Gatorade book of knowledge

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  • 1. NOTHING WORKS BETTER!!!GatoradeNothing works Better!!Gatorade is a brand of sports-themed Nutritional Drink and Supplement products, built around itssignature electro-lite: a line of sports drinks. Gatorade is currently manufactured by PepsiCo,distributed in over 80 countries. The beverage was first developed in 1965 by researchers at theUniversity of Florida, to replenish the combination of water, carbohydrates, and electrolytes that theschools student-athletes lost (in sweat) during rigorous athletic competitions. Its name was derivedfrom the collective nickname of the universitys athletic teams, "the Gators".
  • 2. ContentsThirst Quest of ‘65 ........................................................................................................................................ 4Birth of ‘Gatorade’ ........................................................................................................................................ 4‘Gatorade’ comes on Field ............................................................................................................................ 4Beverage Buzz and Biz .................................................................................................................................. 5Orange to Super by ‘69 ................................................................................................................................. 5Science, Sports and Success .......................................................................................................................... 5‘Gatorade’ Today .......................................................................................................................................... 6From Field to Track ....................................................................................................................................... 6...................................................................................................................................................................... 7Drink up the Challenge! ................................................................................................................................ 7What Next! .................................................................................................................................................... 8Drink the thrust of thirst ............................................................................................................................... 8 Some facts which will help us understand the key success and the reason for ‘Gatorade ‘existence and market player consistent. .............................................................................................................. 8Market:.......................................................................................................................................................... 8 What are the other possible factors that gets the drink flowing?............................................................ 9 Appearance: .......................................................................................................................................... 9 Appeal: .................................................................................................................................................. 9 Attributes: ............................................................................................................................................. 9 Advertisements ................................................................................................................................... 10 Positioning Target and Market: .......................................................................................................... 10 Gatorade’s Speaks:.............................................................................................................................. 11 ............................................................................................................................................................ 11 PTM- Primary Target Market .............................................................................................................. 12‘Gatorade’- A 4P Analysis ............................................................................................................................ 14 Product: ................................................................................................................................................... 14 Variants: .............................................................................................................................................. 14 Sizes:.................................................................................................................................................... 15 Price: ....................................................................................................................................................... 16
  • 3. ‘Gatorade’ is priced 36% cheaper than PowerAde. ................................................................................ 16 i. ‘Gatorade’12 fl oz = US$ 1.07 ......................................................................................................... 16 ii. ‘Gatorade’20 fl oz = US$ 1.38 ......................................................................................................... 16 iii. ‘Gatorade’24 fl oz = US$ 2.49 ......................................................................................................... 16 iv. ‘Gatorade’32 fl oz = US$ 3.99 ......................................................................................................... 16 Place: ....................................................................................................................................................... 16 ‘Gatorade’ is distributed nationwide using Pepsi Co. distribution network ........................................... 16  Supermarkets, ................................................................................................................................. 16  Local stores, .................................................................................................................................... 16  Convenience outlets, ...................................................................................................................... 16  Drugstores, ...................................................................................................................................... 16  Market stalls.................................................................................................................................... 16  Nationwide Pick-up by customers .................................................................................................. 16  Cash and credit transaction ............................................................................................................ 16  It benefits from the distribution leverage of Pepsi Co.................................................................... 16  Has an excellent branding, excellent product distributed nationwide........................................... 16 Promotion: .............................................................................................................................................. 16A look back .................................................................................................................................................. 17 Objective of ‘Gatorade’: Accelerate in the sports drink market. ............................................................ 17 Size of the total market: $4 billion .......................................................................................................... 17 Growth of the market: 12% from 2006 .................................................................................................. 17 Seasonality: Peaks in the summer .......................................................................................................... 17 Product Life Cycle:................................................................................................................................... 17 Growth: ................................................................................................................................................... 17 (Although Gatorade was created in 1965) we believe sports drinks are in the growth stage because there’s a growth in market of 12% since 2006 also the number of entrants into the market suggests that this is a growing industry on its way up rather than down. ............................................................ 17 Brand ....................................................................................................................................................... 17 Market Share .......................................................................................................................................... 17 Dollars (in ‘000s) ..................................................................................................................................... 17 Gatorade ................................................................................................................................................. 17 82%.......................................................................................................................................................... 17
  • 4. 3,280,000$ .............................................................................................................................................. 17 PowerAde................................................................................................................................................ 17 17%.......................................................................................................................................................... 17 680,000$ ................................................................................................................................................. 17 Others ..................................................................................................................................................... 17 1%............................................................................................................................................................ 17 40,000$ ................................................................................................................................................... 17 Target profile .......................................................................................................................................... 17Buying decision process .............................................................................................................................. 18 When:...................................................................................................................................................... 18 Where: .................................................................................................................................................... 18 Key Influencers:....................................................................................................................................... 18 Trends ..................................................................................................................................................... 18 Environmental Issues .............................................................................................................................. 19 Regulatory – packaging, labeling, etc. ................................................................................................ 19 Economic ............................................................................................................................................. 19 Socio-cultural ...................................................................................................................................... 19 Technological ....................................................................................................................................... 19SWOT analysis: ............................................................................................................................................ 19 Strengths ................................................................................................................................................. 19 Weaknesses ............................................................................................................................................ 19 Opportunities .......................................................................................................................................... 20 Threats .................................................................................................................................................... 20
  • 5. Thirst Quest of ‘65In the summers ’65, Florida University’s physics Lab was swarmed with hushes and gushes over aquestion on players, heat and performance on field.Coach and physicians were equally puzzled as much concerned over the matter over growing heatstroke illness and degrading performances of peak players in acute heat.While the talks went on for weeks, Dr. Robert Cade, Dr. Dana Shrines, Dr. James Free and Dr. Alejandrode Quesada grilled down the talk to two factors that had affected the performance and provoked theheat illness in Gator Players.  The fluid and Electrolytes that the players lost through sweat were not getting regenerated.  The amount of Carbohydrates that the players used for energy on field was negligently being replenished.Birth of ‘Gatorade’Having zeroed on the problems, the research team of Florida University scientifically fabricated abalanced liquid with precise balance of carbohydrate and electrolytes. The ultimate sport beverage wasuniquely produced in the lab to ensure the replacement of lost key components from the body of GatorPlayers while sweating and exercising. The proud confection drink was called ‘Gatorade’.‘Gatorade’ comes on FieldHaving the product in Lab was not good enough. The formula was finally introduced to the team; thegators started using the beverage during their practice, exercises and sport on field. The results wereubiquitous. Players were less fatigued, more active and exhibited outlasting win against the heavilyfavored opponent of the time finishing the ’65 season at 7-4.
  • 6. The performance had just started walking. By the year of 1966, Gator Team finished the season at 9-2making a historical win of Orange Bowl.Beverage Buzz and BizThe beverage caught wild fire buzz in the field of sports far beyond the boundaries of Florida. Peoplewere curious about the beverage as much inquisitive about the invention. University of Richmond andMiami of Ohio were first to place order of batches of ‘Gatorade’ for their football team. Post the earlyadoption phase in the market, followers of the trend just kept coming.The famous saying of the coaches of that time was “Playing without ‘Gatorade’ on your sidelines is likeplaying with just ten men field”.Today’s official Sports drink traversed boundaries of nations and labs to conquer the quest for on-fieldenergy builder.Orange to Super by ‘69In the summer of 1969, Coach Ray Graves of the Florida Gators suggested to the Kansas City Chiefs thatthey use ‘Gatorade’ to combat the staggering effects of a blistering Missouri sun during training camp.The Chiefs were so impressed with the “Gator coach’s aid” that they kept it on their sidelinesthroughout the entire season… which concluded with a stunning victory over the heavily favoredMinnesota Vikings in Super Bowl IV.In the years that followed, more and more NFL teams began placing ‘Gatorade’ on the sidelines of theirgames and practices, and in 1983, ‘Gatorade’ became the official sports drink of the NFL—a title it holdsto this day.Science, Sports and Success
  • 7. After two long decades of Dr. Cade and his team’s much famed work in developing optimum hydrationformula- ‘Gatorade’ made its way to the ‘Gatorade’ Sports Science Institute founded in Barrington,Illinois, to conduct scientific research in the areas of exercise science, hydration, and sport nutrition.By early ‘90’s, the lab expanded to provide advanced testing for athletes and new ‘Gatorade’ productsand flavors and develop education materials for sports health professionals around the world.‘Gatorade’ TodayThe official sports drink of the NBA, AVP, and PGA, Major League Baseball, Major League Soccer, andnumerous other elite and professional organizations and teams, ‘Gatorade’ is not a beverage is it!From Field to TrackMillennium witnessed a problem at the professional race car drivers coach meet. The adequacy ofhydration was a bit much of a problem given that the heat reaches 130 degree temperature throughoutthe course of a lapped race.The challenge was huge and battle was tough. ‘Gatorade’ and GSSI (‘Gatorade’ Sports Science Institute)began their work with auto racing organizations to develop a hydration tool that could withstand 130-degree temperatures and keep drivers hydrated safely throughout the course of a race.
  • 8. The result of their research was the development of GIDS, the ‘Gatorade’ In-Car Drinking System, whichis now considered an essential piece of racing equipment.Drink up the Challenge!The staff of GSSI (‘Gatorade’ Sports Science Institute) realized that replenishment on field was not goodenough for the players and athletes. The need of the hour engaged in high demand training andcompetition. ‘Gatorade’ launched the ‘Gatorade’ Performance Series, an exquisite line of sportsnutrition products, in ‘01. These products included ‘Gatorade’ Energy Drink, ‘Gatorade’ Energy Bar, and
  • 9. the ‘Gatorade’ Nutritional Shake.By 2005, GSSI (‘Gatorade’ Sports Science Institute) brought in themost captivating invention that took the market as much bysurprise as exclaimed. After extensive years of study on athlete’sendurance, the company presented the ‘Gatorade’ EnduranceFormula. Featuring a higher concentration of sodium—the keyelectrolyte found in Original Thirst Quencher—and four otherelectrolytes lost in sweat.What Next!The staff of GSSI (‘Gatorade’ Sports Science Institute) is dedicated to innovative search and research onsports in their mission of performance improvisation on field and off field through proper facilitatedsupply of hydration and nutrition. The advancement of the collective mission is here to stay and for aslong as people love sports and health is the much wanted wealth!Drink the thrust of thirstSome facts which will help us understand the key success and the reason for ‘Gatorade ‘existence andmarket player consistent.  Dehydration can be one of the biggest competitors of athletes.  Research shows that well hydrated athletes perform better.  When you sweat you lose fluids electrolytes and potassium essential to maintain performanceMarket:
  • 10. The Pepsi Co.’s much hyped and popular energy drink has far expanded the market from stadium, sport training and gymnasiums. The chart show cases the usage of drink widely by the society of Men or women of all ages who practice sports or have an active routine.What are the other possible factors that gets the drink flowing? Appearance: The beautifully crafted Stylish plastic bottle is certainly an eye-catcher. Not to forget the breathing colors, ergonomic bottle design and its fun packaging. Appeal: The product´s price oscillates between $0.65 and $1.50 depending on the package presentation. It appeals to all age and income group due to wide variety and amplified reach in functional and emotional benefits related to Health. Attributes: 1. ‘Gatorade’ helps to put back lost electrolytes, such as sodium, potassium and chloride.
  • 11. 2. Stimulates thirst so you can maintain hydrated 3. Gives essential fluids athletics need when it matter most. 4. Gives working muscles the energy they need to enhance athletic performance 5. Nothing rehydrates replenishes and refuels an athlete better than Gatorade. Special Features a. Has a 6% carbohydrate solution, optimal amount to give working muscles the energy they need. b. New and different flavors: Lemon Lime, Fruit Punch, Orange, Citrus Cooler, Passion Fruit, Strawberry Kiwi etc. c. No other sports drink is absorbed faster than Gatorade. Not even water Advertisements The product is advertised through T.V. with commercials in which very famous athletes appear drinking ‘Gatorade’ to rehydrate. The media resources used for making advertisements are T.V., radio, the Internet, magazines, newspapers. The purpose of advertisement is to convince consumers that nothing hydrates better than Gatorade.Positioning Target and Market: Gatorade’s positions itself on the shelf of energy drink for sports and nutrition. However, it entails more market outside the athlete group with individual youth leading an “active” lifestyle who wants to enhance their health and energy stamina. Gatorade’s targets a communication which fills the void created by all other competitive brands which focus highly on providing fuel, fluid and nutrients before and after the exercise.
  • 12.  Based on 2008 Energy Drinks North America Report, where Gatorade’s share is 49%, total market size is US$ 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$5.3BillionGatorade’s Speaks:
  • 13. PTM- Primary Target Market Personality: The youth leading an “active” lifestyle who are health conscious and strongly believes in fit body perfect mind theology. Demographics: Young (pre-adults (13-24), M/F, social class ABC, single) Lifestyle: Athletic, active, enjoy sports, playful and lively) Behavior: Drinks 8 fl oz. of liquid, before, during or after any physical activity for:  Thirst quenching  Prevent dehydration  Energy Boost  Nutritional Supplement  Healthy BeverageNeeds:The youth wants:  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),  TasteThinks:
  • 14. When the youth drinks Gatorade, he is not just thirst quenching, rehydrating, getting more active orfeeling energized. They feel their mind saying: o I am athletic! o I am active! o I am a winner! o I would be like Michael Jordan/Dwayne Wade o I won’t get dehydratedCompetition:‘Gatorade’ has several competitors on retail shelf:Direct Competition:  Pocari Sweat  PowerAde  Tropical Fruit  Cool BlueIndirect Competition:  Energy Drinks (Cobra, RedBull, Samurai), Isotonic Drinks (100 Plus),  Instant energy drink (Joss),  Flavored water (Vit water),  Tea (C2, Real Leaf),  Water (Viva, Absolute)
  • 15. Market Drivers:Variables:  Price, packaging,  Convenience of use  Different variants  Availability  Brand  LifestyleUnique Selling Proposition: 1."To thirsty, sweaty jock, ‘Gatorade’ is the original sports beverage that quenches thirst while replacing fluids and electrolytes." 2.The only sports drink that is thirst quenching for the youth who leads an “active” lifestyle that promises to improve performance 3.No brand has a similar position. 4.Others focus on complete with electrolytes and positively charged ions.‘Gatorade’- A 4P AnalysisProduct: ‘Gatorade’s sports drink is scientifically formulated to replace fluids and provide energy to working muscles. It offers a scientifically validated blend of carbohydrates and key electrolytes. Variants:  Lemon-Lime,  Orange,  Cool Blue,
  • 16.  Citrus Cooler,  Strawberry Kiwi  Fruit PunchSizes:  12  20  24  32  34  64 : (in fl oz) and 1 gallon
  • 17. Price:‘Gatorade’ is priced 36% cheaper than PowerAde. i. ‘Gatorade’12 fl oz = US$ 1.07 ii. ‘Gatorade’20 fl oz = US$ 1.38 iii. ‘Gatorade’24 fl oz = US$ 2.49 iv. ‘Gatorade’32 fl oz = US$ 3.99Place:‘Gatorade’ is distributed nationwide using Pepsi Co. distribution network  Supermarkets,  Local stores,  Convenience outlets,  Drugstores,  Market stalls  Nationwide Pick-up by customers  Cash and credit transaction  It benefits from the distribution leverage of Pepsi Co.  Has an excellent branding, excellent product distributed nationwide.Promotion:
  • 18. A look backObjective of ‘Gatorade’: Accelerate in the sports drink market.Size of the total market: $4 billionGrowth of the market: 12% from 2006Seasonality: Peaks in the summerProduct Life Cycle: Growth: (Although Gatorade was created in 1965) we believe sports drinks are in the growth stage because there’s a growth in market of 12% since 2006 also the number of entrants into the market suggests that this is a growing industry on its way up rather than down. Brand Market Share Dollars (in ‘000s) Gatorade 82% 3,280,000$ PowerAde 17% 680,000$ Others 1% 40,000$Target profile  Metropolitan area/CMA  13-24  Active lifestyle  Male or female  Single/Couple  Involved in organized sports/activities  Exercises regularly  Urban/suburban  Very social  Outgoing  Extroverted
  • 19.  Student or new professional  Unmarried/newly married  College/university educated  Renter or new home/condo owner  $18,000 - $150,000 yearly income o $18,000 – $35,000 average consumer  Generally considers themselves leaders  Heavier user (of sports beverages)  Previously used other sports drinks – not new to the market  Strong brand loyalty based on expected performance  Looking for a competitive edge  Interested in local news with an emphasis on sports  Watches sports on tv  Reads magazines about healthy living, sports, and recent events  Regularly purchases athletic gear/clothingBuying decision process When: o On their way to activities (exercise/sports games, etc) o On their way home from activities o When they miss their activities Where: o Convenience stores/gas stations o Gyms o Snack bars o Grocery stores (healthy ones like The Barn/Logos) o Vending machines o Located in recreation centers, gyms, etc o Health-based/oriented retailers (GNC, Hercs, Goodness Me!, etc) o Schools Key Influencers: o Pro athletes o Amateur athletes o Someone like themselves that they can relate to/identify with o Peers Trends o Looking towards everyday people promoting product because they feel more in tune with their situation o Value conscious now means more than price for quantity
  • 20. o They are now paying attention to ingredients and benefits, so value = right price, right ingredients and benefits o Using sports drinks as regular drinks o Looking to make healthier choices – less sugar, fat, etc.Environmental Issues Regulatory – packaging, labeling, etc. o Must meet CFIA regulations o Must include nutritional information o French/English labels o Must avoid certain types of plastic for the bottle Economic o Recession – drive to water Socio-cultural o Time-conscious/time-poor o Environmental trends – consumers want to buy recyclable products o Health-oriented society o Demanding convenience/accessibility Technological o Advancements in productionSWOT analysis: Strengths o Large company o Has substantial capital o Very well-known company-brand o Lots of awareness o Product has a strong USP o 4:1 carbohydrate to protein ratio Weaknesses o No current products in the sports drink market
  • 21. o No experience in the sports drink market Opportunities o Very large market (dollar wise) o Cultural shift towards healthier lifestyles o Currently, limited choices in the sports drink marketThreats o Fear of recession o Consumers will only be purchasing necessities o Size of competitors o Mainly Gatorade and PowerAde