5. How should the Gatorade brand be positioned in Pepsis portfolio?

Repositioning with Introduction of G Series Products

One of PepsiCos key imperatives is to build and expand the nutrition business
worldwide. Gatorade sin!e "##$ has been a!tively repositionin% itself from the
sports bevera%es&sports hydration !ate%ory to the sports nutrition !ate%ory.' (n
"#)# the brand was revitali*ed with the G +eries and was the fourth lar%est
PepsiCo %lobal brand in terms of retail sales(n "#)) Gatorade alon% with ,uaker
and -ropi!ana two other PepsiCo brands were three top brands in a %lobal market
for !onsumer pa!ka%ed %oods health and wellness produ!ts that ex!eeded .5##
billion
(n the "#)) PepsiCo /nnual 0eport the !ompany stated that the G +eries was
expandin% to 1ra*il 2exi!o /ustralia Canada and the 3.4. -he produ!t line and
how the produ!ts were introdu!ed to the individual !ountries were tailored to ea!h
!ountry. (n 1ra*il !onsistent with Gatorades strate%y to broaden the types of stores
where the produ!ts are sold the G +eries line went into new distribution !hannels
in!ludin% sports !lothin% stores nutritional supplement stores and pharma!ies in
addition to supermarkets and %yms. (n addition a laboratory similar to the Gatorade
+ports +!ien!e (nstitute in -ampa 5lorida will be built in 1ra*il . (n /ustralia 6wayne
7ade helped to laun!h the brand and played a %ame of 8 on 8 with /ustralian
sports stars in!ludin% surfer 9aura :never and swimmer Geo; Hue%ill. Geor%e +t.
Pierre a Canadian mixed martial artist played a si%ni<!ant role in the laun!h in
Canada. -he partnership with Geor%e +t. Pierre was so su!!essful that a symposium
drove )= million earned and media owned impressions and other marketin%
enabled hi%h pro<le media !overa%e in!ludin% +portsnet and -he +!ore. (n the 3.4.
a dedi!ated team was set up to laun!h Gatorade as a standalone sports nutrition
business as part of its mission to be!ome the number one sports brand in the world
and to support the rollout of the G +eries and the G +eries Pro. -he 3.4. rollout of
the G +eries was supported by a refreshed website a full time sales team a 5##
million 1ritish pound !ampai%n !omprised of advertisin% editorial and di%ital media
whi!h tar%eted spe!ialist sports titles and an in>house so!ial media monitorin%
servi!e
:arly in "#)" Gatorade opened a mobile Gatorade +ports +!ien!e (nstitute in
2exi!o inside the fa!ility of the C?/0 @the national !enter for development of
athletesA as well as one inside the Club +antos 9a%una where hi%h performan!e
athletes and <rst division football players were studied and provided with nutrition
whi!h also supported the nutrition positionin% of B7in from 7ithinC. 3sain 1olt a
%lobal sponsored Gatorade athlete was used in the introdu!tion of the G +eries in
?ew Dealand in "#)". Gatorade laun!hed a television !ampai%n and a series of
di%ital !ommuni!ations in /u%ust "#)" usin% 1olt and in O!tober in !onEun!tion
with 5ru!or the li!ensed produ!er of Gatorade in ?ew Dealand 1olt went to ?D to
support the brand
Primary Market:
F /thletesGthis term is intentionally va%ueH it applies to any individual who is
!ons!iously a!tive.
F Household in!omes between ."#### to .=####
F Ioun% /dults a%es )J to "= interested in sports
BGC proEe!ts to all athletes ran%in% from professionals to individuals who
walk on the
treadmill on!e a week at home. BGC is desi%ned to Kuen!h the thirst of
hardworkin%
athletes. However our primary tar%et market is essential to expand the
previous notion
to any hardworkin% individual. (f you have been workin% hard and you are
thirsty than
BGC is for you. (t is formulated with a deli!ate balan!e of essentials vitamins
minerals
and ele!trolytes to keep you always performin% at your best. BGC is
advertised with an
attitude of hip ed%y and !uttin% ed%e fashion. (n line with these
advertisements our
basi! a%e ran%e in our primary tar%et market tends to be youn%er individuals
ran%in% in
a%e from )J to "=.
Secondary Market:
F -he +outh
F Older adults a%es "= to =#
F :xpand international promotion
BGC possesses a lar%er !onsumption rate in the +outh than the in the ?orth.
/s a result
BGC plans to spend more advertisin% with re%ard to re%ion spe!i<!ally
tar%etin% the
+outh. 6ue to the density of the advertisements in the +outh advertisers
expe!t that
some of the ads will be e;e!tive for other individualsGspe!i<!ally older
adults ran%in%
in a%es from "= to =# within the 3nited +tates. BGC also plans to expand its
advertisements internationally in attempt %row its !onsumer base to foster
the %rowth of
sales.
"It's not a drink, it's a system", Gatorade's tagline in an ad for their newest sports drinks (G
series, G series Fit, and G series Pro). Their mission is to turn their sports drink rand into a
sports nutrition rand!G series sports drinks, energy ars, protein shakes, supplements, et".
#ere are three ways through whi"h Gatorade "an e positioned into Pepsi$o portfolio
%. Distribution. Gatorade is not only going to e sold in gro"ery stores, ut their produ"ts will e
ad&ertised and sold in &itamin shops, sporting good stores, and spe"ialty sports stores. The
produ"ts are where athletes would go to shop!"It's aout eing where athletes shop and sweat",
said y 'ndrea Fair"hild, &i"e!president of rand marketing.
(. Sticking to their Brand. In the re"ession a lot of ig rands were dropping their pri"es, ut
Gatorade stood y their produ"t and their rand image. Gatorade's parent "ompany Pepsi$o
$hief )*e"uti&e +ffi"er, Indra ,. -ooyi said for "onsumers who drink tap water and soft drinks
"...didn't really ha&e a right to e*ist in the Gatorade world." whi"h ring us to the third point...
.. Audience. It's a "ommon theme we see o&er and o&er again in the marketing world! target
your "ore "onsumers/audien"e. The rand wasn't as fo"used on marketing to athletes as it should
ha&e een. 0o they in"orporated a new testing fa"ility in Florida for athletes. Gatorade didn't 1ust
make a drink they made it into a s"ien"e for their "onsumers gi&ing the rand "rediility.
Gatorades strate%y overseas is to be adaptive to its lo!al markets and tailors its
produ!ts and marketin% to maximi*e its sales. Gatorades repositionin% from a sport
bevera%e to a nutritional produ!t was a bold move and not without risk %lobally. -he
G +eries and G +eries Pro have been rollin% out around the world but has been
sele!tively introdu!ed to !ountries with some !ountries havin% only the G +eries and
not the G +eries Pro.
(n fa!t the new G +eries has not been introdu!ed worldwide and is still bein% rolled
out in di;erent re%ions.
Gatorade sponsorships and use of athletes teams and sportin% events provides the
brand with a hi%h level of awareness and makes it synonymous with sports. -he
brand uses a mix of world>renowned athletes as well as lo!al athletes to both test
and promote its produ!ts around the world. 2any athletes provide feedba!k on the
produ!ts before they are laun!hed and then often parti!ipate in the laun!h and the
on%oin% marketin% of the produ!ts. -heir hi%h pro<le provides the brand with
authenti!ity and !redibility. Gatorade also trains athletes to perform better at their
sports s!ien!e institutes and puts on both hi%h pro<le and lo!al events in many
parts of the world. (n addition throu%h resear!h produ!t testin% and usin% 2ission
Control Gatorade is able to <nd out what its !onsumers want and then !an tailor
marketin% plans and new produ!ts a!!ordin%ly. -heir marketin% is fully inte%rated
from understandin% what !onsumers are sayin% about the produ!ts in real time to
adaptin% their plans and then to usin% their athletes advertisin% and promotion to
support the brand positionin%. Gatorade uses this strate%y mix to rise to the top of
brand !ate%ories overseas. Gatorade is not Eust a sports drink that has %one
internationally it is a !ulture that has extended internationally.