A group of six people, including myself, created a complete market analysis of Gatorade’s new G Series for a class at the University of Michigan. Gatorade decided they wanted to rebrand their product (changing the name from Gatorade to G) and to retarget their consumer base towards athletes and professional athletes instead of everyday consumers. Our objective was to come up with an innovative marketing strategy for the G Series. We worked cohesively as a group and turned out a great project.

1. April 20
10
Gatorade Marketing Campaign Analysis:
Rebranding “G”
Lauren Gaynes
Kristen Hermanson
Anant Jain
Will McDowell
Brittany Morris
Julia Wangen
MKT 407/COMM 462 Prof. Jennifer Ashman

2. 2

3. 3
Table of Contents
INTRODUCTION 4
SITUATION ANALYSIS 5
COMPANY ANALYSIS 5
CONSUMER ANALYSIS 6
PRODUCT ANALYSIS 10
MARKET ANALYSIS 11
COMPETITIVE ANALYSIS 14
PROBLEMS AND OPPORTUNITIES 16
SWOT ANALYSIS 16
POSITIONING STATEMENT 18
MARKETING AND COMMUNICATION OBJECTIVE 19
BUDGET 20
MARKETING COMMUNICATION STRATEGY 21
ADVERTISING STRATEGY 21
INTEGRATED COMMUNICATIONS 25
EVALUATION 31
CONCLUSION 31
APPENDIX 33
REFERENCES 40

4. 4
Introduction
Gatorade not only is the market leader in the sports drink category, it is the creator of that
beverage category. Gatorade was the first drink to be offered as a substitute for water,
and has remained profitable since its inception. The company was able to capture the
athlete market and has been a sponsor of notable athletes like Michael Jordan and Tiger
Woods. Today, Gatorade is involved in every major sport. It is impossible to watch a
football game, Nascar race, or golf tournament without seeing a Gatorade lightning bolt
somewhere around the event.
Picture 1: Gatorade coolers are present on the bench of almost every
sports team in every major sport.
In recent years, however, sales have started to decline due
to the emergence of competing products. Consumers who
seek to be rehydrated are turning towards healthier, trendier
options such as Vitamin Water. Consumers who aim to
become more focused or active are starting to buy energy
drinks such as Red Bull or Monster. Gatorade believed that
if it did not change its brand image in retaliation, the
company would begin to fail.
In an attempt to recapture the market, Gatorade has
transitioned away from its traditional advertisements and
its slogan: “Is it in you?” Gatorade has implemented a
pop-culture marketing strategy that involves rebranding the product as “G.” A new
variety of products are offered, such as G2 (half the calories), and Gatorade A.M. Soon
Gatorade will be releasing a new product line called the “G Series,” which includes a
drink before exercising, a drink while exercising, and a drink after exercising. While this
concept seems extreme, Gatorade has invested a lot of dollars to regenerate interest from
athletes.
The chances of success for the new Gatorade products will be much higher if the
company first revamps its current marketing strategy. Consumers are confused about
what “G” actually is, and are less motivated to buy the product than before. In order to
generate interest in the new variety of products, Gatorade must address this marketing
problem by linking “G” back to the traditional Gatorade brand. Our group has gathered
data from both athletes and non-athletes. With this information, we analyzed problems
with the current strategy, and offered recommendations on how to capitalize on
opportunities still available to Gatorade. The goals of the strategy revolve around
regaining consumers’ interest in “G” with new advertising techniques and by
implementing promotions to create excitement around the new product. The expected end
result is reclaiming a portion of the sports drink market and increasing sales to sustain
long term profitability.

5. 5
Situation Analysis
Company Analysis
Company Mission: “Gatorade and the Gatorade Sports Science Institute continue
to search for and study new and innovative ways to help athletes improve
performance by facilitating proper hydration and nutrition…The Gatorade
Company and the GSSI perpetually strive to advance their collective mission of
enabling athletes to always perform at their peak.”
The parent company of Gatorade, PepsiCo, has enjoyed market leadership in the non-
alcoholic beverages and snack industry in the United States.i Their net revenue in 2009
was $43.232 billion, a minor 0.044% decrease from its SEC filings in 2008. However, the
brand Gatorade has been declining in revenue for the past few years by 8.8% from annual
reports of 2007 ($644 million) and 2008 ($587 million).ii
“After PepsiCo's acquisition of Gatorade in 2000, the brand showed consistent growth
until declines began in Q3 2007” (Media Post News). In the table below, Beverage
Digest estimated that in the first quarter of 2009, Gatorade's sales volume and share of
total sports drink volume dropped. Meanwhile, Coca-Cola's less expensive competitive
sports drink, Powerade, gained sales volume and share of the market. This development
continued to persist in the second-quarter as well, with Gatorade dropping another 6%.
On the other hand, Coca-Cola’s subsidiaries only saw a fall of 1%.
Figure 1: Change in Sports Drink Market Share, 1st Quarter 2009iii
Vol Share Share +/- Vol +/-
Gatorade 73.7 -6.3 -13.70%
Powerade 25.1 6.1 23.60%
Other 1.2 0.2 -
Category 100 - -6.30%
While the new campaign has caused some of Gatorade’s loyal customers to no longer
recognize the product they used to love, Gatorade still holds a majority of the market.
Gatorade is also fortunate enough to have the financial ability to turn around its image
without having to worry too much about money. These factors, along with the company’s
culture of always trying to enhance its customers’ performance, are skills Gatorade can
utilize to help reestablish its brand image.

6. 6
Consumer Analysis
Secondary Research
Sports drinks’ traditional target audiences are young men aged 18-34. Males in this age
group comprise 35.91% of Gatorade’s sales whereas females comprise 21.60%.
Consumption of sports drinks drops off, however, and is consistent after this age group,
with the percentage of consumers hovering around 10% (Appendix Exhibit 1).
Neither Gatorade nor Powerade possesses brand loyalty according to gender: 53.68% of
males drink Gatorade over 55.07% of males who drink Powerade; 46.32% of females
drink Gatorade over 44.93% of females who drink Powerade (Source: Choices 3
Database).
Blacks and Hispanics exhibit a higher than average sports drink consumption rate.
Reaching these demographics through targeted products and advertising can bring growth
to the segment.
Primary Research
Survey
Through a survey and focus group, our group gathered valuable information about
consumers and how their opinions of Gatorade have changed since the new marketing
campaign began.
The survey included questions pertaining to frequency of sports drink consumption,
preference of sports drink beverages, physical activity lifestyle, awareness of the “G”
campaign, and demographic information such as age, gender, and ethnicity. During early
to mid-March, each person in our group emailed out the survey. We received
approximately 70 responses.
The survey included almost a 50/50 ratio of males to females, and shows that almost the
same amount of males and females drink sports drinks as the secondary research
suggested (Appendix Exhibit 2). Across both genders, Gatorade was the preferred sports
drink. However, 30% more males than females listed it as their favorite. See Figure 2.

7. 7
Figure 2: Percentage of Sports Drink Consumers Who
Prefer Gatorade
Female
Male
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
The survey also showed that sports drink consumers and non-sports drinks consumers
were almost equally likely to be considered an athlete (exercise multiple times a week).
See Figure 3:
Figure 3: Amount of
Exercise
100%
50% Less than Once A
Week
0% Once a Week or
Sports Non­Sports More
Drinkers Drinkers
These two facts demonstrated that Gatorade’s target market should not only be comprised
of young, male athletes. While this demographic could remain as Gatorade’s primary
target, everyday non-athletes also enjoy Gatorade as a casual beverage. Utilizing a new
marketing plan could gain more sales in that market.
The subsequent part of the survey analyzed what aspects of sports drinks consumers
value most. This question was slightly altered for non-sports drink consumers to the
qualities they prefer in beverages in order to reveal what these consumers find
unappealing about sports drinks. Shown in the pie charts below, the main preference for
both types of consumers is taste. However, there is a significant increase with non-sports
drink consumers in the amount of people who chose their drink because of calories.

8. 8
Figure 4: Primary Figure 5: Primary
Factor: Sport Drink Factor: Non­Sport
Consumers Brand Drink Consumers
Loyalty Calories
Calories
Nutrients
Nutrients
Package
Price
Design
Taste Taste
These results are notable because Gatorade’s taste has always remained the same. It has
just added a new variety. Secondly, Gatorade has added new low-calorie products with
hopes to capture this market, but still these consumers have not been persuaded. To
determine why Gatorade has experienced a decline in sales, we asked our focus group
about how they feel about Gatorade today.
Focus Group
A focus group was conducted to uncover latent needs of consumers along with creating a
more detailed picture of consumer buying behaviors and opinions. Before conducting the
focus group, a tentative theory of buying behavior was formulated:
• Both athletes and non-athletes buy “G”
• Consumers who use “G” do so while working out and in their everyday lives
• The current “G” commercials are ineffective at increasing awareness and are also
ineffective at making positive changes in consumer buying habits
In order to select the sample, the 6 members of our group each asked our friends if they
would be willing to participate in a focus group to measure opinions and buying habits of
the G Series. All six of us have different groups of friends who differ demographically
by gender, race, athleticism, etc., causing us to believe that we would collect a random
sample that would offer a wide variety of opinions. A total of 8 people showed up to the
focus group, consisting of a gender make-up of 5 males and 3 females. The focus group
was conducted on Friday March 12 at 12 P.M. in a large conference room that our group
reserved on the second floor of the Kresge Library. We prepared a total of 8 questions to
ask respondents. See Exhibit 3 in the Appendix to view the questions asked during the
focus group along with replies of the respondents. The schedule of the focus group is as
follows:
12:00: Meet and greet with participants. Refreshments are served and time is given to
allow participants to eat before the questioning begins.

9. 9
12:20: 5 of the prepared questions are asked to participants and answers are recorded.
The first set of questions involves participants’ already established attitudes of “G.”
12:40: A variety of “G” commercials taken from YouTube and the Gatorade web site are
shown to participants.
1:00: Participants are asked the remaining 3 questions, which deal with perceptions of
“G” after seeing the commercials.
1:20: Participants are thanked for their time and offered any remaining refreshments
before they leave.
After conducting the focus group, recorded responses were analyzed in order to create a
theory of buying behavior and attitudes. This theory coincided with the bullet points
created in the tentative theory of buying behavior above. In the focus group, no one
disliked sports drinks. However, a couple of participants mentioned a preference of
water over sports drinks. No one seemed biased towards Gatorade or any competing
products. Their affinity for sports drinks was due to flavor/taste and amount of calories,
rather than brand name (i.e. Gatorade or Powerade). Participants, including athletes and
non-athletes, voiced that they use sports drinks while working out and also during
everyday activities. The only participants who seemed interested in using the 3-step G
Series products were those who considered themselves to be hard-core athletes.
Participants bought sports drinks in drug stores, convenience stores, gas stations and
grocery stores. Grocery stores were voiced as the most popular point-of-purchase. When
asked about perceptions of the G Series based on its current ad campaign, the focus group
participants had no concrete recollections of new commercials or ads. Individuals that
had the most to say were general sports fans, though not exactly athletes, who had seen
ads during sporting events. The individuals who did see commercials were still confused
about the brand and did not perceive the commercials to be effective.
When asked if they knew what “G” was, all participants were incorrect even after
viewing the commercials. Participants assumed that it was a new type of drink. No one
realized that “G” was just a relabeling of classic Gatorade and the product itself had
remained the same. No participants expressed motivation to purchase any G Series
products after viewing the commercials. The focus group consensus was that the
commercials didn’t say anything about the product. They just made them excited to
watch sports. Participants offered a variety of suggestions to improve current
commercials and perceptions. This included establishing a better connection between
Gatorade and “G” and creating commercials that are more product-centered instead of
focusing solely on athletes.
Key Takeaways
While athletes remain as Gatorade’s principal target, male and female non-athletes who
are generally interested in sports also consume Gatorade to a large degree. Furthermore,
Gatorade products fulfill the needs of the consumer, which includes taste and reduced
calories, yet consumers do not realize this. These consumers appeared motivated to buy

10. 10
Gatorade as a result of the old marketing campaign because they were familiar with the
products. With this new unfamiliarity with “G,” sole images of sports and athletes do not
motivate consumers. Consumers seek more information about the qualities “G” offers as
if it were a completely new product.
Product Analysis
As mentioned in the Consumer Analysis, Gatorade is a product that can offer needs to
several types of consumers. The company diversified its product to cater to different
qualities. It can offer enhanced performance to athletes, a rehydrating substitute to water
and a low-calorie option for health-conscious consumers. The new marketing campaign
has not communicated these qualities to its target market.
Product life cycle
The Gatorade brand has maintained a well-established brand name for decades. With
over half a billion dollars in sales every year, the brand has continued to grow and
maintain control of the sports drink market. Therefore, the Gatorade brand would be
placed in the mature stage of the product life cycle. It has a fairly steady level of sales
annually, and a globally recognized name.
However, with the reinvention of the brand name and the main logo as Gatorade changed
its name to “G” and offered new G-line products, it appears as if Gatorade is starting
from scratch. The new “G” campaign is at the introductory phase because it is creating
awareness and “buzz” in the media and society. After reaching record-breaking interest
levels, Gatorade is reaching out to a wider array of athletes with its new line. Gatorade
hopes to capture the attention of new consumers while maintaining its current users.
Therefore, the “G” campaign should be placed under the introduction stage of the product
life cycle.
Channels of Distribution
“Our products are advertised nationwide on a number of media outlets. The G Series will
be available where Gatorade Thirst Quencher is sold – grocery, convenience, mass drug
and club stores. Gatorade is sold at various grocery stores including Safeway, Kroger,
Super Value, Wal-Mart, Target, Sam’s Club and many other stores. “Our shopper
marketing team receives direction from the brand team to help tailor specific programs
for various retailers in order to sell, showcase, and market product.” – Aminah Charles,
Gatorade Communication & PR, Chicago
The Gatorade series is available for individual and bulk sale at numerous grocery and
convenience stores. The product is advertised on television, Internet and in print ads. By
spreading its reach in the sports world (opening up spots for athlete endorsements),
Gatorade has been able to grab the attention of fans that follow specific sports.

11. 11
Market Analysis
Because Gatorade was created for the University of Florida football team, it has had a
very solid connection with the sports world. Moreover, the brand positions itself as an
important and healthy resource for both professional and amateur athletes. In 2005, the
company boasted 60 Division I-A schools, and 28 out of 30 National Basketball
Association (NBA) teams under contract to use the Gatorade brand. Similarly, fans are
guaranteed to spot Gatorade on the sidelines of every National Football League (NFL)
team through the 2011 season. Quaker, manufacturer of the Gatorade brand, holds an
80% share of the sport drink segment in FDM channels, excluding Wal-Mart, according
to IRI.
Geographic data (2004)
In order to gauge which geographic areas in the U.S. possess the highest sports drink
consumption, our group looked at sports drink purchase by community type (categories
include: all, urban, suburban, and rural). Consumers were asked the question: “Do you
ever buy any sports drinks such as Gatorade for you, your family or both?” The graph
below exhibits that consumers living in suburban areas are most likely to buy sports
drinks, with 52% of suburban consumers responding “yes.” Rural and urban areas were
more likely to respond with “no.” Further investigation should be taken to ascertain why
these areas are less likely to purchase Gatorade and to determine how to change purchase
behavior in these areas. iv
Figure 5: Sports drink purchase by community type
All (%) Urban (%) Suburban (%) Rural (%)
Yes 47 46 52 46
For Me Only 20 21 26 15
For family members only 10 9 10 11
For Both 17 16 16 20
No 52 53 46 53
Note: This information is not specific to Gatorade—it examines sports drinks as a whole.
However, if you look at the chart below, you will see that Gatorade consists of roughly
83% of the total market share for sports drinks for 2004. Since Gatorade dominates in
terms of market share, looking at the entire market is helpful and relevant for determining
regional and geographic market trends for Gatorade as well.

12. 12
Sales by manufacturer:
Figure 6 depicts FDM sales by manufacturer in 2002 and 2004. Gatorade controls the
predominant share in the market, with roughly 83% of FDM sales, not including Wal-
Mart. Powerade, manufactured by the Coca-Cola Company, controls approximately 13%
of the market. All other players have less than 5% of category sales.
Figure 6: FDM sales of sports drinks, by manufacturer, 2002 & 2004
2004 Sales Change 2002-
2002 Sales ($mill) Share (%) Share (%)
($mill) 2004
Pepsi /
$ 835 86.0 % 949 82.7 13.7
Gatorade
Coca-Cola
$ 118 12.2 % 153 13.3 29.7
/Powerade
Kraft/Capri
- - 34 3.0 -
Sun Sport
Other $7 1.0 % 3 - -57.1
Private
$ 11 1.0 % 8 1 -27.3
label
Total 971 100.0 1,147 100 18.1
Note: Excludes Wal-Mart and convenience store salesv

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Figure 7 is a pie chart depicting share of sales for sports drinks by region in 2008. It is
clear that with almost half of sales share (45.5%) the South dominates the sports drink
market.
Figure 7:
Retail Distribution
The total sport beverage category has grown from roughly $2.5 billion to $2.6 billion
from 2002 to 2004 in the retail channel (not including Wal-Mart). Food, drug and mass
merchandisers control almost 44% of the sport drink market while the convenience store
channel controls 56%.
FIGURE 8: Retail sales of sports drinks, by channel, 1999-2004vi
2002
2004 Sales Change 2002-2004
Retailer Sales Share % Share %
$ million %
$mill
Supermarkets 855 34.6 1,006 38.3 17.7
Mass
46 1.9 48 1.8 4.3
merchandisers*
Drug stores 70 2.8 93 3.5 32.9
Subtotal 971 39.3 1,147 43.7 18.1
Convenience stores 1,501 60.7 1,477 56.3 -1.6
Total 2,472 100.0 2,624 100.0 6.1
*Note: Excludes Wal-Mart sales

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Supermarkets control 38% of the category and have grown almost 18% from 2002 to
2004. The drug store market share of sports drinks has grown by almost 33% to $93
million in 2004. Mass merchandisers (excluding Wal-Mart) have shown a moderate
growth of almost 8%, but are limited to about 2% of the total retail market. Sales over the
review period have shifted away from convenience stores. The convenience store channel
has been fully penetrated for some time and remains flat.
This data demonstrates that supermarkets are the largest channels of distribution for
sports drinks and that drug stores are the largest growing channel in terms of increasing
market share percentage. Focus should be put on increasing the success of sales within
these markets and determining why other channels (mass merchandisers and convenience
stores) are not as successful in terms of total or increasing sales percentage.
Competitive Analysis
The non-alcoholic beverage industry had mediocre gains until 2007. Since then, there
have been figures indicating declining sales and a similar trend has been forecast for the
next three years. As a category, due to the pairing of Sports Drinks and Energy Drinks,
the published reports suggest that there is a steady potential for growth. However, this
growth trend holds true primarily for energy drinks, whereas the market for sports drinks
has been declining. Sports drinks have also faced competition from energy drinks for
shelf space in the sports and energy drinks aisle.
Extraneous factors such as an economic recession and a recent, highly criticized
advertising campaign have impacted Gatorade’s performance in particular. However,
energy drinks and Powerade (Figure 1) have managed to increase sales while Gatorade
has declined. (Source: Choices 3)
The segment has received tough competition from enhanced bottled water, as the latter
offers similar benefits (e.g. electrolytes, vitamins and minerals) and provides the added
benefit of zero or low calories.
The appeal of a lower calorie option is also evidenced by a phenomenal 227% growth
rate in PowerAde Option—a low-calorie sports drink (see Companies and Brands: Sports
and Energy Drinks section of this report).
Bottled water is the biggest competitor of sports drinks, according to Mintel’s Market for
Sports Food and Beverage (The)—United States, October 2005. This finding is
reinforced in the Consumer section of this report. Indeed, the primary complaint about
sport drinks during the one-on-one interviews in this report (see Consumer) regarded the
amount of calories and sugar in sports drinks. As aforementioned, some manufacturers in
both the sports drinks and energy drinks sectors have launched lower calorie drinks
and/or enhanced waters.

15. 15
According to Mintel’s January 2008 audit of an Albertsons in Miami, Florida, energy
drinks had 226 facings. Although these represent almost half as many facings as those
devoted to sports drinks, in 2006 energy drinks facings amounted to only 20-30 in the
sports and energy drinks aisle. This indicates that while Gatorade and sports drinks
remain the popular choice, their competitors (energy drinks, enhanced water, and bottled
water) have been gaining shares of the market.
Figure 9: Top sports and energy drinks brands in FDM*. 2006 AND 2007
(Source: Mintel)
Figure 10: U.S. sales of RTD non-carbonated beverages, by segments, 2005 and 2007
(Source: Mintel)

16. 16
Problems and Opportunities
SWOT Analysis
Strengths
Established market leader – Given Gatorade’s domination of the sports drink
category, one of the company’s most powerful assets is the fact that they are so
widely recognized and represented. The simple brand awareness and popularity
amongst the masses and in the realm of professional sports solidifies their grip on the
market, demotes existing brands such as Powerade, and strictly limits the possibility
of debutants in the segment.
Affiliations with professional athletes and teams – The affiliations that Gatorade
possesses with major sports personalities and teams translates into a powerful utility
in terms of not only expanding their consumer base but also truly embodying the
sporting element of a beverage. Fixtures such as ‘The Gatorade Bath’ at the end of
football games incorporate and internalize the brand with the sport, while celebrity
endorsements help promote the product to fans.
Functional credibility – The reality that Gatorade is implemented as a hydration
device in professional athletics and vouched for by sports stars also goes to prove the
product’s functional credibility. Seeing Gatorade cups littering sidelines at sports
arenas and players actually consuming the beverage in the middle of games validates
the company’s claims.
Capitalize and arouse sports aura – Through its creative advertising campaigns and
tie-ups with athletic teams, at both the professional and collegiate level, Gatorade has
today become much more than a sports drink – it is a culture. Gatorade has
capitalized on making their product and brand name synonymous with sporting
success and arouses an atmosphere of athleticism.
Weaknesses
A seemingly ambiguous, pluralistic product range – In an attempt to satisfy a plethora
of taste buds, Gatorade has always furnished an extensive product range. However,
when a product is correlated with essential bodily functions and caters to an audience
that pays attention to items such as calories and vitamin enrichment, the focus is more
than just flavor. This, along with their new, but unclear, three-step hydration process
clutters shelf-space and confuses the consumers as to their purchase decisions. This
confusion could subsequently result in customers becoming disinterested and
switching to alternative brands.
Untapped bottled water and energy drinks market – Gatorade classifies itself as a
sports hydration beverage, distinct from the enhanced bottled water and energy drinks
market, although it provides many of the same benefits. These untapped segments

17. 17
have, however, witnessed amazing growth and infringed on Gatorade’s market share.
The company’s absence from these categories has definitely resulted in loss of
revenue and customer turnover.
New creative strategy widely criticized and confuses consumers – The new “G”
campaign that Gatorade has executed as a move to rebrand itself has been sharply
critiqued within the advertising industry and has generated much confusion amongst
consumers. The sudden change, albeit only shortening its name and losing the
thunderbolt, has caused people to actually think that “G” is a new product and wholly
unrelated to sports drinks of any kind. This creative strategy has resulted in a
fractured brand image that only adds to the confusion between the two entities and
may also create consumer frustration and apathy.
Opportunities
Association with less nationally popular sports – One of Gatorade’s highly lauded
strengths is their rich bond with the most popular sports in America: basketball,
football, baseball, and the like. However, one aspect is less publicized and televised
sports, such as boxing, wrestling, or fencing.
Manufacturing hydrating bottled water and energy drink – In order to convert the
above stated weakness into an opportunity, Gatorade could experiment and venture
into the enhanced bottled water and energy drink segments. Although it may add to
an already large assortment of products, if marketed correctly, it could definitely have
some potential in terms of general, everyday use.
Loyal consumer base – Another bolstering strength that Gatorade can sustain and
exploit is its loyal consumer base. Consumers who prefer the brand over competitors
could, through some incentives, help diversify and increase the customer base. This
following could also be utilized to try new products and promotional articles on.
Initiate increased global advertising – There is no denying Gatorade’s rampant
presence in the North American market. However, the one facet in which
competitors such as Powerade trump the brand is international advertising. Powerade
has already capitalized on Gatorade’s absence, for example, by contracting British
soccer stars such as Wayne Rooney. Although the company does sell its merchandise
abroad, the advertising is desperately lacking in potential goldmines such as Asia and
Europe. If action is taken, the company could definitely generate revenue and
compensate for declining sales in the United States.
Threats
Market contracting due to rise in enhanced bottled water and energy drinks segment –
One of the biggest concerns for Gatorade and the category as a whole is the increasing

18. 18
popularity of enhanced bottled water and energy drinks. With these two markets seeing
mediocre to high positive growth, Gatorade has fallen victim to changing consumer tastes
and preferences.
Economic conditions and health consciousness lead to price and calorie concerns – Given
the recession, the price factor has been magnified and consumers are looking to save on
everyday, once-trivial products. Gatorade is slightly more expensive than its competitors
and may see some consumers turn to alternative brands. Additionally, with the confusion
surrounding the new G campaign and the half-calorie ‘G2’, consumers may turn to drinks
such as the Powerade Zero, which gives similar benefits minus all the calories.
Positioning Statement
Primary Market:
• Athletes—this term is intentionally vague; it applies to any individual who is
consciously active.
• Household incomes between $20,000 to $40,000
• Young Adults ages 16 to 24 interested in sports
“G” projects to all athletes, ranging from professionals to individuals who walk on the
treadmill once a week at home. “G” is designed to quench the thirst of hardworking
athletes. However, our primary target market is essential to expand the previous notion
to any hardworking individual. If you have been working hard and you are thirsty, than
“G” is for you. It is formulated with a delicate balance of essentials vitamins, minerals,
and electrolytes to keep you always performing at your best. “G” is advertised with an
attitude of hip, edgy, and cutting edge fashion. In line with these advertisements, our
basic age range in our primary target market tends to be younger individuals ranging in
age from 16 to 24.
Secondary Market:
• The South
• Older adults ages 24 to 40
• Expand international promotion
“G” possesses a larger consumption rate in the South than the in the North. As a result,
“G” plans to spend more advertising with regard to region, specifically targeting the
South. Due to the density of the advertisements in the South, advertisers expect that
some of the ads will be effective for other individuals—specifically, older adults ranging
in ages from 24 to 40 within the United States. “G” also plans to expand its
advertisements internationally in attempt grow its consumer base to foster the growth of
sales.

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Marketing and Communication Objective
Below is a list of our objectives we hope to achieve for improving the “G” campaign:
1. Corporate Objective:
Increase revenue by 4% by the end of December 2010 and gain 5% of market
share back
2. Advertising Objective:
Establish awareness about what the G campaign entails. We would like to reach
75% of the target market, by the end of December 2010.
a. The target market of the G-campaign is individuals who consider
themselves athletes, and also non-athletes who enjoy sports.
3. Creative Objective:
Establish in the minds of the target market an association between “G” and
Gatorade, and also make them aware of the new line of products.
4. Media Objective:
Enlighten 75% of the target market about what “G” is by the end of the year.
5. Sales Promotion Objective:
Persuade 15% of the target market to play the “G” challenge by the end of the
year.
a. The “G” challenge is a sweepstakes-like give away in which individuals
obtain codes from the tops of the purchased G-Series product(s). If users
choose, they can enter their codes online and choose a professional sports
organization’s community service program (such as the NFL’s ‘Play 60’)
to which they can donate a portion of profits. For every code entered,
consumers are entered into a sweepstakes to win a trip to the professional
sport’s championship game of their choice.

20. 20
Budget
Gatorade has been allotted a solid budget from PepsiCo in the pre-recession era. Media
spending for Gatorade in 2007 was $137,246,600 and $75,611,800 in 2008. However, for
the first three quarters of 2009, spending was $42,869,900, with 50% used for network
television, 27% spent on other television (cable, spot, syndicated) and approximately
18% used for magazine advertising. Seeing that marketing costs are one of the initial
functions companies cut back during a slow economy, the total proposed budget for 2010
will be approximately $145 million, with a media spending budget of $100 million
following a somewhat similar breakdown from 2009. Although it is an increase from the
$42 million as of the third quarter last year, it is imperative for Gatorade’s long-term
success that more money is invested in order to clearly explain the G campaign and that it
is synonymous to Gatorade.
Aside from the proposed media spending, it is in Gatorade’s best interests to add to its
roster of sports endorsements by signing with leaders in less known sports such as boxing
and wrestling. This will allow for the company to make inroads with new customer fan
bases and further embody the spirit of sport.
Also, sufficient funds have to be set aside for the actual consumer research and
subsequent production of the advertisements. Additionally, extra, miscellaneous costs
have to be accounted for in the contingency fund for which we have set aside $5 million.
Therefore, we believe that we have allocated enough funds to amply allow for an
efficient and effective execution of this campaign.
Allocation
[in millions] Media Spending
$10 $5
Endorsement
$10
Contracts
Promotional Material
$20 and Merchandise
Research and
$100
Production
Contingency Fund

21. 21
Marketing Communication Strategy
Advertising Strategy
The marketing strategy in the following section will aim to connect “G” back with
Gatorade in order to reclaim consumers who have switched to other products, and to
reach a secondary target in non-athletes as well. The creative strategy will provide the
layout of how the ads will communicate the message of what "G” is. The media strategy
will propose media vehicles in which to invest where the target markets are most likely to
be reached. Sales promotions will revolve around the new G Series product launch and a
cause related project, the “G” Challenge,” to increase participation with the brand. Lastly,
we will provide a means of evaluating the effectiveness of this strategy.
Creative Strategy
The “G” campaign will piggy back off of the old Gatorade campaigns so that consumers
can easily understand the association between “G” and “Gatorade.” Therefore, old
slogans (“G, is it in you?”), background locations, background music, celebrity
endorsements, and the same attitudinal and emotional appeals to consumers may be
reused. However, only one of the previously listed components should be used in each
media strategy.
Exhibit 4 of the Appendix is a television commercial still frame that reaches out
specifically to athletes and non-athletes between the ages of 16-24, with strict regard to
the ‘text’ generation. Text generation refers to the amount of abbreviated words that
become acronyms in order to save time while texting on the phone. As viewers watch
athletes across all genders, races, and sports perform during a ‘fight’ (moment of struggle
within their sport), the letters “WTF” will momentarily flash across the screen. The
intention is for viewers to be confused (think about what “WTF” stands for) during this
portion of the commercial. As the commercial ends, a black background appears with
white boldfaced letters “WTF,” which quickly expands to “Win The Fight.” Then,
“Gatorade” presents itself in the same fashion as “WTF,” only to collapse into “G.”
Viewers should observe that Gatorade is telling them the new meaning of “G” in the
same way the meaning of WTF is revealed. The meaning is that “G” is still Gatorade, yet
it now assumes the form of an abbreviation or a new style. In this way, we appeal to a
younger ‘text’ demographic by incorporating elements of their culturally specific diction.
The print-advertisements shown in Exhibit 5 feature individuals doing ‘everyday’
activities rather than athletic activities. This is because the mediums in which these ads
are placed are geared towards younger, everyday individuals without an emphasis on
sports. Each individual is featured doing mundane everyday things. However, their
shadows expose their ‘true sport identity.’ This renders Gatorade more accessible and
relatable to individuals who pursue sports or athletic activities on their own time for their
own enjoyment.

22. 22
These two messages are targeting both our primary market of athletes and our secondary
market of everyday people. These messages can also be used throughout several
different outlets. The goal is to access as much of the target market as possible, establish
the correlation between Gatorade and “G,” and subsequently show consumers how “G”
satisfies their needs. Once we reclaim consumers’ interest, the goal will be to then spark
interest in the products like the G Series.
Media Strategy
Gatorade has always been heavily marketed towards athletes, and our media strategy will
aim to recapture that market while also targeting non-athletic sports drink consumers.
The market of non-athletes is spread throughout the nation, but has the highest
concentration with young males and the South. In order to efficiently reach the largest
audience base possible, these demographics should be targeted through media outlets that
correspond directly with sports media or where fitness is generally important to the
audience.
Media Objectives
It is vital to invest in media that will reach the entire nation in addition to local media,
which focuses in on a few demographics. It is necessary to sacrifice frequency to have the
ability to have the maximum reach possible, making everyone in the audience base aware
of the new G campaign. Moreover, frequency is not a priority since Gatorade is already a
well-known brand, and if media runs too frequently, there is a possibility it could
generate negative feedback.
The goal is to inform as many consumers possible by marketing with media most often
used by the target audience. GRP will be a vital tool in measuring the effectiveness of the
marketing strategy’s reach, as it is easy to use and could measure both national and local
effectiveness. Gatorade has the budget to purchase space during national sporting events
and magazines. Running a few ads during nationally televised games including the Super
Bowl and magazines such as Sports Illustrated will generate the desired GRP, which
would be projected to be close to 100. GRP could also be observed at a local level, using
rating points to describe what percentage of certain communities have been exposed to
the media.
Media Strategy
There are two focal points with regards to Gatorade’s target audience. The first is
athletes, or the main consumers of Gatorade. The new products launched by Gatorade
will soon interest this audience the most. It is also important to consider non-athletes,
around the ages 18-24, who enjoy sports and fitness. The main, yet not exclusive
demographic, is young males in the South.
Media classes such as television, magazines, radio, and newspapers will be used to
promote the brand. Television will be most effective when trying to reach a national

23. 23
audience and particularly to the target segment. Magazines will also help provide national
exposure to the segment while allowing for ads to have a long life span. The new ads
will contain simple information about the new products that will not require frequent
updates, making this media form cost efficient. Radio and newspapers can be used when
focusing specifically on a region that is experiencing success in sports. During this time,
the local community will have an increase in people who are interested in sports. Radio
ads can be utilized during sports broadcasts, along with newspaper ads near the articles of
the winning sports team.
Television will occupy the majority of the media mix mostly because it provides
Gatorade with the creative flexibility necessary to compete with other sports drink
brands, such as Powerade. Magazines will be invested in as a second priority as they also
will give Gatorade the ability to reinforce its image in an area where its competitors will
also be present. Radio and newspaper are least important. However, they can be essential
to the marketing strategy since their low costs and instant presence could determine what
gives Gatorade the edge in areas where sports drinks are consumed most.
This strategy will assume a pulsing media time schedule. There will always be ads
running on some degree. However, running time will be seasonal in order to follow
times when sports are viewed the most, such as in playoffs or bowls. Ads could shift in
intensity when areas have less sports success and when viewership starts to decrease. The
North of the United States will also experience more ads during the summer months, as
this is when people will be more active and have a need for diversity in rehydrating
drinks.
Media Calendar
As mentioned before, since Gatorade is targeting non-athletes it is necessary to have
some advertising all year round. The months of heavier investment (shown in Figure 11)
revolve around main sporting events (Super Bowl in February, NBA Championship in
June, World Series in October, etc.) and the summer months.
The media budget has been decreasing since 2006, and in 2007 it was close to $175
millionvii. The budget for media spending was chosen to be $100 million as a
conservative estimate that is affordable in the current state of the economy, and will be
enough to achieve the media strategy goals. The budget is broken up by month and media
class to illustrate what type of advertising is being emphasized at any point in time.

24. 24
Figure 11: Calendar
Media Class Total
($ mill) Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Spending
Television 3.5 8 4 5 4 7 5 5 4 6 5.5 3.5 60.5
Magazines 1 4 1.5 2 1.5 2 2 2 2 4 4 1 27.0
Newspaper 1 1 2 1.5 1.5 7.0
Radio 1 1 1.5 1 1 5.5
Total 4.5 14.0 5.5 9.0 5.5 12.5 7.0 7.0 6.0 12.5 12 4.5 100.0
Media Vehicles
Specific media vehicles include sports-related outlets such as Super Bowl, ESPN, Sports
Illustrated, local newspapers and local sports radio stations. The goal is to spread
advertising strategies targeting non-athletes to wide spread general magazines such as
GQ. Specific media vehicles do not include national newspapers, and social media
networks because of their high cost per thousand compared to the primary outlets.
Figure 12 shows the cost of ads and audience base used to calculate CPM. Sports
Illustrated has a high cost for a full-page color ad, however every reader could be
considered in the audience since their interest is in sports. However, many people who
are disinterested in sports or fitness watch the Super Bowl just because it is such a
popular event. It was estimated that 75% of the Super Bowl’s audience could be
considered in Gatorade’s target of athletes and fitness-oriented non-athletes. The same
method of taking 75% of the viewers was used for national newspaper as well. The Super
Bowl’s extremely high number of viewers leads the CPM to still be reasonable while a
national newspaper ad would be considered an unwise investment after looking at the
CPM.
Social media outlets are also an unwise choice after considering the CPM. Facebook
allows ad costs to be extremely customized, and these numbers are based off whether
Gatorade pays $100 a day. Gatorade ads would show up 417,000 times to its target
audience, however Gatorade estimated that only 190 clicks of the ad would be generated.
Looking at the structure of Facebook, ads are along the side and blend in with the
interface. These 417,000 ad appearances cannot be considered the total audience base
because there is a strong possibility that Facebook users do not pay attention to the ads at
all. The investment poses too much risk, and it would be more wise to invest in web
related content on Gatorade’s official website, which will have increased traffic due to
the sales promotions that are going to be implemented.

25. 25
Figure 12: CPM Analysisviii
Audience CPM (Cost per
Cost of Unit Viewers Base thousand)
Sports
Illustrated $ 320,000 23,000,000 23,000,000 $ 13.91304348
Superbowl $ 2,500,000 108,000,000 81,000,000 $ 30.86419753
National
Newspaper $ 462,000 1,900,000 1425000 $ 324.2105263
Facebook $ 100 417,000 190 (Clicks) $ 526.3157895
Integrated Communications
Sales Promotions
Objectives and Strategy:
General objectives:
The general objectives for our Gatorade sales promotions are: building awareness about
“G.” As previously mentioned, Gatorade’s recent name change to G has left many
consumers perplexed as to what G is. It is necessary to complement the advertising
strategy and amend this problem by issuing several consumer promotions and trade
promotions to consumers so that they can experience new G products.
Another objective for our sales promotions
is stimulating interest for G. Our aim is to
reveal to consumers why G’s diverse
product line is the “new and improved”
Gatorade through sales promotions we will
offer. G’s new product line “G series,”
featuring before, during, and after drinks,
is unprecedented by Gatorade or any other
sports beverage company. The sales
promotions we issue will focus on G’s new
products, namely the G series, to generate
consumer interest in new products that G has to offer.
In terms of strategy for our sales promotions, we wish to follow the “push-pull” strategy,
in which the trade promotions we offer will ideally “push” Gatorade through the

26. 26
distribution channel to retailers, and subsequently “pull” consumers into stores to buy
Gatorade products.
Specific Objectives:
By offering several consumer promotions for Gatorade, we hope that we can drive
consumers to try new G products, purchase the products repeatedly, and purchase larger
quantities of the products.
In regards to trade promotions, we aim to give G products desirable shelf space in
beverage aisles of supermarkets so that consumers will quickly notice them. Due to the
low levels of awareness of G, it is also necessary to advertise G in stores to increase the
likelihood that consumers will notice G and pursue its products. We plan to include
banner posters (with adhesive to place along shelves), promoting G and explaining that it
is the new name for Gatorade.
Rationale:
Because our budget is limited, we must choose to allocate money to only certain
consumer and trade promotions that we believe to be most effective. The consumer
promotions we plan to issue are: sampling, premiums, specialty advertising, and a
sweepstakes.
We believe that sampling will be an effective consumer promotion because G products
are new to the market and are still “under the radar.” Samples of the new G products
(such as the “G Series” beverage line) can acquaint unfamiliar consumers with G. We
also wish to distribute premiums as an incentive
for consumers to purchase G products. If
consumers notice that something free comes
with their purchase of a G product, they will
likely be more enticed to purchase a product.
Furthermore, we also aim to engage in specialty
advertising for G. This form of consumer
promotions is especially useful for garnering
brand awareness. Therefore, specialty
advertising for G will presumably familiarize
consumers with the brand and help them to
Picture 2: Gatorade has been decreasing in identify G as the new Gatorade. Lastly, we plan
shelf space the past few years.
to implement a sweepstakes program
incorporating sports-related charities while
consumers will earn the chance to win VIP tickets to G’s launch party at the University of
Florida, or a trip to a sports championship game of the consumer’s choice. Providing
consumers with opportunity to win large, coveted prizes such as these, we hope that our
sweepstakes, and the opportunity to learn more about the charities, will be added
incentives to purchase G products.

27. 27
The trade promotions we plan to implement are in-store advertising and expanded shelf
space. As aforementioned, our principal aim is to increase awareness about G. In-store
advertising for G products will likely help achieve this. We also feel that giving G
products expanded shelf space will be an effective trade promotion because it will give G
more visibility to consumers. Consumers might overlook G, especially if they do not
know what it is, if G products are relegated to a low shelf, or have limited shelf space.
Tactics/Execution:
In terms of consumer promotions, we plan to distribute samples of G products, such as
samples of the three stages of the “G-series,” in stores by the beverage aisles.
Supermarkets often have taste samples of drinks or food products throughout the store;
consumers who plan on perusing the beverage aisle can taste test a sample of new G
products. The sampling can also extend to large sporting events held around the nation.
We also plan to offer premiums to consumers. Because G products are just beginning to
enter the market, we feel it would be a good idea to offer free premiums with the
purchase of G product packages (such as the “G Series”) until G is fully established in the
marketplace and consumers recognize what it is. These free premiums would likely
attract consumers to G products because they are an added incentive to buy unfamiliar
products. Examples of free premiums we would include are free sweatbands and free
water bottles that come with a package of a purchased G product.
Our specialty advertising tactics include giving away free merchandise featuring the “G”
logo, such as workout towels, t-shirts, and workout bags as business gifts. The G logo on
this merchandise will likely reinforce awareness of G among consumers.
We intend for our sweepstakes to go into effect in late spring 2010, just after G’s
campaign is launched. The sweepstakes (the cause related details will be discussed later)
will last until February 2011, and will include two sweepstakes challenges. To enter the
sweepstakes, consumers must enter the codes (located inside the caps of G products) on
G’s website. Our first sweepstakes challenge provides consumers with the chance to win
VIP tickets to G’s media launch party at the University of Florida, which will take place
at the commencement of NCAA football season. Tickets will be allotted to 10 people,
and this offer will last throughout August—just before football season begins. The
subsequent sweepstakes challenge will last from August 2010 to February 2011, and will
provide consumers with the chance of winning a trip to a sports championship game of
their choice. This trip will be offered to 25 people.
In terms of trade promotions, we plan to execute our in-store advertising by displaying
posters for G products in stores (especially by beverage aisles), so that consumers will
have a greater likelihood of noticing G in addition to its placement on shelves. These
posters will feature a G logo, and will explicitly show that G is Gatorade’s new image.
Another trade promotion we plan to implement is expanded shelf space in beverage
aisles. Relative to Gatorade’s competition, namely Powerade, we strive to designate more
shelf space to G products so that consumers will notice G before other sports beverages.

28. 28
We also plan to place G products together, especially all three steps of the “G Series,” to
ensure that customers can easily locate G products.
Public Relations
Our public relations strategy involves throwing a media party. We believe this strategy
will effectively announce the unveiling of G series products, while also help to
persistently stress the transition from “Gatorade” to “G.” We aim to throw the party
during the fall, just prior to the kickoff of NCAA football season. Today, Gatorade can be
found on the sidelines of more than 70 Division I colleges as the official sports drink of
men and women’s intercollegiate sports.ix Gatorade’s well-established association with
college athletics would make the timing of the party cohesive with its current sales
strategy and goals.
Gatorade’s roots lie at the University of Florida and the Florida Gators were the first
sports team to use Gatorade. We would like to throw the party at the University of
Florida in order to tie the new G Series to the much more recognized brand name
Gatorade, which is already a well-established name in the minds of consumers. Our
market analysis research also shows that the southern United States is the largest
consumer of sports beverages such as Gatorade; therefore, conducting a major PR event
in this region would target our largest consumer base. Our campaign aims to maintain
our already established target audience of hard-core athletes, while it also aims to
generate an audience of less serious athletes from the general public. In order to tie in
both target audiences to the party, we would invite all of the University of Florida’s
athletic teams, as well as a number of
University of Florida students. Our G
Challenge Sweepstakes also will be offering
10 consumers the chance to win an all expense
paid trip to Gainesville, Florida for the event.
The 10 winners will each be able to bring one
friend and will receive VIP passes to the party.
We would also like to invite NFL football
players to the event, particularly UF Alumni.
Picture 3: Florida athlete alongside Robert Cade, creator of
Gatorade, trying his new invention.
In order to promote awareness
of the G Series at the party, free gift bags that contain the new G Series products along
with other Gatorade related items (e.g. water bottles, sweat bands, etc.) will be provided
to all VIP party guests, which would include all college and pro-athletes at the event
along with the 10 sweepstakes winners and their friends. The party will feature the G
series beverages for guests to drink, along with a variety of alcoholic beverages that have
been specially crafted for the event, all incorporating beverages from the G Series in their
makeup. In order to increase publicity for the event, the event will be a tie in to UF’s

29. 29
first home football game and will serve as a high-class sort of pep-rally. ESPN will be
invited to cover the event, which will increase awareness from those attending the party
and the students at UF to sports fans in general and college students who closely follow
NCAA football and related events.
The party will also offer a variety of activities for guests that incorporate football and the
G Series. Examples would include an activity in which guests must throw a football from
a significant distance and aim at a specific target. Those who are able to hit the target
would receive some sort of prize related to the G Campaign. We hope that this PR event
will bring positive publicity to the G Series in the regional area of the party and that
national press coverage will expand awareness to the national level. We will measure the
effectiveness of our PR campaign by examining both the local and national response to
our media party and by measuring changes in attitudes and behavior through phone
interviews and online surveys.
Direct Marketing
Our direct marketing strategy will be implemented through our G Challenge
Sweepstakes. Contestants who enter the sweepstakes will be required to give personal
contact information in addition to several short questions regarding opinions of the G
Series as a product, and awareness and success of the G Series advertising campaign.
This will allow us to communicate our areas of concern surrounding the G Campaign to
consumers and will, in turn, allow consumers to express their opinions directly to the
company. We will collect all of the consumer information we obtain into a database in
order to analyze consumer demographics and purchase habits along with consumer
attitudes and behaviors towards the G Campaign. We expect the incentive of the
sweepstakes to prompt an immediate consumer response and that the information
obtained will be categorized into a database as quickly as possible.
Once we compile our database, we will examine the information obtained and reevaluate
our execution of the G Campaign according to consumer demographics, attitudes and
behaviors. We hope that tailoring our campaign around consumer opinions will help
strengthen our relationship with consumers and lead to increased purchase behaviors.
We also hope to enhance the image of the G Campaign by showing consumers that
Gatorade values their opinions. We will measure the effectiveness of our direct
marketing strategy by measuring the response rate of consumers who entered the
sweepstakes as a percentage of the entire population of consumers who purchased G
Series products during the duration of the sweepstakes.

30. 30
Internet
The Gatorade website will focus on the G Campaign, offering product information to
consumers and highlighting any events related to the G Campaign, such as the G
Challenge sweepstakes and the media party held at the University of Florida. The web
site will feature videos from the party, along with a slideshow that replays the event for
consumers who were not in attendance. The site will also feature a variety of work out
tips from various individuals, such as male and female pro-athletes, celebrities, college
students, and personal trainers. Each workout will incorporate G Series products into its
routine. By offering a variety of work out tips we hope to provide all consumers of the G
Series and Gatorade with work out tips and routines that fit their personal preferences,
degree of athletic skill and amount of time available for exercise.
Cause-Related Marketing
We will use cause-related marketing to further promote the G Series through a
sweepstakes called the G Challenge. Individuals who wish to enter the sweepstakes must
obtain codes from the tops of their purchased G-Series product(s). Users can enter their
codes on Gatorade’s website to enter the sweepstakes where contestants will be able to
choose a professional sports organization’s community service program (such as the
NFL’s ‘Play 60’) to which they can donate a portion of profits. Gatorade will be donating
10% of its total profits from the G Series generated during the sweepstakes, which will
last from May 2010 to February 2011. This 10% of profits will be divided up amongst
the professional sports organization’s community service programs based on the
percentage of contestants who chose to donate to each specific organization.
For every code entered, consumers can win a variety
of prizes. Smaller prizes will includes free G Series
products and merchandise. Contestants will be able to win two grand prizes
during the duration of the sweepstakes: a trip to the G Series Kickoff Party
in Gainesville or a trip to a professional sport’s championship game of their
choice. Each trip will include airfare and a one night free hotel stay. The
grand prize winners will also present a big check from Gatorade to their
chosen community service organization at the beginning of each event in
order to increase awareness of Gatorade’s generous contributions.

31. 31
Evaluation
Sales
To evaluate the progress of our sales following the changes made to our Gatorade
campaign, we can track sales by seeing how they have increased or decreased compared
to annual sales prior to the launch of the campaign. We hope to increase sales by 15% by
December of 2010. The campaign will directly affect consumers’ awareness of the
product line, thereby increasing the desire for brand and product trial. We also believe
that the strength of our product line will generate brand loyalty.
Advertising
To evaluate the effectiveness of our advertising, we plan to conduct one-on-one
interviews with consumers and retailers. We will ask for their thoughts on our advertising
strategies, from a number of different channels, such as our television, magazine, and
sweepstakes tactics. There will also be post-adverting focus groups held to allow for
consumers to truly speak their mind, and see how people from diverse demographics are
affected by the advertisements. We may also use mail-out or email surveys to people who
have recently purchased one of our products. For this measurement, we would like to
know what most attracted consumers’ attention, and determine why they ended up
purchasing our product.
Sales Promotions
To measure the effectiveness of our sales promotions, we will calculate the profit
generated during sale promotions, and compare this to profit during times of regular
pricing. Several costs are involved with this campaign, and it is vital to ensure that a
substantial increase in sales occurred, and that the consumer’s desire for the product
changed based on the sales promotion.
Other Marketing Communications
Our hopes for the sweepstakes is that it will generate a buzz on the newest Gatorade
product line, raise funds for worthy athletic organizations, and promote a general positive
image for the G-campaign. We will evaluate the success of our marketing tactics, such as
the G-Challenge Sweepstakes, through the amount of people who get involved with the
sweepstakes. Gatorade is a sports drink that promotes athleticism to its consumers, and
we believe that the G-Challenge does just that. By promoting consumers to turn in their
codes online from the products they have purchased and used, we can easily trace how
many products are being purchased, what products are most often purchased, and
possibly what U.S. regions sell the most products. While contestants submit codes online,
we hope that they will be intrigued by our website, and will click through to explore the
entire Gatorade website. By tracking clicks, we can gauge what appears to be most
attractive to website users and how they go on to use the Gatorade site’s tools. The
effectiveness of the sweepstakes can also be measured quantitatively through the amount

32. 32
of money raised for the involved athletic organizations and qualitatively through the
user’s feedback on the sweepstakes.
Conclusion
In conclusion, we feel that although Gatorade has encountered some issues with their
rebranding efforts; however, given the company’s grand stature in the sports drink
market, there is still a very viable opportunity to rectify and recover. We hope that the
aforementioned analysis and recommendations will provide you with an objective view
of the company and their products. We would also like to take this opportunity to thank
you for entertaining and considering our suggestions and conclusions.
- The GatoradeRocks Team

33. 33
Appendix
Exhibit 1
Gatorade possessed some surprising results when looking at age:
13.37% of Gatorade consumers are 25-39;
14.63% of Gatorade consumers are 30-34;
11.56% of Gatorade consumers are 35-39;
12.56% of Gatorade consumers are 40-44;
9.70% of Gatorade consumers are 45-49;
7.8% of Gatorade consumers are 55-59.
The only two age ranges where Powerade exceeds the sales of Gatorade are: 35-39
(10.37%) and 40-44 (16.01%)x
Exhibit 2
Male Female Total
Yes Sports Drinks 28.99% 27.54% 56.52%
No Sports Drinks 20.29% 23.19% 43.48%
Total 49.28% 50.72% 100%
Exhibit 3
During the focus group, we asked the following questions. Participant responses to the
questions are provided below: (Note: there were 12 participants in focus group, however
not all questions have 12 responses due to similar answers or no opinion available from
participant)
5 questions asked before viewing commercials:
1) Do you drink sports drinks and if so, when? If not, why not? When choosing a sports
drink, do you choose Gatorade over other sports drinks?
Yes, drink sports drinks usually after working out or when feeling particularly dehydrated
(e.g. while traveling or when hung-over). Yes, usually do choose Gatorade because
believes it replaces electrolytes and likes the taste.
Yes, drink sports drinks throughout the day. No, usually do not choose Gatorade because
of the calories. Will usually drink sports drinks that have 0 calories such as Powerade
Zero or Vitamin Water Zero.

34. 34
No do not use sports drinks, prefer water.
Do not drink sports drinks on a regular basis, but every once and a while will buy a
Gatorade at the gas station after working out or on a hot day. Not particular about type of
sports drink and will sometimes choose energy drinks instead.
No, does not use sports drinks. Only time sees Gatorade is at athletic events and
associates mainly with athletes.
Yes, drink sports drinks every day and always has them in refrigerator. Usually drinks
Gatorade but will sometimes choose other sports drinks to change it up.
Yes, drinks sports drinks while working out and afterwards. However, does not like taste
and bright colors of Gatorade, prefers flavored waters.
2) How often do you work out or participate in athletic activities? Do you often drink
sports drinks along with working out?
Work out about 3 or 4 times a week, switching up between yoga and running. Mostly
drinks water but every once and a while will stop at a convenience store and buy a
Gatorade.
Participates in IM basketball league. Will bring a Gatorade to practice every once in a
while, particularly likes to drink it before games.
Walks to class and around campus daily. Will drink a zero calorie beverage such as
Vitamin Water Zero or Propel fitness water.
Does not work out usually but will on occasion drink a Gatorade or Vitamin Water while
in class or studying at the library.
Part of Michigan athletic team, works out virtually every day. Drinks sports drinks often,
usually Gatorade.
Works out about 3-4 times a week, usually going to gym. Only drinks water.
3) The G Series offers a three step process in which you use products before, during and
after your work-out, including a power and beverages. Would you consider using this
three step process?
No, most likely would not. Seems like too much of a hassle and does not consider self to
be that “hard-core” of an athlete.
Yes, would maybe consider it if thought it was effective and offered at an affordable
price.
Yes, as a member of a varsity athletic team would consider it if it helped improve
performance.

35. 35
No, does not drink sports drinks enough in general so would not even consider a 3-step
process.
4) Have you heard of G campaign and if so what were your perceptions?
No idea about G campaign
No idea G was Gatorade, noticed it was all athletes in G commercial and thought it was
for some new type of sports drink
Had not heard of it. G campaign does not ring a bell about Gatorade.
Heard about it from sports TV (ESPN). Thought it was stupid. Did not think the “quest
for the Holy G” commercial was funny.
Never had heard about G campaign. Did not even know Gatorade had changed name to
“G”
Recognized “G” because of logo and liked the commercial but noticed the commercial
focused on athletes playing sports and not the drink itself
5) If you are a consumer of sports drinks, where do you usually purchase such beverages?
Will occasionally go to a gas station or convenience store
Parents purchase in bulk at Sam’s club
Will sometimes pick one up at the drug store
Will buy at grocery store
Mom will pick up at grocery store
3 questions asked after viewing commercials
1) What are your perceptions about “G” as a brand/product based on what you saw in the
commercials?
Felt motivated to go work out, but not motivated to buy or drink “G”
Got excited about football season
Thought commercial was very motivational, but does not motivate to buy “G.”
Commercial tells you nothing about the product.
Still unclear about what “G” is. Does not see “G” manifested in commercial. Wants to
see more focus on “G”.
Thinks countdown from 12 is very contradictory from steps 1, 2, 3

36. 36
Wants to play football but does not want to drink “G”
Still unclear about difference between Gatorade and “G”
Learned nothing about brand or product from commercials. Still very confused about
what “G” is.
2) After watching commercials about the G Campaign, are you more inclined to purchase
“G” Products?
No, since commercials did not establish that they were advertising “G,” created no desire
to purchase.
No, didn’t even know commercial was about sports drinks.
No, still unclear of what benefits are and what “G” is. Not going to buy a product
without any knowledge about what it is and what benefits it offers.
3) Do you have any suggestions about how to increase awareness of the G campaign?
Explain G products in ads in terms of steps 1, 2 and 3. Showcase the beverage in the
commercials rather than the athletes – beverage should be primary focus.
Explain potential benefits one can gain after drinking G. Is G different than Gatorade and
if so how?
Talk about taste of G. What flavors are offered?
Emphasize that G2 has half the number of calories.
Talk about what nutrients are found in Gatorade and how these nutrients are beneficial
for one’s health.
People do not know what G is, explain it to them! Perhaps could also better explain to
consumers the transition from Gatorade to “G” to help their understanding.

37. 37
Exhibit 4
Proposed Commercial (Frame by frame)

38. 38
Exhibit 5
Proposed Print Ad

39. 39
Exhibit 6
Choices 3 Viewer: Crosstabulation Report
Title:Untitled
Survey: NCS: SPRING 2007 ADULT FULL YEAR RE-RELEASE(MAY 2006-JUNE 2007) - HH
Filter: Total Sample, Sample:25,375, Weighted:110,991
Elements Total GATORADE: THIRST POWERADE:
QUENCHER AND THIRST
SPORTS/ACTI V QUENCHER AND
DRINKS: THIRST SPORTS/ACTI V
QUENCHER/A CTIV DRINKS: THIRST
DRINKS-BRANDS QUENCHER/A
MO CTIV DRINKS-
BRANDS MO
total Sample 25,375 110,991 7,579 2,002
(000) 100% 30,498 9,085
vert% 100% 100% 100%
horz% 100 27.5% 8.19%
Index 100% 100 100
Base 27.5% 8.19%
NORTHEAST: Sample 5,255 1,327 293
CENSUS REGIONS (000) 20,693 5,015 1,325
vert% 18.6% 16.4% 14.6%
horz% 100% 24.2% 6.40%
Index 100 88 78
Base 18.6% 4.52% 1.19%
MIDWEST: Sample 5,620 1,467 401
CENSUS REGIONS (000) 25,138 5,958 1,982
vert% 22.6% 19.5% 21.8%
horz% 100% 23.7% 7.88%
Index 100 86 96
Base 22.6% 5.37% 1.79%
SOUTH: CENSUS Sample 9,259 2,972 848
REGIONS (000) 41,307 12,116 3,970
vert% 37.2% 39.7% 43.7%
horz% 100% 29.3% 9.61%
Index 100 107 117
Base 37.2% 10.9% 3.58%
WEST: CENSUS Sample 5,241 1,813 460
REGIONS (000) 23,852 7,408 1,808
vert% 21.5% 24.3% 19.9%
horz% 100% 31.1% 7.58%
Index 100 113 93
Base 21.5% 6.67% 1.63%
Copyright SMRB 2008
[1]=User edited label
[2]=User adjusted data
[3]=Sample size < 1 respondents. Projections could be unstable; please refer to www.smrb.com for more detailed
information
* Denotes a low sample size < 61
** Denotes a low sample size < 31

40. 40
References
i
http://www.gatorade.com/history/default.aspx
ii ii Mintel/based on Information Resources, Inc. InfoScan® Reviews Information
iii Beverage Digest
iv 2005 data (obtained from Mintel—Sports Drinks US, Feb. 2005):
v
Mintel/based on Information Resources, Inc. InfoScan® Reviews Information
vi Information
Resources, Inc. InfoScan ® Reviews Information/National Association of
Convenience Stores 2004 Industry Report/Mintel
vii
Marketer Trees 2008. http://adage.com/marketertrees08/#88.
viii
Superbowl 2010 Ratings. http://www.huffingtonpost.com/2010/02/08/super-bowl-
2010-ratings-m_n_453503.html.
ix
Gatorade History. http://www.gatorade.com/history/default.aspx.
x
Choices 3 Database