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
Lifestyle
/ Age
Matrix
Active
Inactive
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: http://www.manilatimes.net/national/2006/oct/25/yehey/business/20061025bus6.html
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