Gatorade is a sports drink developed in 1965 at the University of Florida to replenish the electrolytes, carbohydrates, and water that football players lost through sweat. It was successful at improving performance and helped the Gators win games. Gatorade soon spread to other schools and professional teams and became the leading sports drink brand. Through scientific research, new product lines were developed to meet the needs of athletes during training and competition. Today, Gatorade continues innovating products while maintaining its position as the top sports drink through widespread distribution and marketing partnerships with professional sports leagues and athletes.

1. NOTHING WORKS BETTER!!!
Gatorade
Nothing works Better!!
Gatorade is a brand of sports-themed Nutritional Drink and Supplement products, built around its
signature electro-lite: a line of sports drinks. Gatorade is currently manufactured by PepsiCo,
distributed in over 80 countries. The beverage was first developed in 1965 by researchers at the
University of Florida, to replenish the combination of water, carbohydrates, and electrolytes that the
school's student-athletes lost (in sweat) during rigorous athletic competitions. Its name was derived
from the collective nickname of the university's athletic teams, "the Gators".

2. Contents
Thirst Quest of ‘65 ........................................................................................................................................ 4
Birth of ‘Gatorade’ ........................................................................................................................................ 4
‘Gatorade’ comes on Field ............................................................................................................................ 4
Beverage Buzz and Biz .................................................................................................................................. 5
Orange to Super by ‘69 ................................................................................................................................. 5
Science, Sports and Success .......................................................................................................................... 5
‘Gatorade’ Today .......................................................................................................................................... 6
From Field to Track ....................................................................................................................................... 6
...................................................................................................................................................................... 7
Drink up the Challenge! ................................................................................................................................ 7
What Next! .................................................................................................................................................... 8
Drink the thrust of thirst ............................................................................................................................... 8
Some facts which will help us understand the key success and the reason for ‘Gatorade ‘existence
and market player consistent. .............................................................................................................. 8
Market:.......................................................................................................................................................... 8
What are the other possible factors that gets the drink flowing?............................................................ 9
Appearance: .......................................................................................................................................... 9
Appeal: .................................................................................................................................................. 9
Attributes: ............................................................................................................................................. 9
Advertisements ................................................................................................................................... 10
Positioning Target and Market: .......................................................................................................... 10
Gatorade’s Speaks:.............................................................................................................................. 11
............................................................................................................................................................ 11
PTM- Primary Target Market .............................................................................................................. 12
‘Gatorade’- A 4P Analysis ............................................................................................................................ 14
Product: ................................................................................................................................................... 14
Variants: .............................................................................................................................................. 14
Sizes:.................................................................................................................................................... 15
Price: ....................................................................................................................................................... 16

3. ‘Gatorade’ is priced 36% cheaper than PowerAde. ................................................................................ 16
i. ‘Gatorade’12 fl oz = US$ 1.07 ......................................................................................................... 16
ii. ‘Gatorade’20 fl oz = US$ 1.38 ......................................................................................................... 16
iii. ‘Gatorade’24 fl oz = US$ 2.49 ......................................................................................................... 16
iv. ‘Gatorade’32 fl oz = US$ 3.99 ......................................................................................................... 16
Place: ....................................................................................................................................................... 16
‘Gatorade’ is distributed nationwide using Pepsi Co. distribution network ........................................... 16
 Supermarkets, ................................................................................................................................. 16
 Local stores, .................................................................................................................................... 16
 Convenience outlets, ...................................................................................................................... 16
 Drugstores, ...................................................................................................................................... 16
 Market stalls.................................................................................................................................... 16
 Nationwide Pick-up by customers .................................................................................................. 16
 Cash and credit transaction ............................................................................................................ 16
 It benefits from the distribution leverage of Pepsi Co.................................................................... 16
 Has an excellent branding, excellent product distributed nationwide........................................... 16
Promotion: .............................................................................................................................................. 16
A look back .................................................................................................................................................. 17
Objective of ‘Gatorade’: Accelerate in the sports drink market. ............................................................ 17
Size of the total market: $4 billion .......................................................................................................... 17
Growth of the market: 12% from 2006 .................................................................................................. 17
Seasonality: Peaks in the summer .......................................................................................................... 17
Product Life Cycle:................................................................................................................................... 17
Growth: ................................................................................................................................................... 17
(Although Gatorade was created in 1965) we believe sports drinks are in the growth stage because
there’s a growth in market of 12% since 2006 also the number of entrants into the market suggests
that this is a growing industry on its way up rather than down. ............................................................ 17
Brand ....................................................................................................................................................... 17
Market Share .......................................................................................................................................... 17
Dollars (in ‘000s) ..................................................................................................................................... 17
Gatorade ................................................................................................................................................. 17
82%.......................................................................................................................................................... 17

4. 3,280,000$ .............................................................................................................................................. 17
PowerAde................................................................................................................................................ 17
17%.......................................................................................................................................................... 17
680,000$ ................................................................................................................................................. 17
Others ..................................................................................................................................................... 17
1%............................................................................................................................................................ 17
40,000$ ................................................................................................................................................... 17
Target profile .......................................................................................................................................... 17
Buying decision process .............................................................................................................................. 18
When:...................................................................................................................................................... 18
Where: .................................................................................................................................................... 18
Key Influencers:....................................................................................................................................... 18
Trends ..................................................................................................................................................... 18
Environmental Issues .............................................................................................................................. 19
Regulatory – packaging, labeling, etc. ................................................................................................ 19
Economic ............................................................................................................................................. 19
Socio-cultural ...................................................................................................................................... 19
Technological ....................................................................................................................................... 19
SWOT analysis: ............................................................................................................................................ 19
Strengths ................................................................................................................................................. 19
Weaknesses ............................................................................................................................................ 19
Opportunities .......................................................................................................................................... 20
Threats .................................................................................................................................................... 20

5. Thirst Quest of ‘65
In the summers ’65, Florida University’s physics Lab was swarmed with hushes and gushes over a
question on players, heat and performance on field.
Coach and physicians were equally puzzled as much concerned over the matter over growing heat
stroke illness and degrading performances of peak players in acute heat.
While the talks went on for weeks, Dr. Robert Cade, Dr. Dana Shrines, Dr. James Free and Dr. Alejandro
de Quesada grilled down the talk to two factors that had affected the performance and provoked the
heat illness in Gator Players.
 The fluid and Electrolytes that the players lost through sweat were not getting regenerated.
 The amount of Carbohydrates that the players used for energy on field was negligently being
replenished.
Birth of ‘Gatorade’
Having zeroed on the problems, the research team of Florida University scientifically fabricated a
balanced liquid with precise balance of carbohydrate and electrolytes. The ultimate sport beverage was
uniquely produced in the lab to ensure the replacement of lost key components from the body of Gator
Players while sweating and exercising. The proud confection drink was called ‘Gatorade’.
‘Gatorade’ comes on Field
Having the product in Lab was not good enough. The formula was finally introduced to the team; the
gators started using the beverage during their practice, exercises and sport on field. The results were
ubiquitous. Players were less fatigued, more active and exhibited outlasting win against the heavily
favored opponent of the time finishing the ’65 season at 7-4.

6. The performance had just started walking. By the year of 1966, Gator Team finished the season at 9-2
making a historical win of Orange Bowl.
Beverage Buzz and Biz
The beverage caught wild fire buzz in the field of sports far beyond the boundaries of Florida. People
were curious about the beverage as much inquisitive about the invention. University of Richmond and
Miami of Ohio were first to place order of batches of ‘Gatorade’ for their football team. Post the early
adoption phase in the market, followers of the trend just kept coming.
The famous saying of the coaches of that time was “Playing without ‘Gatorade’ on your sidelines is like
playing with just ten men field”.
Today’s official Sports drink traversed boundaries of nations and labs to conquer the quest for on-field
energy builder.
Orange to Super by ‘69
In the summer of 1969, Coach Ray Graves of the Florida Gators suggested to the Kansas City Chiefs that
they use ‘Gatorade’ to combat the staggering effects of a blistering Missouri sun during training camp.
The Chiefs were so impressed with the “Gator coach’s aid” that they kept it on their sidelines
throughout the entire season… which concluded with a stunning victory over the heavily favored
Minnesota Vikings in Super Bowl IV.
In the years that followed, more and more NFL teams began placing ‘Gatorade’ on the sidelines of their
games and practices, and in 1983, ‘Gatorade’ became the official sports drink of the NFL—a title it holds
to this day.
Science, Sports and Success

7. After two long decades of Dr. Cade and his team’s much famed work in developing optimum hydration
formula- ‘Gatorade’ made its way to the ‘Gatorade’ Sports Science Institute founded in Barrington,
Illinois, to conduct scientific research in the areas of exercise science, hydration, and sport nutrition.
By early ‘90’s, the lab expanded to provide advanced testing for athletes and new ‘Gatorade’ products
and flavors and develop education materials for sports health professionals around the world.
‘Gatorade’ Today
The official sports drink of the NBA, AVP, and PGA, Major League Baseball, Major League Soccer, and
numerous other elite and professional organizations and teams, ‘Gatorade’ is not a beverage is it!
From Field to Track
Millennium witnessed a problem at the professional race car drivers coach meet. The adequacy of
hydration was a bit much of a problem given that the heat reaches 130 degree temperature throughout
the course of a lapped race.
The challenge was huge and battle was tough. ‘Gatorade’ and GSSI (‘Gatorade’ Sports Science Institute)
began their work with auto racing organizations to develop a hydration tool that could withstand 130-
degree temperatures and keep drivers hydrated safely throughout the course of a race.

8. The result of their research was the development of GIDS, the ‘Gatorade’ In-Car Drinking System, which
is now considered an essential piece of racing equipment.
Drink up the Challenge!
The staff of GSSI (‘Gatorade’ Sports Science Institute) realized that replenishment on field was not good
enough for the players and athletes. The need of the hour engaged in high demand training and
competition. ‘Gatorade’ launched the ‘Gatorade’ Performance Series, an exquisite line of sports
nutrition products, in ‘01. These products included ‘Gatorade’ Energy Drink, ‘Gatorade’ Energy Bar, and

9. the ‘Gatorade’ Nutritional Shake.
By 2005, GSSI (‘Gatorade’ Sports Science Institute) brought in the
most captivating invention that took the market as much by
surprise as exclaimed. After extensive years of study on athlete’s
endurance, the company presented the ‘Gatorade’ Endurance
Formula. Featuring a higher concentration of sodium—the key
electrolyte found in Original Thirst Quencher—and four other
electrolytes lost in sweat.
What Next!
The staff of GSSI (‘Gatorade’ Sports Science Institute) is dedicated to innovative search and research on
sports in their mission of performance improvisation on field and off field through proper facilitated
supply of hydration and nutrition. The advancement of the collective mission is here to stay and for as
long as people love sports and health is the much wanted wealth!
Drink the thrust of thirst
Some facts which will help us understand the key success and the reason for ‘Gatorade ‘existence and
market player consistent.
 Dehydration can be one of the biggest competitors of athletes.
 Research shows that well hydrated athletes perform better.
 When you sweat you lose fluids electrolytes and potassium essential to maintain performance
Market:

10. The Pepsi Co.’s much hyped and popular energy drink has far expanded the market from stadium, sport
training and gymnasiums.
The chart show cases the usage of drink
widely by the society of Men or women of
all ages who practice sports or have an
active routine.
What are the other possible factors that gets the drink flowing?
Appearance:
The beautifully crafted Stylish plastic bottle is certainly an eye-catcher. Not to forget the
breathing colors, ergonomic bottle design and its fun packaging.
Appeal:
The product´s price oscillates between $0.65 and $1.50 depending on the package
presentation. It appeals to all age and income group due to wide variety and amplified
reach in functional and emotional benefits related to Health.
Attributes:
1. ‘Gatorade’ helps to put back lost electrolytes, such as sodium, potassium and
chloride.

11. 2. Stimulates thirst so you can maintain hydrated
3. Gives essential fluids athletics need when it matter most.
4. Gives working muscles the energy they need to enhance athletic performance
5. Nothing rehydrates replenishes and refuels an athlete better than Gatorade.
Special Features
a. Has a 6% carbohydrate solution, optimal amount to give working muscles the
energy they need.
b. New and different flavors: Lemon Lime, Fruit Punch, Orange, Citrus Cooler,
Passion Fruit, Strawberry Kiwi etc.
c. No other sports drink is absorbed faster than Gatorade. Not even water
Advertisements
The product is advertised through T.V. with commercials in which very famous athletes
appear drinking ‘Gatorade’ to rehydrate.
The media resources used for making advertisements are T.V., radio, the Internet,
magazines, newspapers.
The purpose of advertisement is to convince consumers that nothing hydrates better
than Gatorade.
Positioning Target and Market:
Gatorade’s positions itself on the shelf of energy drink for sports and nutrition. However, it entails
more market outside the athlete group with individual youth leading an “active” lifestyle who wants
to enhance their health and energy stamina.
Gatorade’s targets a communication which fills the void created by all other competitive brands
which focus highly on providing fuel, fluid and nutrients before and after the exercise.

12.  Based on 2008 Energy Drinks North America Report, where Gatorade’s share is 49%, total
market size is US$ 5.3Billion.
 ‘Gatorade’ sales is US$2.6Billion
 Gatorade’s market share is 49%
 Then total sports drink market size is US$2.6Billion/0.49 = US$5.3Billion
Gatorade’s Speaks:

13. PTM- Primary Target Market
Personality:
The youth leading an “active” lifestyle who are health conscious and strongly believes in
fit body perfect mind theology.
Demographics:
Young (pre-adults (13-24), M/F, social class ABC, single)
Lifestyle:
Athletic, active, enjoy sports, playful and lively)
Behavior:
Drinks 8 fl oz. of liquid, before, during or after any physical activity for:
 Thirst quenching
 Prevent dehydration
 Energy Boost
 Nutritional Supplement
 Healthy Beverage
Needs:
The youth wants:
 To be secured (health), avoid dehydration; thirst quenching
 The youth choose ‘Gatorade’ over other sports drinks because:
 Flavor, available in all convenient stores,
 Brand (endorsed by Michael Jordan and Dwayne Wade),
 Taste
Thinks:

14. When the youth drinks Gatorade, he is not just thirst quenching, rehydrating, getting more active or
feeling energized.
They feel their mind saying:
o I am athletic!
o I am active!
o I am a winner!
o I would be like Michael Jordan/Dwayne Wade
o I won’t get dehydrated
Competition:
‘Gatorade’ has several competitors on retail shelf:
Direct Competition:
 Pocari Sweat
 PowerAde
 Tropical Fruit
 Cool Blue
Indirect Competition:
 Energy Drinks (Cobra, RedBull, Samurai), Isotonic Drinks (100 Plus),
 Instant energy drink (Joss),
 Flavored water (Vit water),
 Tea (C2, Real Leaf),
 Water (Viva, Absolute)

15. Market Drivers:
Variables:
 Price, packaging,
 Convenience of use
 Different variants
 Availability
 Brand
 Lifestyle
Unique Selling Proposition:
1."To thirsty, sweaty jock, ‘Gatorade’ is the original sports beverage that quenches
thirst while replacing fluids and electrolytes."
2.The only sports drink that is thirst quenching for the youth who leads an
“active” lifestyle
that promises to improve performance
3.No brand has a similar position.
4.Others focus on complete with electrolytes and positively charged ions.
‘Gatorade’- A 4P Analysis
Product:
‘Gatorade’s sports drink is scientifically formulated to replace fluids and provide energy to working
muscles. It offers a scientifically validated blend of carbohydrates and key electrolytes.
Variants:
 Lemon-Lime,
 Orange,
 Cool Blue,

16.  Citrus Cooler,
 Strawberry Kiwi
 Fruit Punch
Sizes:
 12
 20
 24
 32
 34
 64
: (in fl oz) and 1 gallon

17. Price:
‘Gatorade’ is priced 36% cheaper than PowerAde.
i. ‘Gatorade’12 fl oz = US$ 1.07
ii. ‘Gatorade’20 fl oz = US$ 1.38
iii. ‘Gatorade’24 fl oz = US$ 2.49
iv. ‘Gatorade’32 fl oz = US$ 3.99
Place:
‘Gatorade’ is distributed nationwide using Pepsi Co. distribution network
 Supermarkets,
 Local stores,
 Convenience outlets,
 Drugstores,
 Market stalls
 Nationwide Pick-up by customers
 Cash and credit transaction
 It benefits from the distribution leverage of Pepsi Co.
 Has an excellent branding, excellent product distributed nationwide.
Promotion:

18. A look back
Objective of ‘Gatorade’: Accelerate in the sports drink market.
Size of the total market: $4 billion
Growth of the market: 12% from 2006
Seasonality: Peaks in the summer
Product Life Cycle:
Growth:
(Although Gatorade was created in 1965) we believe sports drinks are in the growth
stage because there’s a growth in market of 12% since 2006 also the number of entrants
into the market suggests that this is a growing industry on its way up rather than down.
Brand Market Share Dollars (in ‘000s)
Gatorade 82% 3,280,000$
PowerAde 17% 680,000$
Others 1% 40,000$
Target profile
 Metropolitan area/CMA
 13-24
 Active lifestyle
 Male or female
 Single/Couple
 Involved in organized sports/activities
 Exercises regularly
 Urban/suburban
 Very social
 Outgoing
 Extroverted

19.  Student or new professional
 Unmarried/newly married
 College/university educated
 Renter or new home/condo owner
 $18,000 - $150,000 yearly income
o $18,000 – $35,000 average consumer
 Generally considers themselves leaders
 Heavier user (of sports beverages)
 Previously used other sports drinks – not new to the market
 Strong brand loyalty based on expected performance
 Looking for a competitive edge
 Interested in local news with an emphasis on sports
 Watches sports on tv
 Reads magazines about healthy living, sports, and recent events
 Regularly purchases athletic gear/clothing
Buying decision process
When:
o On their way to activities (exercise/sports games, etc)
o On their way home from activities
o When they miss their activities
Where:
o Convenience stores/gas stations
o Gyms
o Snack bars
o Grocery stores (healthy ones like The Barn/Logos)
o Vending machines
o Located in recreation centers, gyms, etc
o Health-based/oriented retailers (GNC, Hercs, Goodness Me!, etc)
o Schools
Key Influencers:
o Pro athletes
o Amateur athletes
o Someone like themselves that they can relate to/identify with
o Peers
Trends
o Looking towards everyday people promoting product because they feel more in tune
with their situation
o Value conscious now means more than price for quantity

20. o They are now paying attention to ingredients and benefits, so value = right price, right
ingredients and benefits
o Using sports drinks as regular drinks
o Looking to make healthier choices – less sugar, fat, etc.
Environmental Issues
Regulatory – packaging, labeling, etc.
o Must meet CFIA regulations
o Must include nutritional information
o French/English labels
o Must avoid certain types of plastic for the bottle
Economic
o Recession – drive to water
Socio-cultural
o Time-conscious/time-poor
o Environmental trends – consumers want to buy recyclable products
o Health-oriented society
o Demanding convenience/accessibility
Technological
o Advancements in production
SWOT analysis:
Strengths
o Large company
o Has substantial capital
o Very well-known company-brand
o Lots of awareness
o Product has a strong USP
o 4:1 carbohydrate to protein ratio
Weaknesses
o No current products in the sports drink market

21. o No experience in the sports drink market
Opportunities
o Very large market (dollar wise)
o Cultural shift towards healthier lifestyles
o Currently, limited choices in the sports drink market
Threats
o Fear of recession
o Consumers will only be purchasing necessities
o Size of competitors
o Mainly Gatorade and PowerAde