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
- Introduction
- Executive Summary
- Brand Image
- Product Situation Analysis
- Target Markets Analysis
- Sales and Profitability
- Product Development
- Distribution Strategy
- Pricing Strategy
Objectives and Key Themes
This brand audit analyzes Gatorade's marketing mix and examines how it varies when targeting multicultural consumers, specifically focusing on its international market strategy. The audit explores Gatorade's success, its competitive advantages, and its approach to reaching a youthful target market.
- Gatorade's competitive marketing mix
- Strategies for reaching youth consumers
- Product development and innovation
- International market adaptation
- Pricing and distribution strategies
Chapter Summaries
Introduction: This introductory section establishes Gatorade's dominance in the sports drink industry and outlines the audit's objective: to analyze Gatorade's marketing mix and its variations in multicultural and international markets. It highlights Gatorade's long-standing competitive advantage built upon a well-defined marketing strategy encompassing product, pricing, promotion, and distribution.
Brand Image: This section emphasizes the importance of Gatorade's brand image as a powerful advertising tool. It traces its origins to a University of Florida medical research project and connects its imagery (sweating athletes pushing their limits) to its core message of rehydration, replenishment, and refueling. The analysis points to the association of Gatorade with youth, activity, and energy, based on observations in both China and the United States.
Product Situation Analysis: This section details Gatorade's product offerings, including six main variants and seven sizes. It clearly positions Gatorade as a sports drink providing electrolytes and carbohydrates to replace fluids and energize muscles, highlighting its core functionality.
Target Markets Analysis: This section identifies Gatorade's primary target market as youth (13-24 years old) engaged in sports or leading active lifestyles. It emphasizes Gatorade's leading position in the US sports beverage market, reinforcing its strong market presence and consumer appeal within its defined demographic.
Sales and Profitability: This section showcases Gatorade's impressive market share (84.7%) and compares its sales ($2.6 billion in 2009) to its main competitor, Powerade ($654 million in 2009). This quantitative data strongly underscores Gatorade's financial success and market dominance.
Product Development: This section chronicles Gatorade's product evolution, from a single product line to the introduction of Gatorade Frost, the Performance Series, G2 (lower-calorie), and the G Series (categorized by athletic event phases). It also mentions the short-lived Gatorade Tiger and the rebranding efforts between 2008 and 2010. This detailed history illustrates the company's commitment to innovation and expansion within the market.
Distribution Strategy: This section explains Gatorade's extensive distribution network leveraging PepsiCo's infrastructure. It outlines various distribution systems (DSD, customer warehouse, foodservice, and vending) catering to different customer needs and market segments. This wide distribution network significantly contributes to Gatorade's broad market reach and accessibility.
Pricing Strategy: The analysis focuses on Gatorade's competitive pricing strategy, highlighting its choice to price products 36% cheaper than Powerade to maintain market share and competitiveness. The inclusion of specific pricing examples (for different sizes) adds clarity and context to its cost-effective strategy.
Keywords
Gatorade, sports drink, marketing mix, brand image, target market, youth, product development, distribution strategy, pricing strategy, competitive advantage, market share, international market, multicultural consumers, PepsiCo.
Gatorade Brand Audit: Frequently Asked Questions
What is this document about?
This document is a comprehensive brand audit of Gatorade, focusing on its marketing mix and how it varies when targeting multicultural consumers, particularly in international markets. It examines Gatorade's success, competitive advantages, and strategies for reaching a youthful target market.
What topics are covered in the Gatorade brand audit?
The audit covers a range of topics including Gatorade's brand image, product situation analysis, target market analysis, sales and profitability, product development, distribution strategy, and pricing strategy. It also analyzes the company's objectives and key themes, providing chapter summaries and a list of keywords.
What is Gatorade's brand image and how is it used?
Gatorade's brand image is a powerful advertising tool, associating itself with youth, activity, and energy. Its imagery often features sweating athletes pushing their limits, conveying messages of rehydration, replenishment, and refueling. This imagery is consistent across both US and international markets like China.
Who is Gatorade's target market?
Gatorade primarily targets youth aged 13-24 who are involved in sports or lead active lifestyles. The audit highlights its strong market presence and consumer appeal within this demographic.
How successful is Gatorade in the market?
Gatorade holds an impressive 84.7% market share in the US sports beverage market. In 2009, its sales reached $2.6 billion, significantly outperforming its main competitor, Powerade, which had sales of $654 million that same year.
What is Gatorade's product development strategy?
Gatorade has evolved from a single product line to offer several variations, including Gatorade Frost, the Performance Series, G2 (lower-calorie), and the G Series (categorized by athletic event phases). This demonstrates a commitment to innovation and market expansion.
How does Gatorade distribute its products?
Gatorade leverages PepsiCo's extensive distribution network, utilizing various systems including direct store delivery (DSD), customer warehouses, foodservice, and vending to reach diverse customer segments and market areas.
What is Gatorade's pricing strategy?
Gatorade employs a competitive pricing strategy, pricing its products 36% cheaper than Powerade to maintain market share and competitiveness. The audit provides specific pricing examples for different sizes.
What are the key takeaways from this Gatorade brand audit?
The audit demonstrates Gatorade's sustained success due to a well-defined marketing mix, effective targeting of youth consumers, consistent brand image, and a strong product development and distribution strategy. Its competitive pricing further solidifies its market dominance.
What are the key words associated with this Gatorade brand audit?
Key words include: Gatorade, sports drink, marketing mix, brand image, target market, youth, product development, distribution strategy, pricing strategy, competitive advantage, market share, international market, multicultural consumers, and PepsiCo.
- Quote paper
- Xinwen (Fina) Xu (Author), 2011, Brand Audit: Gatorade, Munich, GRIN Verlag, https://www.grin.com/document/187358
