Gatorade Marketing Campaign Analysis: Rebranding G
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A group of six people, including myself, created a complete market analysis of Gatorade’s new G Series for a class at the University of Michigan. Gatorade decided they wanted to rebrand their ...

A group of six people, including myself, created a complete market analysis of Gatorade’s new G Series for a class at the University of Michigan. Gatorade decided they wanted to rebrand their product (changing the name from Gatorade to G) and to retarget their consumer base towards athletes and professional athletes instead of everyday consumers. Our objective was to come up with an innovative marketing strategy for the G Series. We worked cohesively as a group and turned out a great project.

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  • 1. 
 April
20
 10
 
Gatorade
Marketing
Campaign
Analysis:

Rebranding
“G”
 
 Lauren
Gaynes
 
 Kristen
Hermanson
 
 Anant
Jain
 
 
 Will
McDowell
 
 Brittany
Morris
 
 Julia
Wangen
 
 
 
 
 
 
 
 MKT
407/COMM
462

























Prof.
Jennifer
Ashman

  • 2. 2
 
 

  • 3. 3
 
 
Table of ContentsINTRODUCTION 4SITUATION ANALYSIS 5COMPANY ANALYSIS 5CONSUMER ANALYSIS 6PRODUCT ANALYSIS 10MARKET ANALYSIS 11COMPETITIVE ANALYSIS 14PROBLEMS AND OPPORTUNITIES 16SWOT ANALYSIS 16POSITIONING STATEMENT 18MARKETING AND COMMUNICATION OBJECTIVE 19BUDGET 20MARKETING COMMUNICATION STRATEGY 21ADVERTISING STRATEGY 21INTEGRATED COMMUNICATIONS 25EVALUATION 31CONCLUSION 31APPENDIX 33REFERENCES 40
 

 

  • 4. 4
 
IntroductionGatorade not only is the market leader in the sports drink category, it is the creator of thatbeverage category. Gatorade was the first drink to be offered as a substitute for water,and has remained profitable since its inception. The company was able to capture theathlete market and has been a sponsor of notable athletes like Michael Jordan and TigerWoods. Today, Gatorade is involved in every major sport. It is impossible to watch afootball game, Nascar race, or golf tournament without seeing a Gatorade lightning bolt somewhere around the event. Picture 1: Gatorade coolers are present on the bench of almost every sports team in every major sport. In recent years, however, sales have started to decline due to the emergence of competing products. Consumers who seek to be rehydrated are turning towards healthier, trendier options such as Vitamin Water. Consumers who aim to become more focused or active are starting to buy energy drinks such as Red Bull or Monster. Gatorade believed that if it did not change its brand image in retaliation, the company would begin to fail. In an attempt to recapture the market, Gatorade has transitioned away from its traditional advertisements and its slogan: “Is it in you?” Gatorade has implemented apop-culture marketing strategy that involves rebranding the product as “G.” A newvariety of products are offered, such as G2 (half the calories), and Gatorade A.M. SoonGatorade will be releasing a new product line called the “G Series,” which includes adrink before exercising, a drink while exercising, and a drink after exercising. While thisconcept seems extreme, Gatorade has invested a lot of dollars to regenerate interest fromathletes.The chances of success for the new Gatorade products will be much higher if thecompany first revamps its current marketing strategy. Consumers are confused aboutwhat “G” actually is, and are less motivated to buy the product than before. In order togenerate interest in the new variety of products, Gatorade must address this marketingproblem by linking “G” back to the traditional Gatorade brand. Our group has gathereddata from both athletes and non-athletes. With this information, we analyzed problemswith the current strategy, and offered recommendations on how to capitalize onopportunities still available to Gatorade. The goals of the strategy revolve aroundregaining consumers’ interest in “G” with new advertising techniques and byimplementing promotions to create excitement around the new product. The expected endresult is reclaiming a portion of the sports drink market and increasing sales to sustainlong term profitability. 

  • 5. 5
 
 
Situation AnalysisCompany Analysis Company Mission: “Gatorade and the Gatorade Sports Science Institute continue to search for and study new and innovative ways to help athletes improve performance by facilitating proper hydration and nutrition…The Gatorade Company and the GSSI perpetually strive to advance their collective mission of enabling athletes to always perform at their peak.”The parent company of Gatorade, PepsiCo, has enjoyed market leadership in the non-alcoholic beverages and snack industry in the United States.i Their net revenue in 2009was $43.232 billion, a minor 0.044% decrease from its SEC filings in 2008. However, thebrand Gatorade has been declining in revenue for the past few years by 8.8% from annualreports of 2007 ($644 million) and 2008 ($587 million).ii“After PepsiCos acquisition of Gatorade in 2000, the brand showed consistent growthuntil declines began in Q3 2007” (Media Post News). In the table below, BeverageDigest estimated that in the first quarter of 2009, Gatorades sales volume and share oftotal sports drink volume dropped. Meanwhile, Coca-Colas less expensive competitivesports drink, Powerade, gained sales volume and share of the market. This developmentcontinued to persist in the second-quarter as well, with Gatorade dropping another 6%.On the other hand, Coca-Cola’s subsidiaries only saw a fall of 1%.Figure 1: Change in Sports Drink Market Share, 1st Quarter 2009iii Vol Share Share +/- Vol +/-Gatorade 73.7 -6.3 -13.70%Powerade 25.1 6.1 23.60%Other 1.2 0.2 -Category 100 - -6.30%While the new campaign has caused some of Gatorade’s loyal customers to no longerrecognize the product they used to love, Gatorade still holds a majority of the market.Gatorade is also fortunate enough to have the financial ability to turn around its imagewithout having to worry too much about money. These factors, along with the company’sculture of always trying to enhance its customers’ performance, are skills Gatorade canutilize to help reestablish its brand image. 

  • 6. 6
 
Consumer AnalysisSecondary ResearchSports drinks’ traditional target audiences are young men aged 18-34. Males in this agegroup comprise 35.91% of Gatorade’s sales whereas females comprise 21.60%.Consumption of sports drinks drops off, however, and is consistent after this age group,with the percentage of consumers hovering around 10% (Appendix Exhibit 1).Neither Gatorade nor Powerade possesses brand loyalty according to gender: 53.68% ofmales drink Gatorade over 55.07% of males who drink Powerade; 46.32% of femalesdrink Gatorade over 44.93% of females who drink Powerade (Source: Choices 3Database).Blacks and Hispanics exhibit a higher than average sports drink consumption rate.Reaching these demographics through targeted products and advertising can bring growthto the segment.Primary ResearchSurveyThrough a survey and focus group, our group gathered valuable information aboutconsumers and how their opinions of Gatorade have changed since the new marketingcampaign began.The survey included questions pertaining to frequency of sports drink consumption,preference of sports drink beverages, physical activity lifestyle, awareness of the “G”campaign, and demographic information such as age, gender, and ethnicity. During earlyto mid-March, each person in our group emailed out the survey. We receivedapproximately 70 responses.The survey included almost a 50/50 ratio of males to females, and shows that almost thesame amount of males and females drink sports drinks as the secondary researchsuggested (Appendix Exhibit 2). Across both genders, Gatorade was the preferred sportsdrink. However, 30% more males than females listed it as their favorite. See Figure 2. 

  • 7. 7
 
 
 Figure
2:
Percentage
of
Sports
Drink
Consumers
Who
 Prefer
Gatorade
 Female
 Male
 0%
 10%
 20%
 30%
 40%
 50%
 60%
 70%
 80%
 90%
The survey also showed that sports drink consumers and non-sports drinks consumerswere almost equally likely to be considered an athlete (exercise multiple times a week).See Figure 3: Figure
3:
Amount
of
 Exercise
 100%
 50%
 Less
than
Once
A
 Week
 0%
 Once
a
Week
or
 Sports
 Non­Sports
 More
 Drinkers
 Drinkers
These two facts demonstrated that Gatorade’s target market should not only be comprisedof young, male athletes. While this demographic could remain as Gatorade’s primarytarget, everyday non-athletes also enjoy Gatorade as a casual beverage. Utilizing a newmarketing plan could gain more sales in that market.The subsequent part of the survey analyzed what aspects of sports drinks consumersvalue most. This question was slightly altered for non-sports drink consumers to thequalities they prefer in beverages in order to reveal what these consumers findunappealing about sports drinks. Shown in the pie charts below, the main preference forboth types of consumers is taste. However, there is a significant increase with non-sportsdrink consumers in the amount of people who chose their drink because of calories. 

  • 8. 8
 
 Figure
4:
Primary
 Figure
5:
Primary
 Factor:
Sport
Drink
 Factor:
Non­Sport
 Consumers
 Brand
 Drink
Consumers
 Loyalty
 Calories
 Calories
 Nutrients
 Nutrients
 Package
 Price
 Design
 Taste
 Taste
These results are notable because Gatorade’s taste has always remained the same. It hasjust added a new variety. Secondly, Gatorade has added new low-calorie products withhopes to capture this market, but still these consumers have not been persuaded. Todetermine why Gatorade has experienced a decline in sales, we asked our focus groupabout how they feel about Gatorade today.Focus GroupA focus group was conducted to uncover latent needs of consumers along with creating amore detailed picture of consumer buying behaviors and opinions. Before conducting thefocus group, a tentative theory of buying behavior was formulated:• Both athletes and non-athletes buy “G”• Consumers who use “G” do so while working out and in their everyday lives• The current “G” commercials are ineffective at increasing awareness and are also ineffective at making positive changes in consumer buying habitsIn order to select the sample, the 6 members of our group each asked our friends if theywould be willing to participate in a focus group to measure opinions and buying habits ofthe G Series. All six of us have different groups of friends who differ demographicallyby gender, race, athleticism, etc., causing us to believe that we would collect a randomsample that would offer a wide variety of opinions. A total of 8 people showed up to thefocus group, consisting of a gender make-up of 5 males and 3 females. The focus groupwas conducted on Friday March 12 at 12 P.M. in a large conference room that our groupreserved on the second floor of the Kresge Library. We prepared a total of 8 questions toask respondents. See Exhibit 3 in the Appendix to view the questions asked during thefocus group along with replies of the respondents. The schedule of the focus group is asfollows:12:00: Meet and greet with participants. Refreshments are served and time is given toallow participants to eat before the questioning begins. 

  • 9. 9
 
 
12:20: 5 of the prepared questions are asked to participants and answers are recorded.The first set of questions involves participants’ already established attitudes of “G.”12:40: A variety of “G” commercials taken from YouTube and the Gatorade web site areshown to participants.1:00: Participants are asked the remaining 3 questions, which deal with perceptions of“G” after seeing the commercials.1:20: Participants are thanked for their time and offered any remaining refreshmentsbefore they leave.After conducting the focus group, recorded responses were analyzed in order to create atheory of buying behavior and attitudes. This theory coincided with the bullet pointscreated in the tentative theory of buying behavior above. In the focus group, no onedisliked sports drinks. However, a couple of participants mentioned a preference ofwater over sports drinks. No one seemed biased towards Gatorade or any competingproducts. Their affinity for sports drinks was due to flavor/taste and amount of calories,rather than brand name (i.e. Gatorade or Powerade). Participants, including athletes andnon-athletes, voiced that they use sports drinks while working out and also duringeveryday activities. The only participants who seemed interested in using the 3-step GSeries products were those who considered themselves to be hard-core athletes.Participants bought sports drinks in drug stores, convenience stores, gas stations andgrocery stores. Grocery stores were voiced as the most popular point-of-purchase. Whenasked about perceptions of the G Series based on its current ad campaign, the focus groupparticipants had no concrete recollections of new commercials or ads. Individuals thathad the most to say were general sports fans, though not exactly athletes, who had seenads during sporting events. The individuals who did see commercials were still confusedabout the brand and did not perceive the commercials to be effective.When asked if they knew what “G” was, all participants were incorrect even afterviewing the commercials. Participants assumed that it was a new type of drink. No onerealized that “G” was just a relabeling of classic Gatorade and the product itself hadremained the same. No participants expressed motivation to purchase any G Seriesproducts after viewing the commercials. The focus group consensus was that thecommercials didn’t say anything about the product. They just made them excited towatch sports. Participants offered a variety of suggestions to improve currentcommercials and perceptions. This included establishing a better connection betweenGatorade and “G” and creating commercials that are more product-centered instead offocusing solely on athletes.Key TakeawaysWhile athletes remain as Gatorade’s principal target, male and female non-athletes whoare generally interested in sports also consume Gatorade to a large degree. Furthermore,Gatorade products fulfill the needs of the consumer, which includes taste and reducedcalories, yet consumers do not realize this. These consumers appeared motivated to buy 

  • 10. 10
 
Gatorade as a result of the old marketing campaign because they were familiar with theproducts. With this new unfamiliarity with “G,” sole images of sports and athletes do notmotivate consumers. Consumers seek more information about the qualities “G” offers asif it were a completely new product.Product AnalysisAs mentioned in the Consumer Analysis, Gatorade is a product that can offer needs toseveral types of consumers. The company diversified its product to cater to differentqualities. It can offer enhanced performance to athletes, a rehydrating substitute to waterand a low-calorie option for health-conscious consumers. The new marketing campaignhas not communicated these qualities to its target market.Product life cycleThe Gatorade brand has maintained a well-established brand name for decades. Withover half a billion dollars in sales every year, the brand has continued to grow andmaintain control of the sports drink market. Therefore, the Gatorade brand would beplaced in the mature stage of the product life cycle. It has a fairly steady level of salesannually, and a globally recognized name.However, with the reinvention of the brand name and the main logo as Gatorade changedits name to “G” and offered new G-line products, it appears as if Gatorade is startingfrom scratch. The new “G” campaign is at the introductory phase because it is creatingawareness and “buzz” in the media and society. After reaching record-breaking interestlevels, Gatorade is reaching out to a wider array of athletes with its new line. Gatoradehopes to capture the attention of new consumers while maintaining its current users.Therefore, the “G” campaign should be placed under the introduction stage of the productlife cycle.Channels of Distribution“Our products are advertised nationwide on a number of media outlets. The G Series willbe available where Gatorade Thirst Quencher is sold – grocery, convenience, mass drugand club stores. Gatorade is sold at various grocery stores including Safeway, Kroger,Super Value, Wal-Mart, Target, Sam’s Club and many other stores. “Our shoppermarketing team receives direction from the brand team to help tailor specific programsfor various retailers in order to sell, showcase, and market product.” – Aminah Charles,Gatorade Communication & PR, ChicagoThe Gatorade series is available for individual and bulk sale at numerous grocery andconvenience stores. The product is advertised on television, Internet and in print ads. Byspreading its reach in the sports world (opening up spots for athlete endorsements),Gatorade has been able to grab the attention of fans that follow specific sports. 

  • 11. 11
 
 
 Market Analysis Because Gatorade was created for the University of Florida football team, it has had a very solid connection with the sports world. Moreover, the brand positions itself as an important and healthy resource for both professional and amateur athletes. In 2005, the company boasted 60 Division I-A schools, and 28 out of 30 National Basketball Association (NBA) teams under contract to use the Gatorade brand. Similarly, fans are guaranteed to spot Gatorade on the sidelines of every National Football League (NFL) team through the 2011 season. Quaker, manufacturer of the Gatorade brand, holds an 80% share of the sport drink segment in FDM channels, excluding Wal-Mart, according to IRI. Geographic data (2004) In order to gauge which geographic areas in the U.S. possess the highest sports drink consumption, our group looked at sports drink purchase by community type (categories include: all, urban, suburban, and rural). Consumers were asked the question: “Do you ever buy any sports drinks such as Gatorade for you, your family or both?” The graph below exhibits that consumers living in suburban areas are most likely to buy sports drinks, with 52% of suburban consumers responding “yes.” Rural and urban areas were more likely to respond with “no.” Further investigation should be taken to ascertain why these areas are less likely to purchase Gatorade and to determine how to change purchase behavior in these areas. iv Figure 5: Sports drink purchase by community type All (%) Urban (%) Suburban (%) Rural (%)Yes 47 46 52 46For Me Only 20 21 26 15For family members only 10 9 10 11For Both 17 16 16 20No 52 53 46 53 Note: This information is not specific to Gatorade—it examines sports drinks as a whole. However, if you look at the chart below, you will see that Gatorade consists of roughly 83% of the total market share for sports drinks for 2004. Since Gatorade dominates in terms of market share, looking at the entire market is helpful and relevant for determining regional and geographic market trends for Gatorade as well. 

  • 12. 12
 
 Sales by manufacturer: Figure 6 depicts FDM sales by manufacturer in 2002 and 2004. Gatorade controls the predominant share in the market, with roughly 83% of FDM sales, not including Wal- Mart. Powerade, manufactured by the Coca-Cola Company, controls approximately 13% of the market. All other players have less than 5% of category sales. Figure 6: FDM sales of sports drinks, by manufacturer, 2002 & 2004 2004 Sales Change 2002- 2002 Sales ($mill) Share (%) Share (%) ($mill) 2004Pepsi / $ 835 86.0 % 949 82.7 13.7GatoradeCoca-Cola $ 118 12.2 % 153 13.3 29.7/PoweradeKraft/Capri - - 34 3.0 -Sun SportOther $7 1.0 % 3 - -57.1Private $ 11 1.0 % 8 1 -27.3labelTotal 971 100.0 1,147 100 18.1 Note: Excludes Wal-Mart and convenience store salesv 

  • 13. 13
 
 
Figure 7 is a pie chart depicting share of sales for sports drinks by region in 2008. It isclear that with almost half of sales share (45.5%) the South dominates the sports drinkmarket. Figure 7:Retail DistributionThe total sport beverage category has grown from roughly $2.5 billion to $2.6 billionfrom 2002 to 2004 in the retail channel (not including Wal-Mart). Food, drug and massmerchandisers control almost 44% of the sport drink market while the convenience storechannel controls 56%. FIGURE 8: Retail sales of sports drinks, by channel, 1999-2004vi 2002 2004 Sales Change 2002-2004 Retailer Sales Share % Share % $ million % $mill Supermarkets 855 34.6 1,006 38.3 17.7 Mass 46 1.9 48 1.8 4.3 merchandisers* Drug stores 70 2.8 93 3.5 32.9 Subtotal 971 39.3 1,147 43.7 18.1 Convenience stores 1,501 60.7 1,477 56.3 -1.6 Total 2,472 100.0 2,624 100.0 6.1*Note: Excludes Wal-Mart sales 

  • 14. 14
 
Supermarkets control 38% of the category and have grown almost 18% from 2002 to2004. The drug store market share of sports drinks has grown by almost 33% to $93million in 2004. Mass merchandisers (excluding Wal-Mart) have shown a moderategrowth of almost 8%, but are limited to about 2% of the total retail market. Sales over thereview period have shifted away from convenience stores. The convenience store channelhas been fully penetrated for some time and remains flat.This data demonstrates that supermarkets are the largest channels of distribution forsports drinks and that drug stores are the largest growing channel in terms of increasingmarket share percentage. Focus should be put on increasing the success of sales withinthese markets and determining why other channels (mass merchandisers and conveniencestores) are not as successful in terms of total or increasing sales percentage.Competitive AnalysisThe non-alcoholic beverage industry had mediocre gains until 2007. Since then, therehave been figures indicating declining sales and a similar trend has been forecast for thenext three years. As a category, due to the pairing of Sports Drinks and Energy Drinks,the published reports suggest that there is a steady potential for growth. However, thisgrowth trend holds true primarily for energy drinks, whereas the market for sports drinkshas been declining. Sports drinks have also faced competition from energy drinks forshelf space in the sports and energy drinks aisle.Extraneous factors such as an economic recession and a recent, highly criticizedadvertising campaign have impacted Gatorade’s performance in particular. However,energy drinks and Powerade (Figure 1) have managed to increase sales while Gatoradehas declined. (Source: Choices 3)The segment has received tough competition from enhanced bottled water, as the latteroffers similar benefits (e.g. electrolytes, vitamins and minerals) and provides the addedbenefit of zero or low calories.The appeal of a lower calorie option is also evidenced by a phenomenal 227% growthrate in PowerAde Option—a low-calorie sports drink (see Companies and Brands: Sportsand Energy Drinks section of this report).Bottled water is the biggest competitor of sports drinks, according to Mintel’s Market forSports Food and Beverage (The)—United States, October 2005. This finding isreinforced in the Consumer section of this report. Indeed, the primary complaint aboutsport drinks during the one-on-one interviews in this report (see Consumer) regarded theamount of calories and sugar in sports drinks. As aforementioned, some manufacturers inboth the sports drinks and energy drinks sectors have launched lower calorie drinksand/or enhanced waters. 

  • 15. 15
 
 
According to Mintel’s January 2008 audit of an Albertsons in Miami, Florida, energydrinks had 226 facings. Although these represent almost half as many facings as thosedevoted to sports drinks, in 2006 energy drinks facings amounted to only 20-30 in thesports and energy drinks aisle. This indicates that while Gatorade and sports drinksremain the popular choice, their competitors (energy drinks, enhanced water, and bottledwater) have been gaining shares of the market.Figure 9: Top sports and energy drinks brands in FDM*. 2006 AND 2007(Source: Mintel)Figure 10: U.S. sales of RTD non-carbonated beverages, by segments, 2005 and 2007 (Source: Mintel) 

  • 16. 16
 
Problems and OpportunitiesSWOT AnalysisStrengths Established market leader – Given Gatorade’s domination of the sports drink category, one of the company’s most powerful assets is the fact that they are so widely recognized and represented. The simple brand awareness and popularity amongst the masses and in the realm of professional sports solidifies their grip on the market, demotes existing brands such as Powerade, and strictly limits the possibility of debutants in the segment. Affiliations with professional athletes and teams – The affiliations that Gatorade possesses with major sports personalities and teams translates into a powerful utility in terms of not only expanding their consumer base but also truly embodying the sporting element of a beverage. Fixtures such as ‘The Gatorade Bath’ at the end of football games incorporate and internalize the brand with the sport, while celebrity endorsements help promote the product to fans. Functional credibility – The reality that Gatorade is implemented as a hydration device in professional athletics and vouched for by sports stars also goes to prove the product’s functional credibility. Seeing Gatorade cups littering sidelines at sports arenas and players actually consuming the beverage in the middle of games validates the company’s claims. Capitalize and arouse sports aura – Through its creative advertising campaigns and tie-ups with athletic teams, at both the professional and collegiate level, Gatorade has today become much more than a sports drink – it is a culture. Gatorade has capitalized on making their product and brand name synonymous with sporting success and arouses an atmosphere of athleticism.Weaknesses A seemingly ambiguous, pluralistic product range – In an attempt to satisfy a plethora of taste buds, Gatorade has always furnished an extensive product range. However, when a product is correlated with essential bodily functions and caters to an audience that pays attention to items such as calories and vitamin enrichment, the focus is more than just flavor. This, along with their new, but unclear, three-step hydration process clutters shelf-space and confuses the consumers as to their purchase decisions. This confusion could subsequently result in customers becoming disinterested and switching to alternative brands. Untapped bottled water and energy drinks market – Gatorade classifies itself as a sports hydration beverage, distinct from the enhanced bottled water and energy drinks market, although it provides many of the same benefits. These untapped segments 

  • 17. 17
 
 
 have, however, witnessed amazing growth and infringed on Gatorade’s market share. The company’s absence from these categories has definitely resulted in loss of revenue and customer turnover. New creative strategy widely criticized and confuses consumers – The new “G” campaign that Gatorade has executed as a move to rebrand itself has been sharply critiqued within the advertising industry and has generated much confusion amongst consumers. The sudden change, albeit only shortening its name and losing the thunderbolt, has caused people to actually think that “G” is a new product and wholly unrelated to sports drinks of any kind. This creative strategy has resulted in a fractured brand image that only adds to the confusion between the two entities and may also create consumer frustration and apathy.Opportunities Association with less nationally popular sports – One of Gatorade’s highly lauded strengths is their rich bond with the most popular sports in America: basketball, football, baseball, and the like. However, one aspect is less publicized and televised sports, such as boxing, wrestling, or fencing. Manufacturing hydrating bottled water and energy drink – In order to convert the above stated weakness into an opportunity, Gatorade could experiment and venture into the enhanced bottled water and energy drink segments. Although it may add to an already large assortment of products, if marketed correctly, it could definitely have some potential in terms of general, everyday use. Loyal consumer base – Another bolstering strength that Gatorade can sustain and exploit is its loyal consumer base. Consumers who prefer the brand over competitors could, through some incentives, help diversify and increase the customer base. This following could also be utilized to try new products and promotional articles on. Initiate increased global advertising – There is no denying Gatorade’s rampant presence in the North American market. However, the one facet in which competitors such as Powerade trump the brand is international advertising. Powerade has already capitalized on Gatorade’s absence, for example, by contracting British soccer stars such as Wayne Rooney. Although the company does sell its merchandise abroad, the advertising is desperately lacking in potential goldmines such as Asia and Europe. If action is taken, the company could definitely generate revenue and compensate for declining sales in the United States.ThreatsMarket contracting due to rise in enhanced bottled water and energy drinks segment –One of the biggest concerns for Gatorade and the category as a whole is the increasing 

  • 18. 18
 
popularity of enhanced bottled water and energy drinks. With these two markets seeingmediocre to high positive growth, Gatorade has fallen victim to changing consumer tastesand preferences.Economic conditions and health consciousness lead to price and calorie concerns – Giventhe recession, the price factor has been magnified and consumers are looking to save oneveryday, once-trivial products. Gatorade is slightly more expensive than its competitorsand may see some consumers turn to alternative brands. Additionally, with the confusionsurrounding the new G campaign and the half-calorie ‘G2’, consumers may turn to drinkssuch as the Powerade Zero, which gives similar benefits minus all the calories.Positioning StatementPrimary
Market:

 • Athletes—this term is intentionally vague; it applies to any individual who is consciously active. • Household incomes between $20,000 to $40,000 • Young Adults ages 16 to 24 interested in sports“G” projects to all athletes, ranging from professionals to individuals who walk on thetreadmill once a week at home. “G” is designed to quench the thirst of hardworkingathletes. However, our primary target market is essential to expand the previous notionto any hardworking individual. If you have been working hard and you are thirsty, than“G” is for you. It is formulated with a delicate balance of essentials vitamins, minerals,and electrolytes to keep you always performing at your best. “G” is advertised with anattitude of hip, edgy, and cutting edge fashion. In line with these advertisements, ourbasic age range in our primary target market tends to be younger individuals ranging inage from 16 to 24.Secondary Market: • The South • Older adults ages 24 to 40 • Expand international promotion 
“G” possesses a larger consumption rate in the South than the in the North. As a result,“G” plans to spend more advertising with regard to region, specifically targeting theSouth. Due to the density of the advertisements in the South, advertisers expect thatsome of the ads will be effective for other individuals—specifically, older adults rangingin ages from 24 to 40 within the United States. “G” also plans to expand itsadvertisements internationally in attempt grow its consumer base to foster the growth ofsales. 

  • 19. 19
 
 
Marketing and Communication ObjectiveBelow is a list of our objectives we hope to achieve for improving the “G” campaign: 1. Corporate Objective: Increase revenue by 4% by the end of December 2010 and gain 5% of market share back 2. Advertising Objective: Establish awareness about what the G campaign entails. We would like to reach 75% of the target market, by the end of December 2010. a. The target market of the G-campaign is individuals who consider themselves athletes, and also non-athletes who enjoy sports. 3. Creative Objective: Establish in the minds of the target market an association between “G” and Gatorade, and also make them aware of the new line of products. 4. Media Objective: Enlighten 75% of the target market about what “G” is by the end of the year. 5. Sales Promotion Objective: Persuade 15% of the target market to play the “G” challenge by the end of the year. a. The “G” challenge is a sweepstakes-like give away in which individuals obtain codes from the tops of the purchased G-Series product(s). If users choose, they can enter their codes online and choose a professional sports organization’s community service program (such as the NFL’s ‘Play 60’) to which they can donate a portion of profits. For every code entered, consumers are entered into a sweepstakes to win a trip to the professional sport’s championship game of their choice. 

  • 20. 20
 
BudgetGatorade has been allotted a solid budget from PepsiCo in the pre-recession era. Mediaspending for Gatorade in 2007 was $137,246,600 and $75,611,800 in 2008. However, forthe first three quarters of 2009, spending was $42,869,900, with 50% used for networktelevision, 27% spent on other television (cable, spot, syndicated) and approximately18% used for magazine advertising. Seeing that marketing costs are one of the initialfunctions companies cut back during a slow economy, the total proposed budget for 2010will be approximately $145 million, with a media spending budget of $100 millionfollowing a somewhat similar breakdown from 2009. Although it is an increase from the$42 million as of the third quarter last year, it is imperative for Gatorade’s long-termsuccess that more money is invested in order to clearly explain the G campaign and that itis synonymous to Gatorade.
Aside from the proposed media spending, it is in Gatorade’s best interests to add to itsroster of sports endorsements by signing with leaders in less known sports such as boxingand wrestling. This will allow for the company to make inroads with new customer fanbases and further embody the spirit of sport.
Also, sufficient funds have to be set aside for the actual consumer research andsubsequent production of the advertisements. Additionally, extra, miscellaneous costshave to be accounted for in the contingency fund for which we have set aside $5 million.Therefore, we believe that we have allocated enough funds to amply allow for anefficient and effective execution of this campaign.
 Allocation
 [in
millions]
 Media
Spending
 $10

$5

 Endorsement
 $10

 Contracts
 Promotional
Material
 $20

 and
Merchandise
 Research
and
 $100

 Production
 Contingency
Fund
 

  • 21. 21
 
 
Marketing Communication StrategyAdvertising StrategyThe marketing strategy in the following section will aim to connect “G” back withGatorade in order to reclaim consumers who have switched to other products, and toreach a secondary target in non-athletes as well. The creative strategy will provide thelayout of how the ads will communicate the message of what "G” is. The media strategywill propose media vehicles in which to invest where the target markets are most likely tobe reached. Sales promotions will revolve around the new G Series product launch and acause related project, the “G” Challenge,” to increase participation with the brand. Lastly,we will provide a means of evaluating the effectiveness of this strategy.Creative StrategyThe “G” campaign will piggy back off of the old Gatorade campaigns so that consumerscan easily understand the association between “G” and “Gatorade.” Therefore, oldslogans (“G, is it in you?”), background locations, background music, celebrityendorsements, and the same attitudinal and emotional appeals to consumers may bereused. However, only one of the previously listed components should be used in eachmedia strategy.Exhibit 4 of the Appendix is a television commercial still frame that reaches outspecifically to athletes and non-athletes between the ages of 16-24, with strict regard tothe ‘text’ generation. Text generation refers to the amount of abbreviated words thatbecome acronyms in order to save time while texting on the phone. As viewers watchathletes across all genders, races, and sports perform during a ‘fight’ (moment of strugglewithin their sport), the letters “WTF” will momentarily flash across the screen. Theintention is for viewers to be confused (think about what “WTF” stands for) during thisportion of the commercial. As the commercial ends, a black background appears withwhite boldfaced letters “WTF,” which quickly expands to “Win The Fight.” Then,“Gatorade” presents itself in the same fashion as “WTF,” only to collapse into “G.”Viewers should observe that Gatorade is telling them the new meaning of “G” in thesame way the meaning of WTF is revealed. The meaning is that “G” is still Gatorade, yetit now assumes the form of an abbreviation or a new style. In this way, we appeal to ayounger ‘text’ demographic by incorporating elements of their culturally specific diction.The print-advertisements shown in Exhibit 5 feature individuals doing ‘everyday’activities rather than athletic activities. This is because the mediums in which these adsare placed are geared towards younger, everyday individuals without an emphasis onsports. Each individual is featured doing mundane everyday things. However, theirshadows expose their ‘true sport identity.’ This renders Gatorade more accessible andrelatable to individuals who pursue sports or athletic activities on their own time for theirown enjoyment. 

  • 22. 22
 
These two messages are targeting both our primary market of athletes and our secondarymarket of everyday people. These messages can also be used throughout severaldifferent outlets. The goal is to access as much of the target market as possible, establishthe correlation between Gatorade and “G,” and subsequently show consumers how “G”satisfies their needs. Once we reclaim consumers’ interest, the goal will be to then sparkinterest in the products like the G Series.Media StrategyGatorade has always been heavily marketed towards athletes, and our media strategy willaim to recapture that market while also targeting non-athletic sports drink consumers.The market of non-athletes is spread throughout the nation, but has the highestconcentration with young males and the South. In order to efficiently reach the largestaudience base possible, these demographics should be targeted through media outlets thatcorrespond directly with sports media or where fitness is generally important to theaudience.Media ObjectivesIt is vital to invest in media that will reach the entire nation in addition to local media,which focuses in on a few demographics. It is necessary to sacrifice frequency to have theability to have the maximum reach possible, making everyone in the audience base awareof the new G campaign. Moreover, frequency is not a priority since Gatorade is already awell-known brand, and if media runs too frequently, there is a possibility it couldgenerate negative feedback.The goal is to inform as many consumers possible by marketing with media most oftenused by the target audience. GRP will be a vital tool in measuring the effectiveness of themarketing strategy’s reach, as it is easy to use and could measure both national and localeffectiveness. Gatorade has the budget to purchase space during national sporting eventsand magazines. Running a few ads during nationally televised games including the SuperBowl and magazines such as Sports Illustrated will generate the desired GRP, whichwould be projected to be close to 100. GRP could also be observed at a local level, usingrating points to describe what percentage of certain communities have been exposed tothe media.Media StrategyThere are two focal points with regards to Gatorade’s target audience. The first isathletes, or the main consumers of Gatorade. The new products launched by Gatoradewill soon interest this audience the most. It is also important to consider non-athletes,around the ages 18-24, who enjoy sports and fitness. The main, yet not exclusivedemographic, is young males in the South.Media classes such as television, magazines, radio, and newspapers will be used topromote the brand. Television will be most effective when trying to reach a national 

  • 23. 23
 
 
audience and particularly to the target segment. Magazines will also help provide nationalexposure to the segment while allowing for ads to have a long life span. The new adswill contain simple information about the new products that will not require frequentupdates, making this media form cost efficient. Radio and newspapers can be used whenfocusing specifically on a region that is experiencing success in sports. During this time,the local community will have an increase in people who are interested in sports. Radioads can be utilized during sports broadcasts, along with newspaper ads near the articles ofthe winning sports team.Television will occupy the majority of the media mix mostly because it providesGatorade with the creative flexibility necessary to compete with other sports drinkbrands, such as Powerade. Magazines will be invested in as a second priority as they alsowill give Gatorade the ability to reinforce its image in an area where its competitors willalso be present. Radio and newspaper are least important. However, they can be essentialto the marketing strategy since their low costs and instant presence could determine whatgives Gatorade the edge in areas where sports drinks are consumed most.This strategy will assume a pulsing media time schedule. There will always be adsrunning on some degree. However, running time will be seasonal in order to followtimes when sports are viewed the most, such as in playoffs or bowls. Ads could shift inintensity when areas have less sports success and when viewership starts to decrease. TheNorth of the United States will also experience more ads during the summer months, asthis is when people will be more active and have a need for diversity in rehydratingdrinks.Media CalendarAs mentioned before, since Gatorade is targeting non-athletes it is necessary to havesome advertising all year round. The months of heavier investment (shown in Figure 11)revolve around main sporting events (Super Bowl in February, NBA Championship inJune, World Series in October, etc.) and the summer months.The media budget has been decreasing since 2006, and in 2007 it was close to $175millionvii. The budget for media spending was chosen to be $100 million as aconservative estimate that is affordable in the current state of the economy, and will beenough to achieve the media strategy goals. The budget is broken up by month and mediaclass to illustrate what type of advertising is being emphasized at any point in time. 

  • 24. 24
 
Figure 11: CalendarMedia Class Total($ mill) Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec SpendingTelevision 3.5 8 4 5 4 7 5 5 4 6 5.5 3.5 60.5Magazines 1 4 1.5 2 1.5 2 2 2 2 4 4 1 27.0Newspaper 1 1 2 1.5 1.5 7.0Radio 1 1 1.5 1 1 5.5Total 4.5 14.0 5.5 9.0 5.5 12.5 7.0 7.0 6.0 12.5 12 4.5 100.0
Media VehiclesSpecific media vehicles include sports-related outlets such as Super Bowl, ESPN, SportsIllustrated, local newspapers and local sports radio stations. The goal is to spreadadvertising strategies targeting non-athletes to wide spread general magazines such asGQ. Specific media vehicles do not include national newspapers, and social medianetworks because of their high cost per thousand compared to the primary outlets.Figure 12 shows the cost of ads and audience base used to calculate CPM. SportsIllustrated has a high cost for a full-page color ad, however every reader could beconsidered in the audience since their interest is in sports. However, many people whoare disinterested in sports or fitness watch the Super Bowl just because it is such apopular event. It was estimated that 75% of the Super Bowl’s audience could beconsidered in Gatorade’s target of athletes and fitness-oriented non-athletes. The samemethod of taking 75% of the viewers was used for national newspaper as well. The SuperBowl’s extremely high number of viewers leads the CPM to still be reasonable while anational newspaper ad would be considered an unwise investment after looking at theCPM.Social media outlets are also an unwise choice after considering the CPM. Facebookallows ad costs to be extremely customized, and these numbers are based off whetherGatorade pays $100 a day. Gatorade ads would show up 417,000 times to its targetaudience, however Gatorade estimated that only 190 clicks of the ad would be generated.Looking at the structure of Facebook, ads are along the side and blend in with theinterface. These 417,000 ad appearances cannot be considered the total audience basebecause there is a strong possibility that Facebook users do not pay attention to the ads atall. The investment poses too much risk, and it would be more wise to invest in webrelated content on Gatorade’s official website, which will have increased traffic due tothe sales promotions that are going to be implemented. 

  • 25. 25
 
 
Figure 12: CPM Analysisviii Audience
 CPM
(Cost
per

 Cost
of
Unit
 Viewers
 Base
 thousand)
Sports
Illustrated
 $
320,000
 23,000,000
 23,000,000
 $
13.91304348
Superbowl
 $
2,500,000
 108,000,000
 81,000,000
 $
30.86419753
National
Newspaper
 $
462,000

 1,900,000
 1425000
 $
324.2105263
Facebook
 $
100

 417,000
 190
(Clicks)
 $
526.3157895

Integrated CommunicationsSales PromotionsObjectives and Strategy:General objectives:The general objectives for our Gatorade sales promotions are: building awareness about“G.” As previously mentioned, Gatorade’s recent name change to G has left manyconsumers perplexed as to what G is. It is necessary to complement the advertisingstrategy and amend this problem by issuing several consumer promotions and tradepromotions to consumers so that they can experience new G products. Another objective for our sales promotions is stimulating interest for G. Our aim is to reveal to consumers why G’s diverse product line is the “new and improved” Gatorade through sales promotions we will offer. G’s new product line “G series,” featuring before, during, and after drinks, is unprecedented by Gatorade or any other sports beverage company. The sales promotions we issue will focus on G’s new products, namely the G series, to generateconsumer interest in new products that G has to offer.In terms of strategy for our sales promotions, we wish to follow the “push-pull” strategy,in which the trade promotions we offer will ideally “push” Gatorade through the 

  • 26. 26
 
distribution channel to retailers, and subsequently “pull” consumers into stores to buyGatorade products.Specific Objectives:By offering several consumer promotions for Gatorade, we hope that we can driveconsumers to try new G products, purchase the products repeatedly, and purchase largerquantities of the products.In regards to trade promotions, we aim to give G products desirable shelf space inbeverage aisles of supermarkets so that consumers will quickly notice them. Due to thelow levels of awareness of G, it is also necessary to advertise G in stores to increase thelikelihood that consumers will notice G and pursue its products. We plan to includebanner posters (with adhesive to place along shelves), promoting G and explaining that itis the new name for Gatorade.Rationale:Because our budget is limited, we must choose to allocate money to only certainconsumer and trade promotions that we believe to be most effective. The consumerpromotions we plan to issue are: sampling, premiums, specialty advertising, and asweepstakes. We believe that sampling will be an effective consumer promotion because G products are new to the market and are still “under the radar.” Samples of the new G products (such as the “G Series” beverage line) can acquaint unfamiliar consumers with G. We also wish to distribute premiums as an incentive for consumers to purchase G products. If consumers notice that something free comes with their purchase of a G product, they will likely be more enticed to purchase a product. Furthermore, we also aim to engage in specialty advertising for G. This form of consumer promotions is especially useful for garnering brand awareness. Therefore, specialty advertising for G will presumably familiarize consumers with the brand and help them toPicture
2:
Gatorade
has
been
decreasing
in
 identify G as the new Gatorade. Lastly, we planshelf
space
the
past
few
years.
 to implement a sweepstakes program incorporating sports-related charities while consumers will earn the chance to win VIP tickets to G’s launch party at the University of Florida, or a trip to a sports championship game of the consumer’s choice. Providing consumers with opportunity to win large, coveted prizes such as these, we hope that our sweepstakes, and the opportunity to learn more about the charities, will be added incentives to purchase G products. 

  • 27. 27
 
 
The trade promotions we plan to implement are in-store advertising and expanded shelfspace. As aforementioned, our principal aim is to increase awareness about G. In-storeadvertising for G products will likely help achieve this. We also feel that giving Gproducts expanded shelf space will be an effective trade promotion because it will give Gmore visibility to consumers. Consumers might overlook G, especially if they do notknow what it is, if G products are relegated to a low shelf, or have limited shelf space.Tactics/Execution:In terms of consumer promotions, we plan to distribute samples of G products, such assamples of the three stages of the “G-series,” in stores by the beverage aisles.Supermarkets often have taste samples of drinks or food products throughout the store;consumers who plan on perusing the beverage aisle can taste test a sample of new Gproducts. The sampling can also extend to large sporting events held around the nation.We also plan to offer premiums to consumers. Because G products are just beginning toenter the market, we feel it would be a good idea to offer free premiums with thepurchase of G product packages (such as the “G Series”) until G is fully established in themarketplace and consumers recognize what it is. These free premiums would likelyattract consumers to G products because they are an added incentive to buy unfamiliarproducts. Examples of free premiums we would include are free sweatbands and freewater bottles that come with a package of a purchased G product.Our specialty advertising tactics include giving away free merchandise featuring the “G”logo, such as workout towels, t-shirts, and workout bags as business gifts. The G logo onthis merchandise will likely reinforce awareness of G among consumers.We intend for our sweepstakes to go into effect in late spring 2010, just after G’scampaign is launched. The sweepstakes (the cause related details will be discussed later)will last until February 2011, and will include two sweepstakes challenges. To enter thesweepstakes, consumers must enter the codes (located inside the caps of G products) onG’s website. Our first sweepstakes challenge provides consumers with the chance to winVIP tickets to G’s media launch party at the University of Florida, which will take placeat the commencement of NCAA football season. Tickets will be allotted to 10 people,and this offer will last throughout August—just before football season begins. Thesubsequent sweepstakes challenge will last from August 2010 to February 2011, and willprovide consumers with the chance of winning a trip to a sports championship game oftheir choice. This trip will be offered to 25 people.In terms of trade promotions, we plan to execute our in-store advertising by displayingposters for G products in stores (especially by beverage aisles), so that consumers willhave a greater likelihood of noticing G in addition to its placement on shelves. Theseposters will feature a G logo, and will explicitly show that G is Gatorade’s new image.Another trade promotion we plan to implement is expanded shelf space in beverageaisles. Relative to Gatorade’s competition, namely Powerade, we strive to designate moreshelf space to G products so that consumers will notice G before other sports beverages. 

  • 28. 28
 
We also plan to place G products together, especially all three steps of the “G Series,” toensure that customers can easily locate G products.Public RelationsOur public relations strategy involves throwing a media party. We believe this strategywill effectively announce the unveiling of G series products, while also help topersistently stress the transition from “Gatorade” to “G.” We aim to throw the partyduring the fall, just prior to the kickoff of NCAA football season. Today, Gatorade can befound on the sidelines of more than 70 Division I colleges as the official sports drink ofmen and women’s intercollegiate sports.ix Gatorade’s well-established association withcollege athletics would make the timing of the party cohesive with its current salesstrategy and goals.Gatorade’s roots lie at the University of Florida and the Florida Gators were the firstsports team to use Gatorade. We would like to throw the party at the University ofFlorida in order to tie the new G Series to the much more recognized brand nameGatorade, which is already a well-established name in the minds of consumers. Ourmarket analysis research also shows that the southern United States is the largestconsumer of sports beverages such as Gatorade; therefore, conducting a major PR eventin this region would target our largest consumer base. Our campaign aims to maintainour already established target audience of hard-core athletes, while it also aims togenerate an audience of less serious athletes from the general public. In order to tie inboth target audiences to the party, we would invite all of the University of Florida’s athletic teams, as well as a number of University of Florida students. Our G Challenge Sweepstakes also will be offering 10 consumers the chance to win an all expense paid trip to Gainesville, Florida for the event. The 10 winners will each be able to bring one friend and will receive VIP passes to the party. We would also like to invite NFL football players to the event, particularly UF Alumni.Picture
3:
Florida
athlete
alongside
Robert
Cade,
creator
of
 
Gatorade,
trying
his
new
invention.
 In order to promote awarenessof the G Series at the party, free gift bags that contain the new G Series products alongwith other Gatorade related items (e.g. water bottles, sweat bands, etc.) will be providedto all VIP party guests, which would include all college and pro-athletes at the eventalong with the 10 sweepstakes winners and their friends. The party will feature the Gseries beverages for guests to drink, along with a variety of alcoholic beverages that havebeen specially crafted for the event, all incorporating beverages from the G Series in theirmakeup. In order to increase publicity for the event, the event will be a tie in to UF’s 

  • 29. 29
 
 
first home football game and will serve as a high-class sort of pep-rally. ESPN will beinvited to cover the event, which will increase awareness from those attending the partyand the students at UF to sports fans in general and college students who closely followNCAA football and related events.The party will also offer a variety of activities for guests that incorporate football and theG Series. Examples would include an activity in which guests must throw a football froma significant distance and aim at a specific target. Those who are able to hit the targetwould receive some sort of prize related to the G Campaign. We hope that this PR eventwill bring positive publicity to the G Series in the regional area of the party and thatnational press coverage will expand awareness to the national level. We will measure theeffectiveness of our PR campaign by examining both the local and national response toour media party and by measuring changes in attitudes and behavior through phoneinterviews and online surveys.Direct MarketingOur direct marketing strategy will be implemented through our G ChallengeSweepstakes. Contestants who enter the sweepstakes will be required to give personalcontact information in addition to several short questions regarding opinions of the GSeries as a product, and awareness and success of the G Series advertising campaign.This will allow us to communicate our areas of concern surrounding the G Campaign toconsumers and will, in turn, allow consumers to express their opinions directly to thecompany. We will collect all of the consumer information we obtain into a database inorder to analyze consumer demographics and purchase habits along with consumerattitudes and behaviors towards the G Campaign. We expect the incentive of thesweepstakes to prompt an immediate consumer response and that the informationobtained will be categorized into a database as quickly as possible.Once we compile our database, we will examine the information obtained and reevaluateour execution of the G Campaign according to consumer demographics, attitudes andbehaviors. We hope that tailoring our campaign around consumer opinions will helpstrengthen our relationship with consumers and lead to increased purchase behaviors.We also hope to enhance the image of the G Campaign by showing consumers thatGatorade values their opinions. We will measure the effectiveness of our directmarketing strategy by measuring the response rate of consumers who entered thesweepstakes as a percentage of the entire population of consumers who purchased GSeries products during the duration of the sweepstakes. 

  • 30. 30
 
InternetThe Gatorade website will focus on the G Campaign, offering product information toconsumers and highlighting any events related to the G Campaign, such as the GChallenge sweepstakes and the media party held at the University of Florida. The website will feature videos from the party, along with a slideshow that replays the event forconsumers who were not in attendance. The site will also feature a variety of work outtips from various individuals, such as male and female pro-athletes, celebrities, collegestudents, and personal trainers. Each workout will incorporate G Series products into itsroutine. By offering a variety of work out tips we hope to provide all consumers of the GSeries and Gatorade with work out tips and routines that fit their personal preferences,degree of athletic skill and amount of time available for exercise.Cause-Related MarketingWe will use cause-related marketing to further promote the G Series through asweepstakes called the G Challenge. Individuals who wish to enter the sweepstakes mustobtain codes from the tops of their purchased G-Series product(s). Users can enter theircodes on Gatorade’s website to enter the sweepstakes where contestants will be able tochoose a professional sports organization’s community service program (such as theNFL’s ‘Play 60’) to which they can donate a portion of profits. Gatorade will be donating10% of its total profits from the G Series generated during the sweepstakes, which willlast from May 2010 to February 2011. This 10% of profits will be divided up amongstthe professional sports organization’s community service programs based on thepercentage of contestants who chose to donate to each specific organization. For every code entered, consumers can win a variety of prizes. Smaller prizes will includes free G Seriesproducts and merchandise. Contestants will be able to win two grand prizesduring the duration of the sweepstakes: a trip to the G Series Kickoff Partyin Gainesville or a trip to a professional sport’s championship game of theirchoice. Each trip will include airfare and a one night free hotel stay. Thegrand prize winners will also present a big check from Gatorade to theirchosen community service organization at the beginning of each event inorder to increase awareness of Gatorade’s generous contributions. 

  • 31. 31
 
 
EvaluationSalesTo evaluate the progress of our sales following the changes made to our Gatoradecampaign, we can track sales by seeing how they have increased or decreased comparedto annual sales prior to the launch of the campaign. We hope to increase sales by 15% byDecember of 2010. The campaign will directly affect consumers’ awareness of theproduct line, thereby increasing the desire for brand and product trial. We also believethat the strength of our product line will generate brand loyalty.AdvertisingTo evaluate the effectiveness of our advertising, we plan to conduct one-on-oneinterviews with consumers and retailers. We will ask for their thoughts on our advertisingstrategies, from a number of different channels, such as our television, magazine, andsweepstakes tactics. There will also be post-adverting focus groups held to allow forconsumers to truly speak their mind, and see how people from diverse demographics areaffected by the advertisements. We may also use mail-out or email surveys to people whohave recently purchased one of our products. For this measurement, we would like toknow what most attracted consumers’ attention, and determine why they ended uppurchasing our product.Sales PromotionsTo measure the effectiveness of our sales promotions, we will calculate the profitgenerated during sale promotions, and compare this to profit during times of regularpricing. Several costs are involved with this campaign, and it is vital to ensure that asubstantial increase in sales occurred, and that the consumer’s desire for the productchanged based on the sales promotion.Other Marketing CommunicationsOur hopes for the sweepstakes is that it will generate a buzz on the newest Gatoradeproduct line, raise funds for worthy athletic organizations, and promote a general positiveimage for the G-campaign. We will evaluate the success of our marketing tactics, such asthe G-Challenge Sweepstakes, through the amount of people who get involved with thesweepstakes. Gatorade is a sports drink that promotes athleticism to its consumers, andwe believe that the G-Challenge does just that. By promoting consumers to turn in theircodes online from the products they have purchased and used, we can easily trace howmany products are being purchased, what products are most often purchased, andpossibly what U.S. regions sell the most products. While contestants submit codes online,we hope that they will be intrigued by our website, and will click through to explore theentire Gatorade website. By tracking clicks, we can gauge what appears to be mostattractive to website users and how they go on to use the Gatorade site’s tools. Theeffectiveness of the sweepstakes can also be measured quantitatively through the amount 

  • 32. 32
 
of money raised for the involved athletic organizations and qualitatively through theuser’s feedback on the sweepstakes.ConclusionIn conclusion, we feel that although Gatorade has encountered some issues with theirrebranding efforts; however, given the company’s grand stature in the sports drinkmarket, there is still a very viable opportunity to rectify and recover. We hope that theaforementioned analysis and recommendations will provide you with an objective viewof the company and their products. We would also like to take this opportunity to thankyou for entertaining and considering our suggestions and conclusions. - The GatoradeRocks Team 

  • 33. 33
 
 
AppendixExhibit 1Gatorade possessed some surprising results when looking at age:13.37% of Gatorade consumers are 25-39;14.63% of Gatorade consumers are 30-34;11.56% of Gatorade consumers are 35-39;12.56% of Gatorade consumers are 40-44;9.70% of Gatorade consumers are 45-49;7.8% of Gatorade consumers are 55-59. The only two age ranges where Powerade exceeds the sales of Gatorade are: 35-39(10.37%) and 40-44 (16.01%)xExhibit 2 Male Female Total Yes Sports Drinks 28.99% 27.54% 56.52% No Sports Drinks 20.29% 23.19% 43.48% Total 49.28% 50.72% 100%Exhibit 3During the focus group, we asked the following questions. Participant responses to thequestions are provided below: (Note: there were 12 participants in focus group, howevernot all questions have 12 responses due to similar answers or no opinion available fromparticipant)5 questions asked before viewing commercials:1) Do you drink sports drinks and if so, when? If not, why not? When choosing a sportsdrink, do you choose Gatorade over other sports drinks?Yes, drink sports drinks usually after working out or when feeling particularly dehydrated(e.g. while traveling or when hung-over). Yes, usually do choose Gatorade becausebelieves it replaces electrolytes and likes the taste.Yes, drink sports drinks throughout the day. No, usually do not choose Gatorade becauseof the calories. Will usually drink sports drinks that have 0 calories such as PoweradeZero or Vitamin Water Zero. 

  • 34. 34
 
No do not use sports drinks, prefer water.Do not drink sports drinks on a regular basis, but every once and a while will buy aGatorade at the gas station after working out or on a hot day. Not particular about type ofsports drink and will sometimes choose energy drinks instead.No, does not use sports drinks. Only time sees Gatorade is at athletic events andassociates mainly with athletes.Yes, drink sports drinks every day and always has them in refrigerator. Usually drinksGatorade but will sometimes choose other sports drinks to change it up.Yes, drinks sports drinks while working out and afterwards. However, does not like tasteand bright colors of Gatorade, prefers flavored waters.2) How often do you work out or participate in athletic activities? Do you often drinksports drinks along with working out?Work out about 3 or 4 times a week, switching up between yoga and running. Mostlydrinks water but every once and a while will stop at a convenience store and buy aGatorade.Participates in IM basketball league. Will bring a Gatorade to practice every once in awhile, particularly likes to drink it before games.Walks to class and around campus daily. Will drink a zero calorie beverage such asVitamin Water Zero or Propel fitness water.Does not work out usually but will on occasion drink a Gatorade or Vitamin Water whilein class or studying at the library.Part of Michigan athletic team, works out virtually every day. Drinks sports drinks often,usually Gatorade.Works out about 3-4 times a week, usually going to gym. Only drinks water.3) The G Series offers a three step process in which you use products before, during andafter your work-out, including a power and beverages. Would you consider using thisthree step process?No, most likely would not. Seems like too much of a hassle and does not consider self tobe that “hard-core” of an athlete.Yes, would maybe consider it if thought it was effective and offered at an affordableprice.Yes, as a member of a varsity athletic team would consider it if it helped improveperformance. 

  • 35. 35
 
 
No, does not drink sports drinks enough in general so would not even consider a 3-stepprocess.4) Have you heard of G campaign and if so what were your perceptions?No idea about G campaignNo idea G was Gatorade, noticed it was all athletes in G commercial and thought it wasfor some new type of sports drinkHad not heard of it. G campaign does not ring a bell about Gatorade.Heard about it from sports TV (ESPN). Thought it was stupid. Did not think the “questfor the Holy G” commercial was funny.Never had heard about G campaign. Did not even know Gatorade had changed name to“G”Recognized “G” because of logo and liked the commercial but noticed the commercialfocused on athletes playing sports and not the drink itself5) If you are a consumer of sports drinks, where do you usually purchase such beverages?Will occasionally go to a gas station or convenience storeParents purchase in bulk at Sam’s clubWill sometimes pick one up at the drug storeWill buy at grocery storeMom will pick up at grocery store3 questions asked after viewing commercials1) What are your perceptions about “G” as a brand/product based on what you saw in thecommercials?Felt motivated to go work out, but not motivated to buy or drink “G”Got excited about football seasonThought commercial was very motivational, but does not motivate to buy “G.”Commercial tells you nothing about the product.Still unclear about what “G” is. Does not see “G” manifested in commercial. Wants tosee more focus on “G”.Thinks countdown from 12 is very contradictory from steps 1, 2, 3 

  • 36. 36
 
Wants to play football but does not want to drink “G”Still unclear about difference between Gatorade and “G”Learned nothing about brand or product from commercials. Still very confused aboutwhat “G” is.2) After watching commercials about the G Campaign, are you more inclined to purchase“G” Products?No, since commercials did not establish that they were advertising “G,” created no desireto purchase.No, didn’t even know commercial was about sports drinks.No, still unclear of what benefits are and what “G” is. Not going to buy a productwithout any knowledge about what it is and what benefits it offers.3) Do you have any suggestions about how to increase awareness of the G campaign?Explain G products in ads in terms of steps 1, 2 and 3. Showcase the beverage in thecommercials rather than the athletes – beverage should be primary focus.Explain potential benefits one can gain after drinking G. Is G different than Gatorade andif so how?Talk about taste of G. What flavors are offered?Emphasize that G2 has half the number of calories.Talk about what nutrients are found in Gatorade and how these nutrients are beneficialfor one’s health.People do not know what G is, explain it to them! Perhaps could also better explain toconsumers the transition from Gatorade to “G” to help their understanding. 

  • 37. 37
 
 
Exhibit 4Proposed Commercial (Frame by frame) 

  • 38. 38
 
Exhibit 5Proposed Print Ad 

  • 39. 39
 
 
Exhibit 6 Choices 3 Viewer: Crosstabulation Report Title:Untitled Survey: NCS: SPRING 2007 ADULT FULL YEAR RE-RELEASE(MAY 2006-JUNE 2007) - HH Filter: Total Sample, Sample:25,375, Weighted:110,991 Elements Total GATORADE: THIRST POWERADE: QUENCHER AND THIRST SPORTS/ACTI V QUENCHER AND DRINKS: THIRST SPORTS/ACTI V QUENCHER/A CTIV DRINKS: THIRST DRINKS-BRANDS QUENCHER/A MO CTIV DRINKS- BRANDS MO total Sample 25,375 110,991 7,579 2,002 (000) 100% 30,498 9,085 vert% 100% 100% 100% horz% 100 27.5% 8.19% Index 100% 100 100 Base 27.5% 8.19% NORTHEAST: Sample 5,255 1,327 293 CENSUS REGIONS (000) 20,693 5,015 1,325 vert% 18.6% 16.4% 14.6% horz% 100% 24.2% 6.40% Index 100 88 78 Base 18.6% 4.52% 1.19% MIDWEST: Sample 5,620 1,467 401 CENSUS REGIONS (000) 25,138 5,958 1,982 vert% 22.6% 19.5% 21.8% horz% 100% 23.7% 7.88% Index 100 86 96 Base 22.6% 5.37% 1.79% SOUTH: CENSUS Sample 9,259 2,972 848 REGIONS (000) 41,307 12,116 3,970 vert% 37.2% 39.7% 43.7% horz% 100% 29.3% 9.61% Index 100 107 117 Base 37.2% 10.9% 3.58% WEST: CENSUS Sample 5,241 1,813 460 REGIONS (000) 23,852 7,408 1,808 vert% 21.5% 24.3% 19.9% horz% 100% 31.1% 7.58% Index 100 113 93 Base 21.5% 6.67% 1.63%Copyright SMRB 2008[1]=User edited label[2]=User adjusted data[3]=Sample size < 1 respondents. Projections could be unstable; please refer to www.smrb.com for more detailedinformation* Denotes a low sample size < 61** Denotes a low sample size < 31 

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References
























































i http://www.gatorade.com/history/default.aspxii
ii Mintel/based on Information Resources, Inc. InfoScan® Reviews Informationiii
Beverage
Digest
iv
2005 data (obtained from Mintel—Sports Drinks US, Feb. 2005):
v Mintel/based on Information Resources, Inc. InfoScan® Reviews Informationvi
Information Resources, Inc. InfoScan ® Reviews Information/National Association ofConvenience Stores 2004 Industry Report/Mintelvii Marketer Trees 2008. http://adage.com/marketertrees08/#88.viii Superbowl 2010 Ratings. http://www.huffingtonpost.com/2010/02/08/super-bowl-2010-ratings-m_n_453503.html.ix Gatorade History. http://www.gatorade.com/history/default.aspx.x Choices 3 Database