Gatorade Marketing Plan

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1. 1 10 STEP Marketing Plan for GATORADE Allan Ray C. Enriquez October 29, 2010

2. 5 Steps for Part 1 (PTM and Positioning) Gatorade’s PTM are youth leading an “active” lifestyle Who wanted to enhance performance Can choose Powerade , Pocari Sweat and other sports drinks. Gap is all other brands focused on providing fuel, fluid and nutrients before, during and after activity The market size is US$ 5.3Billion in sales. Gatorade niche is US$ 140Billion. *active lifestyle – being engaged in various activities

3. 5 Steps for Part 2 (Marketing Mix & Strategy) Sports drink (also in powder and sports gel) Is 30% discount Uses TV, print ads and sports events Is distributed nationwide Uses a niche approach to win

4. 4 Positioning to the Primary Target Market Part 1: Steps 1 to 5

5. 1.Gatorade’s primary target market (PTM) are the youth leading an “active” lifestyle Demographics (pre-adults (13-24), M/F, social class ABC, single) Lifestyle (athletic, into sports, active individuals) Behavior (8 fl oz., before, during or after activity, thirst quenching, prevent dehydration)

6. 2. My PTM’s NWE The youth needs To be secured (health), avoid dehydration; thirst quenching The youth choose Gatorade over other sports drinks because: Flavor , available in all convenient stores, brand (endorsed by Michael Jordan and Dwayne Wade) , taste . The youth expects this when they drink Gatorade Thirst quenching, rehydrated, more active, energized; thus, they remain youthful and athletic!

7. I won’t get dehydrated. I would be like Michael Jordan/Dwayne Wade. I am active! I am a winner!

8. 3a. Gatorade has several competitors Direct: Pocari Sweat , Powerade Indirect: Energy Drinks (Cobra, RedBull , Samurai), Isotonic Drinks (100 Plus), instant energy drink (Joss), flavored water ( Vitwater ), tea (C2, Real Leaf), water (Viva, Absolute) Variables: Price, packaging, convenience of use, different variants, availability , brand , lifestyle

9. 2 Examples of Position Map Lifestyle vs. Age Brand vs. Positioning

10. Gatorade is #1 in niche: active lifestyle for 13-24 yrs. Lifestyle/ Age Matrix 0-13 yrs 13-24 yrs 25-49 yrs 50yrs up Active Inactive Gatorade Tropical Fruit Pocari Sweat Powerade Red Lifestyle vs. Age Matrix Gatorade Cool Blue

11. Gatorade unique positioning is shown in this competitive map Positioning vs. Brand Matrix   Gatorade Powerade Pocari Sweat Thirst quenching       Replaces vital fluids and electrolytes       Improved performance       Affordable       Convenient       "To thirsty, sweaty jocks, Gatorade is the original sports beverage that quenches thirst while replacing fluids and electrolytes."

12. 4. Gatorade positions strongly in a niche market opportunity Gatorade is the only sports drink that is thirst quenching for the youth who leads an “active” lifestyle that promises to improve performance No brand has a similar position. Others focus on complete with electrolytes and positively charged ions.

13. 5a. The sports drink market is estimated US$ 300Billion in sales. SOURCE: http://www.manilatimes.net/national/2006/oct/25/yehey/business/20061025bus6.html

14. 5b. Based on 2008 Energy Drinks North America Report, where Gatorade’s share is 49%, total market size is US$ 5.3Billion . Gatorade sales is US$2.6Billion Gatorade’s market share is 49% Then total sports drink market size is US$2.6Billion/0.49 = US$5.3Billion

15. 5c. Consumer data indicates a size of US$234Billion Sports Drink Usage: 300 million Americans consume at least 2x per day of 12 fl.oz sports drink which costs around US$1.07. 300 million x 2 x US$1.07 X 365 = US$234 billion

16. 5. Concluded that sports drink market is US$234B Competitor data= US$300B Company data = US$300B Usage data = US$234B

17. 17 The Marketing Mix Strategy Part 2: Steps 6 to 10

18. 6a. Sports Drink category is dominated by 3 major brands

19. 6b. Product Description Gatorade is a sports drink scientifically formulated to replace fluids and provide energy to working muscles. It offers a scientifically validated blend of carbohydrates and key electrolytes. There are 6 variants – Lemon-Lime, Orange, Cool Blue, Citrus Cooler, Strawberry Kiwi and Fruit Punch There are 7 sizes: 12, 20, 24, 32, 34, 64 (in fl oz) and 1 gallon

20. 7. Price- Gatorade is 36% discounted priced in affordable packs Gatorade 12 fl oz = US$ 1.07 Gatorade 20 fl oz = US$ 1.38 Gatorade 24 fl oz = US$ 2.49 Gatorade 32 fl oz = US$ 3.99 Gatorade is priced 36% cheaper than Powerade .

21. 8a. Promo

22. 8a. Promo

23. 8a. Promo

24. 8b. Competitor promo

25. 8b. Competitor promo

26. 8b. Competitor promo

27. 9. Gatorade is distributed nationwide using Pepsi Co. distribution network Supermarkets, sari-sari stores, convenience outlets, drugstores, market stalls Nationwide Pick-up by customers Cash and credit transaction

28. 10. Gatorade is a niche leader Gatorade’s main strategy is to dominate the niche market of 13 to 24 year old who lead an active lifestyle. It benefits from the distribution leverage of Pepsi Co . Has an excellent branding, excellent product distributed nationwide.

29. 29 SUMMARY

30. 5 Steps for Part 1 (PTM and Positioning) Gatorade’s PTM are youth leading an “active” lifestyle Who wanted to enhance performance Can choose Powerade , Pocari Sweat and other sports drinks. Gap is all other brands focused on providing fuel, fluid and nutrients before, during and after activity The market size is US$ 5.3Billion in sales. Gatorade niche is US$ 140Billion. *active lifestyle – being engaged in various activities

31. 5 Steps for Part 2 (Marketing Mix & Strategy) Sports drink (also in powder and sports gel) Is 30% discount Uses TV, print ads and sports events Is distributed nationwide Uses a niche approach to win