Gatorade Nothing works Better!!

Gatorade is a brand of sports-themed Nutritional Drink and Supplement products, built around its

signature electro-lite: a line of sports drinks. Gatorade is currently manufactured by PepsiCo,

distributed in over 80 countries. The beverage was first developed in 1965 by researchers at the

University of Florida, to replenish the combination of water, carbohydrates, and electrolytes that the

school's student-athletes lost (in sweat) during rigorous athletic competitions. Its name was derived

from the collective nickname of the university's athletic teams, "the Gators".

NOTHING WORKS BETTER!!!

Contents

Thirst Quest of ‘65 ........................................................................................................................................ 4

Birth of ‘Gatorade’ ........................................................................................................................................ 4

‘Gatorade’ comes on Field ............................................................................................................................ 4

Beverage Buzz and Biz .................................................................................................................................. 5

Orange to Super by ‘69 ................................................................................................................................. 5

Science, Sports and Success .......................................................................................................................... 5

‘Gatorade’ Today .......................................................................................................................................... 6

From Field to Track ....................................................................................................................................... 6

...................................................................................................................................................................... 7

Drink up the Challenge! ................................................................................................................................ 7

What Next! .................................................................................................................................................... 8

Drink the thrust of thirst ............................................................................................................................... 8

Some facts which will help us understand the key success and the reason for ‘Gatorade ‘existence

and market player consistent. .............................................................................................................. 8

Market:.......................................................................................................................................................... 8

What are the other possible factors that gets the drink flowing? ............................................................ 9

Appearance: .......................................................................................................................................... 9

Appeal: .................................................................................................................................................. 9

Attributes: ............................................................................................................................................. 9

Advertisements ................................................................................................................................... 10

Positioning Target and Market: .......................................................................................................... 10

Gatorade’s Speaks:.............................................................................................................................. 11

............................................................................................................................................................ 11

PTM- Primary Target Market .............................................................................................................. 12

‘Gatorade’- A 4P Analysis ............................................................................................................................ 14

Product: ................................................................................................................................................... 14

Variants: .............................................................................................................................................. 14

Sizes: .................................................................................................................................................... 15

Price: ....................................................................................................................................................... 16

‘Gatorade’ is priced 36% cheaper than PowerAde. ................................................................................ 16

i. ‘Gatorade’12 fl oz = US$ 1.07 ......................................................................................................... 16

ii. ‘Gatorade’20 fl oz = US$ 1.38 ......................................................................................................... 16

iii. ‘Gatorade’24 fl oz = US$ 2.49 ......................................................................................................... 16

iv. ‘Gatorade’32 fl oz = US$ 3.99 ......................................................................................................... 16

Place: ....................................................................................................................................................... 16

‘Gatorade’ is distributed nationwide using Pepsi Co. distribution network ........................................... 16

Supermarkets, ................................................................................................................................. 16

Local stores, .................................................................................................................................... 16

Convenience outlets, ...................................................................................................................... 16

Drugstores, ...................................................................................................................................... 16

Market stalls .................................................................................................................................... 16

Nationwide Pick-up by customers .................................................................................................. 16

Cash and credit transaction ............................................................................................................ 16

It benefits from the distribution leverage of Pepsi Co. ................................................................... 16

Has an excellent branding, excellent product distributed nationwide. .......................................... 16

Promotion: .............................................................................................................................................. 16

A look back .................................................................................................................................................. 17

Objective of ‘Gatorade’: Accelerate in the sports drink market. ............................................................ 17

Size of the total market: $4 billion .......................................................................................................... 17

Growth of the market: 12% from 2006 .................................................................................................. 17

Seasonality: Peaks in the summer .......................................................................................................... 17

Product Life Cycle:................................................................................................................................... 17

Growth: ................................................................................................................................................... 17

(Although Gatorade was created in 1965) we believe sports drinks are in the growth stage because

there’s a growth in market of 12% since 2006 also the number of entrants into the market suggests

that this is a growing industry on its way up rather than down. ............................................................ 17

Brand ....................................................................................................................................................... 17

Market Share .......................................................................................................................................... 17

Dollars (in ‘000s) ..................................................................................................................................... 17

Gatorade ................................................................................................................................................. 17

82% .......................................................................................................................................................... 17

3,280,000$ .............................................................................................................................................. 17

PowerAde ................................................................................................................................................ 17

17% .......................................................................................................................................................... 17

680,000$ ................................................................................................................................................. 17

Others ..................................................................................................................................................... 17

1% ............................................................................................................................................................ 17

40,000$ ................................................................................................................................................... 17

Target profile .......................................................................................................................................... 17

Buying decision process .............................................................................................................................. 18

When: ...................................................................................................................................................... 18

Where: .................................................................................................................................................... 18

Key Influencers: ....................................................................................................................................... 18

Trends ..................................................................................................................................................... 18

Environmental Issues .............................................................................................................................. 19

Regulatory – packaging, labeling, etc. ................................................................................................ 19

Economic ............................................................................................................................................. 19

Socio-cultural ...................................................................................................................................... 19

Technological ....................................................................................................................................... 19

SWOT analysis: ............................................................................................................................................ 19

Strengths ................................................................................................................................................. 19

Weaknesses ............................................................................................................................................ 19

Opportunities .......................................................................................................................................... 20

Threats .................................................................................................................................................... 20

Thirst Quest of ‘65

In the summers ’65, Florida University’s physics Lab was swarmed with hushes and gushes over a

question on players, heat and performance on field.

Coach and physicians were equally puzzled as much concerned over the matter over growing heat

stroke illness and degrading performances of peak players in acute heat.

While the talks went on for weeks, Dr. Robert Cade, Dr. Dana Shrines, Dr. James Free and Dr. Alejandro

de Quesada grilled down the talk to two factors that had affected the performance and provoked the

heat illness in Gator Players.

The fluid and Electrolytes that the players lost through sweat were not getting regenerated.

The amount of Carbohydrates that the players used for energy on field was negligently being

replenished.

Birth of ‘Gatorade’

Having zeroed on the problems, the research team of Florida University scientifically fabricated a

balanced liquid with precise balance of carbohydrate and electrolytes. The ultimate sport beverage was

uniquely produced in the lab to ensure the replacement of lost key components from the body of Gator

Players while sweating and exercising. The proud confection drink was called ‘Gatorade’.

‘Gatorade’ comes on Field

Having the product in Lab was not good enough. The formula was finally introduced to the team; the

gators started using the beverage during their practice, exercises and sport on field. The results were

ubiquitous. Players were less fatigued, more active and exhibited outlasting win against the heavily

favored opponent of the time finishing the ’65 season at 7-4.

The performance had just started walking. By the year of 1966, Gator Team finished the season at 9-2

making a historical win of Orange Bowl.

Beverage Buzz and Biz

The beverage caught wild fire buzz in the field of sports far beyond the boundaries of Florida. People

were curious about the beverage as much inquisitive about the invention. University of Richmond and

Miami of Ohio were first to place order of batches of ‘Gatorade’ for their football team. Post the early

adoption phase in the market, followers of the trend just kept coming.

The famous saying of the coaches of that time was “Playing without ‘Gatorade’ on your sidelines is like

playing with just ten men field”.

Today’s official Sports drink traversed boundaries of nations and labs to conquer the quest for on-field

energy builder.

Orange to Super by ‘69

In the summer of 1969, Coach Ray Graves of the Florida Gators suggested to the Kansas City Chiefs that

they use ‘Gatorade’ to combat the staggering effects of a blistering Missouri sun during training camp.

The Chiefs were so impressed with the “Gator coach’s aid” that they kept it on their sidelines

throughout the entire season… which concluded with a stunning victory over the heavily favored

Minnesota Vikings in Super Bowl IV.

In the years that followed, more and more NFL teams began placing ‘Gatorade’ on the sidelines of their

games and practices, and in 1983, ‘Gatorade’ became the official sports drink of the NFL—a title it holds

to this day.

Science, Sports and Success

After two long decades of Dr. Cade and his team’s much famed work in developing optimum hydration

formula- ‘Gatorade’ made its way to the ‘Gatorade’ Sports Science Institute founded in Barrington,

Illinois, to conduct scientific research in the areas of exercise science, hydration, and sport nutrition.

By early ‘90’s, the lab expanded to provide advanced testing for athletes and new ‘Gatorade’ products

and flavors and develop education materials for sports health professionals around the world.

‘Gatorade’ Today

The official sports drink of the NBA, AVP, and PGA, Major League Baseball, Major League Soccer, and

numerous other elite and professional organizations and teams, ‘Gatorade’ is not a beverage is it!

From Field to Track

Millennium witnessed a problem at the professional race car drivers coach meet. The adequacy of

hydration was a bit much of a problem given that the heat reaches 130 degree temperature throughout

the course of a lapped race.

The challenge was huge and battle was tough. ‘Gatorade’ and GSSI (‘Gatorade’ Sports Science Institute)

began their work with auto racing organizations to develop a hydration tool that could withstand 130-

degree temperatures and keep drivers hydrated safely throughout the course of a race.

The result of their research was the development of GIDS, the ‘Gatorade’ In-Car Drinking System, which

is now considered an essential piece of racing equipment.

Drink up the Challenge!

The staff of GSSI (‘Gatorade’ Sports Science Institute) realized that replenishment on field was not good

enough for the players and athletes. The need of the hour engaged in high demand training and

competition. ‘Gatorade’ launched the ‘Gatorade’ Performance Series, an exquisite line of sports

nutrition products, in ‘01. These products included ‘Gatorade’ Energy Drink, ‘Gatorade’ Energy Bar, and

the ‘Gatorade’ Nutritional Shake.

By 2005, GSSI (‘Gatorade’ Sports Science Institute) brought in the

most captivating invention that took the market as much by

surprise as exclaimed. After extensive years of study on athlete’s

endurance, the company presented the ‘Gatorade’ Endurance

Formula. Featuring a higher concentration of sodium—the key

electrolyte found in Original Thirst Quencher—and four other

electrolytes lost in sweat.

What Next!

The staff of GSSI (‘Gatorade’ Sports Science Institute) is dedicated to innovative search and research on

sports in their mission of performance improvisation on field and off field through proper facilitated

supply of hydration and nutrition. The advancement of the collective mission is here to stay and for as

long as people love sports and health is the much wanted wealth!

Drink the thrust of thirst

Some facts which will help us understand the key success and the reason for ‘Gatorade ‘existence and

market player consistent.

Dehydration can be one of the biggest competitors of athletes.

Research shows that well hydrated athletes perform better.

When you sweat you lose fluids electrolytes and potassium essential to maintain performance

Market:

The Pepsi Co.’s much hyped and popular energy drink has far expanded the market from stadium, sport training and gymnasiums.

The chart show cases the usage of drink widely by the society of Men or women of all ages who practice sports or have an active routine.

What are the other possible factors that gets the drink flowing?

Appearance:

The beautifully crafted Stylish plastic bottle is certainly an eye-catcher. Not to forget the breathing colors, ergonomic bottle design and its fun packaging.

Appeal:

The product´s price oscillates between $0.65 and $1.50 depending on the package presentation. It appeals to all age and income group due to wide variety and amplified reach in functional and emotional benefits related to Health.

Attributes:

1. ‘Gatorade’ helps to put back lost electrolytes, such as sodium, potassium and chloride.

2. Stimulates thirst so you can maintain hydrated 3. Gives essential fluids athletics need when it matter most. 4. Gives working muscles the energy they need to enhance athletic performance 5. Nothing rehydrates replenishes and refuels an athlete better than Gatorade.

Special Features

a. Has a 6% carbohydrate solution, optimal amount to give working muscles the energy they need.

b. New and different flavors: Lemon Lime, Fruit Punch, Orange, Citrus Cooler, Passion Fruit, Strawberry Kiwi etc.

c. No other sports drink is absorbed faster than Gatorade. Not even water

Advertisements

The product is advertised through T.V. with commercials in which very famous athletes appear drinking ‘Gatorade’ to rehydrate.

The media resources used for making advertisements are T.V., radio, the Internet, magazines, newspapers.

The purpose of advertisement is to convince consumers that nothing hydrates better than Gatorade.

Positioning Target and Market:

Gatorade’s positions itself on the shelf of energy drink for sports and nutrition. However, it entails more market outside the athlete group with individual youth leading an “active” lifestyle who wants to enhance their health and energy stamina.

Gatorade’s targets a communication which fills the void created by all other competitive brands which focus highly on providing fuel, fluid and nutrients before and after the exercise.

Based on 2008 Energy Drinks North America Report, where Gatorade’s share is 49%, total

market size is US$ 5.3Billion.

‘Gatorade’ sales is US$2.6Billion

Gatorade’s market share is 49%

Then total sports drink market size is US$2.6Billion/0.49 = US$5.3Billion

Gatorade’s Speaks:

PTM- Primary Target Market

Personality:

The youth leading an “active” lifestyle who are health conscious and strongly believes in

fit body perfect mind theology.

Demographics:

Young (pre-adults (13-24), M/F, social class ABC, single)

Lifestyle:

Athletic, active, enjoy sports, playful and lively)

Behavior:

Drinks 8 fl oz. of liquid, before, during or after any physical activity for:

Thirst quenching

Prevent dehydration

Energy Boost

Nutritional Supplement

Healthy Beverage

Needs:

The youth wants:

To be secured (health), avoid dehydration; thirst quenching

The youth choose ‘Gatorade’ over other sports drinks because:

Flavor, available in all convenient stores,

Brand (endorsed by Michael Jordan and Dwayne Wade),

Taste

Thinks:

When the youth drinks Gatorade, he is not just thirst quenching, rehydrating, getting more active or

feeling energized.

They feel their mind saying:

o I am athletic!

o I am active!

o I am a winner!

o I would be like Michael Jordan/Dwayne Wade

o I won’t get dehydrated

Competition:

‘Gatorade’ has several competitors on retail shelf:

Direct Competition:

Pocari Sweat

PowerAde

Tropical Fruit

Cool Blue

Indirect Competition:

Energy Drinks (Cobra, RedBull, Samurai), Isotonic Drinks (100 Plus),

Instant energy drink (Joss),

Flavored water (Vit water),

Tea (C2, Real Leaf),

Water (Viva, Absolute)

Market Drivers:

Variables:

Price, packaging,

Convenience of use

Different variants

Availability

Brand

Lifestyle

Unique Selling Proposition:

1. "To thirsty, sweaty jock, ‘Gatorade’ is the original sports beverage that quenches

thirst while replacing fluids and electrolytes."

2. The only sports drink that is thirst quenching for the youth who leads an

“active” lifestyle

that promises to improve performance

3. No brand has a similar position.

4. Others focus on complete with electrolytes and positively charged ions.

‘Gatorade’- A 4P Analysis

Product:

‘Gatorade’s sports drink is scientifically formulated to replace fluids and provide energy to working muscles. It offers a scientifically validated blend of carbohydrates and key electrolytes.

Variants:

Lemon-Lime,

Orange,

Cool Blue,

Citrus Cooler,

Strawberry Kiwi

Fruit Punch

Sizes:

12

20

24

32

34

64

: (in fl oz) and 1 gallon

Price:

‘Gatorade’ is priced 36% cheaper than PowerAde.

i. ‘Gatorade’12 fl oz = US$ 1.07

ii. ‘Gatorade’20 fl oz = US$ 1.38

iii. ‘Gatorade’24 fl oz = US$ 2.49

iv. ‘Gatorade’32 fl oz = US$ 3.99

Place:

‘Gatorade’ is distributed nationwide using Pepsi Co. distribution network

Supermarkets,

Local stores,

Convenience outlets,

Drugstores,

Market stalls

Nationwide Pick-up by customers

Cash and credit transaction

It benefits from the distribution leverage of Pepsi Co.

Has an excellent branding, excellent product distributed nationwide.

Promotion:

A look back

Objective of ‘Gatorade’: Accelerate in the sports drink market.

Size of the total market: $4 billion

Growth of the market: 12% from 2006

Seasonality: Peaks in the summer

Product Life Cycle:

Growth:

(Although Gatorade was created in 1965) we believe sports drinks are in the growth

stage because there’s a growth in market of 12% since 2006 also the number of entrants

into the market suggests that this is a growing industry on its way up rather than down.

Brand Market Share Dollars (in ‘000s)

Gatorade 82% 3,280,000$

PowerAde 17% 680,000$

Others 1% 40,000$

Target profile

Metropolitan area/CMA

13-24

Active lifestyle

Male or female

Single/Couple

Involved in organized sports/activities

Exercises regularly

Urban/suburban

Very social

Outgoing

Extroverted

Student or new professional

Unmarried/newly married

College/university educated

Renter or new home/condo owner

$18,000 - $150,000 yearly income o $18,000 – $35,000 average consumer

Generally considers themselves leaders

Heavier user (of sports beverages)

Previously used other sports drinks – not new to the market

Strong brand loyalty based on expected performance

Looking for a competitive edge

Interested in local news with an emphasis on sports

Watches sports on tv

Reads magazines about healthy living, sports, and recent events

Regularly purchases athletic gear/clothing

Buying decision process

When: o On their way to activities (exercise/sports games, etc) o On their way home from activities o When they miss their activities

Where: o Convenience stores/gas stations o Gyms o Snack bars o Grocery stores (healthy ones like The Barn/Logos) o Vending machines o Located in recreation centers, gyms, etc o Health-based/oriented retailers (GNC, Hercs, Goodness Me!, etc) o Schools

Key Influencers: o Pro athletes o Amateur athletes o Someone like themselves that they can relate to/identify with o Peers

Trends o Looking towards everyday people promoting product because they feel more in tune

with their situation o Value conscious now means more than price for quantity

o They are now paying attention to ingredients and benefits, so value = right price, right ingredients and benefits

o Using sports drinks as regular drinks o Looking to make healthier choices – less sugar, fat, etc.

Environmental Issues

Regulatory – packaging, labeling, etc.

o Must meet CFIA regulations o Must include nutritional information o French/English labels o Must avoid certain types of plastic for the bottle

Economic

o Recession – drive to water

Socio-cultural

o Time-conscious/time-poor o Environmental trends – consumers want to buy recyclable products o Health-oriented society o Demanding convenience/accessibility

Technological

o Advancements in production

SWOT analysis:

Strengths o Large company o Has substantial capital o Very well-known company-brand o Lots of awareness o Product has a strong USP o 4:1 carbohydrate to protein ratio

Weaknesses o No current products in the sports drink market

o No experience in the sports drink market

Opportunities o Very large market (dollar wise) o Cultural shift towards healthier lifestyles o Currently, limited choices in the sports drink market

Threats o Fear of recession o Consumers will only be purchasing necessities o Size of competitors o Mainly Gatorade and PowerAde