Gatorade Data Analysis and Brand Recommendations

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 Table of Contents:

Executive Summary..............................................................................................................3
Summary of Situation Analysis............................................................................................4
Research Method 1: Survey..................................................................................................5
Research Method 2: In-Depth Interview.............................................................................10
Brand Recommendations.....................................................................................................13

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 Executive Summary

The following report serves as an exploration of the Gatorade. The brand’s target
audience consists of athletic males aged 25-34, and the primary competitor included the sports
drink brand Powerade. Gatorade is the market leader holding the majority of the market share in
the sports drink category, however it also competes in the functional beverage category (which
includes bottled water, and enhanced water beverages). The numerous product lines put the
company at risk for losing control over the central message to consumers, and threats include
high levels of competition.
Primary research was conducted in two methods. The first method consisted of a survey
with 266 participants. Results showed that consumers were more likely to choose water than
sports drinks, but that Gatorade was the sports drink of choice for the majority of consumers.
Additionally, consumers who rated themselves as confident purchased Gatorade products more
frequently, indicating that confidence is a value associated with the brand.
The second method consisted of an in-depth interview, in which 12 participants were
interviewed individually for 20-45 minutes. Key results from the in-depth interviews included
the confirmation that bottled water is in fact a key competitor to Gatorade, females tend to be
highly concerned with nutritional factors, and most respondents reported a confusion or dislike
of Gatorade’s numerous product lines.
Our recommendations for the Gatorade brand include the following:
• Develop advertising campaigns to educate the consumer about the four core product
lines.
• Provide stores with an in-store technology experience that will give consumers
immediate purchase recommendations based on characteristics.
• Continue focusing advertising campaigns on males.
• Reference “confidence” as a core theme and launch an online campaign using this.

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 Summary of Situation Analysis

More than 40 years ago, the original Gatorade sports drink was developed by the Florida
Gators assistant coach. From the start, Gatorade was extremely successful, and by 1983, it had
become the official sports drink of the National Football League. In 2011, Gatorade underwent a
brand repositioning, with the goal of aligning itself as a sports nutrition brand (Gatorade
Situation Analysis, pg. 2-3).
The brand currently consists of four product lines: G-series, G-series Fit, G-series Pro
and G Natural. With the exception of the G Natural line (which has only the “Perform” product),
each of the other lines has “Prime”, “Perform” and “Recover” products, designed to deliver
important nutrition to athletes during different phases of exercise. The original Gatorade thirst
quencher is one of the “Perform” products within the G-series line of products (Gatorade
Situation Analysis, pg. 9-10).
Target:
Based on consumer research, Gatorade’s target market consists of males aged 25-34, with
a secondary target of males 18-24. For the purposes of this research, these two segments were
combined in order to provide us with a larger segment of the population that we could market to.
Their primary target is athletes but their secondary target is non-athletes, as the product is often
consumed by those who do not exercise regularly (Gatorade Situation Analysis, pg. 8).
Competitors:
According to the Mintel Oxygen database, Gatorade and Powerade combined account for
99 percent of the sports drink market, and Powerade is Gatorade’s only in-market competitor.
Gatorade holds 71.2 percent of category market share, as compared to Powerade’s 27.5 percent.
Energy drinks, such as Red Bull and enhanced waters, such as Vitamin Water are secondary
competitors for sports drinks. Although Gatorade is classified as a sports drink, its complete
competitive set includes bottled water, which is a large competitor. Thus, we must be cognizant
that while Gatorade is part of the sports drink industry, it plays heavily within the functional
beverage industry (Gatorade Situation Analysis, pg. 10-12).
Main Findings:
The Gatorade brand has several known strengths. It has a solid market share, positive
relationships with key athletes across different sport disciplines, and its scientific claims are

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backed up by 40 years of research and information. Gatorade proves its leadership in innovative
sports science and nutrition research through its own Sports Science Institute. Further, according
to Simmons, Gatorade was found to be associated with consumers who have a high level of
confidence and who are adventurous. This is something that can be explored further (Gatorade
Situation Analysis, pg. 18).
In contrast, Gatorade also has its weaknesses. Its high number of product lines puts the
company at risk for losing control over the central messages it sends to the consumer.
Additionally, Gatorade is at risk for having a stagnant market and problems retaining market
share due to only seeing 0.4 percent growth from new consumers. The overall revenue is pulled
down by weaker product lines and reduces possible growth of stronger lines. Lastly, sports
drinks are struggling to capture the attention of large geographic market areas (Gatorade
Situation Analysis, pg. 18).
Gatorade has the opportunity to improve business in several ways. It could potentially
increase revenue by eliminating weaker product lines and invest in lines with larger market
share. The company could also develop a more specialized campaign to target consumers in the
West and South (Gatorade Situation Analysis, pg. 18).
If the company weaknesses do not change, Gatorade faces certain threats to business.
Powerade is a strong competitor due to its similar market share and influence. Additionally, the
high sugar content of Gatorade and the increasing price of sugar could inhibit the drink’s ability
to remain competitive against drinks with a lower sugar content (Gatorade Situation Analysis,
pg. 18).
Research Method 1: Survey

Goals:
In order to further our consumer data collection and look specifically at the motivations
and attitudes behind people’s decision to purchase Gatorade and/or other sports drinks, a
questionnaire was developed using Qualtrics survey software. We wanted to develop questions
that could focus on how characteristics like taste, price, size and nutritional factors impact sports
drink usage. We were also interested in what situations sports drink users may feel compelled to
purchase or drink these beverages. Lastly, we hoped to find out who people perceive as
Gatorade’s primary and secondary competitors, and why. Our goal with the survey was to

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generate as much information as possible on those areas. Questions that we asked respondents
involved the following variables:
● Demographics and psychographics
● Daily habits
● Gatorade brand-related questions
● Gatorade competitor-related questions
● Situation specific questions related to sports drinks

Method Justification:
In order to generate sufficient insights into the Gatorade brand and have quantitative data
that is more representative of the population, it was necessary to create a survey. To provide
detailed recommendations for Gatorade it was important to utilize a method that had a substantial
sample size, making results significant enough to represent the population.

Procedure:
Step 1: Determining the variables
As a group, we outlined our goals and determined our main variables. Once the list of
habit and brand related variables reached at least twenty and there was a minimum of ten
demographic/psychographic variables, they were approved. Variables that were measured
include (accompanied by variable reasoning):
● Basic demographic information and basic psychographic information (gym membership,
body image satisfaction, fitness level, age, gender)
○ Demographic and psychographic questions were asked to draw connections
between variables and the consumer’s reasons for choosing Gatorade, who they
viewed as a competitor, which factors were more important, etc. For example, we
wanted to know if there was a difference in the consumption of sports drinks
between men and women. Another example would be if there were a difference in
consumption of Gatorade between students on the Penn State campus (where
Gatorade is a product offered on campus) and other universities.
● Daily and weekly habits (frequency of exercise, beverage drinking habits during various
scenarios)

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 ○ Daily habit questions were chosen to draw relationships between the kinds of
activities respondents participate in that might incline them to drink Gatorade or
any other sports drink beverage. For example, we wanted to know how many
times a person exercised per week to see if that was at all correlated to how much
they drank or purchased Gatorade.
● Sports drink purchasing habits (where are these beverages purchased, how are they
purchased- i.e. in bulk, single bottle)
○ Sports drink purchasing habit questions were developed to gain a better
understanding of how and why consumers buy their sports drinks a certain way.
For example, we asked respondents if they bought sports drinks from the grocery
store, convenience store, vending machine, etc.
● Gatorade brand specific preferences
○ Questions were asked on this variable to see how people felt about the brand as a
whole. For example, we wanted to see how familiar consumers with the variety of
Gatorade product lines.
● Competitor specific questions and ratings of various attributes (i.e. taste, price, nutritional
factors)
○ This general variable was important because we wanted to see where Gatorade
stood compared to its competitors in the eyes of the consumer. An example of this
is a question asking who the consumer considered to be Gatorade’s primary, then
secondary consumer.
● Situation specific questions about people’s preferences for sports drinks
○ We wanted to ask questions regarding specific situations to understand when a
consumer may decide to purchase Gatorade. For example, we asked a question
about what would be a consumer’s first drink of choice after a night of consuming
alcohol to cure a hangover.
Step 2: Drafting the questions and determining the level of measurement
Each variable was written as a question and the level of measurement was determined
and selected. The questions were written so that the majority of them would be scales (the
highest level of measurement) adding strength to the data analysis.
Step 3: Determining the number of participants

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 In order to be able to extrapolate the data collected to the population there has to be a
sufficient data pool. For this survey, our goal was to have at least 200 hundred participants.
Step 4: Development of the survey
Once the questions were approved and the measurement level was set, the questions were
set up with Qualtrics online survey software and an SPSS variable file was created to import
survey data into.
Step 5: Sharing of the survey
To reach the goal of 200 or more respondents, each group member shared the survey link
on their social media accounts, primarily their Facebook accounts and the group created an event
and invited all of their contacts. From using social media to share the survey, it was closed and
analyzed based on 266 respondents.

Results:

figure 1

figure 2

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figure 3

figure 4

Of the 266 respondents, 34.6 percent were male and 65.4 percent were female. When
asked to identify Gatorade’s primary competitor, the majority of respondents said Powerade.
When asked their beverage of choice during exercise, more than 80 percent of respondents said
they preferred water. The remainder of respondents were split between other choices.
Additionally, when separated by gender, the majority of both males and females reported that

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water was their beverage of choice during exercise; however, significantly more males than
females listed Gatorade as their beverage of choice (see figure 1).
When asked which drink they preferred in terms of taste, the majority of respondents
chose Gatorade, while only a few respondents chose Powerade. Significantly more respondents
reported liking Vitamin Water than Powerade. Additionally, ¼ of respondents chose water.
These results indicate that while water and Vitamin Water fall outside of the sports drink
category, they are comparable to Gatorade in terms of taste preference (see figure 2).
Additionally, we found a significant positive correlation between frequency of Gatorade
consumption and confidence as a personality trait. Thus, the more confident the respondent
believed him or herself to be, the more frequently they reported consuming Gatorade. This
correlation tells us that confidence is a value that some consumers of Gatorade may associate
with the brand (see figure 3).
Finally, our research indicated that consumers expressed confusion regarding Gatorade’s
product lines. Consumers reported having the most familiarity with the original G-series line,
and even with that line reported having only a moderate amount of familiarity. Consumers
reported a low to moderate amount of familiarity with Gatorade’s other three product lines (see
figure 4).

Research Method 2: In-depth Interviews

Goals:
The ultimate goal of the in-depth interviews is to gain insights on consumers’ opinions
about Gatorade. Branching off of this, we hoped to discover what interviewees’ preconceived
perceptions of Gatorade and Powerade sports drinks are. We also had a blind taste test planned in
which interviewees will be given three drinks (Gatorade, Powerade and Redbull). Our hope is
that we will be able to gauge if the interviewees opinions change, and if so, how. The blind taste
test provides us with this opportunity as they won’t have preconceived notions based on
packaging, size of the bottle or other factors.
Further, we would like to develop an understanding of what words or emotions
consumers associate with Gatorade and its competing brands. Lastly, we hoped to find
consumers reasoning behind their Gatorade, or other drink, purchases, and whether this
reasoning matches with the brand’s intended meanings.

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Method Justification:
The in-depth interview acted as a qualitative research method, which helped us gain a
better understanding of the fundamentals of individual consumers’ attitudes. From this method,
we were able to acquire deeper insights on respondent’s sports drink preferences. Further, having
the opportunity to interview people in a one-on-one setting offers us the chance to get inside their
minds without the fear that other individuals may sway their opinions or that they would feel
uncomfortable expressing them as can be the case in focus groups.
The insights gained can be used to pick out characteristics and key themes that may not
have been touched on or fully explained in the survey, and offer us a way to see how the
individual truly perceives our product.

Procedure:
Step 1: Create a Discussion Guide:
The first step was to create a discussion guide with a list of characteristics that were later
developed into questions that we wanted to know from our respondents. By creating the
discussion guide, it ensured that each of us would ask the same base questions of each
interviewee providing consistency in our questioning that would allow us to see trends in the
insights the interviewees provided us with. Our discussion guide included questions based
around the following variables:
• Demographic and psychographic characteristics
• Exercise frequency
• Education status
• Residential location
• Body image satisfaction
• Consumption attitudes/ habits of sports drink brands
• Word associations with sports and energy drink brands
• Familiarization of respondent to brand products
• Taste preference of sports drink brands during blind taste test
• Thoughts on Gatorade’s competitors specifically Red Bull, Powerade, and bottled water
• Respondents’ familiarity with Gatorade, Powerade, and Red Bull’s advertising.

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 o Respondents’ thoughts on the three commercials shown and key themes/messages
that stood out to them.

Step 2: Recruitment of participants

After developing the discussion guide, each of the group members recruited two
interviewees to participate in our in-depth interview. This gave us a total of 12 participants.
Step 3: Interview
Each interview was conducted in a one-on-one setting and was audio recorded. The
interviews lasted approximately 20 to 45 minutes each and followed the discussion guide created
in the first step. Though some interviews did not take the full allotment of time the discussion
guide enabled us to be confident that the interviews contained the content that was necessary to
find out information previously covered under goals.
Step 4: Data Analysis
After all interviews were conducted, our group got together and went through each part
of the discussion guide and discussed the results gleaned from each interview. From there we
took notes and, in doing so, were able to identify patterns in responses and come up with general
trends based on the interviews.

Results from In-Depth Interviews

Our in-depth interviews explored interviewees’ feelings and preferences associated with
the brands Gatorade, Powerade and Red Bull. Based on the information from the in-depth
interviews, we have identified several main themes that have influenced our brand
recommendations.
The participants of our 12 in-depth interviews each had different demographic and
psychographic backgrounds. The 12 interviewees selected lived on and off campus, exercised in
a range from once per week to more than seven times per week, and consisted of both males and
females. The one characteristic that all of the participants shared was that they were college
students who attended Penn State.
The first main finding was that respondents expressed confusion, and in some cases,
dislike about the Gatorade product lines (Interviews 1, 4, 6). Respondents reported feeling that

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there were too many products available or that they could not easily navigate the Gatorade
product lines.
The second important finding from our interviews was that there was not a distinct taste
preference for one product over another. Even though the majority of survey respondents
reported liking the taste of Gatorade best, respondents did not favor any of the three products
(Gatorade, Powerade and Red Bull) more often than another in the blind taste test. Based on this
information, we can conclude that while consumers may think they prefer the taste of Gatorade,
in actuality, they prefer the brand.
The interviews further reinforced the results of our survey as the majority of our
interviewees also noted that when exercising the beverage that they most frequently reached for
was bottled water. When asked why they preferred bottled water, one of the recurring themes
was that it provided hydration, was convenient and cheap. In addition, some of the interviewees
also referenced the nutritional factors of sports drink beverages as reasons why they chose not to
consume them, (Interviews 2,3,6,7,8,9,10). These results tie back to what we found with the
survey results suggesting that for Gatorade to be most effective with their advertising and sales
efforts, they should be cognizant of the fact that their competitive set includes bottled water as a
strong competitor in addition to the more traditional competitor of Powerade. Additionally, our
respondents reported having the most familiarity with the Gatorade brand.
We also gained some interesting insights from the commercial portion of our interview.
While participants were split between liking the Gatorade and Red Bull commercials, most of
our participants identified the Powerade as their least favorite commercial. This may be due to a
pre-existing bias against the brand. That conclusion can be drawn from comments and word
associations that were made suggesting that Powerade is a “creepy high school vending
machine” beverage, and “blue” or “baseball”, (Interviews 1, 8). In order to better understand
what is going on and why consumers could potentially have a pre-existing bias against the brand,
additional research would have to be done.

Recommendations:
Recommendation 1: Continue to focus on selling G-series line as this line is the one that people
have a moderate level of understanding about, and raise level of understanding of G-series Pro,
G-series Fit, and G Natural lines. To raise the level of understanding, we recommend developing

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advertising campaigns based around educating consumers about the products they are currently
unfamiliar with. There are four primary strategies that we recommend:
● Develop in-store signage that goes along with the displays of the products. This signage
should outline what the products of each line are and a few key benefits of each series.

● Utilize Gatorade’s strong followings on Twitter and Facebook to share the key messages
of each product line. Create one to two minute long videos that show the beverages being
used in context and have the key benefits shared.
○ Develop timeline apps that take people to full pages about each of the product
lines. For example, have four apps that each individually click through to: G-
series, G-series Pro, G-series Fit, and G-Natural respectively.

● Continue using the “win from within” campaign and develop additional commercials
within this theme that show more than the G series products being used.

● Further develop and expand the Gatorade Ambassador’s program. Red Bull has seen
great success with its Wings Ambassadors program. Gatorade’s program could be used to
visit various college towns, cities and while there visit grocery stores, conveniences
stores or other locations where there are large gatherings of people and let them sample
the products and give them information about each of the lines.

Providing various touch points for the consumer to interact with Gatorade’s messaging regarding
the product lines will help reduce the confusion and thus could lead to increases in sales as
people begin to understand which products they prefer.

Recommendation 2: Because our research found that a majority of heavy Gatorade consumers
purchase the product in grocery stores rather than convenience stores and vending machines, we
suggest using experiential marketing tactics to engage the consumer. Overall, consumers are
looking to purchase from brands that they feel connected to.
To ensure the best possible reach, we recommend having computer touch screens at
certain stores that already have strong sales of Gatorade products providing customers with the

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opportunity to put in characteristics that represent them and gives recommendations for them to
purchase immediately after getting the recommendation.

Recommendation 3: Gatorade should continue to focus advertising campaigns on males. Our

research indicated that a majority of both males and females were more likely to choose bottled
water over Gatorade. However, results from our in-depth interviews showed that women were
much more concerned with calorie content and nutritional factors when choosing a beverage
during exercise. Thus, men would be much easier to convert from water to Gatorade products,
because they are not as concerned as women about nutritional factors.

Recommendation 4: Gatorade should continue to portray and emphasize its brand ideal of
confidence in advertising campaigns. Our research found a strong, positive correlation between
confidence and the consumer’s liking of Gatorade. Emphasizing confidence as a core value of
the brand would draw the current Gatorade consumer more closely to the brand and develop (and
sustain) a more emotional connection.
To do this, we recommend developing an online campaign that examines the pre-
professional athlete (our target audience) and from where they draw their confidence. This
campaign would be inexpensive to produce as we could use crowd-sourcing (using our
Facebook/Twitter fans and followers) techniques to find the models and their photos. This would
run on social media websites such as Twitter, Facebook, and Gatorade’s YouTube channels as
well as the Gatorade website. The “Confidence Campaign” would serve as a way for the
consumer to intimately and emotionally connect with the Gatorade brand, just as they do with
friends on these social media websites.

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