Gatorade Plans Book

THE FINEST WAY TO REPLENISH Elizabeth Abolt Samantha Montes Stamatia Ress Eleanor Turek Kate Swanberg

Table of Contents: 02.

03.

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Executive Summary Historical Overview Industry Overview Description of Competition Product Analysis Consumer Research Advertising Strategy Creative Strategy Media Plan Production Bibliography

Executive Summary:

02

The enormous world that we live in is constantly changing. If you take a look around, you will notice that you are surronded by more and more diversity each year. This also means that our consumers are growing in specific market segments, especially diversity.

Latinos, African Americans, and Asian Americans are rapidly replacing the mainstream caucasian market.

Today, it is important to recognize these “targets” as “participants.” Consumers today are participants that interact with products and brands on a dialogue level. They aren’t just being manipulated and sold the product, they are participating in it.

This new outlook on consumers shows a more humanized approach of advertising. Placing a more holistic and caring view towards the possible consumer. Understanding what the consumer wants, rather than the company itself.

Typically, sports drinks are catered to the athlete: the basketball player, the football player, and the baseball player. But what about the people that regularly enjoy a sports beverage, but aren’t considered as athletic? What about the Asian American market?

How can Gatorade partake in the world of multi-culturals?

Gatorade needs to hear what the consumers are preaching.

Gatorade needs to interact with these particpants and partake in what they want.

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Historical Overview:

Gatorade sports drinks are the brainchild of a University of Florida assistant football coach and a team of scientists who wanted to know why their football players became exhausted in the heat and if there was anything they could do to help them. This question led them to the answer that is now the conglomerate of Gatorade.

The answer to their question came in the form of a sports drink that could balance carbohydrates and replace electrolytes lost through sweat. After drinking Gatorade, the University football team started winning.

Since its birth, other colleges got wind of Gatorade and wanted to use it to win their games just as the U Florida team had been doing. Ever since then, the sports drink market was created.

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Historical Overview (II): Gatorade is a PepsiCo product that has been prevalent in the sports industry (the MLB, NFL, NBA, and PGA to be more specific) for decades. Since the creation of Gatorade, multiple series and versions have come out. The Gatorade Company has its own institute where they research the best ways to hydrate athletes through their products.

Gatorade only had two flavors, lemon-lime and orange, until 2001 when the Gatorade Performance Series came out. The performance series was created for athletes who train competitively and are constantly active. Gatorade also made another advancement in their brand with the evolution of the Gatorade Endurance Formula.

As most multi-million dollar industries do, Gatorade follows a market trend. Gatorade has become a staple in the sports world, but the market share of sports drinks is now shared with the energy drink market.

Gatorade is primarily seen as a drink that is only for athletes and those who compete in a professional setting. This idea has much to do with their sponsorship deals with professional athletes.

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•Gatorade is worth 255 billion •Gatorade made approximately $7 billion dollars in revenue in 2011, or about 2% of PepsiCo’s net worth •Since 2009, Gatorade has declined in sales by 11.1%

Industry Overview:

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The sports drink industry primarily focuses on targeting both professional and non-professional athletes. Because they are most often associated with physical activity, athletes serve as a straightforward, and lucrative, target market.

To effectively reach this market segment, sponsoring professional sporting events is an extremely common way for companies to promote their product. Not only does it influence customer purchasing habits, it also builds an incredible amount of brand awareness for the respective product. Because of this, successful professional athletes are often chosen to be brand representatives due to their enormous influential power over fans and aspiring athletes.

Recently, the industry has begun to see an emergence of products that do not exactly fall under the sports drink category. Coconut water, for example, is a nutrient-rich beverage that contains natural electrolytes. In comparison to traditional sports drinks, it has the advantage of containing natural nutrients rather than added ones. Additionally, companies such as Celsius Holdings Inc. are spewing out non-carbonated drinks intended for a preexercise metabolism boost. Although these have not yet given the sports drink industry any huge challenges, they may become increasingly significant competitors.

Sports drinks are growing 15 % annually (A faster rate than carbonated beverages.)

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With more and more sports drinks merging into the functional beverage category, it is becoming an increasingly powerful and profitable industry. As the years go on, the industry is expected to continue flourishing and dominate a greater portion of the general beverage industry.

Competition:

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Powerade, All Sport, and water are some of Gatorade’s top competitors. But, Gatorade’s sales and brand recognition greatly surpass those in the $1.5 billion industry. As commanders of 80% of the market share, Gatorade products alone rack in approximately $1.2 billion annually.

WHO THEY ARE: COMPETITION Although water is not a sports drink per say, it is our largest indirect competitor. Water is frequently chosen as the go-to drink for every day people participating in every day activities due to the fact that it helps your body function at its absolute best. This is also the reason why most athletes choose it to replenish their bodies during sporting events. Not only does water maintain the balance of body fluids, it also contains zero calories, which is a huge advantage for health-conscious consumers.

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Competition (II):

Powerade

Coca-Cola’s PowerAde is Gatorade’s primary competitor that falls directly in the sports drink industry. It is obviously a very large and well-funded product that claims to also replenish electrolytes lost in sweat.

Unfortunately for us, Powerade does not contain any fat. However, on the bright side, it does contain 50 more calories and 14 g of carbohydrates per 8-oz bottle. With its bold drink colors and flavors, Powerade strives to connect with African American and Hispanic consumers ages 18-24.

Quite far behind Gatorade, Powerade, and water lies Pepsi Cola’s All Sport. Marketed as an body quencher rather than a thirst quencher, All Sport claims to reload your body with necessarily vitamins and nutrients lost during physical activities. Because it lacks a strong sense of brand loyal consumers, All Sport still has a lot of catching up to do in relation to both Gatorade and Powerade.

All Sport

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The Product: Current Products: Gatorade currently has several G Series products. G Series is a line of products made to provide fuel, fluid, and nutrients before, during and after any physical activity. This product helps athletes get the most out of their bodies. The way the G Series works is by following a 3 step process of hydration. T hese steps help meet the hydration and nutritional needs of athletes. The three steps are as follows: 1) Start off with Gatorade Prime 01

-Provides pre-workout fuel in a 4-oz pouch.

2) Secondly drink Gatorade Perform 02

-This contains Gatorade Thirst Quencher and G2

-Drink this during activity. Helps replace electrolytes lost 3) Lastly finish off with Gatorade Recover 03

-Protein recovery beverage to help with muscle recovery Another current product that Gatorade has is the Pro Series, which houses two different Gatorade brands. One is the Endurance Formula and the other is Gatorade Performance Series. Gatorade Endurance formula is a specialized sports drink that has a unique blend of 5 electrolytes. This product is for elite and endurance athletes to help restore the electrolytes lost in sweat during intense/longer lasting workouts.

Gatorade Performance Series is a set of products formulated to assist athletes in training.

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What’s in it?

• Gatorade is known to have a many nutritional benefits, as you can see here: • Contains 6% carbohydrates • The formula combination for Gatorade is formulated to taste best during physical activities • Contain electrolytes • The flavor combination of Gatorade is designed to not be overpowering. Contains a light formula in order to consume large quantities with minimum sensory overload when pursuing physical activity • No artificial preservatives • Helps replenish the electrolytes lost in sweat (lab-tested to ensure this fact) • Contains a formula that stimulates thirst. This causes athletes to consume an adequate amount of Gatorade to stay well-hydrated • Contains brominated vegetable oil which doesn’t contribute any fat or calories • Contains no caffeine • Uses sucralose which is a no-calorie artificial sweetener • Contains no fruit juice

Since 2009, Gatorade has declined in sales by 11.1%

Gatorade made approximately 7 billion dollars in revenue in 2010

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Consumer Research: 2 LARGEST Asian American subgroups: • Chinese • Filipino

The current target market for Gatorade are youths leading an active lifestyle. Specifically, Gatorade currently targets pre-adults ages 13-24 who are single and athletic.

For this campaign, we will be targeting 1st generation Asian Americans ages 17-22 who are active, lively, and energetic. In the United States, Asian Americans count for 5.6% of the total population. The Asian population includes several groups who differ in language and residency but are still very culturally similar to each other. Some Asian groups have been in the U.S. for several generations, and the two largest subgroups are Chinese and Filipino. Because Asian-American households are more affluent than any other population group, this community is attractive to marketers.

CHANGING THE IMAGE:

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Because Asian Americans are not typically targeted as athletes, we will be changing the image of Gatorade to an everyday, luxury beverage that can be consumed at all times of the day. We chose to promote Gatorade as a luxury brand because of Asian American cultural values and lifestyles. Because Asian Americans tend to come from high-income households and high education levels, we desire to attract the Asian-American market by creating Gatorade’s image as a luxurious one. Asian countries tend to be collectivist societies where social group esteem maintenance is important. Therefore, the way Asian Americans represent themselves as individuals is a significant representation of not only themselves, but of their communities as a whole.

Materialism alone cannot fully explain why Asian consumers desire luxury products.

Asian Americans tend to be concerned with “saving face.” Face is “the positive social value a person effectively claims for himself by the line others assume he has taken during a particular contact.” Therefore, from everyday greetings to large events, Asian Americans “save face” by what they do, how they present themselves, and sometimes, by what they carry or consume. There are different types of “saving face” and various meanings behind consumption of certain goods. For Asian Americans, consumption has become one of the easiest ways to show distinctive face. By purchasing luxury goods, such as Gatorade, they are differentiating themselves by social class, maintaining “face,” and promoting respect of social relations, which are all important concepts in many Asian cultures

Advertising Strategy:

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Our primary goals are to increase the overall percentage of sales and brand awareness, specifically in the Asian American 17-22 year-old market, for Gatorade products. To do so, we plan on designing campaigns that are consistent across all media platforms in order to successfully, and effectively, reach our target market. Additionally, we hope to make the product easily accessible so that it connects directly to the audience in an extremely authentic and unique manner.

On a short-term scale, we hope to capture attention and generate interest in Gatorade to create greater brand awareness. As of now, Gatorade is not a brand Asian Americans naturally gravitate toward. To change this, we plan on creating campaigns that get this market actively involved and intrigued by all Gatorade has to offer. However, our long-term objective is focused primarily on building brand loyalty and increasing sales. Because this industry is ultimately about selling a product, it’s very important that we persuade our target market to purchase Gatorade when seeking a thirst-quenching, healthy, and toprated beverage.

We understand the importance of directly connecting with Asian Americans in an authentic and meaningful way, and therefore plan on going against the poorly targeted advertising strategy that Gatorade uses now.

Asian Americans ages 17-22

Advertising Strategy (II): What we really want to do is increase the number of purchases made by Asian Americans ages 17-22. We want our targeted segment to think of Gatorade when they are seeking a thirst quenching, healthy, and toprate beverage.

In terms of our sales goals, we want to attain an 8-10% sales increase within the Asian American market, which should take around 18 months to reach.

Within our product, we strive to position Gatorade as a luxury sports drink that may contain several benefits to our consumers. We have set Gatorade apart from other competitors because we’ve re-designed it to be a highly respected and luxurious brand.

Attaining our goals will not be easy, but we believe that by altering our bottle design, name of product, and label design we will be able to attract more Asian American consumers than if we were to leave Gatorade just the way it is. We are creating a whole new Gatorade: the Gatorade G8. The G8 will feature: • A glass bottle instead of a plastic one • A new flavor • A royal purple colored label

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Emphasis on health benefits in addition to our new Product: •Electrolytes •Carbohydrates, •Lack of caffeine •Vitamins.

Gatorade G8

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Creative Strategy:

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Advertising Message: We want Asian Americans ages 17-22 to choose Gatorade as their “go-to” drink when in need of a thirst quenching beverage. We want to present Gatorade as a high quality/premium drink and present it as the #1 brand choice compared to other drinks in its category Tone: Distinguished Visual Appeals: We want Asian Americans to feel like they do not have to participate in athletics in order to drink Gatorade. We will show Asian Americans participating in everyday activities that have elements of luxury and exclusivity Key Consumer Benefits: Health, electrolytes and nutrients. the nutrients and electrolytes found in Gatorade and the fact that its #1 in the market. It’s also recommended by pediatricians Product Personality/Image: High quality luxury sports drink beneficial towards health.

It’s the best of its kind. Present It as the #1 brand/choice

SLOGAN

Gatorade, THE FINEST WAY TO REPLENISH

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Creative Strategy (II):

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Introduction to a new product: We are introducing the new G8 series to further connect with our target market. The overall look and flavor formula are created to connect more with the Asian American market. We chose to create a new Mango-Lychee flavor because these two fruits are popular amongst Asian Americans. The color of the Gatorade is redish-pink and we also change the packaging. Asian Americans still embrace traditions to stay connected to their roots. This is the reason we are using the number 8 for our Gatorade series. In Asian cultures the word for the number 8 is pronounced like baa, which sounds like faa which means “to get rich� in Chinese. A lot of the time there are a lot of superstitious saying that revolve around words that s ound similar.

Packaging: Packaging for the new G8 Gatorade series is designed to connect with Asian Americans within our target market. The colors used have symbolic meaning to our target market.

Overall Illustration(s) of concept: The ads will be black and white while the Gatorade bottle is presented in color to emphasize the brand and give the luxury look to it. Some of our ads will feature Asian Americans doing everyday activities.

PRINT AD

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Commercial Storyboard:

Commercial idea: There is a cooler where there are different brands of beverages. Everything is black and white and the Gatorade is in color. A person goes to the cooler and reaches for the Gatorade. Goes to the counter to pay and the cashier says “anything else?” and the person says, “No, just the Gatorade.” then walks out. Taglines pop up.

ACTION

Black and white shot of person walking into store

IMAGE

Camera cuts to the cooler of different beverages with the Gatorade in color

Camera cut to the guy walking to the cooler reaching in for the Gatorade.

DIALOGUE

SOUNDS

Hear the bell sound of the door opening

As he opens the cooler you hear wind blow of a cool sound

Commercial Storyboard (cont.)

ACTION

IMAGE

Everything is black and white and the Gatorade is in color as the person approaches to check out

DIALOGUE

Cut to person with Gatorade

Cut to person walking out drinking the Gatorade

SOUNDS

Check out clerk: Anything else sir?

Person: No. Just the Gatorade.

Here the cashier sound

Voiceover: tagline

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Media Plan-Television:

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We have decided to use three different mediums: Television, Outdoor, and Social Media •Television: We will have commercials targeting and featuring Asian Americans on certain TV programs in which Asian Americans engage in. We have decided to show our commercial on the Fox Network during the TV show Glee and during ESPN’s Monday night football. The reason we decided upon these two specific shows is because an article in the Media Daily News stating how Asian homes voted for these specific shows being the best in their perspective. Other television programs which have high Asian American viewer ratings are -LA18.tv- The largest Asian language television station in the United States -Asian America- syndicated by PBS, this program airs on Sundays at 3:30pm and Thursdays at 12pm on NYC life in New York City. This program reaches millions of viewers across the USA.

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Media Plan-Outdoors:

We will have billboard and transit service ads prepared. From the Nielsen report, Asian American females between the ages of 18-34 who makes less than $50,000 a year are attaining a bachelor’s degree. With this statistic we want to place our ads on billboards near California universities because 50% of the population at each UC school is Asian American. We will have an ad campaign with several different ads targeting Asian Americans. An example of one ad has been provided below.

Kickout the Artificial “Blue” Flavor, Indulge in the New MANGO LEYCHEE Gatorade, The Finest Way to Replenish

Media Plan-Social Media:

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•Social Media: We will be using digital media in advertising with computer ads, social network sites, and creating application for mobile devices.

-Facebook and twitter pages: Create Facebook and Twitter pages to interact with the community.

-Mobile application: “Track Your Thirst” app- Every time one purchases a Gatorade G8, there will be a QR code the purchaser can scan. Once the QR code is scanned, the purchaser will be able to see where they are in terms of a point system. Once the purchaser has amassed a certain amount of points (indicative of how many QR codes have been scanned), they can redeem the points for a free Gatorade supply. Asian Americans are very involved in technology and being knowledgeable about new technology fads.

Two Thirds of Asian Americans own a Smartphone -Gatorade website: Feature the new G8 series of mango-lychee flavor and provide knowledgeable information about the product in terms of nutritional values

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Promotions: In order for our target market to want to buy G8, we must make them want to buy it. In order to do this, we’ve got to promote, promote, promote!

• Trade Promotions: We plan to host several events at local California Super H Mart’s, which are highly populated by Asian Americans. We will offer taste tastes, samples, and coupons that can be found on the Internet. We chose to use the Internet as our outlet because Asian Americans who speak English are one of the most connected groups in the country and Internet is more integrated into the daily lives of Asian Americans.

(Pew Internet)

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Promotions (II):

RACE LIKE A G8 Contest and Premiums: We will again use Super H Mart to promote competitions and contests for our target market to take part in. We will have cart races that will lead patrons to clues, eventually leading them to a winning bottle of G8. Our ideas for the cart race stems from the fact that Asian Americans are typically very competitive by nature and have a desire to be the best.

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Bibliography: “Asian Americans and the Internet.” Pew Internet.

2001. Web. 15 Apr. 2012.

“History.” Gatorade. Web. 15 Apr. 2012. <http://www. gatorade.com/history/>. “ Is Your Company a Top 100 Beverage Company?

If You Think Your Company Makes the Cut, Click Here.” Sports Drink Sales Get into Shape. 12 July

2011.Web. 15 Apr. 2012. <http://www.bevindus try.com/articles/84828-sports-drink-sales-get- into-shape>.

Juan Li, Julie, and Su Chenting. “How Face Influences Consumption.” International Journal Of Market Research 49.2 (2007): 237-256. Business Source

Complete. Web. 24 Apr. 2012.

Miller, Richard K., and Kelli Washington. “Chapter 37:

Asian-American Consumers.” Consumer Behavior.

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Bibliography (II):

“MSLGROUP Americas.” Only 37% Have Purchased Products Associated With Causes in the

Past Year Even Though It Is the Number One Way Americans Donate to Causes. 15 July

2011. Web. 15 Apr. 2012. <http://www.mslworldwide.com/in-the-news/press-releases/ only-37-have-purchased-products-associated-with-causes-in-the-past-year-even-though-it is-the-number-one-way-americans-donate-to-causes>.

“PepsiCo Gatorade Brands | PepsiCo.com.” PepsiCo Home. 2011. Web. 15 Apr. 2012. <http:// www.pepsico.com/Brands/Gatorade-Brands.html>.

“Welcome to LIVESTRONG.COM.” LIVESTRONG.COM. 2012. Web. 15 Apr. 2012. <http://www. livestrong.com>.

“Why Drink More Water? See 6 Health Benefits of Water.” WebMD. WebMD, 2012. Web. 15 Apr.

2012. <http://www.webmd.com/diet/features/6-reasons-to-drink-water?page=2>.