INTERGRATED MARKETING COMMUNICATION file · Web viewThe 2013 youtube commercial has not been...

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POWERADE INTERGRATED MARKETING COMMUNICATIONS Name: Arshad Ameer Ali Student Number: n8931496

Transcript of INTERGRATED MARKETING COMMUNICATION file · Web viewThe 2013 youtube commercial has not been...

POWERADE

INTERGRATED MARKETING COMMUNICATIONS

Name: Arshad Ameer AliStudent Number: n8931496

1. Message Review

1.1 Current Message Strategy:

Coca cola Australia introduced Powerade in 1988 in a powder form and in 1992 the energy drink bottles were introduced (Olsen, 2010). According to the Powerade Australia YouTube video (2013), The new campaign was aired with the tagline “GO Stronger for Longer” with its main purpose to hydrate and replenish energy and maintain performance of bodies getting hardcore training or sweating it outdoors. Powerade have categorized themselves in three different lines and therefore giving a choice to consumers according to their requirements as; Powerade isotonic which represents the classic original sport drink giving a choice of different flavors, Powerade fuel+ that combines caffeine and the original Powerade taste that can be used for sports and Powerade zero having zero sugar for the fitness freaks (Powerade Australia, 2013). Coca cola well recognized for their advertisement strategies have made effective use of push-pull strategy, where the push message approach is seen as using of different medias to deliver message and create brand awareness to their target market. They have advertised Powerade on billboards, sports magazines (Appendix A), television commercials (Appendix B) and public transport spaces (Appendix C). Pull strategy is observed by Powerade setting up a two-way communication among the customers by rendering up to date brand and products updates and considering customer feedback by using distinctive social networking sites such as Facebook, YouTube and twitter (Appendix D). As seen on the web page, Powerade Australia (2013) were the official sponsors for the 2013 Australian Football league and also for the 2013 National Rugby League and the Powerade web page also gave a chance for customers to register themselves and win tickets for the 2013 AFL finals and 2013 NRL finals aiming in creating better brand engagements. Powerade has also launched its innovative mobile app called Powerade hydration coach that calculates the hydration required by a body on submitting details about oneself and the sport being played (Powerade Australia, 2013).

1.2 Message Effectiveness Critique:

The 2013 youtube commercial has not been appreciated and the current commercial is getting old. Comments have been posted and argued that a sweaty man would not influence them to buy Powerade (Appendix E). Mc Naughton (as cited in, Cameron, Rebecca, McLay-Cooke, Brown, Gray, & Fairbairn, 2010) the test beverage of 500ml Powerade mountain blast isotonic drink revealed ingredients dose, which reported to improve performance (Cameron et al., 2010). Powerade web page shows that new South Wales institute of sport proved Powerade isotonic in providing 10% longer peak performance by rowers (Powerade Australia, 2013). Powerade launched Powerade zero having a catchphrase zero sugar; zero excuses and proficiently targeted the active Australians (Bowling & Danielle, 2013). Blogs have been posted by puzzled consumers regarding the health factor concentrating on the artificial colors

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going into Powerade, the calorie content and also on who actually needs to drink Powerade including its taste (Powerade Mountain Blast Energy Drink Reviews, 2011). (Appendix F). Powerade performs a push-pull strategy by giving valued customers various options in accessing brand touch points, which can be explained as tangible or intangible, established by the brand owner (Abbing, 2010). Facebook Powerade Australia page has 162k likes and effective interaction is posted between consumers and Powerade management (POWERADE Australia Facebook page, 2013). They have their useful training guide and advices on the webpage for active consumers and also have their hydration calculator on the webpage as well as an app, which can be downloaded from an android phone (Powerade Australia, 2013). (Appendix G).

1.3 Proposed Message Strategy Adjustments:

Primarily Powerade Australia should come up with an innovative commercial, as the previous commercial is now old and must hold a better stand amongst consumers in the market. Unlike the old commercial they should not emphasize on just one sport and showing a sweaty man, they should focus on the different strenuous activities and games like how its competitors have done in their commercials. Powerade should create more interaction among consumers on social media and focus on increasing the positive bloggers on social media other than just Facebook. As the tagline “GO Stronger for Longer” may be perceived as longer energy for just sometime, they can change it to “last long, really long!” as Powerade targets young age groups and it can be a humorous cheesy line which will grab the attention of the targeted consumers. As the drink is available in leading eateries and supermarkets, Powerade should make it clear to the confused consumers that this drink can be consumed by anyone who is in need of energy irrespective of the game or activity leading to them getting exhausted, to the extent that, also a person tired of heat should walk into a store and undoubtedly grab a Powerade amongst all the varying competitors electrolyte drinks.

2. Channel Review

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2.1 Channel Integration Grid:

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2.2 Channel Effectiveness Critique:

The channel integration grid with assigned integration level colour bands explain the push and pull strategies developed by Powerade and the interactive communication occurring among consumers and the product is shown. It can be observed that the product has effectively covered the distinctive channels of media and communication where high level of integration was seen amongst logo and corporate colours leaving a bold stand in the market without creating any doubt among the targeted consumers. Tagline has been proficiently integrated among most of the channels except for packaging, which showed the presence of only the brand name and not the tagline for the focused region. Social media showed mid integration as there existed confusion among consumers on what the product really delivers. Message strategy and multiple audience lacked its implication on TV as it was a poor ad commercial (Appendix B) and it showed low integration on social media as uncertainty arises among confused consumers about the usage of the product (Appendix F), direct mail shows mid integration as consumers had the option to subscribe to mails from the webpage of Powerade. Common objectives and common image have been spread through the different channels but showed mid integration among direct mail as the message would vary each time, which needs to be concentrated and should focus to develop better strategies.

2.3 Proposed Channel Strategy Adjustments:

Since message strategy and multiple audiences play a major role in building the brand image and taking it forward, firstly Powerade should come up with an innovative catchy commercial aiming to motivate viewers by focusing on the different strenuous sports and training than the previous commercial. The brand must have more social media interaction and increase the number of positive bloggers and leave no doubt and confusion in them about the product. Tagline being changed to “Last Long, Really Long!” should be clearly mentioned on the packaging, social media and any channel of the Powerade brand, and also practice placing the tagline when and where the brand name is concerned. Powerade should cover the direct mail channel and more effectively hit the target market than by just giving an option to consumers to subscribe to their brand, for example sponsoring Powerade in a sports academy and triggering interest among consumers to subscribe to quality information from the brand.

3. Target Market

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3.1 Geographic:

Powerade Australia efficiently covers the metropolitan cities of every state and makes it easily accessible in their suburbs and it is available at all leading supermarkets, eateries etc. (Coca Cola Amatil, 2013). (Appendix H).

3.2 Demographic:

Powerade have set their objectives to target the different age group by addressing them as born sportsmen of 14-29 years old (CocaCola Amatil, 2013). Powerade is promoted with the idea that one does not need to be a professional to drink Powerade but also the one who desires to perform at their best. They also focus on the fitness freaks by introducing Powerade isotonic, which is again suitable for diabetes (Langley, 2013). Powerade, by sponsoring major sports events also targets consumers who are dedicated supporters of sports.

3.3 Psychographic:

The Powerade brand made a remarkable stand in the market, as the Powerade management was successful in getting Powerade to be the official sports drink partner for the Olympics 2012. The company aims in promoting Powerade as a healthier substitute giving more nutrients to athletes and sportspersons rather than plain water (Wright, 2010). Promoting Powerade zero as water’s best friend, the sports drink without compromising the benefits of replenishing vitamins, sodium, potassium and magnesium for the NO sugar concerned customers (Cross, 2013).

3.4 Behavioral:

Powerade aiming mainly at the consumers as mentioned above of the age group 14-29 involved in strenuous sports activities (CocaCola Amatil, 2013). Having a line of three different products as per the requirements of the consumers, Powerade aspires to target different buying behavior of consumers (Powerade Australia, 2013). Powerade launching a motivational commercial being the official sports drink partner of the 2012 Olympics created widespread awareness and loyalty towards the brand (KurtNon, 2012). During the analysis of the case study it was found that Powerade was one of the brand, which has done exceptionally well in 10 years. Their strategy of sponsoring the FIFA world cup facilitated Powerade to set up a global position (From Local to Global Branding- a Powerade Case Study, n.d.). Having good interactions in the Facebook page, Powerade has made effective use of brand touch points to consumers and increase their loyalty (POWERADE Australia Facebook page, 2013). Powerade also gives consumers a chance to earn reward points, which on reaching

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specific targets, enables consumers to win Powerade merchandise (Powerade Sports Loyality, 2013).

3.5 Benefit Sought:

The segment in which the customers seek to get a competitive advantage from the brand is explained on how Powerade zero makes it suitable for consumers who are diabetic without compromising on the product benefits of the brand (Langley, 2013). Powerade having an innovative android app delivered to customers the information on how much hydration their body required according to the activity or sport played, that could be replenished by drinking Powerade (Powerade Australia, 2013).Powerade proving to deliver longer peak performance have attracted considerable target customers giving information about the brand (Powerade Australia, 2013).

3.6 Target Market Description Statement:

Target Market – as Powerade a sport drink:

Powerade’s main target audiences are 14-29 year olds, who are passionate about sports; be it a sports ‘achiever’, sports ‘enthusiast’, sports ‘hobbyist’ or even a person with a sedentary lifestyle who simply just thinks of participating in some form of sporting activity.  They are passionate and dynamic individuals; more particularly, the amateur athlete striving for success and solutions to help improve themselves as well as their sports performance. Whether the consumer is the best athlete on her high school’s swimming team who aspires to make it to the Olympics, or a college student who simply loves to chill out with his buddies on the rugby field, Powerade directly relates to the youth; both males and females who are zealous and determined to improve themselves and their performance. Powerade helps replenish their body and keeps them focused to achieve their goals on and off the court.

4. Competitor Profile

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4.1 Competitive Framework:

Brand name plays a major role as consumers respond to brands delivering added results, which forms a credit to the brand (Sports and Energy Drinks in Australia, 2012). On taking the nutritional benefits in consideration, which is one among the key attributes for consumers to choose a product, Powerade and Gatorade similarly priced are electrolyte sport drinks in which Gatorade is seen to have sodium in a higher percentage and carbohydrates in lesser percentage than Powerade. Powerade has in it ingredients B6 and B2 vitamins which are active components in producing energy (smenyak, 2011). Gatorade introduced their line of G series with popular sportsmen endorsing it, where Powerade lacked in its commercial endorsements but did place a good stand in the market. Overall Powerade and Gatorade are equal on ingredients but Gatorade gets the edge in preference as Powerade still used HFCS (hydro fluorocarbon) additive in the drink (Worden-Rogers, 2010). Primarily Gatorade being the main competitor for Powerade, in 2012 it had the advantage of having 24.8% of brand share in Australia when compared to Gatorade having 20.1%. Lucozade and Staminade being other brands in sport drinks are other competitors, but with a niche brand share of 0.2% and 1.6% that has been observed to be dropping in the recent years (Euromonitor, 2013). Product choices being a significant attribute for consumers as it reflects their needs. Powerade in Australia offers a line of three products being isotonic, fuel+ and Powerade zero for the different target markets and according to Jennifer Schmit, Gatorade spokesperson also said referring to Powerade that their competitor was appealing to different consumers in the market (Rovell, 2010). Powerade also benefits the consumers who are diabetic as Powerade zero vouch to be suitable for diabetes (Langley, 2013). Lucozade has a choice of different flavors for its consumers and it is a sparkling sport drink when compared to the still beverages Powerade and Gatorade (Lucozade Australia, 2011).

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4.2 Competitor Analysis - Offerings and Communications:

Gatorade being the sole competitor in the market the analysis were as follow; while comparing which was a better energy drink, research has shown that Powerade had an advantage over Gatorade as it had added vitamin supplements which Gatorade dint have. Gatorade had an upper hand over Powerade when taken into consideration the calorie content being high in Powerade, hence both the energy drinks equaled at this point (Reagan, 2009). Gatorade explains to its consumers that our brain knows a lot, but not when we are thirsty (Lomborg, 2012). Gatorade’s strategy was always to focus on science and the body until recently when they got into the cool “G series” strategy. Powerade then started to use its competitors old strategy, focusing on science and it gained brand awareness by introducing Powerade zero having zero calories gave a competitive advantage, which is an area that Gatorade has not stepped into, but it introduced the drink G2 which had reduced calories for the light workouts and easy players (Rovell, 2010). Powerade Australia Facebook fan page have more people talking about the brand when compared to Gatorade, but Powerade has major interactions only on Facebook and also negative interactions, which needs to be strategically corrected. The average fan growth rate merits Powerade, as in February 2013 quarter the share of conversation was 2.3% when Gatorade stayed at 1.1% (Australian Facebook Performance Report, 2013). Gatorade delivered more positive interactions in social media and aired a very appealing television commercial having ace athletes and also involves Brett lee endorsing the G series line of products as seen in the Gatorade Australia YouTube video (2011). Similarly Gatorade also followed the same strategy as Powerade by promoting sports events and giving a chance to consumers to win tickets to view the matches (Gatorade Australia, 2013).

4.3 Competitive Advantage:

Powerade unquestionably has a competitive advantage in Australia over Gatorade in many aspects as stated in the above sections. As it has a greater brand share currently in the market when compared to its competitors as presented above. Powerade launched its innovative hydration calculator app during the 2012 Olympics and gained great promotional benefit.  Powerade also gave consumers a chance to subscribe to its mail and newsletters from their webpage. As a mystery shopper it was noticed that Powerade had more dominance in various eateries; for example Nandos restaurants, and also at leading super markets having superior shelf space as coca cola occupies a major part of the market share in Australia (Appendix H). As health being the prime concern Powerade has lower salt content than its competitor is beneficial for consumers having blood pressure and also with Powerade zero being suitable for diabetes and delivering benefit to the consumers.  5. Campaign Development

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5.1 Competitive Consumer Benefit Statement:

Giving an overview on the above sections, it is seen that Powerade categorizing itself in three different lines targeting consumers accordingly to their needs makes it suitable even for the diabetic consumers and has an advantage over its competitors having a better share in the Australian market. The brand should mainly develop a good commercial like its competitors and show different activities and sports, they may also sign a well-liked sportsperson as their brand ambassador for the brand. Facebook and twitter in social media has developed good interactions with the consumers but Powerade needs to improve its interactions on other social media such as G+ and YouTube and increase the number of positive bloggers by tackling the their doubts regarding added artificial colours and who actually needs to drink Powerade. The hydration coach mobile app was a very innovative idea by Powerade and it gained vast publicity sponsoring the 2012 Olympics. As the tagline would be changed to “last long, really long!” it would be present in packaging which lacked earlier and would also be mentioned in every area where the brand is concerned. Direct mail is another area to be concentrated by Powerade by striking a cord among consumers and triggering them to subscribe to Powerade news and updates, as a strategic example is mentioned above. Powerade in their commercial and advertising approach should follow the IMC tool being SMARTT; i.e. specific, measurable, achievable, targeted and timed. The new message should focus on the queries of consumers that any individual irrespective of the activity could consume Powerade and as mentioned above, even for a person having thirst from the heat.

5.2 Message Strategy Statement:

For teenagers and adults who want to feel better even after doing a very rigorous work or simply to quench an individuals thirst,Who want to do more than their physical capacity and test their limits,Our product is the most nutritious sports drink in the current market with proven long lasting energy benefit.It provides consumers the extra stamina required by them to fulfill their desired goals and activities by the healthiest means at a very efficient value.Unlike its competitor Gatorade, who only focus on sports alone,Our product is changing the way individuals perceive sports and looks forward in adding a spice of extra performance in their daily life.

5.3 Message Strategy Approach:

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Positioning and brand image combination will be the approach chosen to deliver the message. Brand image is the mental perception and the degree of acceptance of the brand made by the consumers (Franzen & Moriarty, 2009, p. 19). As mentioned in the previous sections, Powerade being a well-established brand needs to improvise on the level of acceptance made by consumers in turn building its image. Powerade should make more effective use of social media and generate better positive interactions by solving the queries of confused consumers making their own perceptions regarding the pros and cons about the ingredients such as artificial colours and doubting who really needs to drink Powerade. Furthermore, Powerade should focus on better positioning as it is explained the way consumers define the product on distinctive characteristics (Kotler & Armstrong, 2012, p. 207). Position strategy as mentioned can be triggered; with the airing of a new eye catchy commercial like its competitors, it can also position the brand better in the minds of the consumers by not focusing only on strenuous sports solely but also on daily lifestyle as well, which can be better done by signing popular celebrities similar to its competitor.

6.0 Media Strategy

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Powerade will be effectively using digital media by airing the new commercial and also increase its interactions with social media and networking sites, aiming to create better stand in the minds of the consumers and making effective use of push-pull strategy.

6.1 Company Contacts:

6.1.1: Television: Television advertising merits the organization to create a greater impact compared to other medias, it helps to target the illiterate consumers giving them a chance to view the product and also creates an attentive appeal (Tulsian & Pandey, 2008). The new innovative television commercial with its bold tagline “last long, really long!” will be aired specially on sports channels, Music channels and fairly in news channels as well to create widespread awareness. The new commercial when aired in sports channels will attract the consumers, as Powerade would be the official sponsor to the game as they sponsored the AFL 2013 and NRL 2013. Rugby, football and cricket being the major sports enjoyed in Australia, Powerade can target maximum number of viewers irrespective of the activity they involve themselves and the age group they belong to. The new commercial would be using the pulsing scheduling method, having continuity and at times increased promotion will be made.

6.1.2: Outdoor Media: Powerade will also use outdoor media strategically by using truck body wraps, i.e. the Powerade carriers or trucks would go around the city and stop at universities, schools and create awareness giving a free drink to the public and explaining the positives of the drink. Powerade sales team would also make use of sandwich boards and walk and talk around in CBD’s giving flyers and information to the public.

6.2 Customer Contacts:

6.2.1: Social Media: As social media accelerates flexibility for the organization as it can move along with time accordingly posting new information. No doubt social media is cost affective when compared to a huge amount spent for a few seconds commercial (Shimp & Andrews, 2013). Powerade will now change the game by providing better social media interactions being more prompt and clearing any uncertainty among the consumers as seen earlier associated with the media. Powerade will post information regularly on social media regarding their new preceding’s, product launch and product information. Powerade will be introducing itself on G+ and will anticipate more viewers on YouTube with the new commercial being introduced. Lastly, Powerade will aim in increasing more positive bloggers in social networking sites by having effective push-pull strategy.

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6.2.2: Customer Feedback: Health is no doubt is the most important priority for any individual. Powerade will give consumers a chance to give feed back regarding any issues, query they have with any line of the products. Powerade would also effectively respond to the feedback leaving no room for doubt among consumers. Customers giving helpful feedback would also get a chance to earn rewards or incentives. Efficiency and promptness will be focused by Powerade in delivering the same.

6.3 Intrinsic Contacts:

6.3.1: Packaging: The packaging of the product is an important aspect that covers the safety attribute; it also speaks for itself and gives an identity to the product (Ahvenainen, 2003). Powerade in its three different lines of products will clearly have its logo and tagline boldly mentioned in them. Corporate colours would be used appropriately and consumers looking at the shelves would spot Powerade and differentiate it with its competitors without any doubt. As packaging plays an important role being an intrinsic touch point, it should deliver considerable amount of knowledge about the product to information seeking consumers, clearing most of their common queries.

6.3.2: Sales Staff: The Coca-Cola outlets can give a good informative seminar to their sales staff and can deliver to them the benefits of Powerade which they would clearly pass it onto the public. Here the sales staff would be the backbone in selling the product at the end. But Powerade being available at most of the supermarkets, hypermarkets, food courts and eateries it is difficult to get the sales staff of other organizations in general to trigger customers to purchase Powerade, but it is possible when the popularity of the brand increases and simultaneously demand and awareness is increased.

6.4 Unexpected Contacts:

6.4.1: Publicity: Powerade being the official sponsor for the 2012 Olympics gained extensive publicity worldwide. Powerade also got a hold in the software market and gained publicity with the introduction of the hydration level calculation mobile app. In Australia, it has efficiently made publicity of the brand by being the sponsors of the Australian football league and national rugby league. Powerade has to be consistent the same way sponsoring sports events and giving chance to customers to earn points and win merchandise to be prevalent in the market.

6.4.2: Word of Mouth: Something what cannot be controlled by the organization is explained as unexpected contacts or touch points. Word of mouth when positive can be tremendously beneficial for the company or it can also break down the company if

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it is negative (Kotler & Armstrong, 2012, p. 32). Powerade should have its team efficiently working on consumer queries and correcting any viral rumors spread about the product. Research should be a continuous process to gain the current market feedback and must maintain good public relations.

7. Appendices

7.1 Appendix A:

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Source: Powerade advertising in magazines.

7.2 Appendix B:

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Source: YouTube commercial 2013.

7.3 Appendix C:

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Source: Powerade outdoor media advertising.

7.4 Appendix D:

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Source: Powerade Facebook page.

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Source: Powerade Twitter page.

7.5 Appendix E:

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Source: Powerade YouTube comments.

7.6 Appendix F:

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Source: Powerade customer reviews.

7.7 Appendix G:

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Source: Powerade hydration calculator mobile App.

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Source: Powerade hydration calculator mobile App.

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Source: Powerade hydration calculator mobile App.

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7.8 Appendix H:

Source: As a mystery shopper, pictures clicked at Woolworths and Nandos.

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7.9 Appendix I: Mystery Shopper and Observation:

Location: Woolworths and Nandos (Brisbane)Date: October 12, 2013Objective: To know how customers rate Powerade and how salespeople view the brand.

Few basic questions were framed to ask the salespeople at Woolworths and Nandos. As a mystery shopper when visited both the places, the response got from the salesperson was immediate and thus it contributed in creating a pleasant experience. At Nandos being a staff by myself it was witnessed that several customers order Powerade along with their meal. While at Woolworths too the situation seemed similar, as there was many customers in the aisle grabbing Powerade and therefore it produced a rather positive image of the product on the whole. Following are the few questions and answers from salespeople in Woolworths and Nandos.

1. What kind of a drink is Powerade? What makes it so preferable by customers?Woolworths salesperson: “Powerade mainly a sport’s drink and is produced by the coco-cola company, it’s a very good sports and energy drink so many customers prefer it”.Nandos manager: “Powerade is an all in one drink. It’s the healthiest option to consume with food after water so it’s more in demand than the rest”.

2. There are many options for energy drinks. Why do customers choose Powerade energy drinks more than its competitors?Woolworths salesperson: “Powerade has many varieties to choose from and according to customers preferences they buy it. Powerade fuel+ is sold as its main customers are youngsters and also as they feel it’s a healthier option than red bull”.Nandos salesperson: “Powerade is more healthy and it also in a way compliments the food here at Nandos. All Powerade products are preferred as we have different customers coming to our store”.

3. Why keep Powerade in your store when there are several other similar drinks available?Woolworths salesperson: “Powerade definitely has a great position in the current market as it has as good demand unlike its competitors. We have many customers come to our store everyday and more than half of them purchase Powerade”.Nandos salesperson: “Since we have only Coca-Cola products at our store, we really don’t have the option to get the other competitors. Powerade would still be our choice as it has placed itself well in the market”.

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