Gatorade is a make of flavored non-carbonated sports drinks created by the Quaker Oats Company, now a division of PepsiCo. Designed for consumption during physically active occasions, Gatorade beverages are formulated to rehydrate and replenish fluid, carbohydrates and electrolytes.
Gatorade started in the summer of 1965 with the realization that the Florida Gators football players could not make it through practice without struggling. Many players reported being dehydrated and playing sluggish during team drills. Therefore the physicians met up and determined what exactly the situation was.
The athletics suffered with a back lack of electrolytes and carbohydrates, that was not being replenished with just water. The group of four physicians blended a glass or two that had perfect balance of carbohydrates and electrolytes. The drink would prove to help the Gator football team perform better on the field, so naturally they called the drink "Gatorade".
What happened next was rather amazing because then players started performing better. They finished with an archive of 7-4 that season and another seasons they finished with an archive of 9-2, winning the orange bowl for the first time in school history.
Eventually, the drink moved in to the professional leagues and the first team to look at it was the Kansas City Chiefs. The chief has trouble practicing in the stifling heat of Missouri's summer afternoons plus they kept it on the side-lines the whole year. It resulted in the chiefs beating the heavily favoured Minnesota Vikings in super bowl sixth.
Soon it recognition to possess Gatorade on the side-lines and it started the sports drink category. By 1965, Gatorade had expanded its research in sports science by building the Gatorade sports science institute. The institute allows them to better understand the body, its needs during the stress of competition and exactly how to boost their products.
Gatorade is the state sports drink of the National Football League Major League Baseball, National Basketball Association, Women's National Basketball Association, USA Basketball, National Hockey League, Association of Volleyball Professionals, US Soccer Federation, Major League Soccer, and many other pro or collegiate organizations, providing supplies of the drinks to the teams in all flavors available. Gatorade extended their market to the U. K. , in 2008, and promoted this, partly, by becoming the sports drink provider for Chelsea F. C.
CompositionThe original Gatorade contained water, sucrose (table sugar) and glucose-fructose syrups, citric acid, fish oil, sodium chloride (table salt), sodium citrate, monopotassium phosphate, and flavoring/coloring ingredients; some Gatorade flavorings use brominated vegetable oil as a stabilizer. Gatorade Thirst Quencher meets the meals and Drug Administration's definition of a "low sodium product. " Gatorade comes in a variety of flavors, including the original Lemon-Lime, Grape, Orange, and Fruit punch.
In days gone by decade, several new formulations of Gatorade, including Rain, AM, Fierce and X-Factor, have been introduced with each only being minor tweaks of the initial 1965 formula.
Gatorade revealed the Gatorade line Energy Bar in 1999. This energy bar was Gatorade's first foray into solid foods and was introduced to compete with PowerBar and Clif Bar. Gatorade Energy Bars contain a big proportion of protein, in addition to its carbohydrates. The bar is principally composed of puffed grains and corn syrup, common components of other energy bars.
Original Gatorade Thirst Quencher
Gatorade Nutrition Shake
Gatorade Energy Drink
Gatorade Energy Bar
Propel Fitness Water
Propel is a lightly flavored water with essential vitamins and 10 calories.
Available in four natural flavors including Lemon, Berry, Black Cherry and Orange, Propel is currently the marketplace leader in the rapidly growing fitness water category.
PEST Analysis of Gatorade Company
Political analysis for Gatorade: - The government plays a job within the procedure of manufacturing the products in terms of regulations. You will discover potential fines set by the federal government on companies if indeed they do not meet a typical of laws.
The following are a few of the factors that might lead to Gatorade company's actual results to differ materially from the expected results described in their underlying company's forward statement:-
Changes in regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions.
Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors.
Political conditions, especially in international markets, including civil unrest, government changes and restrictions on the ability to transfer capital across borders.
Their ability to penetrate developing and emerging markets, which also will depend on financial and political conditions, and exactly how well they are able to acquire or form strategic business alliances with local bottlers and make necessary infrastructure enhancements to production facilities, distribution networks, sales equipment and technology.
Economic analysis for Gatorade: - The monetary stability in the target market facilitates an international marketer's task. For example a recession creating increased activity at the lower ends of product price ranges. Rate of interest raises depressing business and causing redundancies and lower spending levels.
Economic environment of India impacts the international marketing decisions of Gatorade greatly. The monetary conditions of a country like the state of foreign exchange reserves and inflationary conditions also affect the openness of your country's trade policies. In the recent years, the opening up of the Indian market has paved the way for import and distribution of consumer goods. However, it includes put pressure on domestic companies to contend with international brands such as Gatorade, PowerAde etc.
Social Analysis for Gatorade: - Social change involves changing attitudes and lifestyles. Many Indian citizens are practicing healthier lifestyles. This has damaged the non-alcoholic beverage industry in that most are switching to water in bottles and diet sports drink rather than beer and other alcohol consumption. The necessity for bottled water and other more convenient and healthy products (Gatorade sports drink) are in important in the common day-to-day life.
Consumers from the ages of 37 to 55 are also increasingly concerned with nutrition. You can find a big population of this range known as the baby boomers. Because so many are reaching a mature age in life they are becoming more concerned with increasing their longevity. This will continue to affect the non-alcoholic beverage industry by increasing the demand overall and in the healthier beverages.
Technological Analysis for Gatorade: - The potency of Gatorade Company's advertising, marketing and promotional programs are the factors which cause company actual result. They make some products look attractive. This helps in selling of the merchandise. This advertising makes the merchandise attractive. This technology has been found in media to sell their products.
Introduction of cans and plastic bottles have increased sales for Gatorade as these are much easier to carry and you will bind them once they are employed. As the technology gets advanced there's been introduction of new machineries on a regular basis. Because of introduction of this machineries the production of the Gatorade company has increased tremendously then it was couple of years ago.
Porters 5 forces model for Gatorade Company
Threat of new entry
Rivalry among competitors
Bargaining power of supplier
Bargaining power of buyer
Threat of Substitute
Rivalry among competitors: - There exists high competition for Gatorade Company because other Sports drink companies are also there which can be providing the same tough competition to Gatorade.
Rivalry is increasing, as the marketplace decreases, and opponents downsize, the competitors become more or less equal in size and capacity. Which means that as economical conditions worsen, competitors downsize and then compete for the same remaining market.
Threats of new entry: - The threat of new entrants is high in the Sports drink industry because many other companies are also coming in the same market in order to provide cut through competition to Gatorade.
Threats of substitutes: - Threats of substitutes is high because a great many other forms of soft drinks can be purchased in the market which is doing the same are that of the Gatorade.
Bargaining power of Buyers: - The bargaining power of buyers is very high because many other sports drinks are also available in the market such as PowerAde so buyer if not satisfied with the merchandise can switch to other companies products.
Bargaining power of suppliers: - The supplier's power is low for Gatorade Company because other player such as PowerAde of Coca Cola are also within the market so the suppliers cannot charge high cost by the clients than its competitors.
G Series and Elite Series
In early 2010, Gatorade announced its latest marketing campaign, promoting its products as the "G Series. " Gatorade describes the G Series as a three-part regimen made to fuel every step of its consumers' athletic performance. The first part, "Prime, " includes a "pre-game fuel" with B vitamins, carbohydrates, and electrolytes to be studied before athletic performance. G Prime is described as "coming soon" on the company's website. The second area of the series, "Perform, " includes traditional Gatorade products such as Gatorade G, G2, and Gatorade powder. The 3rd part of G Series, "Recover, " is described as "the world's first rehydrating protein drink" and is created for consumption rigtht after athletic activity.
In addition to the G Series, Gatorade also maintains a line of products called the "Elite Series" created for serious athletes. Similar to the G Series, the Elite Series includes products for before, during, and after workouts, as well as "All Day" nutrition shakes.
G2: Off the Field Hydration,
Otherwise known as Gatorade 2 (G2), is a low-calorie electrolyte beverage that premiered in late 2007; G2 happens to be available in six flavors: Orange, Fruit Punch, Lemon-Lime, Strawberry Kiwi, Blueberry-Pomegranate, and Grape. Additionally it is labeled as a wholesome choice beverage. It had been the most notable new food product of 2008, generating the sales of $159. 1 million.
Original Gatorade was relabeled as Gatorade G
Gatorade Rain was relabeled as No Excuses
Gatorade AM was relabeled Shine On, which now contains the addition of 20% RDV of Vitamin C per 8-oz. serving.
Gatorade X-Factor was relabeled as Be Tough, which now provides the addition of 20% RDV of Vitamin E per 8-oz. serving.
Gatorade Fierce was relabeled TAKE IT, which now provides the addition of 25% RDV of several B vitamins, including B3, B5 and B6.
G2, which was not renamed, now contains the same added B vitamins as Bring It. G2's label was further redesigned by the end of 2009, giving it a silver label and a new slogan: " the Calories, All of the G".
In the late 1970s and early 1980s (as well as the late 90s to early 2000s), Gatorade sold a brand of chewing gum called Gator Gum. The merchandise, produced by Fleer Corporation, was available in both of Gatorade's original flavors (lemon-lime and orange) and was rather sour-tasting by normal nicotine gum standards.
In the late 1970s, Stokley-Van Camp (owner of Gatorade prior to 1983) negotiated a long-term licensing deal, with Swell and Vicks, to market "Gator Gum. " T
he gum, which had no functionality or ingredients of Gatorade Thirst Quencher, was discontinued in 1989 following the contract expired. Mueller Sports, in Wisconsin, manufactures a gum called Quench; it is based on Gator Gum but is not the same as what Stokley-Van Camp created.
Gator Gum's foil packaging advertised that the product "Helps Quench Thirst. " However, like all chewing gums, the merchandise wouldn't normally actually rehydrate the body alone but would, instead, only give the feeling of a "wet mouth". However, it did contain electrolytes to aid our body with the rehydration process.
Competition of Gatorade with PowerAde
Gatorade's main competitive brand is POWERade, created by the Coca-Cola Company. PowerAde is the main competitor for Gatorade, others like all sport exist, however they do not present difficult to Gatorade. The make of PowerAde has fundamentally the same marketplace as Gatorade: 18-24 year old males who are engaged in athletics.
However, PowerAde is apparently looking for the trendier types of consumers.
Based upon their company web page design, it seems as through PowerAde is trying to offer the attributes of experiencing the "cooler" drink.
PowerAde has an extremely interactive website compared to Gatorade, one can choose from 8 different types of musical beats that represent each unique flavour. The web site also allows people who are visiting the site to put up their own thoughts about PowerAde.
PowerAde does not have a good marketplace perception; they are considered a second place to Gatorade, PowerAde does not have the same quality of winning athletics that Gatorade has. In addition they lack scientific research behind their product without a research institute.
The future for competition against Gatorade seems bleak. Gatorade owns the sports drink category and much can be carried out to stop them.
Segmentation, Targeting & Positioning
The demographics of the Gatorade marketplace are active males, aged 18-25. They can be students, just starting their career, or well established, regardless of status the majority of them believe they are athletics.
They grew up idolizing many different sports athletics and teams, which still have an influence. They make very wide selection of incomes because Gatorade is inexpensive.
Education could vary also, most have at least high school level education plus some have university experience. Their attitudes can vary just a little, but most of them are competitive, value sports and enjoy their perspective athletics endeavours. These types of consumers can also be considering other sport-related clothing and accessories. They may be interested in items such as jerseys, hats, shoes or anything that will showcase their allegiance to a team, sport or player.
TARGET MARKET: Athletes
CURRENT SLOGAN: Is it in you?
TYPES of ADS: commercials, web site, print, sponsorship, partnerships, promotion, etc.
Gatorade scored a slam dunk in 1991 when it tabbed Jordan to become its first athlete endorser. Although the sports drink brand already dominated store shelves, millions of people still have the "End up like Mike" jingle stuck in their head so many years later.
Other Endorsers include,
Positioning of Gatorade
Positioning is making unique identity in the mind of the prospective customers. Sports being Gatorade's biggest focus, they brand themselves as the best sports drink for an athletics trying to attain their peak performance.
They have done this through source credibility, by gathering several athletics like Peyton Manning, Dwyane Wade, Derek Jeter, Kevin Garnett and Michael Jordan. Many of these athletics are memorable and influential to kids and adults, but Jordan has the most impact.
Defeat the Heat
Campaign to protect kids from heat illness
After a 10 year old boy collapsed over a sports field, he and his mom helped initiate Defeat heat that was sponsored by Gatorade, National Athletic Trainers' Assoc. , and SAFE KIDS.
This program teaches kids the importance of staying hydrated while playing sports.
Gatorade loves Racing
Gatorade has turned into a huge influence on NASCAR racing by learning to be a huge sponsor.
They introduced the G. I. D. S. (Gatorade In-Car Drinking System) to give drivers fluids during long races.
Makes getting fluids easier
Gatorade is able to advertise heavier now during a sporting event that has a huge group of fans that increases each year.
Expansion Strategies of Gatorade in India
Diversification Strategy: -
Gatorade as US Company will use Diversification strategy in India since it is new product for Indian customers and the market is also new for Gatorade. So for the growth of the merchandise in the new market in order to make people alert to the Gatorade products for increasing market share diversification strategy will be utilized by Gatorade company.
Under the direction of the Quaker Oats company, Gatorade's distribution was increased and new flavours have been added. This also included an advertising and promotion campaign held with the NBA (National Basketball Association) Championship.
Pricing Approaches for Gatorade in India
Skimming Pricing: - Selling a product at a price, sacrificing high sales to get a higher profit, therefore 'skimming' the marketplace.
Gatorade use skimming pricing strategy in India as they have got targeted mostly athletic so they can charge high for their new product in the Indian market as a division of PepsiCo Company. So skimming pricing strategy can be used by Gatorade Company for Indian market.
Competition based pricing: - Setting the price based after prices of the similar competitor products.
Products have lasting distinctiveness from competitor's product. Here we can assume
The product has good deal elasticity
The product has low cross elasticity
The demand of the product will rise
Products have perishable distinctiveness from competitor's product, assuming the merchandise features are medium distinctiveness.
The product has high price elasticity
The product has some cross elasticity
No expectation that demand of the merchandise will rise
Gatorade is priced slightly lower than its main competition, PowerAde. PepsiCo keeps very close control over the pricing of its products, ensuring that every channel member makes a profit. Product promotion for Gatorade is targeted in three areas, media advertising, event sponsorship, and contests. The main competitor for Gatorade is the Coca-Cola product, PowerAde. Currently Gatorade appears to have the upper hand since it is experiencing sales growth while PowerAde is not expecting any growth. Gatorade keeps its competitive edge through product innovation.
Despite aggressive competition, Gatorade could maintain steadily its market share in 1997 and make further inroads into foreign markets. The business cited the addition of new flavours in addition to packaging changes, promotions, and scrutinized distribution. Among they were the Cherry Rush, Strawberry Kiwi, and M'mmmandarina flavours, added in 1996. Ahead of that, three new flavours, targeted at women athletes, were introduced-Alpine Snow, Glacier Freeze, and White water Splash.
For many years, Gatorade was mostly a USA phenomenon. In 1992 Quaker Oats made a decision to distribute the beverage worldwide. The theory was that the drink would be equally successful beyond your United States because "no other sports beverage because of its distinct scientific formulation and market position is more poised for taking advantage of a worldwide opportunity. "
The company continues to work at expanding distribution beyond america, particularly in Latin America and the Pacific Rim countries. A lot more than $20 million was allocated to expansion in 1996, leading to sales of $283 million in more than 45 nations. The number of countries in which the sports drink was sold increased by 10 over the previous year. Worldwide sales increased 19 percent internationally, reflecting growth in both Latin America and Italy. In 1997 international sales climbed 18. 7 percent to $335. 2 million.
By 1998 the business was the world's leading manufacturer of sports beverages, with Gatorade for sale in 47 countries about the world. The number one sports drink in the United States, Canada, Mexico, Italy, Argentina, Brazil, Venezuela, Colombia, Indonesia and the Philippines, Gatorade is also one of the leading sports drink brands in Korea and
Gatorade is marketed not merely as a very tasty drink, but as a carbohydrate-electrolyte beverage designed to provide rapid rehydration. How can it work? Well, all food and beverages are absorbed by the small intestine, and Gatorade claims that its 6-percent carbohydrate level and small amount of sodium are perfect for rapid fluid absorption. By comparison, beverages with a higher percentage of carbohydrates, such as fruit drinks and soft drinks, are said to slow the absorption rate of fluids. Gatorade points out that the salt and sugar in Gatorade "stimulates people to drink much more fluid voluntarily. "
Males 18 to 24
Focused on "Point of Sweat"
Getting to Market
TV Ads /ESPN
Sports Venues - cups, coolers, billboards
High School "Athlete of the entire year"
Current Market Facts
Part of PepsiCo
Control 80% - 90% of Market Share in North America
1. 5 Billion dollar brand
Private Label Isotonic Sports Drinks
View of Future State
Create Brand Loyalty
Increase market share
How Do they Attract Youth?
Emphasize health advantages of the active child
Sports Illustrated for Kids, Seventeen, etc.
Internet Pop Ups / Websites
Nick Jr. , Discovery Kids, Disney
TV Ads on Kids Programming
Endorsements appealing to younger child
Dora the Explorer, Sponge Bob
Video game background banners
Form strategic partnerships with other companies, Ex. EA Sports
Continue celebrity endorsements targeted at pre-teens/teens
Current National Trend is to diminish Childhood Obesity
Overweight children - 9 million (3x that of 1980)
Children dehydrate faster that adults
Instill brand recognition at an early age
Studies show taste promotes more consumption with kids
Attracting a fresh Market
SWOT Analysis of Gatorade
Gatorade is the marketplace leader in the activity drink category, dominating the key competition of PowerAde.
Gatorade has science to back up their product and it is which can excel and keep maintaining physical performance during competition.
It is the field of play in many professional sports, this means not could it be on television, but additionally it is proven to work at the highest level.
A variety of athletes endorses the Gatorade message from practically all sorts of sport. Not merely are those, but practically each one of their athletes proven winners which instils additional credibility in the brand.
Gatorade has a loyal consumer base and their brand is held in high regard. Thus giving them versatility to expend into other products designed to help athletes.
There may be too many varieties and flavours of the Gatorade product, which might ultimately, might confuse and annoy customers.
Gatorade also does not have an energy drink and don't have lot of potential to make one because it may lead to dehydration.
Work needs to be achieved in both of these areas plus they can heal the few weaknesses they may have.
If Gatorade can form a distinctive blend that could provide additional energy and keep athletes hydrated it could certainly give them an advantage.
Adding one athlete from the mixed martial arts (MMA) may help them expand a lot. Since MMA has boomed in the sports world as the new, exciting form of entertainment.
They may possibly also put in a vitamin-enhanced hydrator to complete with brands like vitamin water that take a few of their target market.
Gatorade also offers some products listed on their website that contain some potential like protein shakes, but they are not promoted the maximum amount of.
New energy drinks flavours present a threat to Gatorade since it is also attractive to the target market of 18-24 year old males.
The currency economy also has an impact on what folks will consider to buy the supermarket.
Finally, Gatorade has to worry about their brand plateauing and losing curiosity about their target market.
Suggestions and recommendations
I would like to give certain suggestions to the Gatorade company which can be the following: -
Gatorade Company targeted mainly athletics and sports individuals and there exist an enormous potential in the market for them so they should also have targeted other segments to be able to have more market share.
In India they use skimming pricing approach by which they may charge high prices but if they charge less by reducing the price of the Gatorade products they can increase their sales which give them maximum profits.
In Indian market they must have created more awareness on the list of peoples as less variety of peoples is aware of the Gatorade brand.
For promotion in Indian market they should have used celebrity endorsement such as cricketers or Bollywood stars as they use JORDAN for the promotion of the energy drink products.
They should have also made the Gatorade products for the rural India as more than 70% of the sector is unorganised and there exist huge prospect of growth.
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