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

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

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

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

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

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)

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!

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

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

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

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

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."

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.

5a. The sports drink market is estimated US 300Billion in sales. SOURCE:

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

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

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

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

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

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

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

8a. Promo

8a. Promo

8a. Promo

8b. Competitor promo

8b. Competitor promo

8b. Competitor promo

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

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.

SUMMARY 29

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

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