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Gatoradeis it in you?

Adriane Payn Aimee Renfro Clinton Eastman Scott Blankenship

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Performance Series

Thirst Quencher

Propel

Energy Bar Gatorade Fierce Fitness water

Energy Drink Gatorade Original Fitness Water with Calcium

Nutrition Shake Gatorade Rain

Breadth (different lines)

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Product Mix & Product Line

•Product Line – a broad group of products offered for sale by a company

•Product Mix – a set of all products offered for sale by a company

•Breadth – number of product lines carried

•Depth– variety of sizes, models, and colors in each product line

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Packaging

Guarantees

(Gatorade Sports Science Institute)

Branding

Gatorade (Gatorade Dunk)

Innovations

(Promises to Rehydrate, Replenish, and Refuel)

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Introduction DeclineMaturityGrowth

Sales Volume

Profit

Time in YearsLoss

Do

lla

rs

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Product Life Cycle

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Product Lifestyle Stages

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PRICING

• 20 fl. Oz = $1.69

• 20 fl. Oz = $1.69

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PRICING STRATEGIES

Market penetration: relatively low initial price is established for a new product

This is evident by price comparison with their main competition, Powerade.

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Buying in Bulk!!

Drinking Gatorade on a regular basis can get a little pricey, however there are ways to cut your cost…buy in bulk.

Specials at Safeway on a regular basis

Costco for a set discount relative to size of purchase

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Distribution Channels

Gatorade uses a middle man

convenience good

impulse buys

Producer (Gatorade)

Retailer (Safeway, Costco)

Consumer (you and me)

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Why Middlemen?

A lot of consumers

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Where can I buy this wonderful thirst quencher?

• Liquor store

• Grocery store

• Department stores

• Vending machines

• Athletic venues

• Restaurants

Intensive distribution: producer sells its product through every available outlet in a market where a consumer might reasonably look for it.

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Promotions Mix

• Advertising– PepsiCo spent over $183 million on Gatorade media 2005

• $135 million in 2003• Most common form is on TV

– Scientifically proven» Origins» Research results

– Emulating Professional athletes» Michael Jordan, Payton Manning

– Sport Sponsorships» Men’s world cup soccer

– Drink specific» Spent at least $20 million on ad campaign for Gatorade Rain

• Professional Athletic Sponsorships– 22 Professional American Athletes, over 20 international athletes

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Promotional Mix

• Public Relations– Professional League sponsorships

• AVP, Bowl Championships Series, MLB, MLS, NBA, NFL, USA Basketball, US Men’s National Soccer Team, WNBA, NHL

– Collegiate Affiliations• 60 division 1 universities

• 11 Division 1 conferences

– Professional Affiliations • 11 Affiliations including the American College of Sports Medicine

• Annual Gatorade Junior Training Camp – They combine football instruction and teaching of life skills that focus on self-improvement and

motivation.– Hosted by the Seattle Seahawks

– Outstanding players of the year• Recognizes outstanding high school athletes from around the country

• State and National winners and Athletes of the Year

• Football, Basketball, Soccer, Track and Field, Softball, Baseball, Girls Volleyball

• Ex. Peyton Manning 1993-94

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Promotional Mix

• Public Relations– International

• Many professional soccer club teams, Including AC Milan, Inter, Juventus and Manchester United

• Other international professional teams including, basketball, water polo, rugby, tennis, running, swimming and volleyball

• International Gyms– GSSI

• Scientific research on many sport related topics and on specific sports– Websites

• Designed to represent the company– Products– Research and testing– Results– Sponsorships– History – Downloads

• 12 internationally separate websites

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Promotional Mix• Sales Promotions

– Event sponsorships• Request of Event sponsorship• Annual Gatorade Junior Training Camp

– They combine football instruction and teaching of life skills that focus on self-improvement and motivation.

– Hosted by the Seattle Seahawks• Marathons around the world,

– Ex. Boston Marathon– Supply free Gatorade to competitors

• Gatorade Triathlon Series – Gatorade Recovery Area

» All competitors can be weighed before and after the race to monitor the level of fluids lost during exercise. area will later supply food/refreshment bags, Gatorade drinks, massage and qualified dietitians.

– Newsletters• 18-week marathon training program • Gatorade fundraising program

– Canada program to help raise money for youth sports teams by selling Gatorade• Fitness workshops in the US and Mexico

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Promotional Mix• Sales Promotions

– Large store discounts• Able to reduce price by almost half

– Normal price is $1.09 for 24oz and $1.89 for 32 oz– two 24-oz. bottles for $3 at AM/PM– Three 32-oz for $3 at Safeway

– International Promotions• Indian

– buying six bottles of Gatorade entitles consumer to a free Gatorade football program with Ronaldinho' Cd

• European soccer promotion• Brazilian promotion• Canadian promotion

– Customers can win a variety of professional hockey gear

– Push and Pull Strategy• Mostly Pull

– Most of money and energy is spent on promotions directed at consumers– Not much needed for middlemen because it can be easily proven to be a high

profit product

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Promotional Mix

• Personal Selling– Extensive team of sales persons in order to get

Gatorade sold everywhere– Exclusive deals with parent company PepsiCo

• School campuses• Gyms

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Marketing MixStrengths & Weaknesses

• Product– Variety of Lines (Width &

Breadth) – Constant Research for

Improvement

• Price– Competitive, not

excessively high, not a deterrent to buying

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Marketing MixStrengths & Weaknesses

• Placement/Distribution– Easily accessible for buying

• Promotion– Constantly in public eye (sports – contracts, cooler and cups, dunk) – Community Events– Sponsor Sports Events– Easily identifiable colors, slogan,

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