Gatorade's primary target market is youth aged 13-24 who lead an active lifestyle. It positions itself as the thirst-quenching drink that enhances performance. While competitors focus on replenishing fluids and electrolytes, Gatorade's niche is this active youth demographic. The sports drink market is estimated at $5.3 billion, with Gatorade dominating nearly half. Gatorade is available as drinks, powder, and gels, priced 30% lower than Powerade. It promotes through TV, print, and sports sponsorships, and is distributed nationwide to convenience stores and markets, pursuing a niche leadership strategy.

1. 1
10 STEP
Marketing Plan for GATORADE
Allan Ray C. Enriquez
October 29, 2010

2. 5 Steps for Part 1
(PTM and Positioning)
1. Gatorade’s PTM are youth leading an “active”
lifestyle
2. Who wanted to enhance performance
3. Can choose Powerade, Pocari Sweat and
other sports drinks.
4. Gap is all other brands focused on providing
fuel, fluid and nutrients before, during and
after activity
5. The market size is US$ 5.3Billion in sales.
Gatorade niche is US$ 140Billion.
*active lifestyle – being
engaged in various activities

3. 5 Steps for Part 2
(Marketing Mix & Strategy)
6. Sports drink (also in
powder and sports gel)
7. Is 30% discount
8. Uses TV, print ads and
sports events
9. Is distributed nationwide
10. Uses a niche approach to
win

4. 4
Positioning to the
Primary Target Market
Part 1:
Steps 1 to 5

5. 1.Gatorade’s primary target
market (PTM) are the youth
leading an “active” lifestyle
 Demographics (pre-adults (13-24), M/F,
social class ABC, single)
 Lifestyle (athletic, into sports, active
individuals)
 Behavior (8 fl oz., before, during or
after activity, thirst quenching, prevent
dehydration)

6. 2. My PTM’s NWE
The youth needs
To be secured (health), avoid dehydration; thirst
quenching
The youth choose Gatorade over other sports drinks
because:
Flavor, available in all convenient stores, brand
(endorsed by Michael Jordan and Dwayne
Wade), taste.
The youth expects this when they drink Gatorade
Thirst quenching, rehydrated, more active, energized;
thus, they remain youthful and athletic!

7. I won’t get dehydrated.
I would be like
Michael Jordan/Dwayne Wade.
I am active!
I am a winner!

8. 3a. Gatorade has several
competitors
 Direct: Pocari Sweat, Powerade
 Indirect: Energy Drinks (Cobra, RedBull,
Samurai), Isotonic Drinks (100 Plus), instant
energy drink (Joss), flavored water
(Vitwater), tea (C2, Real Leaf), water (Viva,
Absolute)
 Variables: Price, packaging, convenience of
use, different variants, availability, brand,
lifestyle

9. 2 Examples of Position Map
1. Lifestyle vs. Age
2. Brand vs. Positioning

10. Gatorade is #1 in niche:
active lifestyle for 13-24 yrs.
Lifestyle
/ Age
Matrix
0-13 yrs 13-24 yrs 25-49 yrs 50yrs up
Active
Inactive
Gatorade
Tropical Fruit
Pocari
Sweat
Powerade
Red
Lifestyle vs. Age Matrix
Gatorade
Cool Blue

11. Gatorade unique positioning is
shown in this competitive map
Positioning vs. Brand Matrix
Gatorade Powerade Pocari Sweat
Thirst quenching
Replaces vital fluids and electrolytes
Improved performance
Affordable
Convenient
"To thirsty, sweaty jocks, Gatorade is the
original sports beverage that quenches
thirst while replacing fluids and
electrolytes."

12. 4. Gatorade positions strongly
in a niche market opportunity
Gatorade is the only sports drink
 that is thirst quenching
 for the youth who leads an “active” lifestyle
 that promises to improve performance
No brand has a similar position.
Others focus on complete with electrolytes and
positively charged ions.

13. 5a. The sports drink market is
estimated US$ 300Billion in
sales.
SOURCE: http://www.manilatimes.net/national/2006/oct/25/yehey/business/20061025bus6.html

14. 5b. Based on 2008 Energy Drinks North
America Report, where Gatorade’s
share is 49%, total market size is US$
5.3Billion.
1. Gatorade sales is US$2.6Billion
2. Gatorade’s market share is 49%
3. Then total sports drink market size is
US$2.6Billion/0.49 = US$5.3Billion

15. 5c. Consumer data indicates
a size of US$234Billion
Sports Drink Usage:
300 million Americans consume at least 2x
per day of 12 fl.oz sports drink which
costs around US$1.07.
300 million x 2 x US$1.07 X 365 = US$234 billion

16. 5. Concluded that sports drink
market is US$234B
1. Competitor data= US$300B
2. Company data = US$300B
3. Usage data = US$234B

17. 17
The Marketing Mix Strategy
Part 2:
Steps 6 to 10

18. 6a. Sports Drink category is
dominated by 3 major brands

19. 6b. Product Description
 Gatorade is a sports drink scientifically
formulated to replace fluids and provide
energy to working muscles. It offers a
scientifically validated blend of carbohydrates
and key electrolytes.
 There are 6 variants – Lemon-Lime, Orange,
Cool Blue, Citrus Cooler, Strawberry Kiwi and
Fruit Punch
 There are 7 sizes: 12, 20, 24, 32, 34, 64 (in fl
oz) and 1 gallon

20. 7. Price-
Gatorade is 36% discounted
priced in affordable packs
 Gatorade 12 fl oz = US$ 1.07
 Gatorade 20 fl oz = US$ 1.38
 Gatorade 24 fl oz = US$ 2.49
 Gatorade 32 fl oz = US$ 3.99
Gatorade is priced 36% cheaper than
Powerade.

21. 8a. Promo

22. 8a. Promo

23. 8a. Promo

24. 8b. Competitor promo

25. 8b. Competitor promo

26. 8b. Competitor promo

27. 9. Gatorade is distributed
nationwide using Pepsi Co.
distribution network
 Supermarkets, sari-sari stores, convenience
outlets, drugstores, market stalls
 Nationwide
 Pick-up by customers
 Cash and credit transaction

28. 10. Gatorade is a niche leader
Gatorade’s main strategy is to dominate
the niche market of 13 to 24 year old
who lead an active lifestyle.
It benefits from the distribution leverage
of Pepsi Co.
Has an excellent branding, excellent
product distributed nationwide.

29. 29
SUMMARY

30. 5 Steps for Part 1
(PTM and Positioning)
1. Gatorade’s PTM are youth leading an “active”
lifestyle
2. Who wanted to enhance performance
3. Can choose Powerade, Pocari Sweat and
other sports drinks.
4. Gap is all other brands focused on providing
fuel, fluid and nutrients before, during and
after activity
5. The market size is US$ 5.3Billion in sales.
Gatorade niche is US$ 140Billion.
*active lifestyle – being
engaged in various activities

31. 5 Steps for Part 2
(Marketing Mix & Strategy)
6. Sports drink (also in
powder and sports gel)
7. Is 30% discount
8. Uses TV, print ads and
sports events
9. Is distributed nationwide
10. Uses a niche approach to
win