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Gatoradeis it in you?
Adriane Payn Aimee Renfro Clinton Eastman Scott Blankenship
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Performance Series
Thirst Quencher
Propel
Energy Bar Gatorade Fierce Fitness water
Energy Drink Gatorade Original Fitness Water with Calcium
Nutrition Shake Gatorade Rain
Breadth (different lines)
Dep
th (
asso
rtm
ent
with
in a
line
)
Product Mix & Product Line
•Product Line – a broad group of products offered for sale by a company
•Product Mix – a set of all products offered for sale by a company
•Breadth – number of product lines carried
•Depth– variety of sizes, models, and colors in each product line
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Packaging
Guarantees
(Gatorade Sports Science Institute)
Branding
Gatorade (Gatorade Dunk)
Innovations
(Promises to Rehydrate, Replenish, and Refuel)
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Introduction DeclineMaturityGrowth
Sales Volume
Profit
Time in YearsLoss
Do
lla
rs
0
Product Life Cycle
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Product Lifestyle Stages
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PRICING
• 20 fl. Oz = $1.69
• 20 fl. Oz = $1.69
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PRICING STRATEGIES
Market penetration: relatively low initial price is established for a new product
This is evident by price comparison with their main competition, Powerade.
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Buying in Bulk!!
Drinking Gatorade on a regular basis can get a little pricey, however there are ways to cut your cost…buy in bulk.
Specials at Safeway on a regular basis
Costco for a set discount relative to size of purchase
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Distribution Channels
Gatorade uses a middle man
convenience good
impulse buys
Producer (Gatorade)
Retailer (Safeway, Costco)
Consumer (you and me)
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Why Middlemen?
A lot of consumers
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Where can I buy this wonderful thirst quencher?
• Liquor store
• Grocery store
• Department stores
• Vending machines
• Athletic venues
• Restaurants
Intensive distribution: producer sells its product through every available outlet in a market where a consumer might reasonably look for it.
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Promotions Mix
• Advertising– PepsiCo spent over $183 million on Gatorade media 2005
• $135 million in 2003• Most common form is on TV
– Scientifically proven» Origins» Research results
– Emulating Professional athletes» Michael Jordan, Payton Manning
– Sport Sponsorships» Men’s world cup soccer
– Drink specific» Spent at least $20 million on ad campaign for Gatorade Rain
• Professional Athletic Sponsorships– 22 Professional American Athletes, over 20 international athletes
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Promotional Mix
• Public Relations– Professional League sponsorships
• AVP, Bowl Championships Series, MLB, MLS, NBA, NFL, USA Basketball, US Men’s National Soccer Team, WNBA, NHL
– Collegiate Affiliations• 60 division 1 universities
• 11 Division 1 conferences
– Professional Affiliations • 11 Affiliations including the American College of Sports Medicine
• Annual Gatorade Junior Training Camp – They combine football instruction and teaching of life skills that focus on self-improvement and
motivation.– Hosted by the Seattle Seahawks
– Outstanding players of the year• Recognizes outstanding high school athletes from around the country
• State and National winners and Athletes of the Year
• Football, Basketball, Soccer, Track and Field, Softball, Baseball, Girls Volleyball
• Ex. Peyton Manning 1993-94
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Promotional Mix
• Public Relations– International
• Many professional soccer club teams, Including AC Milan, Inter, Juventus and Manchester United
• Other international professional teams including, basketball, water polo, rugby, tennis, running, swimming and volleyball
• International Gyms– GSSI
• Scientific research on many sport related topics and on specific sports– Websites
• Designed to represent the company– Products– Research and testing– Results– Sponsorships– History – Downloads
• 12 internationally separate websites
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Promotional Mix• Sales Promotions
– Event sponsorships• Request of Event sponsorship• Annual Gatorade Junior Training Camp
– They combine football instruction and teaching of life skills that focus on self-improvement and motivation.
– Hosted by the Seattle Seahawks• Marathons around the world,
– Ex. Boston Marathon– Supply free Gatorade to competitors
• Gatorade Triathlon Series – Gatorade Recovery Area
» All competitors can be weighed before and after the race to monitor the level of fluids lost during exercise. area will later supply food/refreshment bags, Gatorade drinks, massage and qualified dietitians.
– Newsletters• 18-week marathon training program • Gatorade fundraising program
– Canada program to help raise money for youth sports teams by selling Gatorade• Fitness workshops in the US and Mexico
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Promotional Mix• Sales Promotions
– Large store discounts• Able to reduce price by almost half
– Normal price is $1.09 for 24oz and $1.89 for 32 oz– two 24-oz. bottles for $3 at AM/PM– Three 32-oz for $3 at Safeway
– International Promotions• Indian
– buying six bottles of Gatorade entitles consumer to a free Gatorade football program with Ronaldinho' Cd
• European soccer promotion• Brazilian promotion• Canadian promotion
– Customers can win a variety of professional hockey gear
– Push and Pull Strategy• Mostly Pull
– Most of money and energy is spent on promotions directed at consumers– Not much needed for middlemen because it can be easily proven to be a high
profit product
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Promotional Mix
• Personal Selling– Extensive team of sales persons in order to get
Gatorade sold everywhere– Exclusive deals with parent company PepsiCo
• School campuses• Gyms
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Marketing MixStrengths & Weaknesses
• Product– Variety of Lines (Width &
Breadth) – Constant Research for
Improvement
• Price– Competitive, not
excessively high, not a deterrent to buying
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Marketing MixStrengths & Weaknesses
• Placement/Distribution– Easily accessible for buying
• Promotion– Constantly in public eye (sports – contracts, cooler and cups, dunk) – Community Events– Sponsor Sports Events– Easily identifiable colors, slogan,
logo