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

2. 5 Steps for Part 1 (PTM and Positioning)
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

3. 5 Steps for Part 2 (Marketing Mix & Strategy)
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

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

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
Lifestyle vs. Age
Brand vs. Positioning

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

14. Gatorade sales is US$2.6Billion Gatorade’s market share is 49%
5b. Based on 2008 Energy Drinks North America Report, where Gatorade’s share is 49%, total market size is US$ 5.3Billion.
Gatorade sales is US$2.6Billion
Gatorade’s market share is 49%
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
Competitor data= US$300B
Company data = US$300B
Usage data = US$234B

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
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. SUMMARY

30. 5 Steps for Part 1 (PTM and Positioning)
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

31. 5 Steps for Part 2 (Marketing Mix & Strategy)
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