Gatorade - Marketing Project

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Gatorade: G Series|
Strategic Marketing Analysis|
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10/18/2010|

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Contents
1. History3
2. Target Market5
3. Market Trends & Macro Forces7
4. Marketing Plan11
5. Targeting China15
6. Competitor Analysis17
7. SWOT Analysis20
8. Budget and Explanation24
9. Appendix26

Gatorade: History
The Gatorade Company makes the world’s leading sports drink. In part, this is due to its ubiquitous marketing strategies that can be seen almost everywhere. Gatorade is the official sports drink of the NBA, WNBA, MLB, NHL and MLS. It is also the official sports drink of the NFL and has become part of a famous tradition, the “Gatorade Dunk” where the winning athletes of the Super Bowl empty the Gatorade cooler over the coach. Gatorade has also been advertised by some of the greatest athletes in history; from Serena Williams, to Peyton Manning, to Olympic gold medalist Usain Bolt, to probably the most famous endorser in NBA great Michael Jordan. Gatorade makes several products including the G series which consists of pre-game, thirst quencher and post-game beverages. There is also the G Series Pro which consists mainly of sports nutrition products. Then there is G Natural which contains more natural ingredients. The Gatorade Company also makes Propel Fitness Water. The Gatorade Company was not always such a large company nor was it created by an existing beverage corporation. It was created as a necessity by the team in which it’s named after: The University of Florida Gators.

Gatorade was created in 1965 by a team of five scientists led by Dr. Robert Cade. The beverage was created to improve the athletic performance of the university’s football team. When more than a dozen of the players had fallen sick due to dehydration from the intense heat and training, the scientists researched dehydration and what the body loses during immense activity. They found out that sugars, salts and minerals were required to hydrate the human body after immense physical activity; water alone was not enough. They created an electrolyte-carbohydrate drink and supplied it to the athletes. The results were phenomenal. The Gators were able to outperform their rivals, especially in the latter half of the game where exhaustion seemed to cripple their opponents. The Gators went on to win their first Champion ship and soon after Gatorade was adopted by other sports teams. Supplying the beverage became more and more difficult for the scientists as demand increased, and after failed attempts to commercialize it, Stokely-Van Camp acquired U.S. rights to the drink and Gatorade Inc. was incorporated in Florida in 1967. After much success, the coach of the Florida Gators suggested the winning formula to the coach of the Kansas City Chiefs. The Chiefs were impressed and used throughout the entire season culminating with a Super Bowl victory.

Much of the growth of the Gatorade Company occurred when it was acquired by Quaker Oats, which bought Stokely-Van Camp for $220 million in 1983. It was under Quaker Oats that Michael Jordan, who was arguably the most famous and fast rising athlete at the time, became the celebrity spokesperson for the company. Sales skyrocketed and Gatorade was once again the leader as the sports drink market grew to $1 billion by 1994. Also during its ownership by Quaker Oats, the product went global. It was and continues to be sold in numerous countries and several continents successfully. It also expanded its product line to include more flavor varieties. Towards the end of the 1990’s the sports drink market grew to $2 billion. With its consistent success, Gatorade continued to launch new products including Propel Fitness Water.

In 2000, PepsiCo, a multinational corporation focusing on beverages and snacks, acquired Quaker Oats for $13 billion. It bought over Quaker Oats primarily for the Gatorade brand, which is still one of...
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