SENECA COLLEGE OF APPLIED ARTS AND TECHNOLOGY
SCHOOL OF MARKETING AND E-BUSINESS
TERM TEST #2 – Version 1
Semester
WINTER 2006
Subject
INTEGRATED MARKETING
COMMUNICATIONS I
Code
MRK317
STUDENT NAME:
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STUDENT I.D. #:
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CLASS SECTION:
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DATE:
April 2006
TIME ALLOWED:
2 periods
VALUE:
15% of final grade
INSTRUCTIONS
PART A:
Case Study
Answer all questions in the space provided
TOTAL:
70 marks
70 marks
PROFESSOR:
Marianne Marando
APPROVED BY:
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Angela Zigras, School of Marketing and eBusiness
Page 1
Part 1: 50 marks total – Answer all questions in the space provided
All of the questions pertain to the case, attached.
Gatorade would like to develop an IMC strategy and they have asked for your help.
1.
Devise a brief Direct Response Strategy for Gatorade. (15 marks) Include:
a. Which direct response methods should Gatorade use and why?
b. Choose one of the methods above and discuss the three variables of direct
response and how you would use them for Gatorade.
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Page 2
2.
Devise an online/interactive plan for Gatorade. Which online communications would
you use and why. (10 marks)
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Page 3
3.
Devise a sales promotion plan for Gatorade. Discuss all aspects of your plan in detail
and why this plan will be effective for Gatorade. (15 marks)
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Page 4
4.
How could Gatorade use public relations? Discuss one public relations strategy that
you would use and how you would use it. (10 marks)
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Page 5
5.
How could Gatorade use event marketing or sponsorship? Discuss one strategy that
you would use for Gatorade and how you would use it. (10 marks)
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Page 6
6.
We discussed four main categories of advertising regulations in Canada. Which
would be relevant for Gatorade and how would they impact Gatorade? (10 marks)
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Page 7
Gatorade Case Study
Sports drinks are not only for athletes anymore! Visit any hockey rink in Canada on a
Saturday afternoon and the arena will be littered with empty bottles of sports drinks. The
sports drink market in Canada is a $2.5 billion market and is growing at a rate of 20% per
year.
Gatorade (owned by PepsiCo) currently enjoys a huge 80-plus market share. However, the
market domination enjoyed by Gatorade is at risk as other players like Powerade fight to
own a piece of this lucrative market. Powerade currently holds about 15% of the market,
but with sales growth of 15% to 20% per year – Gatorade’s domination could be a risk.
Gatorade is positioned as “the drink for sweaty male athletes that want to maximize their
performance when playing sports”. Of course, not only athletes drink it. It is sold in
grocery stores and drug stores.
In the past, Gatorade has made extensive use of advertising – hiring NHL hockey stars like
Todd Bertuzzi of the Vancouver Canucks and Sidney Crosby of the Pittsburg Penguins to be
in commercials which are aired during NHL games. Most of their advertising is television
advertising. The ads show NHL athletes drinking Gatorade to help their performance. The
ads describe the benefits of drinking Gatorade and try to convince people that they can
perform at their best and be “super athletes” if they drink Gatorade instead of Powerade
(although Powerade is never actually mentioned in the ads).
Last year, Gatorade also gave away 18,000 promotional CD-ROMS to peoples visiting its
Thirst Patrol vans at sporting events across Canada. The CD targeted teens and males aged
18-24 and included music and information on extreme sports. Finally, in conjunction with
the World Cup of Hockey, Gatorade ran a contest where sports fans had a chance to win $1
million. Fans were sent to Gatorade.ca and predict the time Canada scores the winning goal
in each game of the World Cup.
All of these IMC strategies have helped Gatorade reach the level it has reached, however,
Powerade keeps growing and is creeping up on Gatorade. They want some innovative IMC
strategies to help them fight off Gatorade.
Page 8