Date post: | 08-Sep-2014 |
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Sports |
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5 Steps for Part 1 (PTM and Positioning)
1. Gatorade’s PTM are youth leading an “active” lifestyle
2. Who wanted to enhance performance3. Can choose Powerade, Pocari Sweat
and other sports drinks.4. Gap is all other brands focused on
providing fuel, fluid and nutrients before, during and after activity
5. The market size is US$ 5.3Billion in sales. Gatorade niche is US$ 140Billion.
*active lifestyle – being engaged in various
activities
5 Steps for Part 2(Marketing Mix & Strategy)
6. Sports drink (also in powder and sports gel)
7. Is 30% discount8. Uses TV, print ads and
sports events9. Is distributed
nationwide10. Uses a niche approach
to win
1.Gatorade’s primary target market (PTM) are the youth leading an “active” lifestyle
Demographics (pre-adults (13-24), M/F, social class ABC, single)
Lifestyle (athletic, into sports, active individuals)
Behavior (8 fl oz., before, during or after activity, thirst quenching, prevent dehydration)
2. My PTM’s NWEThe youth needsTo 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.
The youth expects this when they drink GatoradeThirst quenching, rehydrated, more active,
energized; thus, they remain youthful and athletic!
3a. Gatorade has several competitors
Direct: Pocari Sweat, Powerade
Indirect: Energy Drinks (Cobra, RedBull, Samurai), Isotonic Drinks (100 Plus), instant energy drink (Joss), flavored water (Vitwater), tea (C2, Real Leaf), water (Viva, Absolute)
Variables: Price, packaging, convenience of use, different variants, availability, brand, lifestyle
Gatorade is #1 in niche: active lifestyle for 13-24 yrs.
Lifestyle/ Age Matrix
0-13 yrs 13-24 yrs 25-49 yrs 50yrs up
Active
Inactive
GatoradeTropical Fruit
Pocari Sweat
PoweradeRed
Lifestyle vs. Age Matrix
GatoradeCool Blue
Gatorade unique positioning is shown in this competitive map
Positioning vs. Brand Matrix
Gatorade Powerade Pocari Sweat
Thirst quenching Replaces vital fluids and electrolytes Improved performance Affordable Convenient
"To thirsty, sweaty jocks, Gatorade is the original sports beverage that
quenches thirst while replacing fluids and electrolytes."
4. Gatorade positions strongly in a niche market opportunity
Gatorade is the only sports drink that is thirst quenching for the youth who leads an “active”
lifestyle that promises to improve performance No brand has a similar position.Others focus on complete with
electrolytes and positively charged ions.
5a. The sports drink market is estimated US$ 300Billion in sales.
SOURCE: http://www.manilatimes.net/national/2006/oct/25/yehey/business/20061025bus6.html
5b. Based on 2008 Energy Drinks North America Report, where Gatorade’s share is 49%, total market size is US$ 5.3Billion.
1. Gatorade sales is US$2.6Billion
2. Gatorade’s market share is 49%
3. Then total sports drink market size is US$2.6Billion/0.49 = US$5.3Billion
5c. Consumer data indicates a size of US$234Billion
Sports Drink Usage:
300 million Americans consume at least 2x per day of 12 fl.oz sports drink which costs around US$1.07.
300 million x 2 x US$1.07 X 365 = US$234 billion
5. Concluded that sports drink market is US$234B
1. Competitor data= US$300B
2. Company data = US$300B
3. Usage data = US$234B
6b. Product Description
Gatorade is a sports drink scientifically formulated to replace fluids and provide energy to working muscles. It offers a scientifically validated blend of carbohydrates and key electrolytes.
There are 6 variants – Lemon-Lime, Orange, Cool Blue, Citrus Cooler, Strawberry Kiwi and Fruit Punch
There are 7 sizes: 12, 20, 24, 32, 34, 64 (in fl oz) and 1 gallon
7. Price- Gatorade is 36% discounted priced in affordable packs Gatorade 12 fl oz = US$ 1.07 Gatorade 20 fl oz = US$ 1.38 Gatorade 24 fl oz = US$ 2.49 Gatorade 32 fl oz = US$ 3.99
Gatorade is priced 36% cheaper than Powerade.
9. Gatorade is distributed nationwide using Pepsi Co. distribution network
Supermarkets, sari-sari stores, convenience outlets, drugstores, market stalls
Nationwide Pick-up by customers Cash and credit transaction
10. Gatorade is a niche leader
Gatorade’s main strategy is to dominate the niche market of 13 to 24 year old who lead an active lifestyle.
It benefits from the distribution leverage of Pepsi Co.
Has an excellent branding, excellent product distributed nationwide.
5 Steps for Part 1 (PTM and Positioning)
1. Gatorade’s PTM are youth leading an “active” lifestyle
2. Who wanted to enhance performance3. Can choose Powerade, Pocari Sweat
and other sports drinks.4. Gap is all other brands focused on
providing fuel, fluid and nutrients before, during and after activity
5. The market size is US$ 5.3Billion in sales. Gatorade niche is US$ 140Billion.
*active lifestyle – being engaged in various
activities