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10 Step Marketing Plan (Gatorade)
1. The 10 Step Marketing Plan
for Gatorade
Belinda Anne Tamayo
March 2012
http://beltamayo.blogspot.com
2. Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria‟s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.
http://beltamayo.blogspot.com
3. Steps 1 to 5
5 Steps for Part 1
(PTM and Positioning)
1. Gatorade‟s PTM are young adults (18-25) with an
“active lifestyle”
2. Who always wants to feel refreshed and energized
3. Can choose between Powerade, Pocari Sweat, and
other energy drinks
4. Gap is that the other brands and type of drinks
only focus on hydration and providing electrolytes
5. The market size of the Sports Drink Industry is
USD 7 billion
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4. Steps 6 to 10
5 Steps for Part 2
(Marketing Mix and Strategy)
6. Sports Drink that increase endurance, sustain
energy, break physical limit, and make winners out
of athletes
7. Gatorade‟s price is higher by 20% compared to
Powerade but lower by 8% compared to Pocari
Sweat
8. Gatorade uses TV Ads, Print Ads, Campaigns, and
Sponsorships of sporting events
9. Gatorade is distributed worldwide
10. Uses niche approach to win
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5. 1. The Primary Target Market
of Gatorade is:
Young Adults aged 18 – 25, social class ABC, single
They can be students, just starting their career, or well-
established, regardless of status the majority of them believe they are
athletic.
They grew up idolizing many different sports athletes and teams, which still
have an influence.
Their attitudes can vary a little, but most of them are competitive, care
about sports and enjoy their perspective athletic endeavors.
Drinks the 8 fl oz. before, during, or after an activity, demand a thirst
quenching drink that can prevent dehydration during the activity
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6. 2. Gatorade PTM’s
needs, wants & demands
Needs: The active youth needs to feel healthy and always hydrated. They
value the need to always provide liquids in their bodies. They need a
drink that could quench their thirst.
Wants: The active youth choose Gatorade over other sports drinks because it
provides several varieties of flavor that they can choose from. It is easily
accessible – it can be found in almost all groceries and mini-stop stores. It
has great taste and it is endorsed by several well-known athletes
such as Dwight Howard, Vince Carter, Tiger Woods, Mia Hamm, Serena
Williams, Michael Jordan, Dwayne Wade, and Misty May-Treanor.
Demands: The active youth demands that when they drink Gatorade, they
would feel very rehydrated and like the taste. They will be able to stay
active and competitive for longer periods of time and will feel very
energized. They will stay healthy and active – thus always remain
feeling young and athletic.
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7. Gatorades PTM’s needs
Self-Actualization
Needs
(Self-Development
I am a winner athlete! & Realization)
I am active and healthy!
Esteem Needs
(Recognition, Statu
s)
I want to be a great athlete
just like Jordan or Serena. Social Needs (sense of
belonging, love)
Safety Needs (security, protection)
I need to quench my thirst Physiological needs (food, water, shelter)
Reference: Maslow‟s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler
http://beltamayo.blogspot.com 7
8. 3a. Competitors of Gatorade
Direct: Powerade, Pocari Sweat
Indirect: Energy Drinks (Red
Bull, Cobra, Samurai, Bacchus), Isotonic Drinks
(100 Plus), Flavored Water
(Vitwater), Tea/Flavored Drinks (C2, Real Leaf, Fit
n‟ Right, One Tea)
Variables:
Price, Packaging, Availability, Taste, Lifestyle, B
rand, Variants, Health benefits, Occasion of
use
http://beltamayo.blogspot.com
11. 4. Gatorade positions strongly
in the market
Gatorade is the only sports drink:
- That emphasizes on thirst quenching and performance enhancement
- Is the only sports drink that provides before, during, and after activity specific
series of drinks (G Series)
- Promotes credibility of their product through product endorsements of “winner”
athletes
- For the youth who yearns to be “winning athletes”
Powerade is trying to copy the position of Gatorade however Gatorade is more
credible through choosing the right mix of celebrity endorsers and through the
founded Gatorade Sports Science Institute
Most energy drinks just focus on having electrolytes and ions to replenish
dehydration
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12. 5a. The sports drink industry is
estimate at 7 Billion in sales
http://www.investorplace.com/2011/11/pepsi-gatorade-pep-sports-nutrition-market/
http://beltamayo.blogspot.com
13. 5b. Gatorade’s sales were
estimated to be USD 2.4 billion
http://www.bevindustry.com/articles/84828-sports-drink-sales-get-into-shape
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14. 5b. Gatorade’s Market Share
is estimated to be 77.2%
http://www.huffingtonpost.com/2009/04/14/pepsi-suing-cocacola-over_n_186709.html
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15. Based on company data, the
estimated Sports Drink Market
size is USD 3.1 billion
Gatorade‟s sales is USD 2.4 billion
The market share of Gatorade is 77.2%
Total Sports Drink Industry based on
the data given is:
USD 2.4 billion/ 0.772 = USD 3.1
billion
16. 5c. Consumer data of Sports
Drink Usage
Sports Drink Usage
There are around 55 million American who
exercise 3 times a week or more and would
consumer at least 1 sports drink
55 million x 3 x 52 weeks x USD 1.49 (on
average) = USD 13 billion
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17. 5. The market size of the Sports
Drink Industry is USD 7 Billion
1. Competitor data= USD 7 Billion
2. Company data = USD 3.1 Billion
3. Customer Usage data = USD 13 Billion
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19. 6a. Direct and Indirect
Competitors
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20. 6b. What are the attributes
of Gatorade?
„Gatorade‟ helps to put back lost electrolytes, such as
sodium, potassium and chloride.
Stimulates thirst so you can maintain hydrated
Gives essential fluids athletics need when it matter
most.
Gives working muscles the energy they need to enhance
athletic performance
Nothing rehydrates replenishes and refuels an athlete
better than Gatorade.
http://beltamayo.blogspot.com
21. 6b. What’s so special
about Gatorade?
Has a 6% carbohydrate solution, optimal amount to give
working muscles the energy they need.
New and different series that can cater to your need: G
Series, G Series Pro, G Fit, G Natural
No other sports drink is absorbed faster than Gatorade.
Not even water
The new and improved Gatorade has now lower calories
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22. 8a. Gatorade uses a varity of
marketing communications
strategies
4
1
3
2
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35. 9. Gatorade is distributed
nationwide through Pepsi Co.
Groceries, supermarkets (SM
Hypermarket, Shopwise, Rustan‟s, S&R)
Convenient Stores, Market Stalls
Drug Stores, Mini-stops, 7 Eleven, etc.
http://beltamayo.blogspot.com
36. 10. Gatorade wins it!
Gatorade‟s main strategy is to dominate the niche
market of 18-25 years old who has an active
lifestyle
Gatorade‟s PTM are very well defined therefore their
marketing campaigns are very effective. Their use
of winning athletes makes their brand very credible
to their consumers. It is also easily accessible to
their consumers nationwide.
http://beltamayo.blogspot.com
38. Steps 1 to 5
5 Steps for Part 1
(PTM and Positioning)
1. Gatorade‟s PTM are young adults (18-25) with an
“active lifestyle”
2. Who always wants to feel refreshed and energized
3. Can choose between Powerade, Pocari Sweat, and
other energy drinks
4. Gap is that the other brands and type of drinks
only focus on hydration and providing electrolytes
5. The market size of the Sports Drink Industry is
USD 7 billion
http://beltamayo.blogspot.com
39. Steps 6 to 10
5 Steps for Part 2
(Marketing Mix and Strategy)
6. Sports Drink that increase endurance, sustain
energy, break physical limit, and make winners out
of athletes
7. Gatorade‟s price is higher by 20% compared to
Powerade but lower by 8% compared to Pocari
Sweat
8. Gatorade uses TV Ads, Print Ads, Campaigns, and
Sponsorships of sporting events
9. Gatorade is distributed worldwide
10. Uses niche approach to win
http://beltamayo.blogspot.com
