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10 STEPMarketing Plan for GATORADE

Allan Ray C. EnriquezOctober 29, 2010

5 Steps for Part 1 (PTM and Positioning)

1. Gatorade’s PTM are youth leading an “active” lifestyle

2. Who wanted to enhance performance3. Can choose Powerade, Pocari Sweat

and other sports drinks.4. Gap is all other brands focused on

providing fuel, fluid and nutrients before, during and after activity

5. The market size is US$ 5.3Billion in sales. Gatorade niche is US$ 140Billion.

*active lifestyle – being engaged in various

activities

5 Steps for Part 2(Marketing Mix & Strategy)

6. Sports drink (also in powder and sports gel)

7. Is 30% discount8. Uses TV, print ads and

sports events9. Is distributed

nationwide10. Uses a niche approach

to win

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Positioning to the Primary Target Market

Part 1:Steps 1 to 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)

2. My PTM’s NWEThe youth needsTo 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 GatoradeThirst quenching, rehydrated, more active,

energized; thus, they remain youthful and athletic!

I won’t get dehydrated.

I would be like Michael Jordan/Dwayne Wade.

I am active! I am a winner!

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

2 Examples of Position Map

1. Lifestyle vs. Age2. Brand vs. Positioning

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

GatoradeTropical Fruit

Pocari Sweat

PoweradeRed

Lifestyle vs. Age Matrix

GatoradeCool Blue

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."

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.

5a. The sports drink market is estimated US$ 300Billion in sales.

SOURCE: http://www.manilatimes.net/national/2006/oct/25/yehey/business/20061025bus6.html

5b. Based on 2008 Energy Drinks North America Report, where Gatorade’s share is 49%, total market size is US$ 5.3Billion.

1. Gatorade sales is US$2.6Billion

2. Gatorade’s market share is 49%

3. Then total sports drink market size is US$2.6Billion/0.49 = US$5.3Billion

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

5. Concluded that sports drink market is US$234B

1. Competitor data= US$300B

2. Company data = US$300B

3. Usage data = US$234B

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The Marketing Mix Strategy

Part 2:Steps 6 to 10

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

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

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.

8a. Promo

8a. Promo

8a. Promo

8b. Competitor promo

8b. Competitor promo

8b. Competitor promo

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

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.

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SUMMARY

5 Steps for Part 1 (PTM and Positioning)

1. Gatorade’s PTM are youth leading an “active” lifestyle

2. Who wanted to enhance performance3. Can choose Powerade, Pocari Sweat

and other sports drinks.4. Gap is all other brands focused on

providing fuel, fluid and nutrients before, during and after activity

5. The market size is US$ 5.3Billion in sales. Gatorade niche is US$ 140Billion.

*active lifestyle – being engaged in various

activities

5 Steps for Part 2(Marketing Mix & Strategy)

6. Sports drink (also in powder and sports gel)

7. Is 30% discount8. Uses TV, print ads and

sports events9. Is distributed

nationwide10. Uses a niche approach

to win