Marketing Scheme for Gatorade Sports Drink - Essay Example

? Marketing Plan: Gatorade Marketing Plan: Gatorade Introduction This paper is a marketing plan for Gatorade Sports Drink. The outline of the product and the definition of the industry of operation are presented within the paper. The analysis of the company is further illustrated in terms of its strengths, weaknesses, opportunities and threats. The analysis of customers, business competitors, the business environment, marketing mix decisions and the action plan for the effectiveness of the brand are also part of this marketing plan. Product Outline Gatorade is a sports drink brand that is produced and distributed to more than 81 countries by its parent company PepsiCo. The sports drink is prepared through a blend or combination of water, electrolytes and carbohydrates with an aim of helping athletes to recover the electrolytes and energy that is lost during vigorous sports activities. The scientific formulation is presented by the PepsiCo to its market through variant brands such as orange, lemon lime, strawberry kiwi, citrus cooler, fruit punch and blue cool (MarketWatch, 2010). Industry Definition Regardless of the improved performance of the brand in the market, the level of competitiveness in the sports drink market has increased significantly. This is due to new entrants into the market, substitute products and application of competitive strategies by the key players within the sports drink market. In this regard therefore there is a need to develop an effective marketing plan that will be used to enhance the performance of the food drink within the market in addition to achievement of a competitive advantage in the market as opposed to rival products (Zmuda, 2008). Company Analysis PepsiCo, the parent company that produces Gatorade aims at becoming a leader in the production and sale of sports drinks within its markets across the world. This is achieved through an effective strategic leadership approaches and a corporate culture that is focused at high quality human resource management, quality in production, innovativeness and effective marketing (Stanford, 2011). The company’s performance and challenges within the market can be understood through an analysis of its strengths, weaknesses, available opportunities within the market in addition to threats within its markets. The strengths of the company are demonstrated by the high quality of its sports drink, Gatorade. This sports drink is scientifically formulated with elements that are required by individuals who are engaged in strenuous sports activities. Additionally, Gatorade has gained a significantly strong name of its brand within the market. This is attributed to the popularity of the parent company and the promotional strategies that are employed in popularizing the brand within its local and international markets (Sterrett, 2009). The effectiveness of the scientific formulation in allowing individuals to excel in the physical performance of their exercise and sports activity has led to winning of the loyalty of the customers for the brand. Gatorade sports drink is however faced with weaknesses such as low visibility and advertising and unawareness of the consumers on the benefits of consumption of the product during sports, training and exercising activities. The relatively high price of the product is also argued to be one of the major weaknesses of the brand. Pepsi Co has many opportunities for enhancing the performance and competitiveness of Gatorade within the market. This includes more promotional activities through an integrated marketing communication approach and the use of celebrity endorsements of famous sports personalities to popularize the brand within its market. In addition, the company has market opportunities of venturing into new scientific formulations such as protein regimens. The company would also add more nutrients to the Gatorade formulation such as vitamins. This is an opportunity that will allow the company to compete with rival brands and sports regimens that present the consumers with highly nutritious preparations such as vitamin water. The company is however faced with the threat of business rivals that manufacture sports drinks. Other substitute products such as Lucozade energy drink and juices are also business threats to the company. Furthermore new entrants into the sports drinks threaten the market share of the company’s products (Sterrett, 2009). Customer Analysis PepsiCo market is within sports individuals and those that are engaged in strenuous exercises. The company specifically targets both male and female consumers within different age groups as its market segments. The working class within 35-50 age bracket comprise of the most desirable market segment for the company. The company also targets the youth market through sports activities in schools and colleges. Fig 1: Age Summary for Women Consumers Fig 2: Age Summary for Male Consumers Competitor Analysis Gatorade’s competitor brands include Powerade, Lucozade, DaburGlucose-D, Vitamin water and GluconD (Zmuda, 2008). The prices of these competitors are relatively low as compared to Gatorade which demonstrates their strength within the market. In addition, the competitors such as Locozade have employed an integrated marketing communication which makes them to have more influence on the consumers through a combination of various promotional activities. However the quality of Gatorade as presented by an effective scientific formulation for the needs of athletes makes it competitive within the market. The business rivalry within the sports drink market is however increasing with the constant innovativeness that is depicted by companies within this market. This means that PepsiCo requires employing more effective marketing and business strategies which will allow Gatorade to maintain leadership within various markets across the world. Environmental Analysis The political environments that affect the performance of Gatorade’s performance within the climate include the environmental legislation within the local and foreign markets within which the company operates. This mandates the company to effectively adhere to the regulations on environmental conservation as provided by various legal frameworks within its markets (Bindroo, Mariadoss & Pillai, 2012). The economic factor such as recession affects the ability of the company to invest in effective marketing communication. In addition, economic forces determine the purchase power of the consumers of Gatorade sports drink in addition to the PepsiCo’s pricing policy and strategies for the scientific formulation. Social cultural implications on Gatorade include the need of the consumers to maintain healthy lifestyles and eating. This means that the consumers would prefer substitute products which would be healthier and enriched with vitamins and proteins. The level at which individuals engage in active lifestyles such as sports and exercise is a social cultural factor which defines the performance of the company within the market. The technological environment will also influence the operations of the company such as the application of online marketing communication through social sites so that a wider market can be reached within the online communities (Stanford, 2011). Marketing Mix Decisions and Action Plan An integrated marketing strategy is recommended for Gatorade. This will be achieved through a combination of various marketing communication methods with a sole aim and goal of promoting the performance of the brand in the market through a competitive advantage over its business rivals (Mihart, 2012). The quality of the company’s product would be enhanced through research and innovativeness (Lee & Park, 2007). The packaging of the product would also be improved to ensure that consumers are more attracted to it as opposed to competitor brands (Amini, Darani, Afshani & Amini, 2012). In adoption, the company should consider reviewing the price of Gatorade to enable it to compete favorably with the cheaper sports drinks and substitute products. Moreover, the distribution of the product should be aimed at ensuring that the convenience of the consumer is prioritized (Pepe, Abratt & Dion, 2012). More significantly though is the role of promotion in the integrated marketing communication of the company. The company should venture into online advertising in addition to implementation of various forms of promotion such as public relations, sales promotion and sponsorship in an integrated manner (Rutkauskas & Ginevicius, 2011). References Amini, A., Darani, M., Afshani, M., & Amini, Z. (2012). Effectiveness of Marketing Strategies and Corporate Image on Brand Equity as a Sustainable Competitive Advantage. Interdisciplinary Journal Of Contemporary Research In Business, 4(2), 192-205. Bindroo, V., Mariadoss, B., & Pillai, R. (2012). Customer Clusters as Sources of Innovation-Based Competitive Advantage. Journal Of International Marketing, 20(3), 17-33 Lee, D., & Park, C. (2007). Conceptualization and Measurement of Multidimensionality of Integrated Marketing Communications. Journal Of Advertising Research, 47(3), 222-236. MarketWatch. (2010). PepsiCo: investing in Gatorade brand. MarketWatch: Drinks, 9(2), 10. Mihart, C. (2012). Impact of Integrated Marketing Communication on Consumer Behavior: Effects on Consumer Decision - Making Process. International Journal Of Marketing Studies, 4(2), 121-129. Pepe, M. S., Abratt, R., & Dion, P. (2012). Competitive advantage, private-label brands, and category profitability. Journal Of Marketing Management, 28(1/2), 154-172. Rutkauskas, A., & Ginevicius, A. (2011). Integrated Management Of Marketing Risk And Efficiency. Journal Of Business Economics & Management, 12(1), 5-23. Stanford, D. (2011). Gatorade Goes Back to The Lab. Bloomberg Businessweek, (4256), 84-88. Sterrett, D. (2009). New drinks in Gatorade's playbook. Crain's Chicago Business, 32(45), 1. Zmuda, N. (2008). Gatorade loses its competitive edge. Crain's Chicago Business, 31(17), 14. Read More