Lucozade optimizes portfolio with TURF and HAC analyses

Suntory, the parent company of Lucozade, Schweppes and Orangina, among others, wanted to optimize its portfolio in Trinidad & Tobago. The goal was twofold: identify which (new) flavors of Lucozade had the most potential and determine what the overall portfolio should look like. With seven existing and six possible new flavors, the range was enormous, and thanks in part to the collaboration with Validators, a data-driven recommendation was put together based on TURF and HAC analyses, among other things.

The approach

TURF Analysis

TURF (Total Unduplicated Reach and Frequency) helped identify the combination of flavors that together provide the greatest unique market coverage. This helped reduce the risk of cannibalization and maximize brand penetration.

HAC Analysis

With Hierarchical Ascending Classification (HAC), the 12 flavors were grouped into six categories based on overlapping consumer preferences (e.g., "exotic" or "fruity flavors"). This revealed that each flavor category attracts unique users, so at least one flavor from each category had to remain in the portfolio.

Continuity and historical data

Validators has been conducting twice-yearly research for Suntory in Trinidad & Tobago (and in 35 other countries as well) for four years. This continuity allowed the development of flavors to be tracked over several years and factored into the recommendation.

The result: optimal portfolio composition

By combining the results of both TURF and HAC analyses, Validators was able to give Suntory clear advice: which flavors contribute to increased volume and penetration, and which flavors overlap.

Concrete product decisions

Suntory decided to remove two existing flavors from the range because they added little to the overall market coverage. At the same time, a new flavor will be introduced in 2025 (or later), in a category that came out of the analysis as very promising.

Concrete outcomes and follow-up

Celeste Miller, Consumer Insight Specialist at Suntory, emphasizes how the clarity of the analyses ensured that the organization knows exactly what the future portfolio should look like. The research not only makes it easy to make decisions about current flavors, but also gives a clear picture of which new flavors are promising. By "delisting" the two least potent flavors and launching a new flavor within a successful flavor category, Lucozade maximizes its market reach and penetration in Trinidad & Tobago. In addition, future launches can now be tested against the same model in order to continually optimize. This data-driven approach will ensure that the Lucozade brand continues to differentiate itself and further strengthen its position in the market.