1. Gatorade IMC Campaign Plan
Prepared by Joseph Campbell
April 2017

2. Executive Summary
Gatorade commands a majority of the sports drink market. To both maintain market share and attract new customers, we must grow the pie. Skeptics are our key.
Skeptics: Mothers between the ages of 24 and 54 and Baby Boomers, both with a household income of $100,000+.
Believers: Active men and women, between the ages of 20 and 54, particularly those with household incomes of $65,000+.
To grow the pie, we have to change hearts and minds by rethinking what it means to be “Gatorade”. We’re backed by science, and long-trusted hydration specialists. But, we’re thought of as sugar-packed.
We’re changing the bottle, logo and packaging to evoke transparency and honesty.
This positioning will come to life through two inter-connected campaigns:
To reach Skeptics, kick off a 10-city “Clarity Tour”. We’ll take H2 to Skeptics on their terms, giving them reason to believe this new drink is the best choice. We’ll sponsor local community events, work with nutritionists and respected voices like Deepak Chopra to explain how H2 compliments an organic lifestyle.
Believers: Anchored by a life-time giveaway sweepstakes, this campaign will focus on convincing those who drink sports drinks that H2 is the best choice to fuel their sport, their workout, their life.
Success will be measured through a variety of metrics benchmarked before the H2 launch and throughout the campaign. These data—attained by qualitative and quantitative research—will drive insights that will hone messaging and other campaign activations.
Success will be achieved when consumers chose to put H2’s goodness in, and get greatness out. Let’s fuel up!

3. Business Situation External Environment Industry/Category
Consumers are increasingly looking for ways to improve their health and wellness
53% of consumers say they exercise regularly (Mintel 2015)
The health and fitness club category has grown $24.7 billion in value (Mintel 2015)
Sports drinks are being consumed at a higher rate than ever before
Consumers’ increasing focus on living healthier lifestyles has led to an “increase in consumption of sports drinks in on premise channels, namely gyms, fitness and leisure centers”
At the same time, consumers are more concerned about finding organic and natural beverages, seeking “safer or healthier” options
Industry/Category
Though growth has been steady, consumer preference is shifting. Consumers are most interested in drinks that are “natural”, “healthy” and “organic”
Both women and men (43% and 34% respectively) purchase organic products because they leave our “unnecessary” ingredients and chemicals (Mintel 2015)
Nearly half (49%) of Millennials choose organic for at least half of their food and beverage purchase (Mintel, 2015)
This preference for more natural products has pushed sport drink makers to explore new, natural options
Late last year, Gatorade launched an organic line of drinks: “G Organic”

4. Business Situation (Cont.)
Market Share
Gatorade enjoys a unique market advantage, creating the category in the 1960s
Gatorade and PowerAde make up 90% of the volume in the sports drink industry
Gatorade also has a firm hold on the sports drinks category, owning six of the top ten most purchased “non-aseptic” sports drinks
A majority of PepsiCo (Gatorade parent company) revenues (58%) are generated in the US
Competition
Plenty of all natural and organic drinks currently exist. According to Mintel, about 5% of all the sports drinks launched in the US from October 2015 to October 2016 were “certified organic”
Primary competition comes from PowerAde and UnderArmor, a new entrant to the category
Gatorade also competes with broader industry rivals, like Vitamin Water and coconut water, as well as makers of protein, recovery and other drink mixes
Market Share
Gatorade enjoys a unique market advantage; they created the category in the 1960s when University of Florida researchers developed a sports drink to replace the fluids, electrolytes and other nutrients expended by athletes during training and games (Gatorade website). “Gatorade and PowerAde comprise 90 percent of the volume in the sports drink industry,” according to a 2015 report entitled U.S. Sports Beverages through 2019 (Beverage Marketing Corporation, 2015).
Further, retail data compiled by Information Resources Inc. shows that Gatorade has a firm grasp on the sports drinks category, owning six of the top ten most purchased “non-aseptic” sports drinks as pictured below (Harfmann, 2016).
As a market leader, Gatorade is well positioned to experiment and introduce new product line extensions like H2.
Competition
Though it is a clear market leader in the Sports Drink category, Gatorade is not without competitors. Their primary competition in Sports Drinks comes from PowerAde and UnderArmor, a new entrant to the category. Outside of the competition posed by traditional sports drinks, Gatorade must also fend off rivals in the broader beverage industry, including Vitamin Water and coconut water, as well as makers of protein, recovery and other powder drink mixes intended to support athletic activities.
Though outside the scope of this particular case study, Gatorade faces a host of entrenched competitors as it moves beyond beverages into energy bars, gels and other consumables. Their Whey Protein Bar, for example, competes with PowerBar, Quest, Cliff and a host of other bar makers.
Company Assets
Through PepsiCo’s, Gatorade has sponsorships with Major League Baseball, the National Basketball Association, National Hockey League, and the National Football League—as well as individual sponsored athletes like JJ Watt and Serena Williams
Gatorade also has many community-level sponsorships, including its “Player of the Year” campaign and partnerships with the Boys and Girls Club of America and Women’s Sports Foundation

5. Business Situation (Cont.)
Target Audience Profile
The target audience for H2 can be split into two categories: sports drink believers and skeptics.
Believers drink sports drinks when working out, competing in sports, or just when they’re thirsty.
Persona: Scott, a 35-year old computer engineer living in New York City, is a sports drink believer. He wakes up at 5am every day to make sure he gets a morning work out in before heading to the office; the gym is a little pricy, but worth every penny for the community and equipment it provides. Chris loves his husband, but also loves the feeling of accomplishment only achieved by crushing a morning Cross Fit session. A fitness lifestyle is about more than weights and exercise to Scott; he also uses protein powders and sports drinks to fuel his workouts. Scott and his husband have 4 Tough Mudders under their belts and are planning a trip with Cross Fit friends to try the Spartan Super.
Skeptics opt for water and more natural drinks.
Persona: Samantha, a 42-year old mother of two, is a sports drink skeptic. She and her husband are concerned about fitness but wellness must come first. Samantha manages the families schedule—juggling a busy career as a realtor, soccer practice for her young son Josh and music lessons for her daughter who is in middle school band. Samantha wants the best for her family so tried to shop only at Whole Foods or Trader Joes; she has read about and deeply believes in the health benefits of organic foods and drinks. Overly- processed foods and drinks are off limits—including Gatorade. She’s open to organic drinks, but skeptical of the high sugar content found in the sports drinks at her son’s soccer games.
Consumers from both categories are looking for more organic options.
Health and nutrition reasons lead (Mintel 2015). Nearly half (49%) of Millennials choose organic for at least half of their food and beverage purchase. (Mintel 2015)
The target audience for Gatorade H2 includes:
Believers
Skeptics
Believers: Active men and women, between the ages of 20 and 54, with particular attention to those with greater disposable income to spend on sports drinks.
Skeptics: Mothers between the ages of 24 and 54 and Baby Boomers, with household incomes of $100,000+
Key Consumer Insights
Women remain largely responsible for grocery shopping (PLMA, 2013). And, they are price-sensitive (85% cite price as a motivating factor when purchasing sports drinks) (Mintel 2012).
Believers: A majority of consumers who buy or drink sports drinks (at least 80%) cite choice of flavors, brand trust and price as being the most influential factors in purchase decisions. And, men are motivated to buy sports drinks when they’re cold (Mintel 2012)
Skeptics: As baby boomers age, they are more likely to be overweight, driving a need for healthier lifestyles and exercise (Mintel, 2015)

6. Campaign Goals & Objectives
Opportunity
Leverage renewed consumer interest in organic ingredients and transparent labeling to launch a new all-natural sports drink while maintaining market share and attracting new customers
Marketing Goals
Launch H2 in the U.S. in 2017 while maintain overall market share in the energy drink category – driving sales by existing sports drink believers
Grow Gatorade’s U.S. market share, by attracting a new set of buyers – sports drink skeptics
Objectives
Increase unaided product awareness by 25%
Drive product awareness for Believers through the launch a sweepstakes
Enable sweepstakes participation through targeted social ads with CTR of 0.15%
Drive sales by encouraging Skeptics to purchase by offering coupons to try H2, targeting 10% redemption rate
Increase Skeptic’s consideration by 15% through taste tests during 10-city Clarity Tour
Success Metrics
Measure unaided awareness prior to and after key sponsorships
Track signs up over time, and referring channels (e.g., via social)
Measure CTR (track for age, gender)
Track redemption rate of coupons (track for age, gender)
Compare survey results of Skeptics pre- and mid-Clarity Tour

7. H2 Value Proposition
You know the saying: You only get out of something what you put in it.
The same goes for our bodies. Gatorade has led the sports drink industry since inventing the category 50 years ago— developing breakthroughs in hydration science to keep you fueled and performing at your best. Today, we’ve made another breakthrough that combines the science in our sports drinks with the natural goodness in responsibly-raise organic plants.
Introducing H2.
H2 is the only all-natural and organic sports drinks with the same benefits as other sports drinks and all of the natural ingredients you love. You care about what you put in your body—whether you’re pounding through a 3 hour work out, in need of refreshing drink at work, or hydrating between after-school pick up and ballet practice. H2 will keep you hydrated and ready to tackle whatever life throws your way, naturally.
We believe that if you put goodness in, you’ll get greatness out. Fuel up!

8. Strategy Alignment Across the Buyer’s Journey
For Sports Drink Believers, H2 will benefits from Gatorade’s strong market share and brand recognition.
Awareness
Consideration
Research
Purchase
Loyalty
For Sports Drink Skeptics, we must drive awareness of H2 as an alternative, teaching consumers about the natural benefits of this Gatorade drink.
This campaign will not focus on this phase of the marketing funnel for Believers, though it was considered. Given existing brand equity, dollars can be better spent prompting other parts of the buyer’s journey.
H2 must be positioned as healthy alternative to water that is scientifically-proven to better support your body’s nutritional needs.
Believers are price sensitive and want a drink that tastes good. Overcome these barriers with taste-tests and coupons—leading to purchases.
Social media and smartphone messages that promote products or pricing are especially effective among year old's (Mintel 2012)
Skeptics look for drinks without unnecessary ingredients. They are also price sensitive. Overcome these challenges by touting the simple ingredients in H2, and offering coupons.
Factors that influence purchases among families with three or more children include smartphone promotions/coupons and social media marketing (Mintel 2012)
Encourage Believers to share H2 with their friends, offering referral bonus coupons and offers via social media.
Entice Skeptics to continue purchasing H2 with coupon offers, build brand loyalty by providing information that Skeptics value like nutrition and wellness information. p

9. Strategy in Action: Plan Roll Out Overview
This campaign will take place in 2017 in four interrelated phases: planning and testing, execution, evaluation, and refinement.
Measure impact throughout the campaign using sales, CTR, social engagement, etc. to gauge results
Use measurement results to, on an ongoing basis, pivot campaign as needed, adjusting messaging, change coupon values, etc.
Launch campaign in April (Q2) to “believers” and “skeptics”
Host 10-city “Clarity Tour”, stopping at top 10 DMAs, partnering with organic brands in each market (e.g., Trader Joes, Mom’s Market) and sponsoring local sporting events, leading yoga studios, etc.
Conduct sweepstakes
Define objectives, audience, value proposition
Identify tactics & channels
Test messaging
Plan Q1
Execute
Q2-4
Evaluate
Q3-4
Refine

10. All Organic. Less Sugar, Naturally. Goodness In. Greatness Out.
Creative Platform
Brand Positioning
To persuade consumers to try H2, we’ll go to our roots and discuss the science that proves water alone does not replace the fluids and electrolytes that you lose through sweat nor the carbohydrates your body uses for energy.
H2 will keep your body topped up on the nutrients it needs to tackle all of life’s moments—from nailing that presentation to the board, to Tai Chi in the park and even next weekend’s Tough Mudder.
H2 will be positioned as a natural and honest go-to hydration option. We’ll accomplish this by reimagining traditional Gatorade bottles. H2 will be sleek and stylish, taking a design queue from high- end water brands like VOSS. The container is made from biodegradable plastic with lids made from 85 percent or better post-consumer recycled plastics.
Messages/Offer
Gatorade is your trusted hydration specialist. Dr. Spock was right when he said “you know more than you think you do.” You know you’re still thirsty and need something more. H2 is the clear hydration choice.
H2 gives you the science-backed benefits of Gatorade with all organic ingredients and natural sugars.
Don’t take our word for it, hear about the benefits from our scientists and people like you.
Word-of-mouth comes to life in ads, videos and photos created throughout the campaign by featuring regular people and reactions to H2 taste tests.
Creative Look/Feel
The creative for this campaign is simple and clean, evoking a sense of transparency and honesty. The color palette is blue-based, reminding consumers of clean mountain rivers, ice and the purity of sprint water.
All Organic. Less Sugar, Naturally. H 2
Goodness In. Greatness Out.

11. Campaign & Media Calendar
Campaign Launch
(April 3) Q1 Q2 Q3 Q4
Jan
Feb
March
April
May
June
July
Aug
Sept
Oct
Nov
Dec
MLB Opening Day
(April 2)
Memorial Day
(May 29)
Independence Day
(July 4)
NFL Season Starts (Sept 7)
Thanksgiving (Nov. 23)
Message Development
External Milestones
Labor Day (Sept. 4)
College Football Season Starts
(Aug. 26)
Message Testing
Creative Developed
Ad creative
Photoshoot w/ Athletes
Social content (images/video)
Athlon Sports & Life Print Ad
Men’s Health Print Ad
Women’s Health Print Ad
Athlon Sports & Life Print Ad
Women’s Health Print Ad
Athlon Sports & Life Print Ad
Women’s Health Print Ad
Men’s Health Print Ad
Men’s Health Print Ad
Sweepstakes in partnership w/ Planet Fitness – #FreeFuel4Life (April 17-Sept 7)
Activities Targeting Believers
Social Promotion on Twitter, Facebook
Sponsored athletes promote competition on social
Winner first NFL game
Media Outreach Post-Sweepstakes
Ads for Sweepstakes on Facebook, Twitter, Instagram (April 3-Sept 6)
Media Outreach Pre-Sweepstakes
Instagram Influencer Campaign w/ 3 Influencers
Planning
Digital Content Planning
Keyword research
AdWord Campaign development
SEM AdWords Campaign
Social Ads A/B Testing
Social Ads A/B Testing
AARP Magazine Print Ad
AARP Magazine Print Ad
AARP Magazine Print Ad
AARP Magazine Print Ad
Prevention Print Ad
Prevention Print Ad
Prevention Print Ad
Prevention Print Ad
Measurement Dashboard Development, capturing:
Coupon Tracking
Media Mentions
Social Engagement
Opinion tracking via online survey results & input from MROC
The Natural Kid Project (Banner ad, 1 year)
Activities Targeting Skeptics
ParentMap.com (6M impressions)
YouTube Ads (1.5M impressions, targeting moms, Baby Boomers)
Social Media Marketing to Moms (via Facebook)
Social Coupons Offer (Facebook, Twitter)
Revised Coupon Offer on Social (Facebook, Twitter)
Track Coupon Redemption Rate
Track Coupon Redemption Rate
Legend
10-city H2 Clarity Tour
Major Milestone
Online Impact Survey
Online Impact Survey
IMC Management
Cross-Audience Activities
Public Relations
90-Day H2 Takeover of Social Channels
Advertising
National Radio Spots – One for Skeptics & One for Believers (9 months of weekly buys)
Marketing
Measurement
IMC Project Management & Measurement (MROC)

12. PR Plan Overview Communications Goals
Drive awareness of H2 as a differentiated alternative to other non-Gatorade sports drinks and water
Create interest in and demand for H2
Target Audience
Sports Drink Believers: Active men and women, between the ages of 20 and 54, with disposable income to spend on superior hydration support.
Skeptics: Moms, between the ages of 20 and 54, and Baby Boomers who seek out organic and other healthy products. These consumers are skeptical of Gatorade’s high sugar content.
Strategy: Create a PR campaign that builds on major “tentpole” moments like the start of the NFL season and launch of an H2 sweepstakes to tout the benefits of H2. These milestones will be supported by other, secondary events and PR activities like local and community-level event sponsorships (College Track Meets, NCCA Football, Yoga Jam in Floyd, VA, etc.).
Tactics
Gatorade Drinkers: The bulk of this campaign’s effort will be spent on convincing people who already consume sports drinks that H2 is the better choice for their hydration needs.
Sweepstakes: Coinciding with the start of the MBL season, launch a sweepstakes that offers consumers free H2 for life--dubbed #FreeFuel4Life. This competition will feature celebrity athletes and trainers offering their endorsement of H2 through social media posts, video interview with television outlets and bloggers.
Blogging: Gatorade will partner with leading sports nutrition bloggers to launch a series of H2 content that explores the benefits of all natural workouts. Potential partners include BodyBuilding.com, a popular site for weightlifters.
Media Pitching: Offer a series of embargoed previews to key fitness and sports writers before the launch of H2. Offer these writers a backstage look into the launch of a new Gatorade product, as well as the science behind what makes H2 the ultimate in natural hydration. Potential targets include Sports Illustrated, ESPN, BodyBuilding.com.
Skeptics: While this audience is important, the goal of reaching to sports-drink skeptics is to expand the addressable market. This consumer group may not be convinced immediately of the benefits of H2 so it will be important to balance these activities with those above, which are more likely to drive sales.
Promotional Events: Borrowing a page from wine companies, H2 will have tasting stands at organic supermarkets like Mom’s, Whole Foods and Trader Joe's. The stands will explain the benefits of H2 compared to leading liquids like coconut water and other natural drinks.
Social Interaction: Take these tasting events online with promotional offers for skeptics to try a free H2 at their local supermarket (via a printable coupon). This offer will be given away by leading nutrition and wellness bloggers as a sweepstakes for their readers.
Media Pitching: Building on the promotion events, nutrition tips and other related content will be produced and pitched to bloggers who write about wellness and natural living. The spokesperson will be a respected wellness expert who like Cassey Ho or Deepak Chopra.

13. Digital Strategy
Overview & Background: Gatorade has a number of digital channels that can be leveraged in support of the H2 launch later this year. Existing channels include, and are not limited to:
Social:
Gatorade’s Websites:
marketing platform: GSSI Newsletter
Variety of mobile apps:
#SponsoredByGatorade
Gatorade: Break a Sweat Record
Search Engine Optimization and online advertising
In addition, Gatorade can and has leveraged the social channels of their sponsored athletes and negotiate with partners like the NFL, Ironman, etc.
Digital Strategy Objectives:
Laddering back to the broader campaign objectives, digital activities aim to accomplish key objectives, including:
Drive awareness of H2 as a desirable alternative to other sports drinks by sharing compelling social content (e.g., facts about H2’s nutrient-packed design)
Encourage consumers to sign up for the H2 sweepstakes #FreeFuel4Life
Drive sales through “flash sale” coupon offers via social channels
Research:
Before we solidify tactics to attain these objectives, research is needed to identify the specific audience that follow Gatorade’s marquee social channels above. While our target audience may follow Gatorade closely on Instagram, it’s probable that they pay less attention to Gatorade messages on Twitter given the real-time nature of that platform.
In addition, understanding how the target audience seeks out information about workout plans, nutrients/supplements and other information is key to developing impactful social messaging. Keyword research is needed to understand how our target audience uses search. For example, “Gatorade” is searched 100K-1M time each month, with the next most popular brand searches being “Gatorade water bottle” and “Gatorade bottle”. Interestingly, these “bottle” searches are just as popular--10K-100K average monthly searches--as “sports drink”, according to Google Adwords. Meanwhile, “sports nutrition drinks” and “endurance sports drinks” are only searched an average of times each month. And, Gatorade is missing an opportunity in the “pre workout” category--a term searched 100K-1M times each month. Gatorade must compete in a range of workout and sports search terms, including (but not limited to): pre workout, sports drink, electrolyte drinks, etc.
Finally, research is needed to baseline Gatorade’s digital user experience. The company’s many social platforms seem fragmented and are difficult to navigate between. While an Instagram post may direct viewers to Gatorade.com, the brand’s website is heavy on products with social links buried at the bottom of the homepage.
Facebook (7,271,024 likes)
Instagram (1,000,000+ followers)
YouTube (128,655 subscribers)
Twitter (339,000+ followers)
Tumblr
Spotify (via Gatorade Amplify)
Gatorade.com
Gatorade Sports Science Institute
Athlete/Player of the Year
Gatorade Performance Partner

14. Digital Strategy (Cont.)
Digital Tactics
Paid social promotion. Use ad dollars to boost the exposure of key social posts on Twitter, Facebook and Instagram.
Branded social takeover. On the day H2 is launched, H2 branding should take over all Gatorade digital properties so consumers will see the new product everywhere they go online--from the Twitter banner and icon to the Gatorade logo on Instagram and beyond.
updates. Develop a series of updates for consumers that align to the H2 product promise. For example, given Gatorade’s connection to workouts (as seen by the “bootcamp” offered alongside Gatorade Amplify’s playlist), develop a workout themed e-newsletter. This newsletter will feature workout tips from athletes, inside scoops on the world of working out--including the latest science breakthroughs. Include coupon offers for H2.
YouTube/Instagram interviews. Engage fans in the H2 experience by allowing them opportunities to ask questions of the Gatorade athletes (e.g., JJ Watt) via Twitter and Instagram. Athletes would then respond in short videos that are tastefully H2 branded.
Tweet Chats/AMAs. This tactic could be extended by hosting Tweet Chats or Reddit AMAs (“Ask Me Anything”) with the athletes. Tweet Chats and AMAs are useful for driving real-time engagement and would therefore be a useful tactic to use at the launch of the #FreeFuel4Life sweepstakes.
Measurement feedback. Each of the tactics above can be tracked to determine how successful the content and interaction is. This digital campaign will have a measurement loop that gauges engagement success of messages and tactics; this data is fed back into the creative loop. For example, A/B testing will be conducted for marketing, testing different headlines to determine the wording that most encourages recipients to open the .

15. Product Recall Testing Coupon Redemption Testing
Test Agenda
All testing will feed into a continuous loop stretching across content development, execution, measurement and testing to refine key components of the campaign.
Measuring Overall Impact: Given the two audiences, testing for this campaign must capture three key metrics: overall impact (measured as awareness), consideration among sports drink believers, and awareness among skeptics. This will be measured throughout the campaign in three ways:
To gauge awareness and perception of H2, 10 focus groups will be conducted among three audiences (4x Believers, 4x Skeptics, 2x general consumers)
2 online surveys of 5,000 people each (50% Believers, 50% Skeptics) will be conducted to gauge consideration of H2
An Ongoing Market Research Online Community (MROC) will be established for the first year of the campaign for ongoing message testing
Other tests to be conducted include:
Social Ads A/B Testing
Hypothesis: Consumers are more likely to sign up for the contest if social ad CTA messaging touts offer of free life-time supply of H2.
Test Design: Deploy an A/B test of a social ad, one with messaging that highlights life-time supply of H2 and one that focuses on H2’s benefits (organic, tasty, etc.).
Assets Needed:
Messaging for the ad, including details of sweepstakes logistics (rules, timing, etc.)
Ad creative (photos, designed layout, etc.)
Budget to conduct test for 15 days
Measurement: Conversion rate
Product Recall Testing
Hypothesis: NFL fans are more likely to remember H2 if product placement during games is paired with ad buys.
Test Design: Engage a research firm to conduct unaided, quantitative awareness testing after each of 4 NFL games: 2 where H2 branding is updated from towels to water, and 2 where H2 branding has not been updated.
Assets Needed:
H2 branded products for use by NFL athletes
Budget to hire market research firm
Measurement: Unaided awareness
Coupon Redemption Testing
Hypothesis: Consumers are more likely to redeem coupons offered via social media to try H2 if the is more than 25% off the product being purchased.
Test Design: Create coupons at varying discount values (20%, 25%, 30%), share with a sampling of the target market in at least two test cities (e.g., New York, Atlanta).
Assets Needed:
Ad messages
Ad creative (photos, layout, etc.)
Mechanism to track coupon codes
Measurement: Coupon redemption rate (aka Conversion)

16. Top-Level Budget* Assumptions:
Activity
Budget
Research & Planning
Planning & Initial Program Management
Message Testing (online focus groups)
SEO Research
$90,000
Ongoing Project Management of Ad, Marketing, PR Activities
Search Engine Marketing
Management of Social Media Channels
Media Outreach
$8,723,500
Believer Ad Buys
Print Ads: Athlon Sports & Life, Men’s Health, Women’s Health
National Radio (including production)
Instagram Influencer Campaign
Sweepstakes (including creation and management)
Facebook & Twitter Ads optimized for conversion; YouTube Ads
$5,098,190
Skeptic Ad Buys
Print Ads: AARP Magazine, Prevention; Digital Ads: The Natural Kid Project, ParentMap.com
Facebook & Twitter Coupon Ads Optimized for Conversion; YouTube Ads
10-city H2 Clarity Tour
Catalina Coupon Campaign (targeting buyers of Organic food/beverages)
$5,530,030
Other
Local/Community Sponsorships (College Track Meets, NCCA Football, Yoga Jam in Floyd, VA, etc.)
Updating Professional Sports Sponsorships to reflect
Out of Pocket Expenses (admin fees, unexpected production costs, etc.)
$12,158,280.00
Measurement
Social A/B Testing
Coupon Tracking
Develop Metrics Dashboard + Ongoing Maintenance
10 focus groups; 2 online surveys of 5,000 consumers; ongoing Market Research Online Community
$1,000,000
Total
$33,000,000
Assumptions:
PepsiCo does break out revenue from Gatorade, specifically.
Forbes suggests that Gatorade revenue in 2012 was approx. $3.3B.
Assuming a marketing spend of 10% yields $330M. This whole budget must be spread across Gatorade’s numerous products. Therefore, I’ve assumed 10% of the marketing budget ($330M) will be spent on IMC activities to promote H2.
*See appendix for a detailed budget.

17. Measurement & Evaluation
Leveraging the latest in analytic technology, a metrics dashboard will be developed to track a number of key metrics, including:
Perception of H2 among (1) general consumers, (2) sports drink believers and (3) skeptics
Level of awareness and purchasing consideration by skeptics
Other metrics on the dashboard will include: Social engagement with H2 content; Sales conversions from coupon redemption; Website traffic to Sweepstakes and Gatorade websites
To gather this insight, the following mix of qualitative and quantitative research will be conducted as mentioned in an earlier slide:
10 focus groups (2 general consumer, 4 believers, 4 skeptics)
2 online surveys of 5,000 consumers
An ongoing Market Research Online Community (MROC) will be established to test smaller campaign elements like ad imagery, tag lines, etc.
Insights derived from this data will inform future messaging, activations and promotions. For example, testing conducted after the first “Clarity Tour” will uncover effectiveness of the taste-test and other activities. These results will help the Tour team hone and refine activations across the remaining 9 cities.

18. Appendix

19. Sources Referenced
Global Sports Drinks Report 2015 (Rep.). (2016). ReportBuyer. Retrieved January 29, 2017.
New Product Development Outlook 2016 Study (Rep.). (2017). Beverage Industry Magazine. Retrieved January 29, 2017.
Mele, C. (2016, September 2). Gatorade Shakes Up the Sport Drink by Going Organic. Retrieved January 29, 2017.
U.S. Sports Beverages Through 2019 (Rep.). (2015). Beverage Marketing Corporation. Retrieved January 29, 2017.
Harfmann, B. (2016, May 11). Sports and protein drinks see steady, consistent growth. Retrieved January 29, 2017.
[Chart] Total US revenue and fan chart forecast of health and fitness clubs, at current prices, (Rep.). (2015). Mintel. Retrieved January 29, 2017.
Organic Food and Beverage Shoppers – US (Rep.). (2015). Mintel. Retrieved March 11, 2017.
Marketing to Baby Boomers – US (Rep.). (2016). Mintel. Retrieved March 11, 2017.
Sports Drinks – US (Rep.). (2012). Mintel. Retrieved April 8, 2017.
Nutrition & Performance Drinks – US (Rep.). (2017). Mintel. Retrieved April 29, 2017.
Organic option from Gatorade. (Nov. 2016). Mintel. Retrieved March 11, 2017.
Today’s Primary Shopper (Rep.). (2013). Private Label Manufacturers Association. Retrieved April 8, 2017.
PepsiCo Annual Report – 10K. (2017). PepsiCo. Retrieved March 11, 2017.
Donations & Sponsorships. PepsiCo. Retrieved April 29, 2017.
The World's Most Valuable Brands – Gatorade. (2012). Forbes. Retrieved April 29, 2017.
Radio Advertising Guide: How To Get Started Today. (2016). FitSmallBusiness.com. Retrieved April 30, 2017.
How Small to Medium-Sized Businesses Can Advertise on Instagram. (2016). Short Stack. Retrieved April 30, 2017.
How Much Do Ads on YouTube Cost? (2016). Penna Powers. Retrieved April 30, 2017.
Market Research on the Cheap. (2008). Bloomberg News. Retrieved April 30, 2017.

20. Gatorade SWOT Strengths Weaknesses Opportunities Threats
Market Leader: Gatorade owning six of the top ten most purchased “non-aseptic” sports drinks
Heritage of Hydration Science: Gatorade created the sports category in the 1960s
Strong Brand Visibility, Many Sponsorship Assets: Gatorade’s brand is ubiquitous in sports across the NFL, NBA and other major leagues
Diluted Brand: Gatorade has more than 20 products currently on the market, many competing directly with H2
Scientific Ingredients: The brand’s hydration science background is reason to be skeptical for some consumers seeking all-natural alternatives
Dated Image: Gatorade has cultivated an image as the drink of performance athletes, which can alienate consumers who are active, but do not consider themselves athletic
Opportunities
Threats
Exercise is Trendy: Consumers are increasingly aiming to live healthy lifestyles with segments of active market expected to grow, from gyms to sports nutrition
Organics are in: At the same time, consumers are searching for more natural and organic food
Crowded Marketplace: The beverage market is teaming with competition, from Vitamin Water and coconut water, to nutrition drinks like protein, recovery and other drinks
Plastics are out: Many consumers are reducing their consumption of plastic containers for environmental reasons
Sugary Perception: Consumers who don’t buy sports drinks are worried about their health impacts

21. Additional Target Audience Detail
Target Audience Profile
Exercise Trends:
Since 2010, consumers have been increasingly trying to fit regular exercise into their schedules—increasing from 36 to 41 percent of people who “make sure” to exercise regularly (Mintel, 2015).
As mentioned in the RFP, Gatorade aims to leverage this increased desire to exercise to grow the total addressable market. Men and women tend to exercise regularly at roughly the same rate and are therefore equally important demographics for Gatorade (Mintel, 2015).
Interestingly, age tends to be less of a factor when studying a consumer’s likelihood to exercise. According to research conducted by Mintel, “roughly four in 10 respondents from each age group indicated that they exercise regularly.” Given this constant, it’s important to consider broader demographic trends. For example, the latest available U.S. Census data shows that nearly half of Americans are between 20 and 54 years old. Segmenting and targeting this portion of the general population will help focus marketing efforts.
As baby boomers age, they are more likely to be overweight, driving a need for healthier lifestyles and exercise (Mintel, 2015)
Income: Another consideration regarding the target audience should be income. Mintel research (2015) find that regular exercise generally has a direct relationship to household income: as income increases so too does regular exercise.
Purchasing Habits:
Women remain largely responsible for grocery shopping (PLMA, 2013). And, they are price-sensitive (85% cite price as a motivating factor when purchasing sports drinks) (Mintel 2012).
A majority of consumers who buy or drink sports drinks (at least 80%) cite choice of flavors, brand trust and price as being the most influential factors in purchase decisions. And, men are motivated to buy sports drinks when they’re cold (Mintel 2012)
Baby Boomers are also price sensitive, seeking to get the most value out of their money (Mintel 2014). But, a large majority (nearly 75%) say they also seek out purchases that “makes them feel ‘good about myself’”.
Defining Skeptics:
There is also some research specifically on those skeptical of sports drinks. These people tend to be female and older. They typically have household incomes over $100K or more and live in the suburbs. Their main problem with sports drinks? Too much sugar. (Mintel 2017)
A plurality of Baby Boomers (at 29%) “do not trust the functional benefits” that nutritional and performance drinks like H2 claim to deliver (Mintel 2017)

22. Additional Ad Buy Options
Gatorade Drinkers
Active men and women, between the ages of 20 and 54, with disposable income to spend on superior hydration support.
Skeptics:
Mothers, between the ages of 20 and 54, and Baby Boomers who seek out organic and other healthy products—skeptical of high sugar content.
Audience
Target
Outlet
Cost
Audience
Athlon Sports & Life
$264,300
(Full Page, 4-Color)
6,000,000
(Rate Base)
Sports Illustrated
$417,700
2,700,000
Men’s Health
$249,880
1,800,000
Women’s Health
$226,700
1,500,000
Outlet
Cost
Audience
AARP Magazine
$694,800
(Full Page, 4-Color)
22,500,000
(Rate Base)
Parent Map.com
$350 (per 15,000 impressions)
1,600,000
(Page Views)
Fitness
$168,080
1,500,000
Prevention
$89,800
Weight Watchers Magazine
$85,435
1,140,817
(Total Paid Circulation)
The Natural Kid Project
$960 (1 Year, Standard banner)
300,000 (page views/month)
Media Options

23. Additional Ad Buys. RIO Evaluation
Outlet
Cost
Audience
Cost per Audience Member Reached
AARP Magazine
$694,800 (Full Page, 4-Color)
22,500,000 (Rate Base)
$0.03
Athlon Sports & Life
$264,300 (Full Page, 4-Color)
6,000,000 (Rate Base)
$0.04
Sports Illustrated
$417,700 (Full Page, 4-Color)
2,700,000 (Rate Base)
$0.15
Men’s Health
$249,880 (Full Page, 4-Color)
1,800,000 (Rate Base)
$0.14
Women’s Health
$226,700 (Full Page, 4-Color)
1,500,000 (Rate Base)
Parent Map.com
$350 (per 15,000 impressions)
1,600,000 (Page Views)
$0.30
Fitness
$168,080 (Full Page, 4-Color)
$0.11
Prevention
$89,800 (Full Page, 4-Color)
$0.06
Weight Watchers Magazine
$85,435 (Full Page, 4-Color)
1,140,817 (Total Paid Circulation)
$0.07
The Natural Kid Project
$960 (1 Year, Standard banner)
300,000 (page views/month)
$0.003

24. Additional Ad Buys. RIO Evaluation
Sports Drink Believers: Athlon Sports & Life will help reach the widest number of sports enthusiasts at the lowest per-reader rate. The audience of Athlon aligns with the target audience of my campaign.
Athlon boasts an audience of 20M readers, making it the largest sports magazine
Audience make up: 69% own a home and 72% are employed (Source: Media Kit)
Skeptics: AARP Magazine, Prevention and The Natural Kid Project reach an audience skeptical of Gatorade as an overly sugary drink. These three outlets offer the best mix of target demographics that align with my goals—and at a reasonable per-reader cost.
AARP Magazine has one of the largest audiences in the US—most of which are Baby Boomer
Prevention’s second most covered topic, behind health, is food and beverage
Readers have a median household income of $73,839 (Source: Media Kit PDF)
The Natural Kid Project is visited 300,000 families and professionals interested in compassionate parenting and natural living

25. Other Ad Buys Considered
Cutting Room Floor: There were a number of other advertising options explored, but that did not make the cut for this plan. These options included:
National Broadcast TV: While national broadcast and cable television commercials were considered, they are out of reach of this campaign. According to Tinsley Advertising, a 3-month campaign with 2,000 commercials aired would cost approximately $80 Million + $350,000 to create one 30 second commercial. That’s at least $80.7M if two commercials are created—well outside the budget.
Snapchat: While this platform has fantastic engagement metrics (users spend an average 25 minutes per day in the app), their audience is largely younger viewers. While this audience are potential consumers of H2, they can be reached via Facebook and Instagram with greater efficiency.
Audio News Release (ANR): This method sounds like a short interview dropped into existing radio shows. These spots can cost as little as $600 to produce and another $15,000 to distribute. However, they tend to be placed on shows that do not have the same reach as a national news radio campaign.
Ad Networks:
Outbrain: The global audience Outbrain reaches each month is approx. 557 million. As this campaign will not focus on written content, I opted to not leverage this ad network, which is budgeted based on Cost-per-Click model with suggested $0.45 CPC (Source). Both Outbrain and other ad networks have come under fire for appearing next to fake and off-brand content. We won’t risk Gatorade’s brand equity to pursue these options.
Ad Plus Media: This digital ad network can target parents online across a variety of websites. Their costs is fairly reasonable at $2,999 for 750,000 ad impressions—monthly (Source). This cost includes campaign set up and management, ad placement and a host of other services.
Taboola is an Outbrain competitor. The average American sees Taboola 70 times every month. The cost would be approximately $10,000 for 22,000,000 ad impressions (Source: PDF quote)

26. Sample Social Media Posts
Timing
Social Channel
Tweet Content
One week prior to sweepstakes launch
Gatorade Facebook
You push hard every set, every lap, every game. We push nutrition science to get you there. Coming soon: Free fuel. [link to blog post previewing the competition and rules]
Day of launch
Twitter
Train. Sweat. Fuel. Repeat. Visit Gatorade.com and enter to win a lifetime of fuel for your game: [link to sweepstakes page. Include social postcard announcing sweepstakes. Pin to Twitter timeline]
NOTE: This will also be a sponsored post on Twitter, tailored for Gatorade’s target audience.
Take your game to the next level. The Rock explains how you could win a lifetime of fuel for your workout from Gatorade.
[Post to include 0:30 video of Dwayne Johnson. Video opens with the title:
Train, sweat. Enter, win.
Gatorade.com/FreeFuel
Snap to a montage of The Rock in the gym (example). Video cuts to The Rock breaking to grab a drink of H2, he looks at the camera and explains the benefits of organic H2 and the sweepstakes prize. Cut to black with URL for sweepstakes: Gatorade.com/FreeFuel]
Instagram
(Gatorade)
You work hard for your victories. You sweat for success. Gatorade has your back, for life. Click the link in our profile for a chance to win a lifetime of free fuel for your sport.
[Picture features Serena Williams in a split screen image; left if Serena training hard in the gym, right is Serena drilling a serve]
Snapchat
Design filter that Snapchat users can use when capturing their workout. Text in filter will be:
Frame of the filter will be made of designed text using the hashtag #FreeFuel4Life.
Mid-competition
(dloading –Gatorade athlete)
NBA star D’Angelo Russel does not typically post captions to his photos. To keep the post authentic, something short and succinct is needed, such as: 💪
[Picture of D’Angelo at a game, sitting in front of H2-labled water coolers, water cups; caption of photo is tagged
When D’Angelo posts, Gatorade posts the same picture, with the following caption:
To ball hard, train hard. Gatorade has your back with #FreeFuel4Life. Enter at Gatorade.com/FreeFuel
Two weeks prior to sweepstakes close
Facebook
Train. Sweat. Compete. Replenish. Only a few more days to win #FreeFuel4Life
[Picture is a close-up of H2 bottles on a sports bench in different flavors, all partially consumed. Blurred background shows college track meet with athletes lined up to run a sprint.]
One week before close of competition
Capture opportunity. Don’t miss your chance to win a lifetime supply of Gatorade H2 to fuel your game. Enter here: [link. Include social postcard image describe above]
Close of competition
Train for success. Chase down opportunity. Don’t miss out on #FreeFuel4Life.
Two more days to enter at Gatorade.com/FreeFuel
[Include picture of JJ Watt doing sprints on a football field. H2-branded Gatorade bottle, partially consumed, is visible in the distance as a distance marker]
This IMC Campaign for Gatorade includes the launch of a consumer sweepstakes. The following draft content is intended to post before, during and after the sweepstakes.
As noted, this content will be amplified using Ad Dollars to purchase promoted tweets and other social posts.
The goal of this content is to move social followers of Gatorade—the Believer audience—to enter the sweepstakes.
Each post will be accompanied by an image or video from the brand’s extensive library of athletes training and competing at their best—fueled by Gatorade.
The messaging in these posts mirrors content in Gatorade’s existing channels and will be tested as part of the overall campaign message testing. To ensure the following ideas are realistic, all posts are based on—in part—social activities that Gatorade has explored.

27. Detailed Budget Total $33,000,000 Research & Planning $ 90,000
$ ,000
Planning & Initial Program Management
$ ,000
Message Testing (online focus groups)
$ ,000
SEO Research
$ ,000
Ongoing Project Management of Ad Buys, Marketing, PR for 9 months ($240,000/month)
$ ,723,500
Digital Strategy Execution
Search Engine Marketing - Ad Words campaign owning the top 12 keywords for believers and skeptics ($16,000)
Management of social media channels ($7,500/month)
Digital content creation
$ ,000
10 videos 60 second (5 believer, 5 skeptic)
$ ,000
30 images (15 believer, 15 skeptic)
$ ,000
Believer Ad Buys
$ ,098,190
Athlon Sports & Life X3
$ ,900
Men’s Health X3
$ ,640
Women’s Health X3
$ ,100
National Radio (9 months of weekly buys, over-indexed on the West; includes 15 spots Monday-Friday and 4 weekend spots)
$ ,404,000
Commercial $1,000 per commercial X 18 spots
$ ,000
Instagram Influencer Campaign ($75,000 per influencer, 3 influencers)
$ ,000
YouTube ads, leveraging the 5 videos above (Average $.20 per view, assuming 3M views)
$ ,000
Sweepstakes
$ ,550
Creation & Management
$ ,000
Facebook Ads optimized for conversion (Estimated Daily Reach: 130, ,000 targeting Believers in the US)
$ ,000
Twitter Ads Optimized for Conversion (Estimated daily website clicks: 1, ,000 targeting Believers in the US)
$ ,000
Cost of Lifetime supply of H2 (Assuming 2 per $1.00/each for 35 years)
$ ,550
Skeptic Ad Buys
$ ,530,030
AARP Full-Run Ad (4 color) X4
$ ,270
Prevention (4 color, X4)
$ ,800
The Natural Kid Project (Banner ad, 1 year) $
ParentMap.com ($350 per 15,000 impressions; 6M impressions)
$ ,000
National Radio (9 months of weekly buys, over-indexed on the West; includes 15 spots Monday-Friday and 4 weekend spots)
$ ,404,000
Commercial $1,000 per commercial X 18 spots
$ ,000
Facebook Coupon Ads Optimized for Conversion (Estimated Daily Reach: 110, ,000 Targeting Skeptical Moms who are interested in nutrition and wellness)
$ ,000
Twitter Coupon Ads Optimized for Conversion (Estimated daily clicks: K, targeting skeptical moms)
$ ,000
YouTube ads (Average cost-per-view is $.20. Aiming for 1.5M views)
$ ,000
10-city H2 Clarity Tour
$ ,000
Cost of a customized drink truck
$ ,000
Giveaway Swag (yoga mats, H2 bottles, etc.)
$ ,000
Catalina Coupon Campaign (targeting buyers of Organic food/beverages)
$ ,000,000
Measurement
$ ,000,000
Social A/B Testing
$ ,000
Coupon Tracking
$ ,000
Develop Metrics Dashboard + Ongoing Maintenance
$ ,000
10 groups among two audiences (Believers, Skeptics)
$ ,000
2 online surveys of 5,000 people (split Believers, Skeptics)
Ongoing Market Research Online Community (MROC) (12 $5,000/month)
$ ,000
Other Expenses
$ ,158,280
Local/Community Sponsorships (College Track Meets, NCCA Football, Yoga Jam in Floyd, VA, etc.)
$ ,500,000
Updating Professional Sports Sponsorships (NFL: New bottles for athletes, new signage, etc.)
$ ,000,000
Additional Out of Pocket Expenses
$ ,280
Total $33,000,000

28. Gatorade IMC Campaign Plan
Prepared by Joseph Campbell
April 2017