Choose a branded product and identify and describe its general marketing profile.
- What are their products or services?
- Who is the target market?
- Identify some of their competing products
In general terms, what are their:
- pricing strategies (Think BMW versus Kia)
- distribution channels (Think Amazon vs QVC vs Target)
- marketing communication strategy (Think TV vs Magazines vs Facebook)
- Include any other marketing observations you identify.
Not longer than
2 pages. Organize your thoughts. An outline format with sufficient
detail to understand your analysis is acceptable.
This is an EXAMPLE:
Gatorade, currently owned by PepsiCo,
was the first product of its kind on store shelves, and it is still the
most dominant, commanding almost 80 percent of the sports drink market.
However in 2008 Gatorade repositioned itself as the G Series which
markets a series of athletic beverages toward athletes with formulations
for pre- and post- exercise use.
- Mission statement and Target Market:
Gatorade’s mission statement can be summed up in the phrase “Is it in
you?” “It forms the core message behind the Gatorade brand: the sports
drink purports to replenish the vital fluids lost during intense
physical exercise and help you perform your best.” The creators of the
product reasoned that water wasn’t enough to replenish the precious
salts and minerals lost during an athlete’s workout. In the beginning,
the target market focused on college athletics, especially football
players. Over the years, Gatorade has redefined their target market,
focusing on 18-24 year olds and a broad range of athletes and active
- Market Segments: Its
core customer is pro and college athletes. Others are average
people who work out daily at the gym, or have other types of athletic
activities. Therefore they adopt a combination of “demographic
segmentation” based on the fact that most athletes tend to be 18-34,
“psychographic segmentation” – how the consumer describes themselves
through a combination of self-values, and lifestyle choices – as well as
“benefit segmentation” which groups consumers on the basis of the
benefits they derive from the product.
- Gatorade’s G series Product Extensions and Offerings:
According to their website: “Prime” is a pregame fuel that is designed
to be consumed 15 minutes before exercise to achieve more energy
maximizing the availability of carbohydrates to the muscles.
“Performance” (which is the original Gatorade blend beverage) is a
combination of electrolytes and carbohydrates designed to use in the
moment of activity to help rehydrate, refuel, and push through activity.
“Recover” is a protein and carbohydrate beverage that provides
hydration and muscle recovery after exercise.
- Pricing Strategies: Gatorade
perceive the value of their product from the customer’s point of view
and then prices accordingly, which makes their pricing strategy “value
based.” This is a type of “target costing” that is also demand
based. Not only does it satisfy the customer, but it also meets their
set profit margins.
- Distribution Channels:
Since their customers all over the world, Gatorade has a large
widespread distribution. Firstly, Gatorades is always visible at most
of the major sporting events like the NBA, NFL, WNBA, NHL, and the like.
Additionally, since Gatorade is owned by PepsiCo, they have a
contractual distribution system: you will always see Gatorade wherever
Pepsi: “retail intermediaries” such as Grocery stores, specialty sports
stores, and convenience stores. As well as “nonstore retailing” such as
vending machines in gyms and schools.
- Marketing Communication Strategy:
The most common form of promotion is television commercials: some
highlight the history, the performance of their product, and/or their
research. Most effective is their use of athletics sponsorships and
professional endorsements. They also use sales promotions by providing
samples at sports events, coupons, discounts and special displays.
Gatorade created such an impression among athletes that “word of mouth”
is another powerful promotional tool.
- Competing Products:
Gatorade has suffered a decline in sales and dominance over the isotonic
category as consumers switch to The Coca-Cola Co. Inc.’s Powerade and
other energy drink formulas products. “Powerade has half the salt
(sodium) and more calories from carbohydrates than Gatorade. For serious
athletes, Gatorade has a slight advantage especially in hot climates.
The average person working out would not know the difference. But may
enjoy the flavor of PowerAde more due to the extra sugars.” Also
PowerAde is cheaper than Gatorade, and a person struggling in this
economy might be more attracted to lower prices.