GATORADE ALKALINE
WATER
STUDENT’S NAME:
MARKETING PRINCIPLE
PROJECT REPORT
MISS MURK FATIMA
BBA-3B
HASSAN ALI (2211160)
DEENAR KHOWAJA (2211154)
SEHAR RIND (2211181)
AZZIZA BASHIR (2211153)
SAYED MUSTAFA (2211185)
RABNAWAZ MEMON (2211176)
GATORADE
CONTENTS
1. Executive summary
2. Company overview
a. Introduction
i. Pepsi Co
ii. Gatorade
b. Mission Statement
3. Business Goals and objectives
a. Corporate objectives
4. Situational Analysis
5. Market Analysis
a. Strength
b. Weaknesses
c. Opportunities
d. Threats
6. Marketing Mix
a. Product
b. Price
c. Place
d. Promotion
7. Target Market Analysis
a. Segmentation
b. Targeting
c. Positioning
8. Marketing Strategies and Actual Plans
9. Budget
a. Budget Analysis
b. Marketing Budget
i. Allocation
ii. Monitoring
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GATORADE
EXECUTIVE SUMMARY
G
atorade, a powerhouse under PepsiCo, is set to introduce a
groundbreaking product—Alkaline Water. Aligned with their mission
of enhancing athletic performance, this move targets portfolio expansion
and a strong foothold in the emerging alkaline water market. Despite
Gatorade's global brand recognition and distribution strengths, challenges
include consumer skepticism and market competition.
Market analysis identifies opportunities in the health-conscious trend,
while weaknesses include potential price sensitivity. The marketing mix
emphasizes a well-crafted product, competitive pricing, extensive
distribution, and dynamic promotion. Targeting health-conscious
consumers, athletes, and fitness enthusiasts, Gatorade positions its
Alkaline Water as a premium hydration solution.
Strategies involve influencer partnerships, educational campaigns, and
strategic product placements. With a carefully allocated budget for
product development, marketing campaigns, and ongoing evaluation, the
Gatorade Alkaline Water business plan is poised to capitalize on market
trends, reinforcing Gatorade's brand equity and ensuring a successful
product launch in the dynamic health and wellness beverage sector.
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GATORADE
COMPANY OVERVIEW
PepsiCo,
Inc.
is
an
American
multinational food, snack, and beverage corporation headquartered in
Harrison, New York, in the hamlet of Purchase. PepsiCo products are
enjoyed by consumers more than one billion times a day in more than 200
countries and territories around the world. PepsiCo generated more than $79
billion in net revenue in 2021, driven by a complementary beverage and
convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade,
Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product
portfolio includes a wide range of enjoyable foods and beverages, including
many iconic brands that generate more than $1 billion each in estimated
annual retail sales.[1]
Known for well-known brands like Pepsi, Frito-Lay, Tropicana, Quaker, and
Gatorade, PepsiCo is a multinational food and beverage corporation. The
company's goal is to make a beneficial impact on society and the
environment while offering a variety of fun and nourishing products.
PepsiCo strives to deliver performance with Purpose—making more people
happy with every sip and bite— through a wide product range.
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GATORADE
The Gatorade Company, a division of PepsiCo (NYSE: PEP), provides sports
performance innovations designed to meet the needs of athletes at all
competitive levels and across a broad range of sports. Backed by more than
a 40-year history of studying the best athletes in the world and grounded in
years of hydration and sports nutrition research at the Gatorade Sports
Science Institute, Gatorade provides scientifically formulated products to
meet the sports fueling needs of athletes in all phases of athletic activity.[2]
It is usually an American sports beverage manufacturer with a focus on
creating goods for athletes, as a PepsiCo brand. It provides a selection of
shakes, drinks, and bars to support physical performance. It helps athletes
perform at their peak during training and competition by focusing on
electrolyte replacement and hydration.
Some information about Gatorade is mentioned below:
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Type: Sports drink brand
Industry: Beverages
Founded: 1965
Founders: Robert Cade, Alejandro de Quesada, Dana Shires, and
Harry James Free
Headquarters: Chicago, Illinois, United States
Area served: Over 80 countries
Current CEO: Laurent Grandet
Number of employees: Over 7,000
Major products: Gatorade sports drinks, Gatorade G Series FIT,
Gatorade Gx Sweat patch, and Gatorade Gatorlyte.
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GATORADE
MISSION STATEMENT
“We aspire to make PepsiCo the world’s premier consumer products
company, focused on convenient foods and beverages. We seek to
produce healthy financial rewards for investors as we provide
opportunities for growth and enrichment to our employees, our business
partners and the communities in which we operate. And in everything
we do, we strive to act with honesty, openness, fairness and integrity.” [2]
“Backed by more than a 40-year history of studying the best athletes in
the world and grounded in years of hydration and sports nutrition
research at the Gatorade Sports Science Institute, Gatorade provides
scientifically formulated products to meet the sports fueling needs of
athletes in all phases of athletic activity.” [3]
Gatorade's mission is to redefine the landscape of sports nutrition,
driven by an unwavering commitment to athletes. Through relentless
innovation and cutting-edge research, Gatorade aspires to be the catalyst for
peak athletic performance.
The brand goes beyond traditional hydration, offering a spectrum of sciencebacked solutions that optimize performance, expedite recovery, and
prioritize the holistic health of athletes. With a dedication to meeting the
evolving needs of sports enthusiasts, Gatorade stands as a beacon of
excellence.
By seamlessly integrating advanced nutritional science into its products,
Gatorade aims to empower athletes at every level, fostering a community
where ambition meets optimal physical potential. The brand's enduring
legacy lies in its ability to propel athletes to new heights, making Gatorade
an indispensable ally in the pursuit of sporting greatness.
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GATORADE
BUSINESS GOALS & OBJECTIVES
CORPORATE OBJECTIVES
Corporate objectives are specific, realistic and measurable goals which an
organisation plans to achieve within a given period of time.[4]
Alike other companies, Gatorade under PepsiCo also have some
objectives and goals to achieve and do excel from its part. It pursues
corporate objectives aimed at dominating the sports beverage market.
Central to its strategy is the continual expansion of market share through
product diversification and innovation. Gatorade strives to maintain a
competitive advantage by investing in effective marketing campaigns,
bolstering brand recognition, and staying attuned to consumer preferences.
Financially, the company aims for robust revenue growth while
implementing cost-effective measures. Some of main objectives are
mentioned and briefly described as under:
▪ Financial Objectives:
Financial objectives are to Increase revenue by a certain percentage
and achieving a specific level of profitability or return on investment
with the expanding of market share in key product categories.
▪ Market Leadership:
Gatorade goal is to become a market leader in a particular industry or
segment with the enhancement of brand visibility and recognition.
▪ Innovation and Product Development:
It has to introduce innovative products or services to meet evolving
customer needs with the investment in research and development to
maintain a competitive edge.
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GATORADE
▪ Customer Satisfaction:
Alike every company Gatorade also has objective to improve customer
satisfaction scores with the enhancement of overall customer
experience.
▪ Global Expansion:
With its parent company it has objective to enter new international
markets and to increase the company's global footprint.
▪ Sustainability and Corporate Social Responsibility (CSR):
In this it has to achieve specific sustainability goals, such as reducing
carbon emissions or minimizing environmental impact and engage in
socially responsible initiatives that contribute to community
development.
▪ Employee Development and Satisfaction:
With the perspective of organizational environment, it has to foster a
positive workplace culture and high employee satisfaction with the
invest of money in employee training and development.
▪ Operational Efficiency:
With the enhancement and increase of demand PepsiCo Allows its
community to streamline operational processes to improve efficiency
and reduce costs with the implementation of new technology solutions
to enhance productivity.
▪ Brand Reputation:
As for all companies, firms and organizations they have to enhance
and protect the company's brand reputation and to build a positive
public image through effective communication and ethical practices.
By focusing on these objectives, Gatorade seeks to secure its position as a
leading player in the sports drink industry, leveraging a combination of
product excellence and strategic business initiatives.[5]
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GATORADE
SITUATIONAL ANALYSIS
In strategic management, situation analysis (or situational analysis)
refers to a collection of methods that managers use to analyze an
organization's internal and external environment to understand the
organization's capabilities, customers, and business environment.[6]
Gatorade, renowned for its sports drinks, faces a dynamic market
environment necessitating a comprehensive situational analysis. Gatorade
boasts global brand recognition deeply entrenched in the sports and
hydration sector. Renowned for its innovative prowess, the brand
continually introduces new flavors and formulations, catering to diverse
consumer tastes. Leveraging strategic partnerships with high-profile
athletes enhances Gatorade's credibility and reinforces its connection to the
athletic community.
In the intensely competitive sports drink market, Gatorade contends with
numerous brands offering similar products. The industry's evolving
landscape poses challenges, especially concerning heightened consumer
awareness of sugar content in beverages, potentially impacting Gatorade's
market share.
Diversification stands out as a promising opportunity for Gatorade.
Exploring new product lines, such as enhanced water or functional
beverages, could broaden its market reach. Additionally, capitalizing on the
health and wellness trend by developing low sugar or sugar-free alternatives
aligns with changing consumer preferences and could unlock new growth
avenues.
Changing consumer preferences towards healthier options pose a significant
threat, impacting traditional sports drink sales. The regulatory landscape is
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GATORADE
another concern; evolving health and nutrition regulations could necessitate
adjustments in formulation and marketing practices.
A pervasive trend in the industry is the rise in health consciousness among
consumers, influencing their beverage choices. This shift poses both a
challenge and an opportunity for Gatorade, necessitating a balance between
tradition and innovation. The growth of e-commerce in the retail sector
further complicates the landscape, requiring strategic adaptations in
distribution to align with changing consumer purchasing habits.
In navigating this multifaceted landscape, Gatorade must harness its
strengths in brand recognition and innovation while addressing weaknesses
by staying attuned to market trends. Exploring new opportunities and
strategically mitigating threats will be crucial for sustaining and enhancing
its position in the competitive beverage market.[7]
▪ Global Market Dynamics:
PepsiCo operates in a competitive global market, facing challenges
from rivals such as Coca-Cola and local competitors. Economic
conditions, including currency fluctuations and income levels, impact
consumer spending on non-essential goods like snacks and beverages.
▪ Consumer Trends and Health Focus:
Shifting consumer preferences towards healthier options have
influenced PepsiCo's strategy. Acquisitions like the purchase of Health
Warrior and the continued development of products like Bubly
sparkling water showcase a commitment to health-conscious choices.
▪ Sustainability Initiatives:
PepsiCo has set ambitious sustainability goals, aiming for net-zero
emissions by 2040 and replenishing more water than it uses in highwater-risk areas. Investments in eco-friendly packaging and recycling
programs demonstrate a commitment to reducing environmental
impact.[8]
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GATORADE
MARKET ANALYSIS
STRENGTHS:
Strengths represent everything that an organization is good at and
why it sets them apart from the competition. They are the internal and
positive attributes of any company.
Gatorade’s strengths are:
▪ Range of Products:
Gatorade deals in producing and distributing a range of products
including Thirst Quencher, Frost, Energy bar, protein drink and many
more which makes Gatorade one of the most strong competitors in the
sports nutrition market.
▪ Strong Distribution Channel:
The company has distribution channels in over eighty countries and
especially has created almost a monopoly in the United States controlling
around three-fourths of the market.
▪ Promotion Strategy:
The company has always invested well in the promotion of their products
and many times hired legends of various sports to advertise and have
made use of their huge fan bases.
▪ Brand Identity:
It has such a strong brand name as they have used world-class athletes to
promote their brand and win the confidence of the public. Whenever one
thinks of sports nutrition, Gatorade is a name that never fails to pop up.
▪ Gatorade Sports Science Institute:
The Gatorade Sports Science Institute is a strong asset as it has improved
its image in the eyes of the customers who are more than happy to know
the brand has strong scientific research to back up all its claims.
▪ Support of PepsiCo:
Having a stable and strong parent company PepsiCo has given a boost to
their brand and helped in development. [9]
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GATORADE
WEAKNESSES:
Weaknesses pull an organization back from performing at its best. They are
the negative internal factors that weaken business strengths.
A few drawbacks or weaknesses of Gatorade are:
▪ Minimal Visibility:
Being such a huge company more visibility is expected out of them than
they provide. They haven’t brought more to the table and are not known
for huge and extensive advertising campaigns.
▪ Benefits are Not Highlighted:
Because of the moderate level of visibility, the benefits of their products
are not well recognized. Gatorade scientifically produces and develops its
products to target conditioning and hydrations issues of athletes but these
points are not being actively advertised which has bred ignorance to the
benefits.
▪ Huge Variety of Products Creating Confusion:
The huge variety of products Gatorade has to offer has somewhat held
them back as it has been seen to confuse the customers who are only
looking for a narrow segment of sports nutrition. So many flavors and
types of products have left the customers not knowing what to choose
which has only resulted in the loss of market shares to the other
competitors. [9]
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GATORADE
OPPORTUNITIES:
Opportunities are the factors that provide an organization with a chance to
edge over others. They are the external factors that can contribute to the
success of any company.
Certain opportunities that Gatorade has:
▪ Utilizing the Young Athletes:
Gatorade has very well utilized the always popular world of sport and
used the superstars of various fields to promote their products. New
superstars are always in the making and the brand has unlimited
marketing potential to capture and keep the audience’s following of all
these young athletes.
▪ The Trend of Healthy Lifestyle:
Leading a healthy lifestyle is one of the current popular trends and this
brings in a lot of potentials for Gatorade to make use of. This allows
diversifying and expanding their portfolio to new dimensions.
▪ Social Media Presence:
Gatorade has a strong social media presence with more than 1 million
followers on Instagram. They promote their product by uploading video
clips which includes popular athletes drinking Gatorade and Gatorade is
getting sales through this strategy. This is why Gatorade should continue
increasing its social media presence.
▪ Stealing Market Share:
Having a strong parent company to support them and a powerful brand
image, “stealing” the market shares of their competitors is still a viable
option using the latest technology to present alternatives to the
competing products.
▪ R&D on Technology:
The technology market has lots of potential for Gatorade products. There
are opportunities to provide innovative and creative solutions to the
present problems in sports nutrition by using research and technology. [9]
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GATORADE
THREATS:
Threats are the factors that can affect an organization in a harmful way.
These are the external factors over which no company has control.
A couple of Gatorade’s threats are:
▪ Tough Competition:
Even Though Gatorade has built a strong brand image and has power
over the market but their competitors like PowerAde- a product of the
biggest rival, the Coca-Cola company cannot be neglected. Within the
narrow segment, the competition is cutthroat and tough.
▪ Increasing Online Business:
The recent trend of online shopping could have negative effects on
Gatorade as it is a company having huge supply chains and physical
infrastructure that could take time to quickly adjust to this new era.
▪ Fruit Juice Segment:
The new fruit juice producers also pose a threat as they are sometimes
seen as healthier options than Gatorade and if they lead in the market
then Gatorade will lose a part of market shares it will hurt Gatorade
badly.
▪ Health-Conscious People Spoiling Brand Image:
Many health-conscious people on social media and YouTube try to spoil
the brand image of Gatorade by saying that Gatorade drinks and
products are not healthy and it causes the risk to the body. Such types of
false allegations ultimately affect the brand image of Gatorade and reduce
its sales.
Above SWOT Analysis briefly mentioned is not only explain Gatorade but
shows that every renowned company have must component to analyze.[9]
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GATORADE
MARKETING MIX
PRODUCT:
The item or service being sold must satisfy a consumer's need or desire.[10]
All Gatorade products are scientifically formulated sports drinks. It
basically helps the human body rehydrate and replenish lost nutrients,
amino acid, and electrolytes to enable an active lifestyle. These energy sports
drinks are not drug administration prohibited and safe for consumption.[11]
In its early years, Gatorade offered two unique Gatorade thirst quencher
products in liquid and powder form - the orange flavors and lemon-lime.
After twenty years, the flavors "fruit punch" and "citrus cooler" (lemon juice)
was announced in 1983 and 1988, respectively.[11]
Today, Gatorade experiments openly with a wide range of products that go
beyond sports drinks, one of is Gatorade Alkaline water which is unflavored
in nature.
▪ Product Description:
The new product is "Gatorade Alkaline Water," a premium
bottled water infused with electrolytes for enhanced
hydration. It boasts a crisp and refreshing taste, making it
an ideal choice for health-conscious individuals.
▪ Product Differentiation:
Gatorade stands out with its unique blend of electrolytes
and a proprietary seven-step enhanced filtration process,
ensuring purity and quality unmatched by competitors.
▪ Product Life Cycle:
Gatorade is in the introduction stage, aiming to create
awareness and establish a strong market presence.
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PRICE:
An item should be sold at the right price for consumer expectations, neither
too low nor too high.[10]
Gatorade used lower prices while entering the market, but today,
compared to its competitors, it's priced at a premium. Further entry of new
competitors in the sports drink category has made Gatorade slash its prices
to maintain its market share.[11]
First, we will analysis for the consumer market and whether they are willing
to pay that amount for Gatorade water. Gatorade water use competitive
pricing policies to attract border consumer’s market. Since Gatorade
marketing strategy also involves good diversification, its other products are
still priced at a premium, but still less that the market leaders in those
industries.[11]
The cost gets determined by taking into consideration various factors like
cost of labor, production, raw material, packaging, transport, competition
products etc.
▪ Pricing Strategy:
Adopting a value-based pricing strategy, Gatorade Alkaline water is
priced at $2.99 per 1-liter bottle, reflecting the premium quality and
benefits it offers.
▪ Price Points:
The product is also available in a 700ml sport cap bottle at $1.99 and a
700ml six-pack priced at $10.99, providing options for different
consumer preferences.
▪ Discounts and Promotions:
An initial promotional offer includes a 10% discount on the first
purchase for early adopters, encouraging trial.
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GATORADE
PLACE:
The location where the product can be purchased is important for
optimizing sales.[10]
PepsiCo uses its own extensive distribution strategy and network,
making Gatorade available to 80 different countries worldwide. Gatorade's
products are also available across all major online eCommerce platforms like
Walmart, Amazon, etc. These sports drinks have a good offline presence in
grocery stores, malls, pharmacies, gas stations, vending machines, cafeterias,
offices, gyms, etc. [11]
The PepsiCo advantage also means presence across the globe including the
US, Asia, Australia, Europe, South America, etc. Some outlets like the GNC
provides the goods of Gatorade for the easy access to everybody. It also
delivers products through flights, trucks, vans, etc. to various sports and
educational organizations. [11]
▪ Distribution Channels:
Gatorade Alkaline water will be available through various distribution
channels, including major supermarkets, health food stores, and
online platforms.
▪ Geographic Reach:
Initially launching in major metropolitan areas, with plans for
nationwide distribution within the first six months.
▪ Inventory and Logistics:
A strategic partnership with a logistics company ensures efficient
inventory management and timely delivery to retail locations.
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PROMOTION:
The public needs to be informed about the product and its features to
understand how it fills their needs or desires.[10]
Gatorade actively gets featured in many publications like the Miami Herald
and Sports Illustrated. It is active in the sports community and pushes its
product lines across wherever any relevant athletic events are taking
place.[11]
Today, Gatorade is the official sports drink partner for a variety of
organizations like the NFL, NBA, USA Basketball, Indian Super League,
Association of Volleyball Professionals, etc. Gatorade also partnered with
the Indian super league in 2018.[11]
▪ Marketing Communication:
The promotional campaign emphasizes the benefits of Gatorade,
positioning it as the go-to choice for those seeking optimal hydration
with added electrolytes.
▪ Advertising Channels:
A multi-channel approach includes digital marketing on social media
platforms, sponsored health and wellness blogs, and television
commercials during prime time slots.
▪ Sales Promotions:
Seasonal promotions feature limited-edition packaging and discounts
for bulk purchases, encouraging consumers to stock up.
▪ Public Relations:
Collaborations with fitness influencers and health experts generate
positive media coverage. Gatorade sponsors local fitness events and
wellness seminars to build brand credibility.
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GATORADE
TARGET MARKETING ANALYSIS
SEGMENTATION
Segmenting means identifying and classifying consumers into categories
called segments.[12]
Type of
segmentation
Geographic
Segmentation
criteria
Region
Density
Age
Gender
Life-cycle stage
Demographic
Income
Occupation
Degree of loyalty
Benefits sought
Behavioral
Personality
User status
Social class
Psychographic
Lifestyle
Gatorade’s target segment
Domestic/international
Urban/Suburban
15-45
Males & Females
Active individuals and health-conscious
consumers
Middle to high-income earners who
prioritize health and wellness
Professionals, athletes, and individuals
with active lifestyles.
‘Hard core loyals’ and ‘Soft core loyals’
neutralizing acidity, potential antioxidant
properties, and claims of improved
hydration and digestive health.
Energetic, health-conscious, and
environmentally conscious individuals.
Regular users of sports drinks or alkaline
water, especially during physical activities.
Working class, middle class and upper
class
People leading active lifestyles, including
fitness enthusiasts, athletes, and those
committed to overall wellness.
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TARGETING
Targeting identifies the most attractive segments, usually the ones most
profitable for the business.[13]
Targeting strategy is used by the companies to understand that whether to
have the same product for all consumers or different products for different
customer segments. Gatorade uses differentiated targeting strategy so as to
understand the customer groups and their taste & preferences.[14]
Athletes, sports teams, fitness lovers, and anyone looking to improve their
performance while exercising are among its target demographics. Gatorade
markets itself as a sports beverage that improves physical performance,
helps with hydration, and restores electrolytes lost during
▪ Chosen Target Segment:
Fitness enthusiasts and active individuals who prioritize health and
wellness.
▪ Rationale for Targeting:
Gatorade aims to leverage its existing brand strength in the sports and
wellness industry to capture a segment seeking a premium alkaline
water product.
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POSITIONING
Positioning proposes distinctive competitive advantages for each
segment.[15]
Positioning helps in understanding where the brand stands in the mind of
the consumer. Gatorade has 46 % market share worldwide in the sports
drink market and Gatorade made it possible due to its value-based
positioning strategies.[14]
The positioning strategy usually has objective to cover the niche for
companies new product, alike Gatorade’s Alkaline Water in the market.
They are positioned as a trusted, premium and innovative hydration choice,
their new product is now differentiate itself with not only beverages but also
with water companies. It seems that Gatorade leverages its positive brand
image to position Alkaline Water because of its Essential companion for
everyday hydration.
Gatorade’s actual goal is to create a completely distinct image Infront of
consumers, associating Gatorade with holistic wellness beyond athletic and
sports performance.
▪ Unique Selling Proposition (USP):
Gatorade Alkaline Water offers the perfect balance of enhanced
hydration with electrolytes, leveraging Gatorade's expertise in sports
nutrition.
▪ Brand Image:
Gatorade Alkaline Water positions itself as the go-to choice for
individuals leading active lifestyles, emphasizing purity, quality, and
the trusted Gatorade brand.
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MARKETING STRATEGIES & ACTUAL PLANS
Marketing strategy is an organization's promotional efforts to allocate
its resources across a wide range of platforms, and channels to increase its
sales and achieve sustainable competitive advantage within its
corresponding market.[16]
Strategic Marketing is the way a firm effectively differentiates itself from its
competitors by capitalizing on its strengths (both current and potential) to
provide consistently better value to customers than its competitors.[17]
Marketing strategy and marketing mix are related elements of a
comprehensive marketing plan. While marketing strategy is aligned with
setting the direction of a company or product/service line, the marketing
mix is majorly tactical in nature and is employed to carry out the overall
marketing strategy. The 4P's of the marketing mix (Price, Product, Place, and
Promotion) represent the tools that marketers can leverage while defining
their marketing strategy to create a marketing plan.[18]
Gatorade allows PepsiCo faucets into the area of interest beverage segment
of sports beverages. Such preparations simplify your marketing approach
and logo-constructing efforts since they facilitate your awareness deeply on
a set goal purchaser and their expectancies.
Modifications in your commercial enterprise ought to be prompted via your
customers. Preserving a focal point in your clients at the same time as
adjusting to marketplace traits is important. Selecting a gap becomes smooth
as you analyze more about your goal demographic than just the facts.
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“A good acquisition can take a brand to immense success”
Gatorade could scale immensely due to the strong distribution network of
PepsiCo. For any retail business, the execution of a good distribution
strategy is key to successfully reaching the masses. PepsiCo has fueled
Gatorade to new heights with more than 70% market share, from releasing
new products, investing in nutrition research, and sponsoring campaigns.[ 11]
Marketing strategies of refreshing drinks seem to almost always swim
around the association with certain life events, periods, and celebrations.
Gatorade drove through one of the most exciting and outstanding paths:
sports. American football, basketball, tennis, soccer; the list goes on and on,
with marketing campaigns featuring top athletes from all over the world. To
uncover the story of conquering the world of sports let’s go through some of
the previous marketing strategies applied by Gatorade set as an example
1.
Gatorade Sports Science Institute:
Gatorade Sports Science Institute
(GSSI) was started in 1985 to use
scientific research in the nutrition
science space to enable athletic
performance. Gatorade has partnered
with various universities across
continents to offer research grants to
students for supporting research and
development in the area of athletic
nutrition. Its dedicated electrolyte division researches improving the
product lines across thirst quenchers, adding flavors, etc.[11]
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2.
The Gatorade Shower is a free sports advertising:
After witnessing the spontaneous Gatorade Shower, Bill Schmidt,
former vice-president of worldwide sports marketing at Gatorade,
apparently said, “I think I’ve died and gone to heaven.”. Gatorade
Shower is a viral dream come true: Product placement is clear. The
action is memorable. The reaction is worth sharing.
According to Darren Rovell's book
First in Thirst: How Gatorade Turned
the Science of Sweat into a Cultural
Phenomenon, New York Giants
football player Jim Burt came up with
the Gatorade Shower as a prank
against head coach Bill Parcells while
they were struggling during the 1985
season. Before a midseason game
against the Washington Redskins, Burt
dumped a cooler full of Gatorade on
Parcells. But linebacker Harry Carson
was the one who kept up the Gatorade
Shower as a tradition, all the way to the
1986 Super Bowl championship
season.
Gatorade hadn’t paid a direct cent for what turned out to be a
longstanding sports tradition that persists today. The brand initially
sent Burt and Parcells $1,000 Brooks Brothers gift certificates as a show
of gratitude, but they eventually developed formal endorsement deals
for Parcells and Carson, worth $120,000 and $20,000, respectively.[19]
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3.
The greatest never-settled TV ads:
The Greatest Never Settle was Gatorade's worldwide advertising
campaign in 2021. It emphasizes the brand's ongoing commitment to
supporting the next generation of athletes on their path to greatness.
This includes many famous athletes like Serena
Williams, Lionel Messi, Gabriel Jesus, etc., and
was a wide success. It was widely played in TV
ads, screenings, sports events, and many other
placement channels.
Gatorade turned their campaign's objective to
motivate today's athletes and spread the
message that, regardless of how excellent you
are, you have the potential to be even more
incredible tomorrow. Therefore, settling cannot
be an option on the road to greatness.[11]
Many athletes, including Derek Jeter, Dwight Howard, Mia Hamm, Dwayne
Wade, Tiger Woods, Serena Williams, Michael Jordon, Vince Carter, etc.
have worked with the Gatorade brand across many marketing campaigns.
This includes how in 1991, Gatorade turned to Michael Jordan for a 10-year
endorsement deal, averaging USD 1.4 million dollars annually.[11]
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MARKETING STRATEGIES OF GATORADE FOR
GATORADE ALKALINE WATER BOTTLE
Gatorade has conquered the market with its effective and innovative
marketing strategies. From captivating advertisements to strategic
partnerships, Gatorade has consistently leveraged its brand identity to
engage athletes, fuel their performance, and establish itself as the go-to
sports hydration solution.
1.
High-Profile Athlete Endorsements:
The Endorsement strategy of Gatorade is a real marketing success
hence now for its new Gatorade Alkaline water this strategy is also
being followed. It involves partnering and collaborating with highprofile athletes across various sports legends such as Serena Williams,
Michael Jordan, Usain Bolt, Steph Curry, Willie Mays, Jackie Robinson,
Pele, Tony Hawk, Carl Lewis, Wayne Gretzky, Jim Brown, Dale
Earnhardt Sr.
Gatorade tries its best to convey and
communicate effectively its message that the
product is trusted and endorsed by the best in
the globe. These endorsements with legends not
only build Gatorade’s Alkaline water bottle
product but also brand credibility by inspiring
aspiring athletes to associate themselves with
the brand’s winning image.
2.
Teaser Campaign:
Teaser Campaign is the marketing strategy that Gatorade always first
to create suspense. For the Alkaline water, Gatorade also uses a teaser
campaign as a pre-launch appearance to create anticipation and
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generate interest. It involves social media trailers, advertisements, and
attractive content to spark the curiosity of the audience.
Gatorade’s first goal for its new product is to create a buzz in the
market and set the stage for the official launch.
3.
Compelling Advertising Campaigns:
A compelling advertising campaign needs a strong Unique Selling
Proposition and Gatorade has already Identified what sets its brand
apart from the competition and crafted a clear and compelling message
around it.
Gatorade has persistently delivered impactful advertising campaigns
that have captured the spirit of athleticism and inspired consumers
with retention. With the parenting, PepsiCo Gatorade’s
advertisements often visualized intense training montages, classical
and dramatic narratives, and inspirational and motivational messages
that clearly resonate with athletes at all levels.
Using these emotionally charged campaigns, Gatorade has created a
strong emotional connection with its target audience, motivating them
to select Gatorade as their trusted brand for performance and
hydration.
4.
Emphasis on Health Benefits and Innovation:
Gatorade’s actual purpose behind introducing this new product is
only to provide health benefits and bring innovation into its form. Key
messaging highlights the electrolyte infusion, the crisp taste, and the
seven-step filtration process.
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It will show the fully innovative features of the product, such as added
alkalinity which indirectly means a higher PH level, for the healthconscious consumers who usually consume sports drinks and other
beverages and water as ultimate demand.
Gatorade provides the ultimate hydration solution for those athletes
and sports persons who are striving for excellence in their athletic
pursuits. It will continue to inspire and fuel athletes.
5.
Sports Event Sponsorships:
For Alkaline water bottle marketing Gatorade uses a sports event
sponsorship marketing strategy that includes strategic collaboration,
partnership, and sponsorships of major sports events and leagues.
In the past, Gatorade had aligned with highprofile sporting occasions like the Super
Bowl, NBA Finals, and FIFA World Cup, for
the maximization of its visibility and
exposure to a global audience.
But now Gatorade uses upcoming sports
events like the Africa Cup of Nations,
Super Bowl LVIII, FIS Alpine Ski World
Cup Finals, The Masters, Monaco
Grand Prix, UEFA Euro 2024, Summer
Olympics,
and
World
Rowing
Championships.
These sponsorships of events and leagues enable Gatorade to connect
itself with the excitement of energy of these events, reinforcing its
position among audience or consumers.
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6.
Multi-Channel Advertising:
Multi-channel advertising is a compulsory component of marketing
strategy hence Gatorade doesn't lag behind in this area because this
advertising approach is very comprehensive, with traditional media,
spanning digital and social platforms, and in-store displays.
Gatorade will start advertising online videos, social media campaigns,
and interactive content sharing. In the list of traditional media, it
follows marketing tactics on television, and radio spots, while in-store
displays at malls will capture the attention of consumers.
Using all this the message emphasizes innovation, health benefits, and
the unmatched or seamless integration of the new Gatorade Alkaline
Water bottle into our daily routines.
7.
Social Media Engagement and Influencer Marketing:
Social media is the best marketing place nowadays that’s why
Gatorade always includes this in its marketing strategies to actively
engage with its audience. It has maintained a strong presence on
platforms like Instagram, Twitter, Facebook, and YouTube where it
shares engaging content, real stories of athletes, and behind-the-scenes
shoots.
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It uses collaboration with popular social media influencers and
athletes, which benefits them to create awareness and appearance of
its new product i.e. Gatorade alkaline water. Engaging with their
followers and brand consumers, thereby expanding its influence in the
digital world.
8.
Brand Ambassadors and Grassroots Marketing:
Crafting its own grassroots marketing creatively and making brand
ambassadors in local communities including sports institutions are the
best marketing strategies that Gatorade has applied since its birth.
For its new product Alkaline water, Gatorade also does this and
utilizes this strategy wisely by establishing relationships with local
sports teams, schools, and athletic communities.
Gatorade appoints brand ambassadors, who have high PR and are
often influential figures to organize events and promote its new
product among respective sports people or local communities. this
strategy helps to connect with sports persons and athletes at a personal
level and foster brand loyalty from the root.
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BUDGET
Marketing spending is an organization's total expenditure on marketing
activities. This typically includes advertising and non-price promotion. It
sometimes includes sales force spending and may also include price
promotions. In a survey of nearly 200 senior marketing managers, 52 percent
responded that they found the "marketing spending" metric very useful.[20]
Concerning the ultimate requirement of marketing activities and spending,
Gatorade has to allocate a budget for the above-written marketing strategies
to come into action and its new product among the masses.
Before allocating a budget for a new product let’s analyze the statics of the
previous allocation for better analysis and wise distribution of
assets/money.
PREVIOUS BRAND ADVERTISING BUDGET AND HOW
THEY ALLOCATED
1.
According to an article on Pepsi-Co, they had increased their
advertising spending by approximately 30% overall. $60 million dollars was
spent on product placement in Simon Cowell's music competition X Factor.
According to another Article in Ad Age in 2012 they had added millions of
dollars to their advertising budget. in order to compensate for that budget,
they laid off thousands of employees.
they recently announced that they are spending $500-$600 million dollars
more to advertise the PepsiCo and its Co brands.
for the sake of allocation, up to $100 million dollars was allocated toward instore displays. Approximately $113 million dollars were spent on measure
media in 2010 and in 2004 they were said to have spent $141.6 million dollars
for Gatorade's marketing alone.[21]
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GATORADE
2.
Gatorade has been allotted a solid budget from PepsiCo in the prerecession era.
Media spending for Gatorade in 2007 was $137,246,600 and $75,611,800 in
2008. however, for the first three quarters of 2009, spending was $42,869,900
with 50% used for network television, 27% spent on other television (cable,
spot, syndicated), and approximately 18% used for magazine advertising.
seeing that marketing costs are one of the initial functions companies cut
back during a slow economy, the total proposed budget for 2010 will be
approximately $145 million, with a media spending budget of $100 million
following a somewhat similar breakdown from 2009. Although it is an
increase from the $42 million as of the third quarter last year, it is imperative
for Gatorade’s
the long-term success that more money is invested in order to clearly explain
the G campaign and that it is synonymous with Gatorade.
Also, sufficient funds have to be set aside for the actual consumer research
and subsequent production of the advertisements. Additionally, extra,
miscellaneous costs have to be accounted for in the contingency fund for
which we have set aside $5 million.
therefore, we believe that we have allocated enough funds to allow for an
efficient and effective execution of this campaign.[22]
Research and
Production, $10.00
Contingency Fund,
$5.00
Promotional Material
and Merchandise,
$10.00
Media Spending
Endorsement Conracts
Endorsement
Conracts, $20.00
Promotional Material and
Merchandise
Media Spending,
$100.00
Research and Production
Contingency Fund
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GATORADE
MARKETING BUDGET FOR NEW GATORADE ALKALINE
WATER
1.
ALLOCATION:
Gatorade always allocates its marketing budget strategically and ensure the
success of many multi-channel campaign and events. For all the above
marketing strategies Gatorade has allocated a certain required percent of
money which is advised by our marketing, budget, and analytical heads. A
substantial portion is earmarked for distributions, influencers, Digital
advertising, collaborations and sponsorships, and in-store displays.
The budget will be adjusted by continuous monitoring of campaign
performances to ensure optimal resource allocation based on real-time
statistics.
$10 million budget for the first year of
Gatorade Alkaline Water launch
10%
Distribution
30%
15%
Digital Marketing
In-Store Promotions
Influencer Collaborations
Research and Development
20%
25%
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▪
Distribution (30%): Gatorade will ensure the new product is
available in key locations, covering logistics, shelf placements, and
partnerships. Which is core for any new product in the market.
▪
Digital Marketing (25%): Gatorade will Invest in targeted online
advertisements, influencer collaborations, and social media
campaigns. Social media platforms come in this category and all the
expenses are borne from that part.
▪
In-Store Promotions (20%): It will Allocate certain funds for creating
visually appealing in-store displays, promotional events, and
product demonstrations. This will be very helpful and allow
consumers to purchase products in real-time.
▪
Influencer Collaborations (15%): Gatorade will Engage influencers
and athletes for authentic endorsements and collaborative content.
Some of the athletes already had an agreement with Gatorade and
new contracts will be signed.
▪
Research and Development (10%): Gatorade will check the
response of consumers and Set aside funds for continuous product
improvement and innovation. Demands of consumers will try to
make sure, they have still trust in the brand.
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2.
MONITORING & ADJUSTMENTS:
Gatorade will ensure that the marketing team is employing analytical tools
for the monitoring of the performance of each channel. By using Key
performance indicators which include Brand sentiment analysis, surveys,
consumer engagement metrics, and conversion rates.
For the sake of adjustment of budget and utilization of resources will be
continuous adjustment by making effectiveness of each channel, maximizing
the return of investments, and also allowing for agile decision-making.
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GATORADE
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5
6
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