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I. Executive Summary

The aim of Gatorade is really to target people who are active in sports and are engaged in physical activities. With this aim, Gatorade makes use of sports celebrities as endorsers in their advertisements, as they market their products online and offline. Moreover, these marketing strategies are used to ensure that the messages of their products are delivered in these advertisements.

As Gatorade began the sports drink industry, the company is given a certain edge to its competitors as seen by its large market dominance. Giving its consumers a clear description of what their products can truly offer, Gatorade continues to be a renowned product that overpowers its competitors. In its attempts to expand its market dominance, the company creates new flavors so that consumers will be more enticed to purchase their products. Not only would these new flavors drive its consumers to wait for Gatorade’s new products, but it will also be able to gain new markets as it caters to the taste preferences of a more diverse group of people. Similarly, sports that have recently captured people’s interests may be used by Gatorade to introduce its new products. With this, a larger impact may be made to this sports drink in order to enhance enthusiasm to its consumers, and a wider audience will be targeted.

A short-term goal that may be conducted by Gatorade is the promotion of specific flavors that the consumers liked best. Since numerous flavors have been made, the company may conduct studies that would tell them which flavors have been favored the most. With this, Gatorade will be able to be more efficient, as it can focus on the specific flavors that gave an impact to its target segments. Along with this, the company may also mix vitamins and other elements that would entice the consumers. This will cause those active in sports to find more reason to give loyalty to Gatorade, as the products would offer them health benefits and energy.

As a long-term objective, Gatorade may also look into the improvement of the marketing strategies used for their energy drinks. By doing so, knowledge of the product and its benefits will be given to the consumers, and would, therefore, cause them to purchase the products given. Innovativeness and proper advertising should be an objective of Gatorade. By promoting its brand (together with its products), the company will be able to capture the attention of its target markets, and consequently, gain a larger market share. Moreover, as numerous factors affect the purchasing decisions of the consumers, the product should be advertised as something that would be worth one’s money, no matter how high or low it is priced.

Not only should Gatorade invest on its products, but it should also invest on events and institutes, such as the Gatorade Sport Science Institute (GSSI). Through the investment of the GSSI, for instance, Gatorade will be able to specialize more on the researches regarding the factors that affect the body.

II. Current Marketing Situation Analysis

A. Industry Study

In 1965, Ray Gravers, a football coach, noticed his team’s poor performance during the intense summer heat. He then consulted with a medical team to help improve his team’s performance. Scientists then came up with a solution which consisted of water, sodium, sugar, potassium, phosphate and lemon juice. This mixture is what we know today as Gatorade. Gatorade consequently became the foundation for the sports drink industry and built this into a brand that has been renowned all over the world for the past 46 years. In 2005, the industry’s expansion led them to have a market of approximately $300 billion in terms of sales, increasing by 10%. Asia Pacific now holds a 38% market share, with the majority of sports drink consumption in Japan and China.

Sports drinks dominate 27% of the market, and stands 2nd in the beverage industry, after energy drinks who dominate 63% of the market....
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