GATORADE

MACROENVIRONMENT

INDUSTRY & COMPETITION (1)

INDUSTRY & COMPETITION (2)

Country risk analysis

Structure

Key Success Factors

• Endorsement & sponsorship
• Promotion & positioning
• Brand management

• Minimal Risk
• G-Series successful in other countries, extension of Perform
• Willingness to pay & consumer confusion

• 2001: Powerade entered market
• Projected growth in next four years due to consumer shifts

Internal analysis

Company´s background

• Historically an ever expanding consumer foods and beverages company
• 1993 entered sports drink industry and bought Gatorade in 2001

MARKET & CONSUMER

Potential: 780,000 consumers, 7.41 million euros weekly revenue

Consumers

Channels of distribution

• Sold in 80+ countries

• Supermarkets, grocery stores, gas stations, convenience stores, gyms

• Multipacks of 8, 12 or 24 bottles in various sizes

Currently, Gatorade targets two narrower markets:

• High school athletes

• Professional athletes

Communication Strategy

1. Customers: Suppliers, buyers

2. Consumers: General public

3. Prescribers: Brand ambassadors, professional athletes, gyms/sport centers

GATORADE

Company, Product & Country

SWOT & OBJECTIVES

G Series

Main objective:

• $1 million in sales for first year (Barcelona & Madrid)

• Company: Gatorade by PepsiCo

• Product: G-Series consist of G Prime 01, G Perform 02 and G Recover 03.

• Country: Coming from USA, introducing into Spain (Madrid, Barcelona)

SWOT Analysis

Strengths

• Strong market share

• Strong relationships with key athletes

• Over 40 years of science

• Gatorade’s Sports Science Institute

Weaknesses

• Due to number of product lines, the message can be confusing to customers

• Only sees 0.4 percent growth from new consumers

• Weaker product lines pull down overall revenue

• Large geographic market areas struggle to capture consumers

Opportunities

• Power to invest in lines with larger market share

• Develop a more specialized campaign

Threats

• Powerade

• Increasing price of sugar

By Jorge Serafio and Ester Massoud

MARKETING MIX (2)

DISTRIBUTION STRATEGY

PROMOTION STRATEGY

ENTRY STRATEGIES, TARGET & POSITIONING

• Convenience outlets
• From bottler, shipped to either warehouse or consumer outlet

MARKETING MIX (1)

• Advertising:
• Effective brand identity- heavy advertising
• TV, Youtube, magazines, online
• Sales promotions:
• Encourage resellers on use of sales promotions
• Free Perform promotion & price communications
• Public relations:
• Sponsorship of major athletic events
• Scholarships

• Product name – Gatorade G Series

Entry Strategies

• Geographic targeting: diverse
• Competitive position: pre-emption proactive
• Speed: Incremental
• Pricing strategy: skimming

STP: Segmentation, targeting & positioning

• Geographic:

- Madrid

- Barcelona

• Demographic

- 18-24

- 24-40

- Household incomes between 14,500€ to 29,000€

• Psychographic:

- Athletes

- Young adults

- Gyms/Sport centres, supermarkets, convenience stores

Gatorade slogans:

“Is it in you?”

“Tested in the lab. Proven in the field”

“Be Like Mike”

“Win from Within”

“No excuses”

“What is G?”

Product Attributes:

Taste:

• Sugary

• Flavourful

Functionality:

• Energy

• Hydration

• Recovery

• Nutrition

• Electrolytes

Pricing

• Gatorade employs a premium pricing strategy

• 1,59€ 1L Gatorade vs. 1,23€ 1L Powerade

PRICING STRATEGY

THANK YOU!

• Consumer price: Average of 4.50
• After skimming matures, 3.40-4
• Customer price: 50% of retail
• Pricing objective: Value based

• Product lines

G Series

• 01 Prime
• 02 Perform
• 03 Recover

G Series Pro

• 01 Prime - to compete prolonged activities
• 02 Perform - help you perform longer

G Natural & G2 Natural

• Same benefits as regular Gatorade but with natural ingredients - lighter activities