Shelbie WrightBrand Audit MKT 3320.501

• Company…………………………………………………..1-3• History……………………………………………………….4• Key Personnel…………………………………………….5• Organizational Structure…………………………...6• Subsidiaries………………………………………….…….7• Products……………………………………………….......8• Brand Analysis…………………………………………….9• Consumer Profile………………………………………..10• Advertising/Marketing………………………………..11• Media………………………………………………………….12• Promotions………………………………………………….13• Internet and New Media……………………………..14• Brand Value…………………………………………………15• Brand Exploratory……………………………………….16-19• Recommendations………………………………………20• Sources………………………………………………………..21-22

Table of Contents

Company • How Gatorade Began

It all began in the summer of 1965 at The University of Florida, the assistant football coach; Dwayne Douglas noticed major weight loss amongst a majority of the football team. Douglas took his questioning to 37 year old Robert Cade, who at the time directed the University Of Florida College Of Medicine’s renal and electrolyte division.

Cade joined together with a group of researchers, Dr. Dana Shires, Dr. H. James Free and Dr. Alejandro de Quesada and together they discovered two major components that were causing the players to have such a weight loss were electrolytes and fluids. When the players would sweat, they weren’t replenishing their bodies with the electrolytes and fluids they were losing; instead, their bodies were using carbohydrates for the energy which weren’t being replenished, causing weight loss.

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Company Cont.The research began with a study of heat on the human body and

they began to realize that the heat was taking away from the players’ endurance, energy and strength. When the players would sweat out sodium and potassium, it would put their bodies at a chemical imbalance. The players would drink plenty of water but it would cause many of the players to have an upset stomach and it didn’t have the chemicals to balance the body and keep it hydrated. The imbalance of the chemicals caused over two dozen of the freshmen players to be hospitalized in the summer of 1965. The researchers than began a study on ten of the players throughout the season and found results of very low blood sugar, as well as very low blood volume.

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Company Cont.Now that the researchers knew what

the chemical imbalance in the body was associated with, they began to work on a substance that the players could consume and keep the body hydrated and chemically in balance. They began their first batch of Gatorade with salt to replenish the body with what was lost through sweat and sugar for the low blood sugar they noticed many of the players had, but not too much sugar to cause an upset stomach. The researcher’s first batch tasted so terrible, they couldn’t even swallow the substance. When Cade’s wife suggested they add lemon juice, little did she know, that substance would soon be known as the world famous Gatorade.

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HistoryIn 1967, the only flavor of Gatorade was

lemon-lime; this flavor was the only flavor up until the year of 1983 when Fruit punch made its debut. In 1967, Dr. Cade signed an agreement for Stokely-Van Camp to produce the already patented drink. Stokely was incorporated in 1936 and is located in Chicago, Illinois.

Since 1967, Gatorade has grown into a 13 billion dollar company, bringing in 3.3 billion a year. It is currently the official drink of the NFL, MLB, NHL, NBA, MLS, and professional volleyball. Gatorade also has many partnerships with professional athletes. In August of 1991, Gatorade signed an 18 million dollar contract with Michael Jordan, who is a professional basketball player in the NBA. This contract would make Jordan the new face of Gatorade for the next 10 years. 4

Key Personnel Indra K. Nooyi Chairman and Chief Executive Officer

Jon Banner Executive Vice President

Oswald Barckhahn President

Umran Beba Senior Vice President, Chief and HR

Rich Beck Senior Vice President, Supply Chain

Albert P. Carey Chief Executive Officer

Indra K. Nooyi became the CFO in 2001 of Pepsi Co., who is the distributor and owner of Gatorade. Indra began working for Pepsi Co. in 1994 working in the office for Pepsi Co. She has done a great job for the company and continues to do an astounding job with Pepsi Co. Many women strive to be in the position that Indra has put herself in and continues to prove that women can take full control of a billion dollar company and keep numbers rising. 5

Organizational Structure

As you can see in this organizational structure, Gatorade is owned and operated by PepsiCo. and outsourced from Quaker distribution center. In 2012, Quaker was approved for a 1.2 million square foot distribution center in Lancaster, Texas. Within the next decade, Quaker plans to spend 35 million on property and improvements.

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SubsidiariesGatorade is a subsidiary of Pepsi Co. Inc., Gatorade has a variety of different products ranging from sports drinks to energy bars. The sports drink has grown into a company that distributes energy bars, energy chews, protein bars and drinks, as well as low calorie sports drinks to attract a variety of athletes in the sports world. Gatorade offers their products not only in stores but online as well, making it more convenient to get the products to its consumers.

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Products• Energy Chews• Sports Fuel Drink• Thirst Quencher• Low Calorie- G2• Thirst Quencher Powder• Low Calorie G2 Powder• Protein Shake• Post Game Recovery Drink• Whey Protein Bar

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Brand Analysis• Gatorade currently controls about 74% of market share• The brand value is worth 4.8 billion• Sales hold at about 3.3 billion• In 2010, Gatorade noticed a drop in sales and released the new G Series of Gatorade. • In 2011, they surpassed the billion gallon threshold.• Gatorades main competition is bottled water, energy drinks, sports drinks, flavored

water, and low calorie sports drinks. (PowerAde, Monster, MiO, Vitamin Water) • All of Gatorades competition attempts to grasp the upper hand in todays market. • Overall, Gatorade has continued to keep control of the market and will continue to

do so with the strong marketing their company has withheld.

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Consumer Profile

• Gatorades main consumer is athletes both professional and unprofessional and sports teams.

• Gatorade has kept a great connection with its target market.• They tend to keep a great connection with their consumers. • In 2010, when they released the G Series, the lower calorie and sugar content

created a new consumer for Gatorade which helped to broaden their target market.

• Using role model athletes has also helped to keep a great connection with consumers.

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Advertising/MarketingThe main advertisement for Gatorade is the use of professional athletes in their ads and commercials. Not only does Gatorade choose to use professional athletes, but they choose athletes who we all know and love. During the decennial of Gatorade, they used the well known and loved Michael Jordan as their first endorser. Using Jordan as the face of Gatorade got instant credibility in countries that had no idea what a sports drink was. The Gatorade ad agency, Bayer Bess Vanderwarker was in the process of creating a one of a kind ad. He eventually created the “Be Like Mike” ad, which is still to this day known as the most memorable and effective campaign in the history of sports marketing. Since then, Gatorade has endorsed hundreds of professional athletes from all over the world. They have endorsers in the NBA, NFL, NHL,MLB, and even Nascar. With the widespread professional athletes, it has gained Gatorade consumers from all over the world and in many different sport fields. 11

MediaIn 2010, Gatorade started a social media “Mission Control” in their Chicago offices. During this event, Gatorade had a team of employees monitor social media and decide on what consumers want and what they want to see developed within the future from Gatorade. The main goal of the mission was to engage with consumers and inform them of the brand’s strategy. The Team of Gatorade had more than 2000 one-on-one conversations with consumers, they also gained 1.2 million likes on Facebook during the mission. The discussion of sports performance also jumped from 60% from 35% since the beginning of the mission, Gatorade was very excited about this stat because they were in the process of recasting themselves as a sports-performance innovator, rather than just a sports drink. Since such success with the mission in 2010, Gatorade has began to pay more attention to social media and has set up “listening command centers”, to capture and monitor social media conversations. With doing so, they have created a company that reacts instantly to viral buzz, and makes consumers feel involved and as a result is bringing in bigger profits. They continue to allow fans to interact live through twitter and Facebook with sports stars answering questions from Gatorade followers.

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PromotionsIn order for Gatorade to achieve their sales target, they have to promote the product in many different perspectives. Even though Gatorade is specifically portrayed as a drink for athletes, they also need to focus on the other consumers who aren’t athletes but enjoy drinking Gatorade. In 2007, Gatorade released the G Series, this series of Gatorade has less sugar and calories than regular Gatorade. Even though this was a new product being launched, it was a promotion for Gatorade to attract a new profile of consumers. The G Series attracted consumers who are health conscious and people who can’t have high sugar and calories in their drinks, but still want to stay hydrated. With more and more people becoming health conscious, they released the G Series at the perfect time, which also gave the product such a great success. In the summer of 2014, Gatorade released new flavors for the season, including Fierce Green Apple, Blue Cherry, Strawberry Lemonade, Lime Cucumber, Raspberry Melon and Grape. With the new release of these flavors during the summer time, it attracted many people who were looking for rehydration. Gatorade’s release time on the product helped to make great success for the new flavors.

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Internet and New MediaGatorades most recent and highly talked about issue has been with their orange flavored Gatorade. Their was a controversial ingredient put in this flavor and Gatorade was receiving many complaints from consumers. As I stated in the previous Media slide, Gatorade takes each and every complaint from consumers and is very serious about keeping consumers satisfied. The ingredient that was causing such commotion was BVO, which is patented as a flame retardant. The Environmental Health News reported on the ingredient and a Mississippi teenager began a petition against Gatorade to remove the BVO from the Orange Gatorade. With such an enormous amount of complaints coming from consumers, Gatorade made the decision to remove the BVO from Gatorade.

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Increase or decrease in Brand ValueGatorade has continued to be the number one brand of sports drinks in the world. With the continued support from professional athletes, who love Gatorade and the support Gatorade has for its consumers, I believe Gatorades brand value will continue to increase. Sports have become more and more popular across the world, as well as people concerned with being healthy and fit. I believe that Gatorade will only continue to grow and have support for all of their consumers, which will only allow them to continue with the success they have already achieved.

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Brand Exploratory• Qualitative

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Brand Exploratory• Qualitative Continued

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Brand Exploratory• Quantitative

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Brand Exploratory• Quantitative Continued

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Recommendations Overall, Gatorade is a very successful company, during all of my research I have learned that Gatorade is a very loved company. Consumers of Gatorade love the product and can’t wait to see what they have in store for the future. The placement that Gatorade has taken has been very successful, they are expanding internationally and will continue to expand. One recommendation for expansion is to make sure consumers like the product flavors, when expanding outside of the United States, some foreign countries prefer certain flavors that aren’t as sweet. I would say the cucumber lime and raspberry melon would do great in foreign countries. The price of Gatorade is very competitive with other sports drinks. Many gas stations and grocery stores have Gatorade on sell for 1 dollar a bottle and sometimes even cheaper than that. With Gatorade having many more flavors than other sports drinks, I think this gives them even more of an advantage over their competition. As for the products of Gatorade, I think they made a great choice by releasing the G Series. With so many athletes and consumers becoming more fit and healthy, releasing this product with less sugar and calories was definitely a great idea. Now I do recommend Gatorade to consider making lower calorie protein shakes, I think this would allow their number of consumers to increase.

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Sources • "American Football Task Force SSEs." Gatorade Sports Science Institute. 2014. Web. 10 Apr.

2015.• Astramskas, David. "30 Years Ago Today, the Chicago Bulls Signed Michael Jordan | MJ’s First

Deals." Ballislifecom. 12 Sept. 2014. Web. 7 May 2015.• Drummond, Katie. "How Gatorade Turned Water into 'the Enemy of Performance'" The Verge.

20 Jan. 2014. Web. 7 Apr. 2015.• Friedersdorf, Conor. "Why PepsiCo CEO Indra K. Nooyi Can't Have It All." The Atlantic. Atlantic

Media Company, 1 July 2014. Web. 1 May 2015.• "Gatorade." •. Web. 1 May 2015.• "Gatorade Teams, Partners and Athletes." Teams, Partners and Athletes. Web. 7 May 2015.• "Gatorade Timeline | Twoop." Twoop. 14 Jan. 2015. Web. 2 May 2015.• "Gatorade to Remove Controversial Ingredient." NY Daily News. 25 Jan. 2013. Web. 7 May

2015.• Kurlyandchik, Mark. "How The Invention Of Gatorade Generated Hundreds Of Millions In

Royalties For The University of Florida." Celebrity Net worth. 12 Feb. 2015. Web. 2 May 2015.• Maloy, Brendan. "Gatorade Remasters Iconic Michael Jordan." SI.com. 12 Feb. 2015. Web. 1

May 2015.• Martin, Douglas. "J. Robert Cade, the Inventor of Gatorade, Dies at 80." The New York Times.

The New York Times, 27 Nov. 2007. Web. 7 May 2015.

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Sources • Nole, Frank. "Why Did The FSU Seminoles Let UF Take Credit For The Gatorade Formula?"

Tomahawk Nation. 26 May 2010. Web. 1 May 2015.• Nudd, Tim. "Gatorade Digitally Remastered 'Be Like Mike' After 23 Years, and Damn Does It

Hold Up." AdWeek. 12 Feb. 2015. Web. 1 May 2015.• Rovell, Darren. "Darren Rovell's Gatorade Blog." 'Darren Rovell's Gatorade Blog' 1 Apr. 2007.

Web. 1 May 2015.• "The Gatorade Company, Inc.: CEO and Executives." Bloomberg.com. Bloomberg. Web. 1 May

2015.• "The Gatorade Company, Inc.: Private Company Information." Bloomberg.com. Bloomberg.

Web. 1 May 2015.• "The History of Gatorade." W T Hanes Physical Education in Irving Texas The History Of

Gatorade Comments. 4 Sept. 2006. Web. 1 May 2015.• "The World's Most Powerful Brands." Forbes. Forbes Magazine, 1 Oct. 2012. Web. 1 May 2015.• Utermohlen, Karl. "The University of Florida Makes Millions From Gatorade | InvestorPlace."

Investor Place RSS. 1 Oct. 2013. Web. 1 May 2015.• "VML | Gatorade - Leading Digital and Social Integration for Global Markets ." VML. 2015. Web.

2 May 2015.• Vancil, Mark. "NBA.com: Michael Jordan Career Retrospective." NBA.com: Michael Jordan

Career Retrospective. Web. 1 May 2015.• "Who We Are." Our Leadership. Web. 7 May 2015.

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