Agenda

Introduction Situation

Analysis

Consumer

Insights

Problems &

Opportunities

New

MarComm

Strategy

Introduction

Powerade is far behind category leader

Reinvigorate

Powerade's

Image

Powerful

product calls

for powerful

marketing!

Overcome

heart loyalty

to Gatorade

Elicit unwavering

brand loyalty

through the minds

and hearts of

consumers

“Find the 4th"

competition

campaign

Big Idea:

POWER4WARD

Situation Analysis

Introduction Situation

Analysis

Consumer

Insights

Problems &

Opportunities

New

MarComm

Strategy

Company Analysis

Consumer Analysis

Product Analysis

Competitive Analysis

2010 Sales Growth

Sports Drink Category

Powerade

Gatorade

11%

28%

6%

Total Sales

$638 $681 $856

$688

$3,030

$2,710 $2,860

$2,152

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2008 2009 2010 2011

Mil

lio

ns

Powerade Gatorade

Sports drink still in the GROWTH stage of product life cycle

Mintel projects the market for sports drinks to grow

by 52% from 2013-2017

Company Analysis

Skills and Resources

• Coca-Cola System o Strong bottling partnership

o Coca-Cola provides

expertise and resources to strengthen partnership

• Sustainability

o PlantBottle

o Reduce water stress

Consumer Analysis

Male, 18-24

Athletic

Sweet Tooth

4.48-4.63

glasses per

day

On the run

Consumer Analysis

Energy Boosting

Vitamins

Minerals

Electrolytes

Protein

Product Analysis

Competitive Analysis

Functional

Drinks

Energy

Drinks

83%

Sports

Drinks

11%

Nutraceutical

Drinks

6%

Gatorade

76%

Powerade

23%

Other

1%

Fruit & Vegetable Ready-To-Drink Soft

Juice/Smoothies Tea Drinks

Sports Energy Functional Cocunut Bottled

Drinks Drinks Water Water Water

Competitive Analysis

Consumer Insights

Introduction Situation

Analysis

Consumer

Insights

Problems &

Opportunities

New

MarComm

Strategy

Survey

Focus Group

Consumer Insights

• Participants mainly aged 18-22

• 35% male

• 28% on a collegiate

sports team

• 50% exercise between 2-5 times a week

72%

28%

Consumer Insights: Survey

• 65% disagreed that they only drink sports

drinks while participating in athletic

activities

• Important factors: taste, nutritional value

• Gatorade: higher mean response for taste,

trendiness, replenishment, nutrition, flavor

variety

2/3 disagreed that they like powerade better

than other sports drinks

1

(TERRIBLE)

5

(SUPERIOR)

Consumer Insights: Focus Group

• 10 participants

total o 4 U of M athletes

• Ages 19-23

• Techniques o Blind taste test

o Open-ended

questions

o Guided discussion

o Word associations

Focus Group Key Findings

Common

belief Gatorade

has more

electrolytes

Gatorade word

associations "Champion," "success," "#1"

Powerade

word

associations "Lame,"

"inferior,"

"second-tier,"

"underdog"

Gatorade vs.

Powerade Familiarity,

trust, brand

loyalty

Unaware of

Powerade's

advertising

Problems and Opportunities

Introduction Situation

Analysis

Consumer

Insights

Problems &

Opportunities

New

MarComm

Strategy

SWOT

Positioning

Objectives

Positioning

With its unique ION4 formula, we are

positioning Powerade as the more powerful

and nutritious sports drink for a generation

of young, determined individuals who desire

a competitive edge in every aspect of life.

Objectives

1. Increase Powerade’s market share in the

sports drink category by 7% among our

target consumers, Americans ages 13-24,

from February 1, 2014 to February 1, 2015.

2. Increase the Powerade brand association

as the most nutritional sports drink (i.e.,

four-electrolyte formula) by 18% among

Americans ages 13-24 from February 1, 2014

to February 1, 2015.

New Marketing

Communications Strategy

Introduction Situation

Analysis

Consumer

Insights

Problems &

Opportunities

New

MarComm

Strategy

Advertising

Strategy

o Creative

o Media

Creative

Sales Promotion

Other Marcomms

Evaluation

Creative Strategy

OBJECTIVE

Differentiate Powerade ION4 from the competition by highlighting

its unique 4-electrolyte formula

STRATEGY

Make “4” resonate

Bring the electrolytes to life

Memorable and consistent visual branding:

new logo & slogan

Target Market

Media Strategy

• Seamlessly connect "Power 4ward" message

across touch points

• Media mix: TV, Internet, social media,

special events/sponsorships

• Timing

o TV: pulsing

o Social media: continuous

• Reach & Frequency: reach 40% of target,

males and females ages 13-24, 2+ times

each week over 12 months

• Creative impact & positive reactions

• Kickstart "Power 4ward" campaign and

solidify new Powerade image

• Emphasize "Find the 4th" contest

• Capitalize on commercials using Hulu

• Network and cable programs, sports

content

Television

Commercial Storyboards

Example Commercial:

“Gabby as Magnesium”

Digital

• Facebook, Twitter, Instagram

• Basis of "Find the 4th"

• Reinforce TV advertising, special events &

sponsorships

• Goals

o Increase number of follows and user engagement

o Improve appearance & cohesiveness of content

o Emphasize new logo and slogan/hashtag

Sales Promotion

Other Marketing Communications

• Public Relations o Sponsoring events

o Press releases/media alerts

o Press conferences

• Cause-Related Marketing o Involvement with low-income schools

o Special Olympics

• Internet o Blogs

o Powerade website

Visual branding

ION4 athlete bios

Lebron James and Derrick Rose bios

Sample Media Alert

Budget

Total Budget: $12,483,770

2012 Budget: $9,602.9MM

Objective 1: Market share from 23% to 30% equates to sales

increase of 30% assuming market size stays

consistent.

Media Flow Chart

Evaluation

• Sales/Market Share

o Concurrent testing: sales during campaign

o Post-testing: overall market share (7% increase)

• Advertising

o Tracking studies: attitudes, communication playback

o Post-testing: communications effects

Recall, attitudes, perceptions

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