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December 2011




GATORADE   GLITE MARKETING PLAN – JAN 1 – DEC 31, 2012




           Group Assignment Mark 1027 | Prasad | Idris | Udit | Noor
Table of Contents:
Marketing Objective                                                  pg3
      SMART Objectives
      Financial and market Share
Segmentation & Target Market Analysis                                pg3
     Target Market
     Targeting Strategy
     Consume Profile
Product Strategy                                                     pg5
      Positioning Strategy
      Positioning Statement
      Point of Difference vs. Competitors
      Brand name & rationale
      Packaging
Price Strategy                                                       pg9
        Retail Price Points
        Comparing potential substitutes
        Internal and External factors
Channel Strategy                                                     pg10
      Distribution Strategy
Promotion (IMC) Strategy                                             pg12
      Target Audience
      Communication Objectives
      Creative Strategy
      Evaluation and Selection of media
Financial Analysis                                                   pg15
       Market Size/Share estimate
       Income Statement
       IMC budget
Implementation and Evaluation                                        pg17
Appendices                                                           pg18
Citation                                                             pg21




      2   Marketing Project |Gatorade | Glite| December 2011 |
Marketing Objective

       To achieve 78% market share (increase by 3%) of the sports drink by December 31,
       2012
       To achieve year one sales revenue CAD $100 million for Glite by December 31, 2012
       To achieve 60% awareness of Glite among the target audience as measured by
       marketing research by December 31, 2012
       To increase in-store capacity and product placement for optimal sales

Segmentation and Target Market Analysis

       Sports Drink (Primary)
       Between 15 – 27 years of Age
       Colleges Students and Young professionals
       Individuals who like working out
           (Due to the nature of their job and busy schedules, they require instant
           replenishment so that they can go on with their day to day activities)
  I.   Geographic Segmentation
               Region           : Canada
               Area Size      : All of Canada (approx 10 million sq km)
               Density        : Urban and Rural
               Climate        : All Season
 II.   Demographic
               Age            : 15- 27 years of age
               Gender         : Male/Female
               Income         : not specific
               Occupation     : College and professionals
               Education      : not applicable
               Race           : not applicable


       3   Marketing Project |Gatorade | Glite| December 2011 |
Home Owner : not applicable
 III.   Psychographic
                Personality    : Young, energetic, enthusiastic
                Lifestyle      : healthy and lead an active lifestyle
 IV.    Behavioral
                Usage Rates    : Regular Basis
                User Status    : Regular User
                Benefits       : Instant Energy, No fatigue, Vitamin and quenches thirst
                Loyalty        : All sports drink and energy drink users

Consumer Profile (Ideal Customer)




        John Doe, 22 year old, young professional is busy throughout the day with his work and
in the evening he is finding out ways to relax but is too tired, he is looking for a drink which is
healthy and will keep him fit for the entire day. He is an adventures kind of person who loves
trekking or cycling during his week off and also prefers regular exercise




        4   Marketing Project |Gatorade | Glite| December 2011 |
Product Strategy

Positioning Strategy
    A. Product Attributes
       -   Tasty (different flavors)
       -   Replenishes energy
       -   Instant energy boost
       -    Rehydration
       -   Cool Design




      5    Marketing Project |Gatorade | Glite| December 2011 |
6   Marketing Project |Gatorade | Glite| December 2011 |
Positioning statement


         “Especially for thirsty individuals and athlete, Glite is a sports beverage that quenches
thirst and enhances performance by replacing fluids and electrolytes lost due to day to day
activities or regular work out”




                                                        Presents




“In a dark room a person hopes for a ray of light, similarly during daily strenuous activities a tired person hope for
instant boost which immediately enhances his strength and kills dehydration. lite here represents that source of energy,
where G is for Gatorade.” (Rationale)



        7    Marketing Project |Gatorade | Glite| December 2011 |
Packaging and Labeling (946ml)




8   Marketing Project |Gatorade | Glite| December 2011 |
Price Strategy


        CAD $2 (approx for three unit) (Completive Pricing - industry average)
        Special offers free one day Gym pass if bought between promotional period
         (until April 2012)
        Introductory pricing CAD $1.50 (for three units) for the first 3 months (competitive
         prices are similar) (Promo Offer- Market Penetration Pricing)



              Prices of sports drinks in Canada

                              Brand                       Units          CAD$

          PowerAde                                              3        $2.00

          Vitamin water                                         3        $8.97

          Glite                                                 3        $1.50



         Internal Factors: Products in same category are priced in same range
         External factors: Competitive pricing




    9    Marketing Project |Gatorade | Glite| December 2011 |
Channel Strategy

     Distribution (Distribution depends on Customers need, Product characteristics and local
     trade practice)
             Direct Store Delivery (DSD)
        Since bottling is done by independent bottlers and they distribute through DSD
        systems in which beverages are directly delivered to the stores. By DSD we will be
        able to merchandise Glite with maximum visibility and appeal e.g.: Wal-Mart,
        Shoppers Drug mart, metro etc..




                            .
             Food service and Vending
             Glite will be distributed to third party food service and vending distributers. This
             distribution system will supply Glite to restaurants, business, school, stadium
             and similar location e.g.: Vending Machines in Colleges, Universities, Shopping
             mall, Public transport locations (TTC) and Airport Terminals etc…




   10   Marketing Project |Gatorade | Glite| December 2011 |
Promotion
         o London Olympics 2012
         o Tie ups with Gymnasiums (for free one day pass)
         o Sports sponsorship (Maple leaf, Raptors etc...)
         o    Print ads and billboard across Canada
         o Free samples will be distributed at various locations (School/College sport
             events)
         o Sponsoring different events across Canada
         o Promo Video on YouTube and Social Network websites (Facebook, Twitter)




11   Marketing Project |Gatorade | Glite| December 2011 |
Promotion Strategy

Target audience:

         15-27 years
         Young Professionals
         Athletics
         Body Builder/ Work out People

Communication Objectives:

Inform

Tell our targeted audience what Glite is, what it can do, and where it can be found and increase
general :-

         Awareness of Glite.
         To generate trial.
         To build the Glite, Gatorade and PepsiCo image.
         To correct false impressions about the manufacturing company.
         To explain how the product works.

Persuade

And also to persuade the target audience to select the firm’s brand not the competing product

         To increase Glite’s preference.
         To promote Glite brand's features and benefits.
         To make Glite more important as competition increases.




    12       Marketing Project |Gatorade | Glite| December 2011 |
Creative Strategy

Our Creative strategies are making an excellent communication to our targeted audience of
Glite through the following channels Advertising, Sales Promotion and Publicity (Public Relation
Campaign). We choose this channel because we know this is best way to capture our target
market.


Evaluate and Select Media


   1. Advertising:

Any paid form of non-personal communication about an organization, good, service or idea, by
an identified sponsor Broadcast (TV, radio), Print, Outdoor, Online.


   •    We want to affects both attitudes and behavior of Glite Customers.
   •    Reaches large, geographically dispersed audiences, often with high frequency.
   •    External audience.
   •    Investments spend (long term, brand-building tool).
   •    Low cost per exposure (overall costs are high though).
   •    Sales occur at some undetermined point in the future.
   •    Measuring effectiveness can be a challenge.
   •    Deliver a clear, consistent message to the targeted audience.
   •    Mass media (“Traditional media”)
   •    Reach large numbers of anonymous audience members
   •    A one-way monologue
   •    Niche media
   •    Reach a smaller, targeted audience, social media we used Facebook and YouTube.
   •    Media Selection Criteria, Match to media habits of target




       13   Marketing Project |Gatorade | Glite| December 2011 |
2. Sales Promotion:


Short-term incentives to encourage the (immediate) purchase or sale of a product .Can be
aimed at both end user consumers or channel members.


       Quick action sale
       Often take the form of price incentives.
       Short lived.
       Generally affects behavior, not attitudes.
       Produces results quickly
       Measurable.
       Achieve trial purchase.
       Achieve repeat purchase.
       Increase consumption.
       Attract former users of brand.
       Combat / disrupt competitor’s strategies.
       Directed at intermediaries (resellers).
       Obtain initial distribution.
       Increase shelf space and Increase order size.
       Strengthen consumer sales promotions.
       Discounts .E.g. to promote sale price at shelf

   3. Public Relation Campaign:


A firm’s communications, activities and relationships with its various publics in order to achieve
organizational goals


       To influence attitudes, opinions and behaviors.
       Unpaid media coverage.
       Media is in control.
       More credible - works indirectly via 3rd party
    14    Marketing Project |Gatorade | Glite| December 2011 |
Financial Analysis


           Income Statement




                                                                            *assumptions USD

(As per Datamonitor the Total market value as of 2006 for energy/sports drinks is USD287.2
million and predicted to USD375.2 million by 2011 Gatorade market share in Canada is
approximate 75%. Assuming the work force remains the same for Gatorade Brand, and Glite
being brand extension. Salary not included in this income statement as Gatorade workforce is
being used, additional work force (e.g. PR) will be added to this chart)




    15    Marketing Project |Gatorade | Glite| December 2011 |
Integrated Marketing Communication (IMC) Budget USD




     Implementation Chart (Advertising plan) December 2012




16   Marketing Project |Gatorade | Glite| December 2011 |
Implementation and Evaluation

Our main aim is to achieve 78% market share (increase by 3%) of the sports drinks by December
31, 2012, achieve year one sales revenue CAD $ 100 million for Glite by December 31, 2012,
achieve 60% awareness of Glite among the target audience as measure by marketing research
by December, 2012 and to increase in-store capacity and product placement for optimal sales
and compare with our actual plan by the end of December 2012 in order to identify whether we
fall below or surpass our target. We will compare our actual sales, expenses, profitability and
market share against forecasted sales, expenses, profitability and market share. These will be
measure on an on-going basis in order to ensure we are meeting our quarterly and annual
goals. We will measure our effectiveness of our promotional campaigns as well as level of
awareness and acceptance of our brand Glite in the market. We will examine the extent of
which our implementation strategy enable or affected our ability to maximize sales while
minimizing expenses. All this information will allow us to identify areas where our strategy
needs improvements so that corrective actions can be taken in a timely manner.




    17    Marketing Project |Gatorade | Glite| December 2011 |
Appendices




                                     /metro and Loblaw retail price year2011




                                     //sample nutrition of energy drink changed year2011




  18   Marketing Project |Gatorade | Glite| December 2011 |
Assumption Jan – Dec 2012




Assumed IMC Budget




Assumed income Statement in USD




Assumed Point of Difference


    19    Marketing Project |Gatorade | Glite| December 2011 |
Assumed Perpetual Maps




    20   Marketing Project |Gatorade | Glite| December 2011 |
Citations

Gatorade Company; Novelguide, 2011.
http://www.novelguide.com/a/discover/cps_01/cps_01_00112.html

Gatorade; Bevwire, 2011. http://bevwire.wordpress.com/tag/gatorade/

Street & Smith, Gatorade Sales, Sport Business Daily, July 3, 2009
http://www.sportsbusinessdaily.com/Daily/Issues/2009/07/Issue-212/Sponsorships

Agriculture and Agric Food Canada, Market Analysis Report, August 2010
http://www.ats.agr.gc.ca/inter/5569-eng.pdf Retrieved 12/12/2011

Datamonitor. Mega Trends: Health. (2009).

Euromonitor International. Functional Drinks – Canada. (May 2010).

Euromontior International. Snack Bars in Canada. (October 2009).

Mintel. Non-alcoholic Beverages: The Market—U.S. (April 2010).
Today’s Sustainable Choices, Metro Richelieu, 2011 < http://www.metro.ca/en/on/home.html>

Stan Reents, Sports Drinks and Recovery Drinks, AthleteInMe.com, November, 2011
http://www.athleteinme.com/ArticleView.aspx

Christy Hammond, Marketing Sports Drinks, New York Times, April 2007
Agriculture and Agric-Food Canada, "Market Brief: The Canadian Energy Drink Market" April,
2008 http://www.ats.agr.gc.ca/can/4469-eng.htm

Wiley .Com, Online Library, http://onlinelibrary.wiley.com/doi/10.1111

Energy Fiend, Energy Drinks. < http://www.energyfiend.com/category/energy-drinks >. Feb 15,
2009.

McGraw-Hill Irwin, Marketing Canadian Edition, McGraw-Hill Ryerson Limited, 2009.




    21    Marketing Project |Gatorade | Glite| December 2011 |

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One year Marketing plan for Glite

  • 1. December 2011 GATORADE GLITE MARKETING PLAN – JAN 1 – DEC 31, 2012 Group Assignment Mark 1027 | Prasad | Idris | Udit | Noor
  • 2. Table of Contents: Marketing Objective pg3 SMART Objectives Financial and market Share Segmentation & Target Market Analysis pg3 Target Market Targeting Strategy Consume Profile Product Strategy pg5 Positioning Strategy Positioning Statement Point of Difference vs. Competitors Brand name & rationale Packaging Price Strategy pg9 Retail Price Points Comparing potential substitutes Internal and External factors Channel Strategy pg10 Distribution Strategy Promotion (IMC) Strategy pg12 Target Audience Communication Objectives Creative Strategy Evaluation and Selection of media Financial Analysis pg15 Market Size/Share estimate Income Statement IMC budget Implementation and Evaluation pg17 Appendices pg18 Citation pg21 2 Marketing Project |Gatorade | Glite| December 2011 |
  • 3. Marketing Objective To achieve 78% market share (increase by 3%) of the sports drink by December 31, 2012 To achieve year one sales revenue CAD $100 million for Glite by December 31, 2012 To achieve 60% awareness of Glite among the target audience as measured by marketing research by December 31, 2012 To increase in-store capacity and product placement for optimal sales Segmentation and Target Market Analysis Sports Drink (Primary) Between 15 – 27 years of Age Colleges Students and Young professionals Individuals who like working out (Due to the nature of their job and busy schedules, they require instant replenishment so that they can go on with their day to day activities) I. Geographic Segmentation Region : Canada Area Size : All of Canada (approx 10 million sq km) Density : Urban and Rural Climate : All Season II. Demographic Age : 15- 27 years of age Gender : Male/Female Income : not specific Occupation : College and professionals Education : not applicable Race : not applicable 3 Marketing Project |Gatorade | Glite| December 2011 |
  • 4. Home Owner : not applicable III. Psychographic Personality : Young, energetic, enthusiastic Lifestyle : healthy and lead an active lifestyle IV. Behavioral Usage Rates : Regular Basis User Status : Regular User Benefits : Instant Energy, No fatigue, Vitamin and quenches thirst Loyalty : All sports drink and energy drink users Consumer Profile (Ideal Customer) John Doe, 22 year old, young professional is busy throughout the day with his work and in the evening he is finding out ways to relax but is too tired, he is looking for a drink which is healthy and will keep him fit for the entire day. He is an adventures kind of person who loves trekking or cycling during his week off and also prefers regular exercise 4 Marketing Project |Gatorade | Glite| December 2011 |
  • 5. Product Strategy Positioning Strategy A. Product Attributes - Tasty (different flavors) - Replenishes energy - Instant energy boost - Rehydration - Cool Design 5 Marketing Project |Gatorade | Glite| December 2011 |
  • 6. 6 Marketing Project |Gatorade | Glite| December 2011 |
  • 7. Positioning statement “Especially for thirsty individuals and athlete, Glite is a sports beverage that quenches thirst and enhances performance by replacing fluids and electrolytes lost due to day to day activities or regular work out” Presents “In a dark room a person hopes for a ray of light, similarly during daily strenuous activities a tired person hope for instant boost which immediately enhances his strength and kills dehydration. lite here represents that source of energy, where G is for Gatorade.” (Rationale) 7 Marketing Project |Gatorade | Glite| December 2011 |
  • 8. Packaging and Labeling (946ml) 8 Marketing Project |Gatorade | Glite| December 2011 |
  • 9. Price Strategy  CAD $2 (approx for three unit) (Completive Pricing - industry average)  Special offers free one day Gym pass if bought between promotional period (until April 2012)  Introductory pricing CAD $1.50 (for three units) for the first 3 months (competitive prices are similar) (Promo Offer- Market Penetration Pricing) Prices of sports drinks in Canada Brand Units CAD$ PowerAde 3 $2.00 Vitamin water 3 $8.97 Glite 3 $1.50 Internal Factors: Products in same category are priced in same range External factors: Competitive pricing 9 Marketing Project |Gatorade | Glite| December 2011 |
  • 10. Channel Strategy Distribution (Distribution depends on Customers need, Product characteristics and local trade practice) Direct Store Delivery (DSD) Since bottling is done by independent bottlers and they distribute through DSD systems in which beverages are directly delivered to the stores. By DSD we will be able to merchandise Glite with maximum visibility and appeal e.g.: Wal-Mart, Shoppers Drug mart, metro etc.. . Food service and Vending Glite will be distributed to third party food service and vending distributers. This distribution system will supply Glite to restaurants, business, school, stadium and similar location e.g.: Vending Machines in Colleges, Universities, Shopping mall, Public transport locations (TTC) and Airport Terminals etc… 10 Marketing Project |Gatorade | Glite| December 2011 |
  • 11. Promotion o London Olympics 2012 o Tie ups with Gymnasiums (for free one day pass) o Sports sponsorship (Maple leaf, Raptors etc...) o Print ads and billboard across Canada o Free samples will be distributed at various locations (School/College sport events) o Sponsoring different events across Canada o Promo Video on YouTube and Social Network websites (Facebook, Twitter) 11 Marketing Project |Gatorade | Glite| December 2011 |
  • 12. Promotion Strategy Target audience: 15-27 years Young Professionals Athletics Body Builder/ Work out People Communication Objectives: Inform Tell our targeted audience what Glite is, what it can do, and where it can be found and increase general :- Awareness of Glite. To generate trial. To build the Glite, Gatorade and PepsiCo image. To correct false impressions about the manufacturing company. To explain how the product works. Persuade And also to persuade the target audience to select the firm’s brand not the competing product To increase Glite’s preference. To promote Glite brand's features and benefits. To make Glite more important as competition increases. 12 Marketing Project |Gatorade | Glite| December 2011 |
  • 13. Creative Strategy Our Creative strategies are making an excellent communication to our targeted audience of Glite through the following channels Advertising, Sales Promotion and Publicity (Public Relation Campaign). We choose this channel because we know this is best way to capture our target market. Evaluate and Select Media 1. Advertising: Any paid form of non-personal communication about an organization, good, service or idea, by an identified sponsor Broadcast (TV, radio), Print, Outdoor, Online. • We want to affects both attitudes and behavior of Glite Customers. • Reaches large, geographically dispersed audiences, often with high frequency. • External audience. • Investments spend (long term, brand-building tool). • Low cost per exposure (overall costs are high though). • Sales occur at some undetermined point in the future. • Measuring effectiveness can be a challenge. • Deliver a clear, consistent message to the targeted audience. • Mass media (“Traditional media”) • Reach large numbers of anonymous audience members • A one-way monologue • Niche media • Reach a smaller, targeted audience, social media we used Facebook and YouTube. • Media Selection Criteria, Match to media habits of target 13 Marketing Project |Gatorade | Glite| December 2011 |
  • 14. 2. Sales Promotion: Short-term incentives to encourage the (immediate) purchase or sale of a product .Can be aimed at both end user consumers or channel members. Quick action sale Often take the form of price incentives. Short lived. Generally affects behavior, not attitudes. Produces results quickly Measurable. Achieve trial purchase. Achieve repeat purchase. Increase consumption. Attract former users of brand. Combat / disrupt competitor’s strategies. Directed at intermediaries (resellers). Obtain initial distribution. Increase shelf space and Increase order size. Strengthen consumer sales promotions. Discounts .E.g. to promote sale price at shelf 3. Public Relation Campaign: A firm’s communications, activities and relationships with its various publics in order to achieve organizational goals To influence attitudes, opinions and behaviors. Unpaid media coverage. Media is in control. More credible - works indirectly via 3rd party 14 Marketing Project |Gatorade | Glite| December 2011 |
  • 15. Financial Analysis Income Statement *assumptions USD (As per Datamonitor the Total market value as of 2006 for energy/sports drinks is USD287.2 million and predicted to USD375.2 million by 2011 Gatorade market share in Canada is approximate 75%. Assuming the work force remains the same for Gatorade Brand, and Glite being brand extension. Salary not included in this income statement as Gatorade workforce is being used, additional work force (e.g. PR) will be added to this chart) 15 Marketing Project |Gatorade | Glite| December 2011 |
  • 16. Integrated Marketing Communication (IMC) Budget USD Implementation Chart (Advertising plan) December 2012 16 Marketing Project |Gatorade | Glite| December 2011 |
  • 17. Implementation and Evaluation Our main aim is to achieve 78% market share (increase by 3%) of the sports drinks by December 31, 2012, achieve year one sales revenue CAD $ 100 million for Glite by December 31, 2012, achieve 60% awareness of Glite among the target audience as measure by marketing research by December, 2012 and to increase in-store capacity and product placement for optimal sales and compare with our actual plan by the end of December 2012 in order to identify whether we fall below or surpass our target. We will compare our actual sales, expenses, profitability and market share against forecasted sales, expenses, profitability and market share. These will be measure on an on-going basis in order to ensure we are meeting our quarterly and annual goals. We will measure our effectiveness of our promotional campaigns as well as level of awareness and acceptance of our brand Glite in the market. We will examine the extent of which our implementation strategy enable or affected our ability to maximize sales while minimizing expenses. All this information will allow us to identify areas where our strategy needs improvements so that corrective actions can be taken in a timely manner. 17 Marketing Project |Gatorade | Glite| December 2011 |
  • 18. Appendices /metro and Loblaw retail price year2011 //sample nutrition of energy drink changed year2011 18 Marketing Project |Gatorade | Glite| December 2011 |
  • 19. Assumption Jan – Dec 2012 Assumed IMC Budget Assumed income Statement in USD Assumed Point of Difference 19 Marketing Project |Gatorade | Glite| December 2011 |
  • 20. Assumed Perpetual Maps 20 Marketing Project |Gatorade | Glite| December 2011 |
  • 21. Citations Gatorade Company; Novelguide, 2011. http://www.novelguide.com/a/discover/cps_01/cps_01_00112.html Gatorade; Bevwire, 2011. http://bevwire.wordpress.com/tag/gatorade/ Street & Smith, Gatorade Sales, Sport Business Daily, July 3, 2009 http://www.sportsbusinessdaily.com/Daily/Issues/2009/07/Issue-212/Sponsorships Agriculture and Agric Food Canada, Market Analysis Report, August 2010 http://www.ats.agr.gc.ca/inter/5569-eng.pdf Retrieved 12/12/2011 Datamonitor. Mega Trends: Health. (2009). Euromonitor International. Functional Drinks – Canada. (May 2010). Euromontior International. Snack Bars in Canada. (October 2009). Mintel. Non-alcoholic Beverages: The Market—U.S. (April 2010). Today’s Sustainable Choices, Metro Richelieu, 2011 < http://www.metro.ca/en/on/home.html> Stan Reents, Sports Drinks and Recovery Drinks, AthleteInMe.com, November, 2011 http://www.athleteinme.com/ArticleView.aspx Christy Hammond, Marketing Sports Drinks, New York Times, April 2007 Agriculture and Agric-Food Canada, "Market Brief: The Canadian Energy Drink Market" April, 2008 http://www.ats.agr.gc.ca/can/4469-eng.htm Wiley .Com, Online Library, http://onlinelibrary.wiley.com/doi/10.1111 Energy Fiend, Energy Drinks. < http://www.energyfiend.com/category/energy-drinks >. Feb 15, 2009. McGraw-Hill Irwin, Marketing Canadian Edition, McGraw-Hill Ryerson Limited, 2009. 21 Marketing Project |Gatorade | Glite| December 2011 |