Professional Documents
Culture Documents
FLOWCHART. 29
REFERENCES 30-31
APPENDIX 32-33 1
Competitive Analysis:
Propel Fitness Water is a product of
Gatorade, which is marketed by PepsiCo.
Gatorades name to the label was a major strategic
Pepsi was introduced Propel in 2000, and by
insight (MacArthur, 2004). By coupling their brand with the
2004 they had sold $256 million worth of
popular Gatorade drink, they were about to gain some
Propel (Moskin 2006). When it was
trust of the loyal brand users.
introduced, it was tested in over 40 different
7-Eleven convenience stores in the Western
United States; it originally came in flavors of
lemon, orange, and berry (Khermouch,
1999). In 2003, Propel was the first enhanced
water brand to oversee the $100 million sales
record (Propel Claims Dominance, 2003).
Propel seemed to have only grew from there.
By 2004, it was considered the leading
enhanced water brand (MacArthur, 2004).
Propels success skyrocketed; it started to
become a widely known brand within just a
few years of it first being introduced.
According to Ad$pender, as of 2014,
Propel is below Powerade as a competitor
when it comes to advertising spending.
Propels total Share of Voice was only at 6.5
percent in 2014. Their total spending came to The chart above shows Propel Fitness Waters
about $12.7 million, which is nearly half of Media Mix for the year 2014 according to AdSpender. It is
Powerades $22 million. apparent that their spending has been focused in nearly
Propel tried many different marketing only one place: magazines. Propels total advertising
strategies. They introduced many different budget in 2014 was $12,783,600. About $12,512,000 of that
flavors to introduce variety and to spark more was spent in magazines. Propel also spent insignificant
interest. It also seemed that Propels relation amounts of money in spot TV ($3,000), local radio
to Gatorade proved to be an important ($22,300), internet display ads ($157,200), and outdoor
quality. Marie Devlin, Propels brand team display ads ($89,100).
leader, stated that simply incorporating
Competitive Analysis:
Glacau Vitaminwater was introduced in
2000 in New York. This enhanced water was
introduced by the companies Energy Brands
and Glacau. Energy Brands was bought by
the Coca-Cola Company in 2007 (Coca-
Cola to Acquire Glaceau, 2007).
Glacau Vitaminwater holds the
smallest of the Shares of Voice with a 5.7
percentage. Their total advertising spending
in the year 2014 was about $11,305,800,
which is a little over a million less than Propel
Fitness Water. Powerades spending is more
than double that of Vitaminwater.
Powerades Share of Voice is only a little less
than equivalent to Vitaminwater and Propels
Shares of Voice combined.
When it comes to marketing strategies,
Vitaminwater tried many different
approaches. In 2012, they partnered up with
Jessie J, a popular singer, and created an
interactive online video game. Participants
could go online and play this Vitaminwater-
themed game, and they had a chance to
The chart above shows Vitaminwaters
win many prizes, including tickets to see
Media Mix for the year 2014 according to AdSpender. It
Jessie J live in London (The Coca-Cola
shows a significant amount of money being spent in the
Company Jessie J, 2012). In 2009, they
cable TV industry, where they spent $8,939,100. Network TV
introduced Vitaminwater Zero, a zero calorie
comes next, with $1,448,400 being spent in that vehicle.
option within the brand (Vitaminwater brings
They spent $414,400 in local radio, $252,400 on internet
low calorie to next level, 2009). By introducing
display ads, $134,100 on outdoor display ads, and $11,000
a zero calorie beverage, they are positioning
in spot TV.
themselves as a healthier option. Their name,
Vitamin Water, also implies a healthy lifestyle.
Competitive Analysis:
At a glance:
7
In addition to these ads, Powerade is
Creative History: promoting www.justakidfrom.com, where the
The Powerade brand is currently company is selling clothing items through
positioning itself as the beverage of choice December 31st that will benefit the Boys & Girls
for young athletes looking to prove Clubs of America. With this gesture, Powerade
themselves. The power through tagline is reiterating its support for kids in need and its
seen in recent ads is a message about desire to invest in their potential as athletes
beating the odds and overcoming and people. The campaign is being marketed
obstacles. These themes are emphasized further through social media and the #justakid
with compelling TV commercials that and #powerthrough hashtags, which
surround professional athletes Jimmy accompany photos and short videos that
Graham and Derrick Rose whose stories encourage hard work, focus, and defying
serve to tell us what it means to achieve expectations, as well as feature interviews
despite poor circumstances growing up. The with other well-known athletes who come
recurring headline, were all just a kid from from somewhere. The Powerade brand has
somewhere, is a way of targeting young expressed that this underdog concept in their
people and inspiring a journey toward advertising very much parallels their own
greatness in sport. The 60-second spots by position as second to Gatorade in the
Wieden+Kennedy include voiceovers that category (Pathak, 2012). Past print and
preach rising from and climbing out of outdoor ads have targeted Gatorade more
whatever bad situation exists; Powerade is directly than television or digital, suggesting
there along the way. Powerade is the better choice in terms of
formula and ingredients (Zmuda, 2009).
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85. People who have completed less
Target Audience: than a year of college have a slightly
According to Simmons OneView, below average number of 96.
males are more likely to use the brand However, those who have completed only one
category of sports drinks with an index full year of college have an index number that
number of 124 as compared to females with goes back to above average 108. Those with a
an index number of 77. bachelors degree have an index number of
It seems as though the target for this 100. The tendency greatly decreases with those
brand is for a younger audience. 18-24 year who have completed graduate school, and
olds showed significantly high index numbers they have an index number of 65.
with the highest being 238 at age 19. The Users of Powerade showed a significant use
index numbers show a decreasing trend as in media. Users were most likely to have used the
age increases, however it maintains an Internet in the past 7 days with an index of 109.
above average number until age group 45- Television and radio also showed above
49 with an index number of 77. The index average numbers for users with index numbers of
number continues to decrease from there. 102 and 106. Out of these media vehicles, users
Asians showed a more tendency to drink were most unlikely to use magazines.
Powerade than whites with index numbers of To summarize, the optimal consumer for our
122 and 88 respectively. However, African market consists of those who are aged 18-24
Americans had the highest usage rate with with a bigger emphasis on men. Users of modern
an index number of 144. media seem to use our brand the most, which
Education showed an interesting trend makes sense because of the younger age
with the target audience. Those whose group. The majority of our buyers live in the
highest education level is a high school southern United States, and education showed
diploma had an above average index an insignificant trend.
number of 112, while those who have not
fully completed high school had an index of
9
The statistics above show that the only index numbers
Geography:
that are over 100 are the Southeast and Southwest
Geographic location in the U.S. showed a regions. Higher index numbers suggest more potential
favorable trend for the south with an index of 115, as for its brand, therefore, Southeast and Southwest have
well as the west with a number of 108. The Northeast higher potential for investment and greater profit.
and Midwest regions presented below average The top seven largest vertical percentage numbers
index numbers of 78 and 84 respectively. Out of the have been recorded from the largest number to the
top 14 cities in the Direct Marketing Association smallest number:
(DMA), Atlanta turned out on top with an index South: 38%
number of 147. San Francisco had the lowest Southeast: 22.9%
number of 47. Pacific: 21%
Powerade is a national product that is used Northeast: 19%
throughout the census regions as well as the top 14 Other pacific: 16%
Southwest: 15.1%
markets within the United States (Simmons, 2013). West central: 12.8%
Out of all sports drinks in general, consumption
patterns of all major regions were significantly This brings a question as to why consumption is more
different, especially the consumption in South and prominent in the South. One hypothesis may be that in
Pacific regions of the country. These regions are the South, the temperature is generally higher, and
significantly higher than the rest of the regions in the people are more likely to consume more thirst
U.S. The following index numbers will illustrate quenching beverages than the average consumer.
Powerade consumption in each market: There is a greater population consuming sports drinks,
and there is more potential according to the index
Southeast: 136
Southwest: 145 number provided from Simmons.
Northeast: 71
East Central: 80
West Central: 83
Remaining West: 91
Pacific: 88
Other Pacific: 90
Mid-Atlantic:75
New England: 63
New York Metro: 73
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Timing and Purchase Cycle:
Because of the nature of our product as The sports drink category sees fairly
a sports drink, sales and consumption will consistent purchase cycles, as these
often coincide with athletic seasons. In beverages are typically marketed as the
addition, sponsorship of major sporting athletes fuel for practice and competition.
events throughout the year by parent
company Coca-Cola [and therefore
Powerade] mean increased advertising at
certain times and more exposure to fans of
particular sports; for example, Powerades
association with the U.S. Olympic team might
mean more reach for niche sports during
some winter and summer seasons. Powerade
is also the official sports drink of the NCAA
and markets heavily during March Madness
and college football bowl games. As a
result, consumption rates are likely to peak
during football and basketball seasons (fall
and winter) as these are popular sports for
members of our target group to watch and
to play.
11
Media Mix:
Within the year 2014, Powerade has
broaden reach and increase frequency
spent a majority on SLN TV with a total of
with millennials.
11190.6 (000) dollars. In other words,
TV does match up with the lifestyle of
111,906,000 dollars was taken out of
Powerades target audience, but the
Powerades total spending budget to go
brand is not taking full advantage of their
towards SLN TV. Theyve also spent
targets use of social media. Besides social
significantly on Network TV with 6760.6(000)
media, investment in outdoor advertising
dollars, Cable TV with 2835.5(000) dollars,
could be made as well. Billboards before
and International Display with 1259(000)
rest stops and gas stations could inform
dollars. Powerade has spent the least
and reach more consumers.
amount of money on Local Radio and Spot
TV with 164.2(000) and 119(000) dollars
respectively. Total spending for Powerade in
2014 was 223,288,000 dollars (Ad$pender,
2014).
The company has been highly invested
in SLN TV and Network TV, which has caused
a lack of use in other media vehicles.
Powerade has a younger target, with their
prime consumers between the ages 18 and
21. Because of this, investment of advertising
space on social media and greater
investment in radio (such as Pandora) could
greatly benefit Powerades brand and
12
SWOT Analysis:
Opportunities
> It can increase social media and
Strengths marketing presence to recapture
> Powerade is widely distributed and has an teens and young adults.
international presence. > It can gain sponsorship with more
> Its owned by Coca-Cola, a continuously celebrities and smaller sports
successful and respectable brand. associations, such as the NCAA to
> It has endorsements and sponsorships with create associations between the
athletic affiliations. brand and the image.
> It has a unique selling proposition: four > Powerade can emphasize the
electrolytes in their ingredients formula. health benefits of their drinks, such
as the four vital electrolytes.
Weaknesses
> It has poor social media and marketing Threats
presence. > Gatorade is a fierce competitor
> Consumers arent very aware of the and has over triple the market share
nutritional benefits of Powerade. of Powerade.
> The brand holds a small amount of the > The competition has high brand
market share-- about 22% compared to loyalty, making it difficult to expand
Gatorades 77%. the Powerade target, and making it
difficult to secure celebrity and
athletic endorsements.
> The high competition with
Gatorade could lead to price wars.
13
Communication Objectives:
Positioning Statement:
To young athletes between the ages of 18 and
To create awareness of the brand.
24 years old, whose active routines demand the
To increase brand loyalty among the 18-24
replenishment of electrolytes and other nutrients
year old target demographic.
during and after a workout, Powerade is the
To differentiate our brand from other sports
sports drink that offers four core electrolytes to
drinks with a unique selling proposition that
satisfy and fuel every athletes lifestyle.
demonstrates the benefit of electrolytes.
Tone:
Promise: Inspirational, motivational, stimulating, and
amped-up ads.
The Powerade formula promises
athletes the hydration, energy, and
power needed to keep them
performing and competing at their
Slogan: A twist on their current Power
Through campaign by adding our idea of the
best.
core four
14
Execution 1:
For this print ad, we have really emphasized the
idea of the core four electrolytes by creating a
visual comparison with the four limbs used in
swimming.
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Execution 2:
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Atlanta, Georgia
New Orleans, Louisiana
Miami, Florida
Nashville, Tennessee
Orlando, Florida
Raleigh, North Carolina
Tampa, Florida
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Traditional Media
1. Network and Cable TV 2. Radio
b. Channels: ESPN, ABC, NBC, CBS, b. Stations: Sports Stations such as ESPN,
FOX Sports CBS, Fox Sports Radio
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viewing-figs.html
Pathak, S. (2012, March 2). No. 2 Sports Drink Powerade Taps
Ciambriello, R. (2015, February 27). Gripping Powerade Spot With
Into Its 'Underdog' Status.
Derrick Rose Includes First
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