggesting that Ribena stands to gain from attractive bulk up offers targeted at own brand shoppers.

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