Marketing: Custom Edition for Texas A&M University 17th Edition by William Pride,Ferrell

Exercise 5

Gatorade Goes for "G" Branding
Gatorade, which single-handedly pioneered the sports drink category nearly 50 years ago, is making "G" the centerpiece of its branding efforts. Invented by researchers at the University of Florida, the original Gatorade formula was developed to help players on the college football team avoid dehydration. Other schools took notice of the Gators' performance and soon began ordering batches of Gatorade for their athletes. One by one, Gatorade attracted the interest of professional football teams, and in 1983, it was named the National Football League's official sports drink. That year, Gatorade was acquired by Quaker Oats and, in 2001, Quaker was, in turn, purchased by PepsiCo.
Throughout its history, Gatorade has remained the leader in sports drinks. However, in recent years, changes in customer behavior and increased competition have combined to take a toll on sales. First, increasingly health-conscious customers are seeking out low-calorie, low-sodium beverages instead of traditional sports drinks. Second, PepsiCo's main rival, Coca-Cola, has been powering up its marketing of Powerade sports drinks and winning over customers. As a result, Gatorade's market share fell to 75 percent, while Powerade's market share shot up to 24 percent.
Now, Gatorade's marketers are fighting for higher sales with new branding initiatives for specific target markets and redesigned packaging to grab customers' attention. Both the Gatorade brand name and the lightning bolt brand mark have been fi ne-tuned to emphasize the G and the thunderbolt while downplaying the rest of the name. The goal is to make the combination instantly recognizable as representing Gatorade, in much the same way that the Nike swoosh has become the iconic representation of that brand.
Gatorade is also introducing a series of G sports drinks targeting the specific needs of athletes. This is a change for Gatorade, which had for several years broadened its targeting and positioned the brand as a thirst-quencher for a cross-section of consumers, not just athletes. Now the brand, under its revamped G branding, is going back to its sports roots with the G Series line of drink products for casual and serious athletes at a variety of experience levels.
Gatorade Prime 01 contains vitamins and other nutrients to help athletes "start strong." Gatorade Perform 02 products include the original green Gatorade beverage for rehydration during exertion plus a low-calorie drink, branded as G2. In addition, mix-your-own powdered versions of both Perform drinks are available. Gatorade Recover 03 is a special drink developed to replenish energy and help muscles recover after any sports activity.
Thanks to a new distribution arrangement, G Series Pro-once sold to professional athletes in gyms and locker rooms-can now be purchased at 5,500 GNC stores. "This line alone, reaching a new target audience, is going to be a killer," comments GNC's CEO. "We have consumers who are extremely passionate about what they [drink]." In another new deal, Gatorade is marketing its G Natural and G2 Natural low-calorie drinks through Whole Foods Market, which specializes in natural and organic foods. Another Gatorade variation, G Series Fit, targets athletes who exercise for fitness.
Along with fi ne-tuning the brand and individual products, Gatorade is fi ne-tuning its packaging and labeling. For years, all bottles featured the full "Gatorade" brand name bisected by the brand's stylized orange lightning bolt. Today, the G has taken center stage on container labels, with a small bolt within the G and a bolder bolt as the backdrop for the product name. Overall, the G Series packaging unifies the product line while allowing each item enough distinctive touches (such as different bottle shapes) to help customers quickly find the particular product they want on crowded store shelves. The sophisticated new packaging also sets this line apart from the traditional Gatorade green-and-orange look, visually reinforcing the innovativeness of the G Series.
Gatorade's advertising and promotional efforts, including a YouTube channel and Facebook fan page, carry through the focus on athletic achievement and individual fitness. Sports stars like Serena Williams and Derek Jeter are featured, along with behind-the-scenes interviews with athletes getting ready for major sporting events. Thanks to these brand initiatives, Gatorade has increased its yearly volume sales beyond 1 billion gallons. However, it continues to lose market share, holding 70 percent of the market compared with Powerade's 28.5 percent. Looking ahead, will Gatorade's target gulp down enough G Series drinks to rebuild the brand's market share?
As Gatorade sharpens its marketing focus on athletes, should it vary its packaging for different distribution channels or different sports? Explain your answer.