Marketing
...re to stay on top. Most of that pressure is coming from its two main competitors, Powerade and All Sport. They both came out in the early 1990's, when Gatorade already had a $600 million lead in the market. Gatorade has faced fierce competition against Powerade. Powerade just like Gatorade comes in many flavors which include: Lemon-Lime, Orange, Grape, Fruit Punch, etc. Powerade's major marketing goals are targeting younger consumers and getting their products noticed as much as possible. Their slogans include, "Raise the Bar", "Faster, Higher, Stronger", and "Gatorade with 1/3 more Energy". This shows how Powerade is trying to be the lead competitor in this business by trying to show that they are superior to Gatorade. Gatorade's other main competitor, All Sport, is made by Pepsi and is packaged in 16, 20, 32, and 64 ounce bottles, along with a 12 ounce can. All Sport can be found in almost any retail outlet where Pepsi products are sold. All Sport tries to show up Gatorade by claiming that it is not a "Thirst Quencher", but a "Body Quencher" instead. They also claim that All Sport has "taken people of the sidelines and into the game." Like Gatorade and Powerade, All Sport tries to target youth. They have similar bottle styles to Gatorade, but they believe that theirs is better because it’s easier to put your mouth over it and chug it. Powerade makes their bottle like a water bottle, which both kids and adults can drink from while Gatorade has the same bottle but the size is just different. There are also minor competitors that come out to face Gatorade but Gatorade has good customer loyalty and has had for many years, so it is very difficult for these companies to compete again Gatorade. Gatorade’s sales revenues has gone up very dramatically and this shoes that they are up against all the competitors that face them and they keep their products efficient to serve their customers best. COMPANY ANALYSIS Gatorade thirst quencher is the top selling sports drink in Canada and the Untied States of America. Quaker oats acquired Gatorade in 1983, when it became in the beverage industry. It is one of a kind sports drink; it was developed by scientists at the University of Florida in 1965. It was named after the University's football team the Gators, because they were the first to test it out. Gatorade is mostly water, but it also has carbohydrates and sodium, which you lose when exercising. There are 13 flavors. Since then, Quaker oats sales went high because of Gatorade. Gatorade thirst quencher is taking up 88% of the sports drink market. Gatorade’s company developed such a drink where not only can you have to drink Gatorade, but also can drink water. Drinking regular water works just as well. The sports drink achieves its goals by sponsoring different agencies, such as: • NBA • NHL • MLB • NFL • NASCAR These are a few of many company’s that are being sponsored by Gatorade, and the companies have the athletes drink Gatorade too. Gatorade thirst quencher’s success is because of billions of advertising and the amount of information that is provided on the Internet. Also because of the promotional advertising when it comes to athletes like Michael Jordan. Marketing strategies of Gatorade is that, they look for anyone who has worked up a thirst. FLAVOURS ARE • LEMON LIME • FRUIT PUNCH • ORANGE • CITRUS FRUIT • PASSION COOLER • STRAWBERRY KIWI • BERRY CITRUS • COOL BLUE • GATORADE FIERCE • GATORADE ICE • GATORADE FROST • GATORTADE EXTREMO • TROPICAL CUSTOMER ANALYSIS Customer characteristics of Gatorade thirst quencher is initially targeted towards males of age between 18-34, it is known to be an energy replacement. Gatorade is known to taste better than water, and has no side effects. When exercising, you become hot, sweaty and really thirst but drinking Gatorade replaces that thirst and it tastes much better. It is known specifically for physically active people like athletes Michael Jordan to drink the thirst quencher. The more hydrated you are, drinking Gatorade makes you want to drink even more. It has half the calories than fruit drinks or even soft drinks. Health and nutrition facts in Gatorade are that the drink has carbohydrates that result in rapid dehydration. When exercising, your muscles needs carbohydrates and Gatorade provides the right amount in order to function. It has 2 kinds of sugars: sucrose and glucose- fructose, these sugars provide energy that water doesn’t. Sodium helps maintain body fluid, while glucose combined makes people drink more until completed rehydrated. When you sweat, you loose sodium chloride and sodium electrolytes; by drinking Gatorade it provides sodium chloride and sodium electrolytes for you. Gatorade thirst quencher also sponsors several high schools. Not only do athletes and adults drink it, but also children do to. Physically active children will drink more Gatorade than water. Children dehydrate faster than adults; they drink Gatorade because it tastes better than water. GATORADE THIRST QUENCHER NUTRITION FACTS Serving size- 240ml Amount per serving Calories- 50 Total fat = 0g 0% Sodium = 110mg 5% Potassium = 30mg 1% Total carbohydrates = 14mg 5% Sugars = 14g Protein = 0g Size Value per grams Calories Grams Total Carbohydrate 250ml 1 Cup 267 kj 64 16 grams total carbohydrate = 1-1/2 sugar choices 125ml 1/2 Cup 134 kj 32 8 grams total carbohydrate = 1sugar choice Market-Product Focus • Current Markets – Gatorade keeps its current markets stable and expanding. They distribute to more stores across Canada and come out with more flavors to keep their customers satisfied. Also, by market segmentation they can identify what is needed to further expand their current market and where most purchases are made. • New Markets – Gatorade is trying to reach more parts of Canada by raising product awareness. In some parts of Canada Gatorade might not be very well known or preferred by raising awareness and the qualities of the product, they will be able to expand to those locations and increase their distribution and sales. • New Products – Gatorade has been coming out with new different flavors and packaging to keep their customers satisfied. By segmenting their markets they are able to identify the need of a certain product. Target Markets: Gatorades main target market includes males between the ages of 18-34. They have been focusing a lot more on women and children and they have been succeeding in that. As said before, Gatorade is not only for athletes or people who are physically active; it is also for anyone who wants to quench their thirst. Gatorade has maintained that with other customers and they have been focusing on both range of people, physically active and the not so active people. Gatorade is trying to target more and more children today, because in schools there are gym classes or children do a lot of running also. So they are providing easy to drink, tasty Gatorade thirst quenchers to raise that portion of the market. Points of Difference • Unique taste and Convenience – Gatorade’s taste and the bottle design plays a very important role in its consumption. The thirst quencher comes in many different flavors and it’s easy to chug, so if you’re working out or if you are running, it is very ease to open the cap and chug down the bottle. Many competitors have tried to copy what Gatorade has brought to its customers but fail to do so. • Premium Packaging – The bottle design has been very appealing to consumers along with creative labeling of the product. Unlike Powerade, Gatorade labels its products which speak out to customers, flashy graphics etc. Positioning All of Gatorades Thirst Quencher features have been a major factor that makes it different than all its other competitors. As they Gatorade has said, it tastes good, easy to drink and most importantly they have designed something that does the same job as water would do. That’s what makes it so different than its competitors because Gatorade is able to keep these features in all their products and have developed good relationship with customers with offering a high quality product. Marketing mix A major key to Gatorade's success is the way they have developed their marketing mix. They have set the standard among the market, forcing competitors to constantly worry about what to do next to keep up with them. Promotion: Gatorade is one of the best-promoted sports drink in the world, here is a few tactics they use: • They have two major sports stars and trendsetters, Michael Jordan and Mia Hamm promoting the sport drink. • All their commercials have a sports atmosphere whether it being basketball, football or etc… • The intensity they show in the commercials has a connection with the sport obsessed youth of today. • Gatorade has spent tremendous time and money to get their sport drinks to be on the sideline and in the hands of everyone. • Finally, they have slogans such as "Is it in you?" to "So Bold it's Fierce” that are has intense as their commercials With these tactics that Gatorade uses to persuade non-users to switch and reinsures users that they have made the right choice. By using remarkable amount of promotion, it is no wonder that Gatorade will continue to be the best sport drink and beat of competitors for a long period of time. Product The product component of Gatorade's marketing mix is looking to expand everyday. Whether its new flavors hitting the shelves, different bottle features, Gatorade is always a step ahead of competitors. The Gatorade Company looks for unique quality in their products; for every new flavor is introduced (about two or three a year) 50 to 60 flavors don't make the cut. This shows how it is put through a lot of testing and is cared for so the best quality product is produced. The goal was to appeal to a market other than athletes. There seemed to be a misconception that you could only drink Gatorade if you were a competitive athlete and Gatorade wanted to target all active people. The Frost lineup reflects a lighter, crisper image that is supposed to encourage people to drink Frost when at the beach, playing golf, gardening, or when working at construction sites. Frost's marketing message is "Cools you to the core." After Frost was successfully launched, Gatorade decided to add on once again. Later, a new line named Fierce was on the market. Gatorade Fierce was targeting younger consumers with a more intense image. Flavors include Fierce Melon and Fierce Lime. They are marketed as "bolder" than regular Gatorade. Gatorade is sold in many shapes and sizes of bottles. These bottles are uniquely molded for the best drinking comfort. Thirst Quencher bottles are formed to make drinking easier while working out. Sizes: Bottles: - 12 oz. All-Stars™ - 20 oz widemouth - 24 oz E.D.G.E. sports bottle - 32 oz - 64 oz - 1 gallon Multipacks: - 12 oz. All-Stars 6-pack - 20 oz widemouth 8-pack - 20 oz widemouth 24-pack - 24 oz E.D.G.E. sports bottle 4-pack - 24 oz E.D.G.E. sports bottle 12-pack - 32 oz widemouth 12-pack Creative Packaging supplies a distinctive oval custom sports cap, which Gatorade dubbed the "cowboy cap," because it resembles a cowboy's hat, which makes the product easier to chug. This makes it convenient for bikers to open with one hand or with their mouths by twisting it. Labels are also a key to Gatorade's product component of their marketing mix. They feature the colors, image...