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UNC KENAN FLAGLER BUSINESS SCHOOL

SWETHA VASU

BRAND MANAGEMENT REPORT

GATORADE

Gatorade became the 4th largest brand of PepsiCo on basis of retail sales2. In 1983. Gatorade made its way into sports from the Orange bowl to the Super Bowl.com/annual10/downloads/PepsiCo_Annual_Report_2010_Full_Annual_Report.go. Products3: Gatorade boasts of a variety of sports products: 1 http://abcnews.com/frequently_asked_questions/ .com/Business/story?id=3929315&page=1 2 http://pepsico.pd f 3 http://www. Soon after. In 2010.gatorade. Gatorade was purchased by Quaker Oats which in turn was later acquired by PepsiCo in 20011.Brand Audit GATORADE: "Sports Fuel Company" Introduction: A University of Florida coach’s (Florida Gators football’s coach) curiosity to determine the reasons for the ‘wilting’ of his players gave birth to the brand called Gatorade in 1965.becoming the official drink of the NFL (a title valid even today).

org/20101221172620/http://pepsico. Gatorade Nutrition Shake (protein) Gatorade Frost Gatorade Ice (lighter flavored) (relabled to Gatorade Rain later rebranded to 'No Excuses') Gatorade Tiger (with Tiger woods) (relabled to Focus) GIDS (Gatorade In-Car Drinking System). In Feb 2010.com/Download/Gatorade_Company_ Fact_Sheet. In 2010. The rebranding efforts -changing Gatorade to G -were not successful over the 2009-2010 years for the company.pdf .archive.5: 4 http://bleacherreport. the company repositioned its product portfolio around the concept of G-Series as follows4. pushing Gatorade to rethink its branding efforts. The company also resorted to rebranding several products in its portfolio.Ener gy Bars.com/articles/337710-gatorade-concurs-hydration-debuting-g-seriestechnology-at-super-bowl-xliv 5 https://web.in car racing drink Gatorade Endurance Formula G2 (athletes and yoga) Gatorade AM (relabled 'Shine On') Gatorade X factor (relabled 'Be Tough') Gatorade Fierce relabled Bring It' Figure (a) Rebranding: Gatorade reported declining sales since 2007 that pushed the company to adopt rebranding.Gatorade thirst quencher (relabled to Gatorade G) Gatorade Performance Series • Energy drink (carbohydrate). Pepsi invested $30m into a marketing campaign that saw the launch of the G series. It relabeled many of its products as depicted in the figure a (above).

Perform 02 Post workout fuels. Powerade is the biggest competitor to Gatorade.com/article/news/watch-spot-2-powerade-launches-underdogcampaign/233082/ Other related category products such as Redbull (energy drinks). This brand is unanimously recognized as the best known sports drink brand. in addition to the G series Fit. It is also interesting to observe that Powerade is often positioned as the brand for the underdog athletes (Power through tagline) 7while Gatorade focusses on the aspirational emotions through portraying successful athletes. Under its CEO. Indra Nooyi. bottled water. Gatorade also has other competitors as listed in figure (c) below: Powerade (Coca Cola) Bodyarmor Lucozade (Suntory Holdings) in UK Vitamin water Brands Figure (c) 6 http://project6. Pepsi chose to embrace the trend and focused on noncarbonated drinks. ready-to-drink tea. then 28. coffee etc. . Gatorade also introduced G natural made with natural ingredients and flavors.Pre Game fuels.usfca. Owing to rising concerns on health and the simultaneous popularity of noncarbonated drinks.edu/Drink+Wars 7 http://adage. Pepsi started the “Better for you” portfolio.Prime 01 During Game fuels.Recover 03 Figure (b) G series. Powerade is a Coca Cola product and the war between these 2 brands started from the time when both tried to sign Michael Jordan to promote their respective brands. for a 10-year deal worth $13.unlike Coca Cola that continued to focus on carbonated drinks.5 million 6.Gatorade was crucial to this Competitors: Gatorade had a distinct “first to market” status. Gatorade won this race to sign the basketball startaking a risk with signing Jordan.wiki.Pro. This was a successful deal for Gatorade especially in the international space where the drink got its acceptance owing to Michael Jordan’s involvement. a brand extension was also another series introduced initially for locker rooms of athletes that later was also introduced in stores in 2010.

com/2015/05/gatorades-position-sports-beverage-market/ 11 http://www. A positioning statement for Gatorade might read as follows: 8.GatoradeCanada.com/company/heritage 9 http://thebranddevelopmentcompany.marketing91. this brand has several sports related products.9. The figure below explains the customer segmentation and analysis: 8 http://www.a tagline publicized in the videos of its Canada YouTube Channel.from energy drinks to bars.com/marketing-mix-of-gatorade/ .Brand Positioning: Positioned as a ‘Sports fuel Company’. Gatorade gained a strong hold in the athletic drink space early on.11 Gatorade also presents a brand personality that is best described by the following words: • • Excitement Power Spirited Competence Success Energizing for athletes “For serious and success oriented athletes.and is actively innovating in the product domain.10.gatorade.com/brand-positioning-statements-101/ 10 http://marketrealist. energizing. Gatorade offers healthy. Positioned as an electrolyte replacing oral rehydration drink. sweat induci Customer & Target Market Analysis: Gatorade was one of the first in the sports beverage segment.

motivational Performance/ Imagery Energising Athlete's locker room drink.e.g. sports companion. • Pre. France. United Kingdom. motivated • Lifestyle: High end. loyal companion to an athlete Judgents/ Feelings Confidence. Australia etc. however.luxurious (although not well defined here). This also explains Gatorade’s product development specifically for car-racing – Gatorade in Car drinking system (one that could withstand the 130degree temperature) in addition to its other product series’.between 18-34 • Male (predominantly) • Fans of successful athletes • Attitude: Success oriented. active lifestyles • Mostly the USA • Presence in other countries too.Demographic Psychographic Geographic Behavioristic • Young athletes. Canada.associated with sports. sweat it to success Salience Sports fuel drink. electrolyte replenisher. Recovery drink. Long term sponsorships. some heterogeneity exists between the needs of different sports segments. Brand Equity Pyramid: Resonance Most popular sports drink in the USA. and post game (predominantly) • For general rehydration and energy Figure (d) The target market of Gatorade is a fairly homogenous segment in terms of the energy needs. hydration therapy . during.

Gatorade has turned to interesting marketing techniques:  The launch of G series is a prominent milestone in the history of advertisements for Gatorade.focused branding (as healthy sports fuel). Gatorade launched a “What is G” marketing campaign. In order to overcome the declining sales. and lots of negative publicity for the brand –RIP Gatorade.as is evidenced from the latest gimmick. or lowly penetrated international markets c. but. during game and post-game fuels. Sponsor the Olympics to gain international audience. Red bull is currently the leader in this segment. one can say that Gatorade is doing a lot of things right. Positioning: a. Gatorade learned its big lesson in Marketing. Targeting: a. Gatorade should consider outflanking Red Bull in this segment through creative advertisements and strong taglines such as “Live it up with Gatorade”.starting with Michael Jordan. We shall review some ways in which Gatorade can improve in the Brand Strategy section below: Brand Strategy 1. yet a trustworthy way to enter into the unchartered. leading to a huge loss. This was intended to focus on an image that appealed to an everyday audience. For example.8 million gallons in unit sales during 2009 alone. aspirational targeting (with scope for improvement). this campaign led to a loss of 895. Since this fiasco. “Boost your adrenaline” etc. in international markets like India.Marketing Strategy: In 2009. . this space presents scope for Gatorade’s entry too. This rebranding created more confusion than clarity.putting marketing ahead of the products In many ways. Conceptualized and promoted as pre-game. Strengthen image as a sports fuel in international markets through localization in branding and advertisements. it struck a chord with athletes in engaging with them through all times in their lives. Consider associations with extreme sports. to Tiger Woods (controversial) to Messi. Maintain positioning as a sports fuel 2. Promote this brand in these countries using sporting icons from regionally loved sports such as Virat Kohli (cricketer) b. and innovating. Exhibit A of appendix showcases some of the advertisements used by the brand in promoting this series  Gatorade also promotes itself as an aspirational drink with successful players in its advertisements. cricket is a loved sport.this will be an expensive. However. Exhibit B displays some of the aspirational print messages used by Gatorade with these sporting stars  Gatorade also tried indirect messaging advertisements to establish its superiority over other competitors such as vitamin water through advertisements as showcased in Exhibit C  Gatorade has also positioned itself an innovation oriented sports drink.

Gatorade Spanish. Penetrate the women’s sports domain. Sponsor a women’s championship sporting event to begin this association e. While it is consistent in its performance. our recommendation would be: “Keep innovating.for example. keep growing. Clean the YouTube channel organization. b. it can make certain improvements to its branding strategy by organizing and tactfully targeting its audience.either based on country. powered by its early advantage has established itself well as a market leader in the sports fuel segment. or country based ads. Keep Going Gatorade!” . Gatorade twitter has a different logo while the same in Instagram is different d. Facebook etc. use specific channels to convey language based ads. Consider expanding reach to other players in the sports domain such as cheerleaders. Gatorade’s YouTube channel is currently unorganized with several subchannels. Use consistent logos across the different channels. Brand Messaging a. So.for example.d. make sure that the image of the brand as a sports fuel is not diluted in the marketing to these segments f. stick to a single classification. Gatorade’s advertisements are heavily men driven. It is in the right segment in terms of consumers’ perception as a healthy drink too. However. and structure it to convey very clear messages at specific audience. Create an educational segment to help viewers learn more about how and when to use Gatorade in the best way rather than restricting the advertising to just the ‘aspirations’. or on Language (our recommendation would be by country) c.Gatorade India etc. and is innovating in the field. This can however be intertwined with advertisements that show visuals of when and how to use Gatorade (something that Gatorade currently uses in Restorative fuel based ads) Conclusion: Gatorade. Continue to improve targeting on High school athletes and the younger population (18-26) 3. For Instagram. umpires etc.

Appendix .

Exhibit A: G Series advertisements .

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Exhibit B: Gatorade advertisement with sports icons .

Exhibit C: Ads targeting Gatorade’s competitors .