Group 9 Section A

Gatorade
Plan for entry into Canada SWOT Analysis for Gatorade Strengths Near monopoly in the sports beverage in USA. Positioned as a thirst quencher and a performance enhancer Professional sponsorship program for NFL Threats Competition from other beverages like beer Climatic conditions that do not make you sweat as much may render the thirst quencher tag useless. Weaknesses Targeted only at males in the 18-34 age group. Faces competition in the thirst quencher segment. Difficulty in positioning in a retail store. Opportunities Extremely sport conscious Canadian market. Fitness and health consciousness prevalent among males and females. High per capita consumption of juice in Canada.

Target Audience: Apart from targeting physically active males from 18-34, females can also be targeted. Increased Sports consciousness among teens who play in the lower level leagues. (age group 13-17 can also be targeted. But buying power in the 13-17 segment is lower and hence convincing the primary target segment is essential.

Distribution: There are 2 possible channels of distribution through sporting goods distributor and through grocery and convenience stores. The breakeven analysis of 1000 ml glass bottle through these distribution channel has been performed. The results are in Table I Sporting Grocery & Convenience Lafortune's Foil Goods Stores estimate Pouches 1.65 1.65 1.65 1.65

SP Retailer's Margin 45% 29% 29% 29% Revenue 0.91 1.17 1.17 1.17 FC 1040000 1090000 687500 1090000 VC 0.60 0.60 0.60 0.32 Breakeven 3371151 1903930 1200873 1279493 No. of cases 280929 158661 100073 8885 The 30% margin given to the sports good distributor is included in the total cost figures for the sports goods case.

Group 9 Section A
From this, we can see that the sporting goods option results in a higher breakeven volume. Also, the reach offered by solely pursuing this option would be limited, as it would influence only the fitnessconscious segment of the population. Hence, it is recommended to establish a distribution channel through grocery and convenience stores. Flavours, Packs, Pack size: First, a survey must be taken among a representative sample of consumers regarding their preferred flavour. It is not advisable to launch all three existing flavours as relisting failed flavours would be difficult. With respect to packs, a breakeven analysis has been performed comparing foil pouches and glass bottles in the 32 oz range, for a similar price. The analysis reveals that the number of glass bottles sold is more. Foil pouches offer less mobility than bottles. It is recommended to sell both foil pouches and bottles at convenience stores. Since the intent to purchase a 32 oz pack at $1.65 is high, it is recommended to commence sales with this size, i.e. 1000mL bottles and 850mL foil pouches. Surveys must be taken regarding consumer preference for packs/bottles of greater capacity.

Advertising and positioning: Canada is a country with a greater sporting consciousness than the US. Its cold climate, however, would hinder people from buying the product solely on the basis of its thirstquenching properties. Without making changes to the formulation, the product can be positioned as a performance enhancer, particularly in sports like the NHL and other winter sports. Advertising can be done by extending sponsorship to NHL leagues, similar to the NFL format followed in the US. Since lumberjacks constitute most of the working population, and the trade involves a lot of fitness, advertisements targeting these consumers can be made. Sponsoring major sporting events like the Winter Olympics and skiing championships can be thought of as a long term objective, once the brand is established in the market.