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INTRODUCTION

Gatorade, an Energy Drink was developed by Dr.Robert Cade during the year 1965 in University of Florida. ultimate goal was to develop an Ultimate Rehydration Beverage by producing a drink that would be good in taste in order to encourage athletes to use it. This Energy Drink was tested on famous Football Team named Gator during their match. The Gators loved

Their

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Company Establishment
In

1967, Stokely Van-Camp in the United-States bought the rights from Dr.Cade. Lemon-lime flavor was the original Gatorade and in addition to this 2 more flavours were introduced such as Orange and Fruit Punch in 1971 and 1983 respectively. 1983 Quaker U.S purchased Stokely Van-Camp there by acquiring the rights to Gatorade. At first their strategy was

In

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..continued
Smaller

sizes recorded the highest sales where the target audiences are 18 to 34 males and they purchased for immediate consumption. % of Gatorade consumption took place outside home and 60% of purchases were made by woman and 40% of users were women. 1984 was a milestone year for Gatorade when the sales touched $120

50

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Factors for the U.S success

Advertising helped in communicating benefit and uniqueness and it even helped in promotion. did a maximized trial in northern part, multiple purchases in Sunbelt areas and organized special events to promote the product in U.S. which created awareness in the minds of people of U.S

They

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Why Canada?

As they have already established a brand name in U.S,they thought Canada would be a good target market. The increase in sales over the non sun belt area was encouraging. The changing lifestyle, attitude towards more fitness, health can pave way for the energy drinks. The group or bubble of the population constitute about 34 % and would influence consumer beverage trends. Studies show that the Canadians are keen in fitness and exercises ,can lead to energy drink usage.

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Marketing Strategy
Product Market

pricing & packaging

Segmentation

Distribution Promotion

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Market Segmentation

The Primary target audience for Gatorade was physically active males of age group 18 to 34 mainly athletes. Physically active males of age group 18 to 34 accounted for 50% of sales in U.S. Physically active females of age group 18 to 34 and physically active teens 13 to 17 and physically

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Distribution

The Primary distribution of Gatorade introduction in Canada in grocery store. Special importance to other two kinds of distribution was Convenience stores & Sports stores. Convenience stores were similar to grocery stores in which they required both selling at head office to get listed and selling effort at the individual store level to get stocking against that listing. The sales force did not service these convenience stores where it would be possible to get two or three Blitz days during which the sales force could cover once 70% of 2900 Ontario chain and major independent convenience stores.

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Promotion:

Annual expenditures on advertising on total juices and drinks and nectars categories of Ontario was estimated to be $3.9 million$ out of which $1.1 million accounted for juice drinks. Gatorade to enter into the Canadian market it would require 50 to 75 percent in their production. They required at least two years for advertising Gatorade in Canadian Market to acquire the Canadian

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Problems faced....

Promotion perspective
Mr.Lafortune was in dilemma whether he should prefer Primary target audience (Physically active males of the age group 18 to 34) or go for Secondary target audience (physically active females (18 to 34 age group), teens (13 to 17 age group) and males (35 to 44 age group)). Selection of Ad-Media and allocation

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Pricing Perspective:

Sports outlet charged 29 percent margins in Canadian market on juice drink products which was higher compared to sport outlet in U.S.Markets who charged 20 percent margin. Further Gatorade would be subjected to pay 12% manufacturer tax in Canada which was not applicable in U.S.Markets; because of this they were

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Flavours perspective:

Mr.Lafortune was confused whether to introduce one flavor or to introduce all the three flavors in Canadian market because if any one of the three flavors failed it would be very difficult to reintroduce that flavor again. Packaging perspective:

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Solutions.
To avoid production investment and packaging cost they took the decision to use Co packers. Glass was the best left option but alternatively, and for instant Gatorade canisters and or foil pouches was available. Mr. Lafortune discovered that the most common pack sizes would be 28 oz, 1 litre, 40 Oz & 48 Oz.

Recommendations:

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*Intensive

research about various factors such as culture factors, Geographical factors etc. Analysis of Market where the product is going to launch. should be properly endorsed by Famous Personalities/Celebrities. Audience should be more

*Better

*Product *Target

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THANK YOU byKaran.L Krishnakumar.S S Karthik.B Dayaramkothari.L M.A Sultan Chandrakanth