Surname
Tutor
Course
Date
4 C’s
Context:
Gatorade Company is an American company that specializes in the manufacture of sports-related products and beverage. The company is a subsidiary of Pepsi Co. and has been in production since 1965 (Pepsico). Its consumable products are usually enriched with vitamins and are used for re-hydration during and after engaging in sports or physical exercises. They are also used in replenishing the athletes’ energy, which they burn during training, and in re-hydrating them with fluids that are rich in electrolytes.
Gatorade is one of Pepsi’s largest brands. It accounts for about 80% of the United States market for Non-Aseptic Sports Drinks and a similar share for Sports Drink Mixes. Globally, the Gatorade drink competes with Powerade and Vitaminwater, which are manufactured by Coca-Cola. It also competes with MVP, Body Armor, Red Bull, Monster, and Lucozade Sport in the United Kingdom. Gatorade Co. classifies its products as sports drinks, proteins, bars and chews, and endurance products. The company has a wide variety of sports drinks, which include original thirst quencher, smooth finish + bold flavor, sports fuel drink, and organic drink. Its protein formulas are recover whey protein powder and recover protein shake. Its protein and chews are whey protein bar, fuel bar, and prime energy chews (Gatorade). Finally, its endurance products include endurance formula powder, endurance energy gel, endurance gatorlytes, and endurance carb energy drink.
Gatorade also sells sports equipment that complements its drinks, protein, bars and chews, and endurance products. The main products sold by Gatorade are classic coolers, sideline towel, and water bottles (Gatorade). All these products come in different varieties. Currently, the company has added a performance tracking mobile phone application, which its customer can use to monitor their progress (Fast Company). This app will increase the demand for the company’s products and strengthen its market presence.
 
Consumer: Gatorade’s target audience has always been very clear from the beginning, athletes. According to their website, the mission statement for the business states that their company “provides sports performance innovations designed to meet the needs of athletes’ at all competitive levels and across a broad range of sports.” (Gatorade, 2017) Previously Gatorade was portrayed as a company tailoring to the needs of elite athletes, however in the more recent years the business is focusing on expanding their target market. Rather than just catering to the needs of an “elite” athlete the company is now focusing on any athlete in general, regardless of the degree to which they workout. According to Dave Burwick, the marketing officer for PepsiCo, “The fundamental difference is that we’re going from a brand that speaks to really elite athletes to a brand that speaks for the athlete in everyone” (Zmuda, 2009). The broadening of Gatorade’s target audience really opened up the consumers that purchase these products. Rather than feeling like the brand is exclusive to elite athletic males in their twenties, more consumers ranging from high school student athletes to older average people began purchasing the products. However, looking at survey data it appears that the average current Gatorade consumer is generally a “very high income, Hispanic, and upper middle age”. Data shows that gender does not play a huge role in purchasing decisions for these products, actually being almost exactly the same for males and females. As stated earlier Hispanics are the largest ethnicity that purchases Gatorade followed by African Americans and then Caucasians. The most common age group for consumers is 45-54 followed by <24 and 35-44 and most of the consumers have claimed to have children. Education level along with income level do not play huge significant roles in the purchasing pattern and are actually fairly similar throughout. Information also shows that Gatorade products are more frequently during pantry stocking trips to the grocery store when many other products are also purchased. However, it is shown that competitors’ products are often bought at the same time, such as Powerade and Capri Sun (InfoScout 2015). The psychographics of Gatorade consumers are goal oriented people who are focused on sports and training. The ideology of the average consumer falls under the achiever category of the VALS segments. Members of the achievers group are goal oriented, hardworking, and fully scheduled (Strategic Business Insights, 2017).
 
A factor that plays into the likelihood of consumers purchasing Gatorade products is the performance aspect of the line. Gatorade urges athletes to use their products to enhance their performance and optimize their workouts which then causes consumers to believe that they will have a much more effective, fulfilling, and overall successful workout. One way that this factor affects consumer purchasing decisions is by the newly added performance tracker app provided by Gatorade’s website. This addition made consumers feel as if they were making more progress by adding Gatorade products to their workout. The motivation aspect that the app provided boosted sales tremendously by simply providing the idea that if you use their products along with the app during workouts, you would literally be able to watch your progress daily. In fact, during the first three months alone of the progress tracker being added to the website, it attracted over 100,000,000 site views. This exceeded the goal by 60% and also resulted in 15,000,000 teenagers registering for the actual tracker (Wong E, 2010). Another factor that could influence the decision to purchase Gatorade products is the professional athlete endorsements that the company has. When you look at the broad spectrum of sport drinks when working out or playing a sport, the typical athlete looks at benefits that the product will have towards the success of their physical activity. More athletes are inclined to buy a product from a company selling items to optimize working out if there is an endorsement from a famous millionaire athlete, this portrays the idea that the consumer can also have similar results if they use the products the same way as advertised. Athletes ranging from Dwyane Wade, Usain Bolt, Michael Jordan, and Mia Hamm just to name a few have endorsed these products (Gatorade, 2017). From commercials, print ads, and social media presence, these athletes all make the formerly known “elite athlete” line seem as if any average consumer can reach their physical goals while working out using Gatorade products.
 
Company: Gatorade is a company dedicated to sports performance products geared towards all athletes. Gatorade was created in 1964 by Dr. Robert Cade and his team. The goal of Gatorade has always been to replenish athletes during games that were losing electrolytes while the engaged in physical activity. Gatorade dominates 80% market share for Non-aseptic Sports Drinks, and 80% market share for Sports Drink Mixes.  The products offered varies from sports drink, protein, bars and chews, equipment and endurance products. Gatorade has a unique position in the marketplace, they are known as the sports drink that fuels bodies during rigorous physical activity. They have been the official drink of the NFL for over 40 years.
 
Competition:
Who are the brand’s current direct and indirect competitors?
Direct competitors       Powerade          MVP (Wegman’s Brand)         Body Armor
Indirect competitors     Red bull                  Monster                             Vitamin Water
What are the market shares of the different direct competitors?
Powerade 24.5%
MVP Other sports drinks listed as 2.3%
Body Armor Other sports drinks listed as 2.3%
How old/new are the direct competitors in the market place?
Powerade Introduced in 1988 to go up against Gatorade. Powerade became the official sports drink of the Olympics. Owned by Coca-Cola.
MVP   Unk
Body Armor Launched in 2011. Owned by Repole who is cofounder of VitaminWater and SmartWater.
What are their revenue streams?
Powerade  Offering of 2 for $3 at convenience stores, bulk purchasing
MVP  Pricing mechanism to put item on Shoppers Club and offer discount to customers with card/key tag, bulk purchasing
Body Armor    $1.00 off coupons, bulk purchasing
Who are their most profitable product offerings?
Powerade Usually less expensive than Gatorade by .10, delivery to home offered
MVP  Offered at Wegman’s exclusively, lowest price of all energy drinks and sports drinks
Body Armor  delivery to home offered, healthier alternative to Gatorade and other sports drinks
 
 
 
 
 
 
What are the various brands doing with regard to their positioning in the market place?
Powerade      New marketing plan to get to the soccer athletes.
MVP                    Best choice for kids in sports
Body Armor   Endorsed by UFC people think they can protect themselves better by drinking this product
How are each of the brands differentiating themselves from their competitors’ brands?
Powerade        New flavor being introduced(Blue Raspberry Cherry), price less than Gatorade
MVP    Price is most competitive in the sports drink industry
Body Armor  Endorsements by several athletes, healthy alternative using coconut water
How much is being spent in the promotion by these direct competitors, and in which media are they focusing?
Powerade PGA Tour, NASCAR, NHRA, NCAA and the U.S. Olympic Team (with the exception of U.S.A. Basketball and U.S. Soccer), athlete endorsements
MVP  Youth sports and schools, Wegmans website
Body Armor Golf, Basketball, Official sports drink of the UFC, athlete endorsements
What are the competing brands’ current brand identities (name, logo, symbol, packaging)?
Powerade “P” is the symbol, similar packaging to Gatorade, black background, white lettering, clear bottle
MVP same packaging as their fruit juices, packaging matches color of drink
Body Armor  fruit on label, whole bottle is covering with colorful packaging, most attractive packaging
                   
     
                              
SWOT Analysis
Strengths: Dominates 80% of market share for sports drinks, major focus on innovation , Gatorade Sports Science Institute backs products with proven stats, Celebrity & Athlete Ambassadors -Usain Bolt, Cam Newton, etc. , Strong brand image,
 
Weaknesses: Increase sodium in products leads to dehydration, too many variations of product confuses consumers, limited target markets(athletes), taste of products isnt the best compared to competitiors,
 
Opportunities: Many people are turning to alternative medicine, so finding a natural/organic Gatorade catered towards the yoga and meditation consumers.
Owned by Pepsi Co. They can leverage the brand and have financial means to promote.
 
Threats: Up and coming hydrating drink competitors (Wegmans MVP, FYFGA-a healthier option), Professional sports protests has viewership down in turn people not viewing ads during sporting events.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Survey Questions (1-7 Becca,8-14 Susan, 15-21 Michelle, 22-28 Owen)
 
Gatorade
Survey Question
 
 
 
 
 
 
 
 
 
 
 
 
References

  1. http://web.b.ebscohost.com.brockport.idm.oclc.org/bsi/detail/detail?vid=4&sid=3c8ae2bf-ab02-493a-b072-7f0566c60072%40sessionmgr103&bdata=JnNpdGU9YnNpLWxpdmU%3d#AN=51446413&db=bth
  2. http://www.gatorade.com/
  3. http://web.a.ebscohost.com.brockport.idm.oclc.org/bsi/detail/detail?vid=4&sid=4209ee23-2c75-49ed-8578-58dcd69c1ae3%40sessionmgr4007&bdata=JnNpdGU9YnNpLWxpdmU%3d#AN=36398215&db=bth
  4. https://infoscout.co/brand/gatorade
  5. https://gatorade.newsmarket.com/athletes-ambassadors/all?page=2
  6. http://web.a.ebscohost.com.brockport.idm.oclc.org/bsi/pdfviewer/pdfviewer?vid=2&sid=be48373e-869c-409f-b3ce-a8d6c23edbac%40sessionmgr4006 (Susan)
  7. https://drinkbodyarmor.com/ (Susan)
  8. https://cu.pepsico.com/gatorade?company
  9. https://www.gatorade.co.nz/history/
  10. http://web.a.ebscohost.com.brockport.idm.oclc.org/bsi/detail/detail?vid=22&sid=f20382a4-75c9-464a-8432-2c59dd90581f%40sessionmgr4008&bdata=JnNpdGU9YnNpLWxpdmU%3d#AN=108516401&db=bth
  11. https://gatorade.newsmarket.com/athletes-ambassadors
  12.  http://www.athletepromotions.com/powerade-endorsements.php (Susan)
  1. http://www.gatorade.com/products/endurance/. (Gatorade).
  2. https://www.fastcompany.com/3065839/gatorade-and-spotify-have-teamed-up-to-soundtrack-your-workouts (Fast Company).
  3. http://www.pepsico.com/Company/Global-Brands. (Pepsico).