Analysis of the Marketing Mix for Gatorade
Introduction
Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.
Analysis and Recommendations of Gatorade's Marketing Mix
Starting with product, Gatorade's core strength is the advanced research & development dedicated to the mix of electrolytes, advanced minerals and ingredients that when combined create a highly effective and differentiated beverage. Since the initial discovery of Gatorade, the company has continually invested in the core intellectual property of the ingredient mix to branch into adjoining
Powerade and Gatorade are two very successful companies; in some ways, they?re alike and in other areas, they are very different. To compare and contrast these companies, we?re going to look at a television commercial advertising they?ve each produced. Each of these commercials involve basketball as their sporting backdrop, but more importantly, both commercials utilize the rhetorical triangle: Ethnos, Pathos, and Logic. These three things are used to persuade the audience.
Gatorade also targets average citizens who are physically active. During commercial breaks, Gatorade is always broadcasting their product, not only is Gatorade advertised on television, but they also advertise their products on the sidelines of professional sports teams by having large jugs and Gatorade cups on the sideline that is often shown during timeouts. As result, Gatorade advertisement is a success, because when going to buy a sports drink they’re going to remember that Dwayne Wade or whoever their favorite professional athlete drinks
Gatorade is a company that has been making sports drinks since 1965. In 2001, they eventually branched off into making other sports nutrition products like energy drinks, energy bars, and nutrition shakes. Some of the company’s newest products include energy fruit chews. Gatorade advertisements reach millions of Americans every day, which undoubtedly increases their sales. My analysis will focus on a Gatorade ad featuring Dwayne Wade.
Gatorade is a sports drink that is used to put electrolytes back into an athlete’s body after a long workout. Athletic trainers, for most sports teams, make two ten-gallon coolers full of Gatorade for the athletes after practice. To make Gatorade in a ten-gallon cooler you will need, a ten gallon cooler, 30 ounces of Gatorade powder, a long spoon or Gatorade stirrer, water, and ice.
Have you ever gotten a sports drink instead of a soda thinking you were choosing a healthier option? Well this might change your perspective. Powerade and Gatorade are just watered down soda; yes, it gives you electrolytes which is what you lose when you sweat, but that does not mean it is good for you. There are many other healthier ways of getting electrolytes than by just drinking a sugar drink. In the Powerade article written by the company does not argue about how water is not helpful to athletes and does not have the opposing argument. Although the gatorade article written by David R. Lamb they make it more persuasive than informational.
Now that I have analyzed Gatorade’s main competition, found the research on my target market, and come to terms on the strategies I am going to use, I can now bring it all together to create a new e-marketing strategy that will give Gatorade with a new online presence, and that will give them the tools they need to present themselves with a fresh start in the marketing world. Having tasks and a timetable is really important when creating a new marketing plan because it allows a company to stay motivated and focused on making sure they are giving the company a chance at success (Johnson, n.d.). That is why with this plan I will have a 5-10 year plan attached to it because I feel that the short-term goals will help Gatorade increase employee production and that will ultimately increase Gatorade’s profit and market share. The short-term tasks of this plan include; having at least 1 million followers on all are social media outlets in 2-3 years or less from when this plan is integrated and a 65-70 percent customer participation rating in all Gatorade’s contests and discussions on their social media outlets in 3-5 years. I focused on the social media aspect for the plan’s short-term goals because I feel that having Gatorade focus on customer involvement and interaction will help the company grow now and 20 years from now when the world is even more technological.
The Gatorade Company is mainly concerned with the manufacture and distribution of sporting equipment for commercial and domestic uses based on their knowledge of the best industry practices for the production of sporting equipment. The primary agenda of this market plan is for it to work as a strategy to guide the company on how to supply the customers of Gatorade with quality yet affordable products. This brand of sporting equipment will be produced and supplied in many different designs and colors that will be appropriate for both genders. Approximately half of the clients of the Gatorade brand, range between the ages of 18-34.These clients are ardent customers as they make the most purchases and are the company’s primary target. Gatorade sporting equipment are purchased more by those who dwell in the Northeast regions and Midwestern parts of the United States. This market plan focusses on the introduction of a range of Gatorade environmentally friendly brand of sporting equipment into the United States market.
Gatorade has emerged as the global leader in sports nutrition beverages by continually managing their brand to signify high energy, athletic excellence combine with one of the most efficient new product development and introduced processes in the beverage industry. As a result of being able to consistently synchronize these many components of their business so well, Gatorade today holds a 75% market share in the sports nutrition market globally today. Gatorade is owned by PepsiCo, which has made it possible for the company to sell in 80 countries today. Gatorade relies heavily on the PepsiCo distribution and retail network globally. Gatorades' revolutionary approach to managing branding for beverages has served to increase the total market size for this product category globally (Huang, Sarigöllü, 2012). Despite the continued widespread adoption of Gatorade as a healthy energy drink, the company has encountered resistance to its brand and the ingredients used for creating the many variations of Gatorade energy drinks (Tallon, 2009). Despite these setbacks the Gatorade brand continues to experience exceptional growth and stability over time.
Dr. Pepper/Seven Up, Inc. is the company which produces the brand Squirt. “Squirt is a caffeine-free, low sodium carbonated soft drink brand with a distinctive blend of grapefruit juices that gives it a tangy, fresh citrus taste. Squirt is the best selling carbonated grapefruit soft drink brand in the U.S.” (Kerin and Peterson, 2010) Kate Cox, the brand manager responsible for Squirt believes that market targeting and product positioning are key elements in Squirt’s advertising and promotional plan development. This case study will provide a summary and analysis of Dr. Pepper/Seven Up, Inc.’s options and the examination into the company’s strengths, weaknesses, threats, and opportunities.
Nike will have a number of different marketing objectives for their isotonic sports drink, Nike Go. A main market objective will be to establish the isotonic drink as the most credible sports drink in the market. This will not just happen though, this can only happen through a lot of promotion and appeal. Creating strong consumer awareness is very important in gaining market share as it is a completely new product from Nike. This can be done through promoting the product, Nike Go, and allowing consumers to become aware that Nike has this new product. In order to establish brand recognition, there needs to be a capture of market shares in the sports drink segment. This will mean the product, Nike Go, will be well known
Sports marketing are one of the most vital uses in the field of marketing nowadays. Many companies have a trend to use sports and sports celebrity in developing their marketing campaign because they have the ability to influence others and they already are role models for a wide share of consumers in the marketplace. So, companies benefit from their popularity and reputation for its brand awareness. Especially some companies in the food and beverages industry which are concentrated on the marketing campaign and make a huge number of expenditure and its budget. Pepsi have many product lines, it introduces a product line for soda which includes many versions such as Pepsi, Mirnda, Seven Up, and other version of Mirinda like Orange and Apple. The second product line is related to the juice. The third category is related to Aquafina mineral water. There are width of every line and versions for every product.
Coca-Cola has been around for generations with the same iconic taste, logo and symbolism. Its brand has represented family and the memories of good times, celebrations and comfort of being with those we love. Unfortunately, the company has not made good marketing decisions in the recent past and has lost relevancy. The purpose of this essay is to assess the conditions that created Coca-Colas marketing problems, evaluate the future of healthy beverages and non-carb drink brand extensions, and provide recommendations to the management.
This is why we decided to focus on the second level of the energy beverages, their name and package. (www.learnmarketing.net/product.htm, 14/09/2004)
I’m an undergraduate student majoring in economy prepared the marketing plan for the purpose of learning and experience.