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Gatorade Growing the Business. Executive Summary History History Market Share Market Share New Target Areas New Target Areas Children under 18 Children.

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Presentation on theme: "Gatorade Growing the Business. Executive Summary History History Market Share Market Share New Target Areas New Target Areas Children under 18 Children."— Presentation transcript:

1 Gatorade Growing the Business

2 Executive Summary History History Market Share Market Share New Target Areas New Target Areas Children under 18 Children under 18 Non-athletes Non-athletes Generate Greater Revenue Generate Greater Revenue

3 Gatorade Current State 1965 University of Florida 1965 University of Florida 1967 Florida Gators win first Orange Bowl – attributed to proper hydration 1967 Florida Gators win first Orange Bowl – attributed to proper hydration 1969 enters the NFL with the Kansas City Chiefs 1969 enters the NFL with the Kansas City Chiefs 1987 The Gatorade “Dunk” is born 1987 The Gatorade “Dunk” is born 1991 Celebrity endorsements begin – Michael Jordan 1991 Celebrity endorsements begin – Michael Jordan

4 Current Strategy Target Market Target Market Athletes Athletes Males 18 to 24 Males 18 to 24 Focused on “Point of Sweat” Focused on “Point of Sweat”

5 Getting to Market TV Ads /ESPN TV Ads /ESPN Sports Venues – cups, coolers, billboards Sports Venues – cups, coolers, billboards Sports Magazines Sports Magazines Limited Radio Limited Radio Sponsored Events Sponsored Events Celebrity Endorsements Celebrity Endorsements High School “Athlete of the Year” High School “Athlete of the Year”

6 Current Market Facts Part of PepsiCo Part of PepsiCo Control 80% - 90% of Market Share in North America Control 80% - 90% of Market Share in North America 1.5 Billion dollar brand 1.5 Billion dollar brand Competition Competition Powerade (Coke) Powerade (Coke) Private Label Isotonic Sports Drinks Private Label Isotonic Sports Drinks Water Water

7 Current Market Current market concentration is on males Current market concentration is on malesWeaknesses Non-athletes Non-athletes Youth market Youth market

8 View of Future State Create Brand Loyalty Create Brand Loyalty Younger generation Younger generation Increase market share Increase market share New Market New Market Non-athletes Non-athletes

9 How Do We Attract Youth? Parenting Magazines Parenting Magazines Emphasize health benefits of the active child Emphasize health benefits of the active child Kids Magazines Kids Magazines Sports Illustrated for Kids, Seventeen, etc. Sports Illustrated for Kids, Seventeen, etc. Internet Pop Ups / Websites Internet Pop Ups / Websites –Nick Jr., Discovery Kids, Disney TV Ads on Kids Programming TV Ads on Kids Programming

10 Target Youth Endorsements appealing to the younger child Endorsements appealing to the younger child Dora the Explorer, Sponge Bob Dora the Explorer, Sponge Bob Video game background banners Video game background banners Form strategic partnerships with other companies, Ex. EA Sports Form strategic partnerships with other companies, Ex. EA Sports Continue celebrity endorsements aimed at pre-teens/teens Continue celebrity endorsements aimed at pre-teens/teens Derek Jeter Derek Jeter Mia Hamm Mia Hamm

11 Supporting Facts Current National Trend is to Decrease Childhood Obesity Current National Trend is to Decrease Childhood Obesity Overweight children – 9 million (3x that of 1980) Overweight children – 9 million (3x that of 1980) Children dehydrate faster that adults Children dehydrate faster that adults Instill brand recognition at an early age Instill brand recognition at an early age Studies show taste promotes more consumption with kids Studies show taste promotes more consumption with kids

12 Attracting a New Market Non-Athletes Non-Athletes Home Improvement Home Improvement Contractors Contractors Do-It-Yourselfers Do-It-Yourselfers Construction Workers Construction Workers

13 How Do We get There? TV Ads (Construction Field) TV Ads (Construction Field) Sponsorships on Home Improvement Shows Sponsorships on Home Improvement Shows Trading Spaces Trading Spaces Monster House Monster House Vending Machines Vending Machines Lowes / Home Depot Lowes / Home Depot

14 Getting There Celebrity Endorsements Celebrity Endorsements Ty Pennington Ty Pennington Amy Wynn Amy Wynn Trade Shows Trade Shows Strategic Partnerships Strategic Partnerships Construction Vests/Green Shirts Construction Vests/Green Shirts Gatorade Coolers Gatorade Coolers

15 Supporting Facts Home Improvement Industry – 64 Billion Home Improvement Industry – 64 Billion High Ratings for Home Improvement Shows High Ratings for Home Improvement Shows Discovery Channel Discovery Channel The Learning Channel The Learning Channel

16 Conclusion Economical Economical Effective Growth Effective Growth Untapped Market Segments Untapped Market Segments Younger Generation Younger Generation Non-Athletes Non-Athletes Longevity of the Brand Longevity of the Brand

17 Questions?


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