The
Gatorade
Brand
is
a
dominating
force
in
the
sports
drink
industry.
Throughout
the
past
forty
years,
this
company
had
created
a
sustainable
competitive
advantage
by
developing
their
marketing
mix
which
include
product
strategy,
pricing
strategy,
promotional
mix,
and
distribution
strategy.
This
brand
audit
aims
to
analyze
Gatorade’s
marketing
mix,
and
examine
how
it
varies
when
it
targets
on
multicultural
consumers.
Or
in
other
words,
how
its
marketing
strategy
varies
when
it
applies
to
an
international
market.
Executive
Summary
Gatorade
is
an
extremely
popular
sports
drink
brand
and
has
outstanding
brand
awareness
and
loyalty.
It
markets
its
unique
products
mainly
to
pre-‐adult
group
who
ages
from
13
to
24.
As
what
John
Sicher,
the
editor
of
Beverage
Digest,
said,
“the
pre-‐adult
years
are
the
cutting
edge
of
where
those
sports
drink
brands
are
competing”.
This
is
a
tough
market
for
any
company
to
communicate
with,
since
the
youth
people
nowadays
prefer
to
avoid
traditional
media
outlets.
In
order
to
overcome
this
obstacle,
Gatorade
tends
to
be
not
only
a
sports
drink
distributor
but
also
a
“lifestyle
company”,
promoting
an
active
and
self-‐improvement
lifestyle.
In
order
to
reach
its
target
market,
Gatorade
adopts
a
very
competitive
marketing
mix
to
get
its
products
sold.
First
of
all,
Gatorade
spends
lots
of
money
on
the
product
innovation
and
development.
Secondly,
its
low-‐pricing
strategy
makes
the
products
more
welcomed
by
the
consumers.
Thirdly,
by
using
its
parent
company—PepsiCo’s
distribution
system,
Gatorade
can
get
its
products
sold
in
the
supermarkets,
liquor
stores,
department
stores,
and
so
on.
Besides,
Gatorade’s
promotional
mix
which
includes
advertising,
public
relation
planning,
sales
promotion
and
sponsorship,
and
personal
selling,
also
contribute
much
to
its
dominating
80%
market
share
in
the
whole
industry. [...]
Table of Contents
1. Introduction
2. Executive Summary
3. Brand Image
4. Product Situation Analysis
5. Target Markets Analysis
6. Sales and Profitability
7. Product Development
8. Distribution Strategy
9. Pricing Strategy
10. Promotional Mix
10.1 Advertising
10.2 Sales Promotion
10.3 Public Relation
10.4 Personal Selling
11. Conclusion
Objectives and Topics
This brand audit aims to analyze Gatorade's marketing mix and examine how its strategy varies when targeting different consumer segments and international markets.
- Analysis of the sports drink market competitive landscape.
- Evaluation of Gatorade’s product development and brand evolution.
- Assessment of the current distribution and pricing strategies.
- Examination of the integrated promotional mix including advertising and public relations.
Excerpt from the Book
Distribution Strategy
As Pepsi Co’s fourth largest brand, Gatorade is distributed nationwide using Pepsi Co. distribution network. However, unlike the cola business, Gatorade doesn’t sell concentrate to subcontractors. It’s set up as a complete beverage company that mixes the drink, fills the bottles, and then distributes them (Sam Jaffe, 2001).
The distribution system used by Gatorade depends on customer needs, product characteristics and local trade practices. There are three main systems: direct-store-delivery (DSD), customer warehouse and foodservice and vending distribution networks. (PepsiCo Annual Report, 2008) A way to increase sales is by placing Gatorade in places that will influence impulse purchase behavior, like placing Gatorade by checkout stands at a supermarket.
Gatorade is sold as a high performance sports beverage in 80 countries world wide, with over 50 flavors (johnjohn1313, 2008). It can be found anywhere that Pepsi products are sold. In United States, Gatorade products are sold in supermarkets, liquor stores, sari-sari stores, convenience outlets, drugstores, market stalls, etc.
Summary of Chapters
Introduction: Outlines the purpose of the audit and the company's long-standing competitive advantage.
Executive Summary: Provides an overview of Gatorade's market position as a leading sports drink brand and its focus on an active lifestyle.
Brand Image: Discusses the historical origins and the core message of rehydrating and replenishing athletes.
Product Situation Analysis: Details the primary product variants and the available size formats.
Target Markets Analysis: Identifies the primary "pre-adult" target group and their engagement in high-demand training.
Sales and Profitability: Compares market share and retail performance against major competitor Powerade.
Product Development: Tracks the evolution of the brand from a single product to the diversified G Series.
Distribution Strategy: Describes the logistical systems used by PepsiCo to ensure availability in global markets.
Pricing Strategy: Explains the value-based pricing approach used to maintain a competitive edge against alternatives.
Promotional Mix: Breaks down the specific channels used to reach consumers, including advertising, sales promotion, PR, and personal selling.
Conclusion: Summarizes the effectiveness of the current marketing mix and identifies potential growth areas in restaurant distribution.
Keywords
Gatorade, Marketing Mix, Sports Drink, Brand Audit, PepsiCo, Product Development, Distribution, Advertising, Sales Promotion, Pricing Strategy, Market Share, Consumer Behavior, Brand Image, Public Relations, Global Distribution.
Frequently Asked Questions
What is the primary focus of this brand audit?
The document provides a comprehensive analysis of Gatorade's marketing mix, evaluating its product, price, place, and promotion strategies within the competitive sports drink industry.
Which key areas of the marketing mix are covered?
The report covers product development, distribution systems, pricing structures, and the promotional mix including advertising, public relations, and sales initiatives.
What is the primary target demographic for Gatorade?
The primary target market is the "pre-adult" group, specifically individuals aged 13 to 24 who engage in active lifestyles and sports training.
How does Gatorade maintain its competitive edge?
Gatorade leverages its parent company's (PepsiCo) massive distribution network and invests heavily in research-based advertising and sponsorship to reinforce its brand image.
What research methodology is applied in this study?
The audit relies on secondary research, utilizing data from market research firms, corporate annual reports, and industry publications to analyze Gatorade's business performance.
What are the main components of the promotional mix?
The promotional mix consists of television advertising, event sponsorships, strategic public relations, and a limited focus on personal selling.
How has Gatorade's product line evolved over time?
Gatorade shifted from a single product (Thirst Quencher) to a complex brand architecture featuring the G Series, which segments products by athletic performance needs.
Why did Gatorade decide to adjust its pricing strategy?
To remain competitive against brands like Powerade, Gatorade adopted a pricing strategy that targets affordability, effectively keeping its prices approximately 36% lower than its primary competitor.
What is the significance of the "G Series" transition mentioned in the document?
The G Series represents a strategic re-branding effort between 2008 and 2010, designed to categorize products based on the "before, during, and after" phases of athletic activity.
What future opportunity does the conclusion suggest for the brand?
The conclusion suggests that Gatorade could expand its reach by entering the restaurant sector, targeting casual drinkers who seek alternatives to traditional soda and juice.
- Quote paper
- Xinwen (Fina) Xu (Author), 2011, Brand Audit: Gatorade, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/187358
