Gatorade Sales Promotion Plan

GATORADE SALES PROMOTION PLAN

MADDIE NEUBERT MARCH 12, 2013

Table of Contents

History of Company

1

Target Market

2

Sponsorship

2

Product Placement

2

Promotional Tie-­‐In

3

Loyalty Marketing Program

3

Premiums

4

Incentives

5

Product Sample

6

History of the Gatorade Company In early 1965, an assistant coach at the University of Florida sat down with a team of physicians to determine why many athletes were being affected by heat and heat-­‐related illnesses. The problem was found to be one where electrolytes were not being replaced after being sweat out, thus resulting in the Gatorade Sports Drink to replenish those lost fuels. Since then, Gatorade has developed its’ product from not only a drink but to a mix-­‐in powder, a chewable tablet, and a nutrition shake. Gatorade started with a single line of “Gatorade Thirst Quenchers”, and then evolved into the Gatorade Series-­‐ which features three steps: “Prime, Perform, and Recover”. The GSSI, or Gatorade Sports Science Institute, is a research facility owned in Barrington, Illinois which provides extensive research for the development of Gatorade products and formulas. Athletes also became involved at the GSSI by testing products through experiments. Here are some interesting facts about the company: •

Named after the Florida Gator’s football team

•

Given to the Kansas City Chiefs, who that year won Super Bowl IV

•

Worked with race-­‐car drivers to help withstand heat during races

•

Official Sports Drink of NASCAR, the NFL, MLB, NBA, WNBA, USA Basketball, NHL, Association of Volleyball Professionals, US Soccer Federation, Major League Soccer, and other professional/collegiate organizations

•

Created Gatorade Endurance Formula; which includes a higher concentration of sodium

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Pepsi-­‐Co’s fourth largest brand

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Produced chewing gum, entitled “Gator Gum”

•

Marketed around 80 countries

Target Market Demographics 1. Ages 15-­‐23 2. Male and Female 3. Competitive Athlete

A. Sponsorship

Geographic 1. Resident of the USA 2. Lives in the suburbs or college town 3. Lives near a High School or College

Psychographic 1. Follows or is enrolled in a competitive sport 2. Serious athlete 3. Plays a select or college level sport

The promotion of a company in association with a property •

Athlete Endorsement

Gatorade will pay athletes (for example; Cam Newton and Peyton Manning) to drink Gatorade products and promote them to the target market •

Football Stadiums

Around football stadiums there are advertising boards around the field, electronic boards, etc.

Gatorade can pay for advertising space in the stadium to promote their product to stadium fans, who fit into the target market •

Marathon Races and Events

Gatorade not only markets to competitive sports, but also those who are active. With that, Gatorade can sponsor any races and give the competitors Gatorade drinks throughout their race B. Product Placement A technique used by advertisers to subtly promote products through film, T.V. shows, etc.

•

SportsCenter T.V. Show

SportsCenter shows the highlights of the newest sporting events, intriguing the target market. With that, Gatorade can pay the on-­‐air hosts/anchors to drink out of a Gatorade bottle, mug, etc. during their show, this way the logo can be displayed to the viewers •

America’s Game T.V. Show

The show America’s Game focuses on the Super Bowl winners and their journey to victory, so promoting Gatorade through this program can show that it was a factor in their success. This will tell our target market the benefits of drinking Gatorade •

Sports Nation T.V. Show

Sports Nation lets viewers know about the latest news in sports in a fun, interactive way. These hosts could promote Gatorade as well, because the viewers are also a part of the target market

C. Promotional Tie-­‐In Sales promotional arrangements between one or more retailers •

Nike Footwear

Gatorade could partner with Nike and their footwear as they go hand in hand. Those who buy Nike running shoes or cleats will be interested in completion or exercise, thus also being interested in a performance drink like Gatorade. A purchase of Nike cleats or running shoes will include a Gatorade coupon or free trial of Gatorade Performance Chews, as a customer of Nike could easily become a customer of Gatorade •

Adidas Footwear

Just like Nike footwear products, Gatorade could promote themselves in the same way with Adidas brand running shoes and cleats. A purchase of an Adidas shoe will result in a free trial of Gatorade, which should entice Adidas customers to become a customer of Gatorade D. Loyalty Marketing Program Marketing efforts that reward and encourage loyal buying behavior •

Gatorade Rewards Card

Gatorade customers could be rewarded by swiping a card every time a Gatorade product is purchased at a store, thus accumulating points for lower-­‐priced items or free trials. This encourages customers to buy Gatorade, as they will be rewarded •

Online Rewards Plan

To encourage online ordering, customers could get a free Gatorade product when ordering over the Gatorade website. This promotes not only the website, but also the idea of purchasing products over the internet

E. Premiums Discount rewards for customers, such as coupons, factory packs, traffic builders, etc. The concept of premiums is to give customers mark downs on the company’s products that will encourage them to make future purchases

a) Coupons ! Certificates which entitle customers to cash discounts ! Coupons can be given to customers either with a purchase or without to give them mark downs on Gatorade products ! Gatorade Product: $1.69, Two Gatorade Products: $3.38 ! Retail Price: $3.38 (for two Gatorades) Buy one get one free coupon After Coupon (-­‐$1.69): $1.69 Save: $1.69

a. Factory Packs ! Free gifts placed in or on product packages ! Factory packs reward customers for their purchase with no-­‐cost gifts

A Gatorade Energy Bar could be added to

products and packages (in the packaging)

of Gatorade to boost product awareness

and also improve customer loyalty and

service

b. Traffic Builders ! Low-­‐cost items and gifts (pens, key-­‐chains, calendars, etc.) ! Shows customers the company’s loyalty to them through products

A Gatorade Ballpoint Pen could be given to Gatorade customers improve customer loyalty and morale. The Gatorade logo is also present, which promotes the company

F. Incentives Creates excitement and increases sales b) Contest ! An organized competition for a prize/title involving contestants to demonstrate skill ! Contests include races, games, etc.

• Half-­‐Court Shot Contest Because Gatorade is a proud sponsor of the NBA, an ideal contest is to see which contestant can make a Half-­‐Court Basketball shot, and the winner will get a free 24 pack of Gatorade. If there is more than one contestant who can make the basket, a tie breaker will be held until one of the remaining contestants makes another half-­‐court shot.

•

•

Football Throw Contest Gatorade is also a sponsor of the NFL, so another ideal contest is giving the contestants a try to throw a football through a small hoop. Whichever contestant can complete this task will also win a free 24 pack of Gatorade. The same rules for tiebreakers apply, so if more than one contestant can complete the throw, a “throw-­‐off” will be held for the prize.

c) Sweepstakes a. A lottery in which prizes are rewarded with chance b. In a sweepstakes, each contestant has the same chance to win the prize c. No purchase or skill is necessary

Ultimate Gatorade Sweepstakes Contestants can enter their name online or at the door of any Sporting Goods retailer (ex: Dick’s Sporting Goods, Sports Authority, etc.) for a chance to win a free supply of Gatorade Sports Drink and any other Gatorade-­‐related products for a full year! Each contestant will have an equal chance to win the grand prize.

G. Product Sample Free trial size items a. Great for new products b. Allows customers try out Gatorade products • Trial Size of Gatorade Performance Prime Chews Gatorade evolved their iconic sports drink into a chew, which gives the consumer a boost of energy when eaten before a competition. Supplying customers with a free trial of these energy chews will boost product awareness and also sales.