Gatorade Marketing Strategy for the 2014 Calendar YearEmphasis on Advertisements from the 2013 Holiday Season

Objective Increase market share 3%, from 74%

to 77%, focusing on advertising G2 (low

calorie beverage) to people who have made new years resolutions to lose weight and lead a more active lifestyle

educate athletes about the importance of replacing electrolytes during intense physical activity and consuming protein after intense physical activity to recover, increasing sales of the G Series line of products.

Part 1: Objective

Sports Drink Market Size Market size grown considerably; now geared more

broadly toward nutritional needs of athletes and physically active consumers before, during and after demanding exercise

Use a wider spectrum of ingredients, range far beyond the salts and sugars found in the traditional versions of sports drinks; therefore, there is more individualization and fragmentation in sports drinks.

National retail sales of sports drinks estimated to reach $7.4 billion by the end of 2013; 6% growth from 2012, when retail sales totaled $6.9 billion

By 2017, the dollar sales of sports drinks are projected to have increases to $9.3 billion, a growth of almost 26% from 2013.

Part 2: Market Analysis

Market Share of Gatorade Part 2: Market Analysis

Competitors Coca-Cola owns Gatorade’s main competitor, PowerAde,

and has a 24% share in the sports drink market. Other products make up the additional 2% market share of dollar sales

New products being developed by said companies have innovative and creative formulas that captivate consumers seeking a healthy beverage with more flavor than just water, such as coconut water, which is said to replenish electrolytes.

For example, coconut water has nearly doubled its revenue every year since 2004. Because of this, both PepsiCo and Coca-Cola have become majority shareholders in the top three coconut water companies, Coca-Cola in Zico and VitaCoco, and PepsiCo in O.N.E.

Part 2: Market Analysis

Competitors, cont.Part 2: Market Analysis

Company Finances The following net income of the PepsiCo

Corporation during the past five years, with values reported in millions of US dollars.

Part 3: Internal Situation

Corporate Family CEO Indra Nooy: PepsiCo’s “mission is to be the

world's premier consumer products company focused on convenient foods and beverages. [They] seek to produce financial rewards to investors as [they] provide opportunities for growth and enrichment to [their] employees, [their] business partners and the communities in which [they] operate. And in everything [they] do, we strive for honesty, fairness and integrity.”

PepsiCo owns more than 30 brands and employs approximately 285,000 worldwide; Nooyi looks to cut 8,700 jobs (3 % of global workforce) and boost marketing spending by $600 million to save approximately $1.5 billion by the end of 2014.

Part 3: Internal Situation

Corporate Family Cont.

Part 3: Internal Situation

History of Gatorade 1965: University of Florida assistant football coach worked with

university physicians to discover why players were affected by heat and heat related illness; found that the two key factors were: electrolytes and fluid being lost and not replaced and carbs being used as energy and not replaced

1965: Scientists as the University of Florida developed a beverage that had an optimal balance of carbohydrates and electrolytes for players

1965: Florida Gators football team finished 7-4 in their conference 1966: Florida Gators football team finished 9-2 in their conference,

winning the Orange Bowl for the first time ever Other colleges began to order the beverage 1969: The Kansas City Chiefs were the first professional team to

adopt the beverage; they won the Super Bowl that same year 1983: Gatorade became the official sports drink of the NFL 1983: Purchased by Quaker in a bidding war with Pillsbury for $220

million 2001: PepsiCo bought Quaker for $13.4 billion; Gatorade became a

subsidiary of PepsiCo (manufactured and distributed by PepsiCo) Today: official sponsor of NBA, WNBA, NFL, AVL, MLB, MLS, NHL,

NASCAR, more than seventy NCAA DI college teams, among other sports leagues

Part 3: Internal Situation

Part 3: Internal Situation

Consumers Demographics: youths and young adults, aged 18-25,

including student-athletes (both high school and college) and daily active individuals. Gatorade is advertised for anyone that has been working hard and is thirsty, not just elite athletes. The secondary market is adults ages 24-40 living in the Southern United States, as this is the region with the most Gatorade sales.

Brand Loyalty: relatively strong brand loyalty, as the only other major sports drink product, PowerAde is a large rival of the company. This prompts people to chose a product and stick to it. Because of this, Gatorade aims to attracts young consumers and keep them loyal to Gatorade.

Psychology and Motivations: Gatorade is marketed as a hip, edgy product for youths leading an active lifestyle. Further, it is promoted by famous and successful professional athletes, who provide an ethos for the product, showing people that is they want to rise to “the next level” they need Gatorade as their fuel. This motivates people to purchase the product.

Part 4: External Situation

Slogans The G Series will be marketed toward athletes

with the classic “Be Like Mike” slogan G2 will marketed toward active young to

middle aged people looking to lead a healthier more active lifestyle, with the slogan “Stay fit, stay fresh.”

Part 5: Marketing Strategy

Part 5: Imaging

Part 5: Imaging

Part 5: Imaging

Part 5: Imaging