GATORADE

SALES PROMOTION PLAN

   

 

 

 

 

 

MADDIE  NEUBERT    

MARCH  12,  2013  

 

Table  of  Contents  

History  of  Company   1  

Target  Market   2  

Sponsorship   2  

Product  Placement   2  

Promotional  Tie-­‐In   3  

Loyalty  Marketing  Program   3  

Premiums   4  

Incentives   5  

Product  Sample   6  

 

History  of  the  Gatorade  Company  

In  early  1965,  an  assistant  coach  at  the  University  of  Florida  sat  down  with  a  team  of  physicians  to  

determine  why  many  athletes  were  being  affected  by  heat  and  heat-­‐related  illnesses.  The  problem  was  

found  to  be  one  where  electrolytes  were  not  being  replaced  after  being  sweat  out,  thus  resulting  in  the  

Gatorade  Sports  Drink  to  replenish  those  lost  fuels.  Since  then,  Gatorade  has  developed  its’  product  

from  not  only  a  drink  but  to  a  mix-­‐in  powder,  a  chewable  tablet,  and  a  nutrition  shake.  Gatorade  started  

with  a  single  line  of  “Gatorade  Thirst  Quenchers”,  and  then  evolved  into  the  Gatorade  Series-­‐  which  

features  three  steps:  “Prime,  Perform,  and  Recover”.  The  GSSI,  or  Gatorade  Sports  Science  Institute,  is  a  

research  facility  owned  in  Barrington,  Illinois  which  provides  extensive  research  for  the  development  of  

Gatorade  products  and  formulas.  Athletes  also  became  involved  at  the  GSSI  by  testing  products  through  

experiments.  Here  are  some  interesting  facts  about  the  company:  

• Named  after  the  Florida  Gator’s  football  team  

• Given  to  the  Kansas  City  Chiefs,  who  that  year  won  Super  Bowl  IV  

• Worked  with  race-­‐car  drivers  to  help  withstand  heat  during  races  

• Official  Sports  Drink  of  NASCAR,  the  NFL,  MLB,  NBA,  WNBA,  USA  Basketball,  NHL,  Association  of  

Volleyball  Professionals,  US  Soccer  Federation,  Major  League  Soccer,  and  other  

professional/collegiate  organizations  

• Created  Gatorade  Endurance  Formula;  which  includes  a  higher  concentration  of  sodium  

• Pepsi-­‐Co’s  fourth  largest  brand  

• Produced  chewing  gum,  entitled  “Gator  Gum”  

• Marketed  around  80  countries

 

Target  Market  

Demographics  1.  Ages  15-­‐23  2.  Male  and  Female  3.  Competitive  Athlete      

A. Sponsorship  

The  promotion  of  a  company  in  association  with  a  property  

• Athlete  Endorsement  

Gatorade  will  pay  athletes  (for  example;  Cam  Newton  and  Peyton  Manning)  to  drink  Gatorade  products  and  promote  them  to  the  target  market  

• Football  Stadiums  

Around  football  stadiums  there  are  advertising  boards  around  the  field,  electronic  boards,  etc.  Gatorade  can  pay  for  advertising  space  in  the  stadium  to  promote  their  product  to  stadium  fans,  who  fit  into  the  target  market  

• Marathon  Races  and  Events  

Gatorade  not  only  markets  to  competitive  sports,  but  also  those  who  are  active.  With  that,  Gatorade  can  sponsor  any  races  and  give  the  competitors  Gatorade  drinks  throughout  their  race  

B. Product  Placement  

A  technique  used  by  advertisers  to  subtly  promote  products  through  film,  T.V.  shows,  etc.  

• SportsCenter  T.V.  Show  

SportsCenter  shows  the  highlights  of  the  newest  sporting  events,  intriguing  the  target  market.  With  that,  Gatorade  can  pay  the  on-­‐air  hosts/anchors  to  drink  out  of  a  Gatorade  bottle,  mug,  etc.  during  their  show,  this  way  the  logo  can  be  displayed  to  the  viewers  

• America’s  Game  T.V.  Show  

The  show  America’s  Game  focuses  on  the  Super  Bowl  winners  and  their  journey  to  victory,  so  promoting  Gatorade  through  this  program  can  show  that  it  was  a  factor  in  their  success.  This  will  tell  our  target  market  the  benefits  of  drinking  Gatorade  

• Sports  Nation  T.V.  Show  

Sports  Nation  lets  viewers  know  about  the  latest  news  in  sports  in  a  fun,  interactive  way.  These  hosts  could  promote  Gatorade  as  well,  because  the  viewers  are  also  a  part  of  the  target  market  

Geographic  1.  Resident  of  the  USA  2.  Lives  in  the  suburbs  or  college  town  3.  Lives  near  a  High  School  or  College    

Psychographic  1.  Follows  or  is  enrolled  in  a  competitive  sport  2.  Serious  athlete  3.  Plays  a  select  or  college  level  sport    

 

 C. Promotional  Tie-­‐In  

Sales  promotional  arrangements  between  one  or  more  retailers  

• Nike  Footwear  

Gatorade  could  partner  with  Nike  and  their  footwear  as  they  go  hand  in  hand.  Those  who  buy  Nike  running  shoes  or  cleats  will  be  interested  in  completion  or  exercise,  thus  also  being  interested  in  a  performance  drink  like  Gatorade.  A  purchase  of  Nike  cleats  or  running  shoes  will  include  a  Gatorade  coupon  or  free  trial  of  Gatorade  Performance  Chews,  as  a  customer  of  Nike  could  easily  become  a  customer  of  Gatorade  

• Adidas  Footwear  

Just  like  Nike  footwear  products,  Gatorade  could  promote  themselves  in  the  same  way  with  Adidas  brand  running  shoes  and  cleats.  A  purchase  of  an  Adidas  shoe  will  result  in  a  free  trial  of  Gatorade,  which  should  entice  Adidas  customers  to  become  a  customer  of  Gatorade  

D. Loyalty  Marketing  Program  

Marketing  efforts  that  reward  and  encourage  loyal  buying  behavior  

• Gatorade  Rewards  Card  

Gatorade  customers  could  be  rewarded  by  swiping  a  card  every  time  a  Gatorade  product  is  purchased  at  a  store,  thus  accumulating  points  for  lower-­‐priced  items  or  free  trials.  This  encourages  customers  to  buy  Gatorade,  as  they  will  be  rewarded  

• Online  Rewards  Plan  

To  encourage  online  ordering,  customers  could  get  a  free  Gatorade  product  when  ordering  over  the  Gatorade  website.  This  promotes  not  only  the  website,  but  also  the  idea  of  purchasing  products  over  the  internet  

                           

     

E. Premiums  

Discount  rewards  for  customers,  such  as  coupons,  factory  packs,  traffic  builders,  etc.  The  concept  of  premiums  is  to  give  customers  mark  downs  on  the  company’s  products  that  will  encourage  them  to  make  future  purchases  

 a) Coupons  

! Certificates  which  entitle  customers  to  cash  discounts  

! Coupons  can  be  given  to  customers  either  with  a  purchase  or  without  to  give  them  mark  downs  on  Gatorade  products  

! Gatorade  Product:  $1.69,  Two  Gatorade  Products:  $3.38  

! Retail  Price:  $3.38  (for  two  Gatorades)  Buy  one  get  one  free  coupon  After  Coupon  (-­‐$1.69):  $1.69  Save:  $1.69  

 

 

a. Factory  Packs  ! Free  gifts  placed  in  or  on  product  packages  ! Factory  packs  reward  customers  for  their  purchase  with  no-­‐cost  gifts  

                     

b. Traffic  Builders  ! Low-­‐cost  items  and  gifts  (pens,  key-­‐chains,  calendars,  etc.)  ! Shows  customers  the  company’s  loyalty  to  them  through  products  

 

 

 

A  Gatorade  Energy  Bar  could  be  added  to  

products  and  packages  (in  the  packaging)  of  Gatorade  to  boost  product  awareness  and  also  improve  customer  loyalty  and  

service  

A  Gatorade  Ballpoint  Pen  could  be  given  to  Gatorade  customers  improve  customer  loyalty  and  morale.  The  Gatorade  logo  is  

also  present,  which  promotes  the  company  

 

 

F. Incentives  Creates  excitement  and  increases  sales  b) Contest  

! An  organized  competition  for  a  prize/title  involving  contestants  to  demonstrate  skill  ! Contests  include  races,  games,  etc.  

 • Half-­‐Court  Shot  Contest  

Because  Gatorade  is  a  proud  sponsor  of  the  NBA,  an  ideal  contest  is  to  see  which  contestant  can  make  a  Half-­‐Court  Basketball  shot,  and  the  winner  will  get  a  free  24  pack  of  Gatorade.  If  there  is  more  than  one  contestant  who  can  make  the  basket,  a  tie  breaker  will  be  held  until  one  of  the  remaining  contestants  makes  another  half-­‐court  shot.  

 

• Football  Throw  Contest  Gatorade  is  also  a  sponsor  of  the  NFL,  so  another  ideal  contest  is  giving  the  contestants  a  try  to  throw  a  football  through  a  small  hoop.  Whichever  contestant  can  complete  this  task  will  also  win  a  free  24  pack  of  Gatorade.  The  same  rules  for  tiebreakers  apply,  so  if  more  than  one  contestant  can  complete  the  throw,  a  “throw-­‐off”  will  be  held  for  the  prize.                

     

c) Sweepstakes  a. A  lottery  in  which  prizes  are  rewarded  with  chance  b. In  a  sweepstakes,  each  contestant  has  the  same  chance  to  win  the  prize  c. No  purchase  or  skill  is  necessary  

 • Ultimate  Gatorade  Sweepstakes  

Contestants  can  enter  their  name  online  or  at  the  door  of  any  Sporting  Goods  retailer  (ex:  Dick’s  Sporting  Goods,  Sports  Authority,  etc.)  for  a  chance  to  win  a  free  supply  of  Gatorade  Sports  Drink  and  any  other  Gatorade-­‐related  products  for  a  full  year!  Each  contestant  will  have  an  equal  chance  to  win  the  grand  prize.        

     

G. Product  Sample  Free  trial  size  items  

a. Great  for  new  products  b. Allows  customers  try  out  Gatorade  products  

• Trial  Size  of  Gatorade  Performance  Prime  Chews  Gatorade  evolved  their  iconic  sports  drink  into  a  chew,  which  gives  the  consumer  a  boost  of  energy  when  eaten  before  a  competition.  Supplying  customers  with  a  free  trial  of  these  energy  chews  will  boost  product  awareness  and  also  sales.