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Gatorade Marketing Plan

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Gatorade Marketing Plan Gatorade Marketing Plan Presentation Transcript

  • 1
    10 STEPMarketing Plan for GATORADE
    Allan Ray C. Enriquez
    October 29, 2010
  • 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
  • 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
    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 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!
  • I am active!
    I am a winner!
    I would be like
    Michael Jordan/Dwayne Wade.
    I won’t get dehydrated.
  • 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
    Lifestyle vs. Age
    Brand vs. Positioning
  • Gatorade is #1 in niche: active lifestyle for 13-24 yrs.
    Lifestyle vs. Age Matrix
    Powerade
    Red
    Gatorade
    Tropical Fruit
    Pocari
    Sweat
    Gatorade
    Cool Blue
  • Gatorade unique positioning is shown in this competitive map
    Positioning vs. Brand Matrix
    "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.
    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
  • 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
    Competitor data= US$300B
    Company data = US$300B
    Usage data = US$234B
  • 17
    The Marketing Mix Strategy
    Part 2:
    Steps 6 to 10
  • 6a. Sports Drink category is dominated by 3 major brands
  • 6b. Product Description
    Gatorade is a sports drink scientifically formulated to replace fluids and provide energy to working muscles. It offers a scientifically validated blend of carbohydrates and key electrolytes.
    There are 6 variants – Lemon-Lime, Orange, Cool Blue, Citrus Cooler, Strawberry Kiwi and Fruit Punch
    There are 7 sizes: 12, 20, 24, 32, 34, 64 (in fl oz) and 1 gallon
  • 7. Price- Gatorade is 36% discounted priced in affordable packs
    Gatorade 12 fl oz = US$ 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.
  • 29
    SUMMARY
  • 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
  • 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