GATORADE

Manuela Carreira, Victoria Diaz, Brissa James, Ainhoa Olaechea, Samer Roz
GATORADE
What is the brand, when did it start and what was the purpose ?Name ? logo?
The brand name is Gatorade, and it was invented on October 2, 1965 by a team of scientists
in the university of florida. Its main purpose was to create a sports drink to end the thirst. The
name gatorade originated from the nickname of the university. The drink contained salts and
sugars that could be absorbed more quickly. At the start gatorade was not popular, some
claimed that it tasted horrible. However, with time people became fond of it and the company
sales went up. Gatorade is meant to be consumed before and after performing physically
strenuous activities. Its electrolyte infused concoction helps us to replenish the fluids and
rehydrates our system so that we can perform better physically. It enhances our endurance
and helps us sustain our energy. It also helps to enhance muscle power, fight fatigue, boost
brain level, and improve performance.
“Gatorade is working to create more opportunities for equity and belonging in sport. It’s time
to level the playing field. Together.”
“Our goal is simple: we will fuel tomorrow by helping more athletes realize the potential of
sport today.”
What does the company sell?

The company sells products for hydration, gear (bottles, stainless steel bottles, jugs and
more), energy chews, protein powders and drinks. There are 22 flavors of the gatorade thirst
quencher flavors. But their main product is their drinks.
Where do they sell their products and what do they sell?

Gatorade is distributed through PepsiCo globally across 80 countries. It is present in
supermarkets, malls, convenience stores, drugstores, grocery shops, petrol bunks, vending
machines, cafeterias etc. The major market for the drink remains countries like the US,
Canada, Australia, and the UK.
In what countries are they in?
As the number-one sports drink by annual retail sales in the United States, Canada, Mexico,
Italy, Argentina, Brazil, Venezuela, Colombia, Indonesia, and the Philippines, Gatorade is
also among the leading sports drink brands in Korea and Australia.
Who is the target audience?

- Basic Gatorade: young adult athletes
- Designed for athletes because it replenished the body with electrolytes and
carbohydrates before, during and after intense workout
- Mostly 25-34 y/o males
- G Series: 13-17 highschool athletes
- G Series Pro: 16-24 y/o athletes
Who are the competitors?

- Redbull, powerade, monster, sporade
- Companies that produce energy drinks, nutritional drinks, sports drinks, etc
- Coca-Cola is the biggest competitor based on revenue
- Powerade is the biggest competitor based on market
- Both target the same audience, wish is mostly athletes and sporty people
- PepsiCo makes Gatorade
- Coca-Cola makes Powerade
Who are the collaborators?

- PepsiCo is the manufacturer
- Collaborating sponsors of the NBA, NFL, PGA, WNBA and association of volleyball
professionals. As well as MLB, MLS and MLL (Major league Lacrosse)
- Consumed in locker rooms across 80 countries in the world
- 3,000 employees
- CSR Partners: Athlete Alley, Good sports, Honest game, Play it forward, Women’s
sports foundation
- Pepsico’s largest investors are investment fund groups like Vanguard and Morgan
Stanley
- General Manager is Brett O’Brian
What market are they in?
Gatorade competes in the Energy, Sports, Health & Nutritional Drink Manufacturing industry
SWOT analysis:
Strengths:
● Range of Products: it has many different products for hydration, gear (bottles,
stainless steel bottles, jugs and more), energy chews, protein powders and drinks.
Also many different flavors (22). This offers the consumer diversified products where
they can pick their preferences
● Strong Distribution Channel: they sell their products in a wide variety of countries.
Such as the United States, Canada, Mexico, Italy, Argentina, Brazil, Venezuela,
Colombia, Indonesia, and the Philippines, Gatorade is also among the leading sports
drink brands in Korea and Australia.
● Promotion Strategy: gatorade uses online advertisements on sports sites such as
NBA, the official gatorade website and sports zone. The brand has also focused on
promoting their products with top athletes, such as lionel messi, dwyane wade,
serena williams, paul george and more. They have also focused on choosing top
athletes from many different sports therefore fans of these athletes/sports will get to
know the brand and maybe consume their products as their favorite athletes do.
● Brand Identity: gatorade has a very strong brand identity, since as mentioned before
it has focused on putting the face of the brand with top athletes, therefore consumers
link the brand with health, sports and success. This makes consumers unconsciously
believe that if they consume their products they can strive to obtain their own goals.
● Support of PepsiCo: stable and strong parent company PepsiCo has given a boost
to their brand and helped in development.
● Loyal customer base: most customers of gatorade are loyal to the brand, meaning
that they will rarely switch to another brand once they choose and consume
gatorade. They also have a wide base of customers that will buy from them for a
lifetime.
● Market leaders: gatorade has dominance in this industry ( Energy, Sports, Health &
Nutritional Drink Manufacturing industry)
Weaknesses:
● Minimal Visibility: Although gatorade is a very large company with a large budget
behind them, their advertising presence is lacking. You would expect to see more out
of them in terms of campaigns especially with such a wide variety of products being
under represented
● Benefits are Not Highlighted: Because of the lack of brand marketing, the benefits
of their products are not as well recognized as some competitors. Gatorade is
created to scientifically target hydration issues within athletes but these points can
often be overlooked and not actively advertised. This has cause ignorance to the
well-tested benefits of gatorade
● Huge Variety of Products Creating Confusion: Gatorade have diversified their
product line greatly and now carry a huge variety of products. This has become a
double edged sword as it has been known to confuse customers who are searching
only for a specific product. Within sports nutrition they have so many flavors and
products, it has left the customer with an abundance of choice which causes them to
not know what to choose. This has resulted in a loss in market share to competitors
such as powerade who are more focused on a few products.
● Lack of Recent Market Research: Gatorade has not conducted market research in
over 2 years. This means that all decisions being made to date are based on data
collected a long time ago. Consumer behavior in their market could have evolved
since then and will cause competitors with more research to be at an advantage
● Disparity in Market Share Between Products: A few of the products that gatorade
carries have a high market share, while most of them do not. This reliance on few
products is not only caused by the choice to have such a wide variety of products,
but will lead to gatorade being vulnerable to external threats if their star products do
not perform as well as they usually do. Instead of having 3-4 products that are well
developed and are stars in their markets, they have stretched themselves too thin
and cause 1-2 products to be relied on with the rest lagging behind.
Opportunities:
● Utilizing the Young Athletes: Gatorade takes as much advantage as possible of the
sports world. New rising athletes with huge potential from various fields, they don't
limit their marketing to one single sport or athlete, they cover as many as they can
● The Trend of Healthy Lifestyle: Being a healthy person and leading a healthy life is
one of the biggest trends going on recently. This gives Gatorade the opportunity to
diversify and even expand their market.
● Social Media Presence: Gatorade, just like many other brands has taken marketing
digital, creating social media accounts in mediums like instagram, facebook, and
twitter, and has surpassed one million followers in more than one. They use videos
and photos to promote their products.
● Stealing Market Share: With a big parent company like the one Gatorade has
(PepsiCo) to support, Gatorade has used the strategy of stealing market share.
PepsiCo helps Gatorade to build a strong and powerful brand image such as theirs,
strong enough to attract customers, specifically competitors’.
● R&D on Technology: Technology is always an opportunity, the market has provides
plenty of possibilities for Gatorade products and marketing. Research and technology
is innovative and seen as modern and open-minded, and could perhaps provide new
and original solutions to any type of worries in the field of Energy, Sports, Health &
Nutritional Drinks
Threats
● Tough Competition: Even Though it cannot be denied that Gatorade has achieved
to establish a very prominent brand image over their lifetime, Gatorade still has some
strong competition they cannot seem to shake off. Powerade, owned by the
Coca-Cola company must be their biggest rival yet. Since Gatorade is operating in a
very narrow segment, the competition is cutthroat and tough.
● Increasing Online Business: Gatorade is still mainly using physical infrastructure
and have a supply chain on a very large scale. The recent trend of online shopping
could have negative effects on Gatorade as it probably takes time to adjust to this
new era as quickly as needed to stay competitive.
● Fruit Juice Segment: The new fruit juice producers act as a threat for Gatorade
because they can be distinguished as indirect competitors targeting the same human
demands. Furthermore, they are often seen as a much healthier option which seems
to intrigue customers a lot. If the Fruit Juice Segment continues to grow, Gatorade
could threatened to lose a parts of their market share.
● Health Conscious People Spoiling Brand Image: Nowadays it seems to be a huge
trend, to focus on their health. There are many more health-conscious people to be
detected on social media and youtube. Influencers especially are hurting Gatorade’s
brand image by stating that Gatorade drinks and products are not healthy as they
seem, and even stating that they even could cause harm to the human body. False
allegations like that ultimately affect the brand image of Gatorade and reduces their
sales.
● Imitations: Nowadays, a lot of supermarkets bring out their own brands, developing
dupes of other more known brands and selling the products for a lower price.
Cheaper Imitations like that causes harm to the sales volume, since even customers
who enjoy Gatorade will probably pick a more affordable option rather than buying
Gatorade again.
Ansoff Matrix:
Market penetration:
Increasing sales touch points, reaching directly to customers, improving dealer network,
increasing the customer lifetime value, Increasing production capacity will allow Gatorade to
reach more customers within the same market.
- Increasing attractiveness and competitive pricing within the same market will lead to
increased sales and consumption
- The Gatorade can also increase its investment in marketing and advertising activities
to increase market penetration
- The Gatorade can explore new and innovative means of distribution
Market development:
Create new markets and channels for the current products. This may involve – entering
international markets, entering new domestic markets, tying up with complimentary
companies to drive sales of current products etc.
- The Gatorade should invest in research and development to identify possible new
markets and consumer segments for its products
- Expanding regional markets
- The Gatorade can also explore new consumer segments in the same market for its
products
- Brand awareness
- educate consumers in new markets for its products
Product development:
Adding new features to the current product or developing new products for the existing
market.
-The Gatorade can introduce modifications and improvements in existing products to offer
consumers new and enhanced offerings
- Gatorade regularly invests in research and development – especially pertaining towards
understanding market trends and consumer behavior
-The Gatorade engages in strategic partnerships to explore options for product development
as well
Diversification:
Pepsico Gatorade can use diversification strategies when both the product and market is
new to the firm.
-Looking for growth and business development by introducing new products under existing
product lines.
-Gatorade decides to introduce and engage with new product developments and launches
that are not associated with the existing products
-Diversification through a new business would involve the Gatorade to explore new business
ideas and options to launch or acquire for purposes of growth and development.
PART 2. Define the New Target Audience (20%):
During your Analysis, you will have identified a new target audience for the brand. Remember,
this new target audience could be a consumer (B2C) or a business (B2B).
Carry out an ad-hoc market research and please show your findings on who this new target
audience is.
Make sure that in this part you deliver 2 things:
–The Market Research (10%), explaining:
1) what was the objective or problem you wanted to tackle in the research (victoria)
Through our market research we aim to get a better understanding of the current opinion of our
new target audience about Gatorade.
We plan on doing that by firstly, finding out how many people of our new target group have
already heard of Gatorade and through which marketing channel (e.g. social media) they have
heard about. That way, we get to know how many people there are left to convince of the
uniqueness of our product and what marketing channel is the most effective in order to do so.
It also very important to learn about the portion who has not only heard of Gatorade but already
tried it. We aim to understand which aspect of our advertisement it is that attracts the willingness
to buy our product.
Furthermore, it is to find out why people may have hesitated on trying Gatorade that have heard
of it. What was it exactly that was not appealing enough so that they would be interested in
buying Gatorade? Which type of benefits does the product have that the consumer does not
know about which needs to be put emphasis on in advertising and could increase their desire to
purchase the product?
Moreover, it is key to seek out which marketing channels are the ones which will attract the most
people who have not heard of Gatorade before.
Lastly, we also want to get to know about the quantity of past customers who are part of our new
target audience but have stopped drinking gatorade. What was the reason for stopping?
2) the methodology and sampling you want you use (ainhoa)
Firstly for the methodology, the approach would be to find secondary data that already exists,
about current buyers of gatorade. More specifically, the percentages of consumers (based on
why they buy gatorade) that make up the revenue. For example, if 70% of our consumers are
athletes, 15% are buying it for the taste and 15% are already buying it to recover from
hangovers, we would know that there is a lot of room to grow within the latter audience. With this
information, it would be possible to come to conclusions, or a more general idea about our
buyers and their preferences. After having a general idea of the profile of people who consume
gatorade, primary research would be conducted. This would be in the form of quantitative
research. Surveys would be sent online by email to approximately 200 people in the ages
ranging from 18-24 in the city of Madrid. The survey would consist of questions in several
questions including:
- How often do you drink gatorade?

- For what purpose do you consume gatorade?
- How often would you drink a gatorade before or after a workout?
- How often do you get hangovers?

- In case of a hangover would you consider taking gatorade to feel better?
- Have you ever taken a gatorade to cure your hangover?
- From 1-10 how much has it helped?
- What flavor do you prefer?
- How many people do you know that drink gatorade after a night out?
- In what age group are they?
- Which of the hangover symptoms below apply to you:
- Headache
- Nausea
- Dehydration
- Fatigue
- Stomach Pain
- Muscle Aches
- Sweating
- Other: ____________
- How often do you wake up with a headache after drinking?
- How often do you have nausea after drinking?
- From a scale of 1-10 how does it affect your day?
- From a scale of 1-10 how much does it affect your performance?
- Do you find that gatorade helps with nausea?
- How late do you wake up in the morning after a night out?
- If you have not tried gatorade for a hangover before from a scale of 1-10 how propense
are you on trying it?
The purpose of this research would be to find out what is the main purpose people in this age
group buy gatorade.
3) The expected findings (not results) (Brissa)
When carrying out our market analysis with the objective of finding a new target audience for
Gatorade, as expected, the analysis indicated that a public we are yet to conquer are young
adults, from the ages of 18 to 24, who are not part of the athletic community.
Up until now, Gatorade has kept its focus regarding its audience to people from different age,
gender, profession, ethnicity, and more, who all have one specific characteristic that they share:
they are athletes. Gatorades strongest consumers are all people who would definitely say that
sports is a huge – if not the biggest – part of their life.
This is the reason why we decided our new target audience to be regular young adults. We
thought of coming up with a new use for the consumption of gatorade, one that could allure those
who do not necessarily need to partake in or enjoy sports for them to become constant Gatorade
consumers.
With the new market concentrating on people looking for “relieving a hangover”, we expected a
vast amount of the people surveyed to share common symptoms regarding how they feel the
morning after consuming alcohol. For instance, we anticipated plenty of the responses for the
questions measured in a scale (low to high), to be mostly high.
For the questions of “How often do you wake up with a headache after drinking?”or “How often
do you have nausea after drinking?” and the rest of the questions similar to these we believed
the responses would mostly indicate great agreement, meaning people would respond by
confirming these symptoms, waking up with headaches very often, if not every time they went
drinking the day before. Same with the feeling of nausea, waking up late the next morning and
even marking more than one of the symptoms listed for the question “Which of the hangover
symptoms below apply to you:”
Furthermore, for the questions regarding our product, Gatorade, we expect the public to indicate
low indices of gatorade consumption. Perhaps not considering drinking gatorade in attempts to
cure their hangover or feel better and active after a night out. Which is exactly why we are aiming
our product at this new target audience. We believe that with the results of our market analysis
we can find the best way to market our product well enough to engage this public and have them
be frequent consumers.
4) the course of action you expect to follow in the strategy according to the expected
results
Based on our expected results, the data and information acquired through our research will aid
our search for knowledge and wisdom in regards to the strategy that will be most effective in
reaching and successfully converting them into loyal customers.
If we use the data from the expected results, we will find that: 1) A lot of the hangover symptoms
that gatorade can help relieve are commonly experienced and expressed within our target
audience range of young adults from 18-24. And 2) The public will allude to low levels of
consumption in terms of gatorade already being used to cure hangovers. Using the specific data
that we receive we can analyze it multiple ways such as: Flow models, affinity models, customer
journey mapping and through website and social media analytics. This makes sure that our
knowledge of the target customer is substantial and puts us the best position with the least risk to
carry out our marketing campaign.
Using this information we can gather the knowledge that the best course of action would be to try
and increase awareness for the new use of gatorade and increase the amount of people who buy
gatorade for that reason. Our marketing campaign would be based around the idea that we must
make non-athlete, non-consumers aware that our product could be of benefit to them and thus
convert them into potential loyal customers.
For athletes, gatorade is a legitimate, tried and true product. Making use of the loyal foundation
that the brand has established, the most efficient method to begin a relationship with the new
customers which is to use the already existing knowledge of what gatorade can do for athletes in
an attractive matter that appeals to this new audience. By showcasing that gatorade is not only
going to be an athlete’s go to drink in a sports game. But will now become a young adults go to
drink to re-hydrate from a night out.
An idea for what an video media advertisement (because this a well used channel by our new
target audience) might look like: The screen would be split in two. On one half, a well known
athlete (sponsored by gatorade) is going into the late stages of a game and must replenish his
electrolytes and hydration before being able to take on the final moments (to be determined
depending on sport chosen) of a game. On the other side, is a young adult in our age range
going through some of the previously mentioned hangover symptoms and must prepare a
presentation for their university. They both drink gatorade simultaneously, a catchphrase is
played the links the different scenarios that require the same solution (gatorade).
–The Buyer Persona Profile (10%): using the templates covered in class.
SOURCES:
https://www.gatorade.com/community
https://contact.pepsico.com/gatorade/about-us
https://www.owler.com/company/gatorade
https://www.gatorade.com/community
https://www.history.com/this-day-in-history/gatorade-sports-drinks-inventions#:~:text
=On%20October%202%2C%201965%2C%20a,a%20University%20of%20Florida%20lab
https://www.delish.com/food/g27585013/gatorade-flavors-ranked/#:~:text=The%20mor
e%20you%20know!,our%20editors%20and%20the%20internet.&text=While%20the%20
color%20of%20this,love%20it%20or%20hate%20it.
https://www.mbaskool.com/marketing-mix/products/17384-gatorade.html#:~:text=Gato
rade%20is%20distributed%20through%20PepsiCo,%2C%20Australia%2C%20and%20t
he%20UK.
https://en.wikipedia.org/wiki/Gatorade#:~:text=As%20the%20number%2Done%20spor
ts,brands%20in%20Korea%20and%20Australia.
https://www.reference.com/business-finance/target-market-profile-gatorade-8303718d
822b6fb9
https://brandongaille.com/16-refreshing-gatorade-demographics/
https://iide.co/case-studies/swot-analysis-of-gatorade/
https://www.marketing91.com/marketing-mix-of-gatorade/
https://opendorse.com/blog/top-15-most-influential-gatorade-sponsored-athletes-on-s
ocial/
https://www.marketing91.com/swot-analysis-gatorade/
http://fernfortuniversity.com/term-papers/swot/1433/1319-gatorade.php
https://www.essay48.com/13926-Gatorade-Ansoff-Matrix

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Manuela Carreira, Victoria Diaz, Brissa James, Ainhoa Olaechea, Samer Roz

What does the company sell?

Where do they sell their products and what do they sell?

Who is the target audience?

Who are the competitors?

Who are the collaborators?

What market are they in?

PART 2. Define the New Target Audience (20%):

Make sure that in this part you deliver 2 things:

–The Market Research (10%), explaining:

2) the methodology and sampling you want you use (ainhoa)

- How often do you drink gatorade?

- How often do you get hangovers?

3) The expected findings (not results) (Brissa)

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