Gatorade Strategic Media Plan:

COMM 3345
Group 7:
Cameron Saar
Natalie Timm
Parker Greve
Allison Roda
Kyle Lacey

Marketing Situation Analysis:

Marketing Problem and Competitor Identification:
In order to analyze the marketing problem, we conducted a SWOT analysis of
Gatorades marketing environment. Strengths include strong brand recognition,
consumer perception of having a high quality product, credibility, and the
association with sports teams and athletes. Weaknesses include confusion among
their extensive product line and the untapped bottled water and energy drink
market segments (Gatorade Marketing Campaign Analysis, 2010).
Gatorade faces threats from competitors who have a tight grip on a large market
segment. Gatorade targets sports enthusiasts who work out often and are in great
physical shape. Their current advertising often features famous athletes, which lends
to the brand image that Gatorade is for high-intensity athletes only.
Brand competitors are companies such as Coca-Cola (PowerAde), Red Bull GmbH
(Red Bull), and Energy Brands Inc.(VitaminWater). These brands offer products that
are energy and vitamin enhanced, and market to segments of the market that
Gatorade does not. Competing brands market more heavily to an audience that is
not so concerned with high-intensity sports.
A major opportunity for Gatorade is
broadening their target market to
increase the number of sales, market
share and ultimately revenue. In
2010, Gatorade broadened their
definition of a sport to grow their
target market by including surfers,
acrobats, etc (Zmuda, 2010). While
this strategic move did help to
increase the target market, Gatorade
still only focused on athletes. There
still remains a large market segment
]untapped. This segment consists of
young adults who are not highintensity athletes and engage in more
low-key workouts when they are at
the gym. They also may care more
about energy and nutrients, and are
not so concerned about electrolytes.

Marketing Objective:
We will tackle the current threat from competitors such as PowerAde, Red Bull, and
VitaminWater by spreading brand awareness of Gatorade brand image even
further.
1. Increase "Not Just for Athletes" awareness within the target market of females ages
18-24.
2. Target moderate to highly healthy and active individuals.
3. Increase market share of consumers ages 18-24.

Competitive Expenditure Analysis:

Red Bull
Budgets:
In 2010, Red Bull had revenue of an
estimated $5.1 billion (Benkirane,
2012) and the sub-brand Red Bull
Energy had an estimated $2.2 billion in
revenue (Enerery firend, 2013). That is
43% of Red Bulls revenue from their
energy drink. Because Red Bull keeps
their financial information private, we
can estimate that about 1/3 of their
marketing budget is spent on
sponsoring sporting events and sports
teams. Also, based off of other
competitors budgets, we can estimate
that their total advertising budget runs
from about $2-3 billion a year
(VitaminWater Campaign Media Plan,
2011). Red Bull controls about 40% of
the U.S. market for energy drinks
(Benkirane, 2012).
Media selection:
Red Bull spends their money on different forms of non-traditional media. They do
spend some of their budget on commercials, but more of their budget is weighted
on advertising sporting events. In 2008, Red Bull created a new slogan It gives you
wings. The slogan signifies providing people with the skills, abilities, power etc. to
achieve whatever they want (Iezzi, 2011). Red Bull uses different forms of media,

including TV commercials, Twitter, Instagram, and Facebook. Red Bull has almost 40
million likes on Facebook, 1.1 million Twitter follows and 866,000 Instagram follows.
Red Bull is also known for using guerilla advertising by sending out their Red Bull
mobile. It is a Mini Cooper painted in Red Bulls traditional blue, red, and silver, or
according to their sugar free colors, light blue, red, and silver. There is also a giant
Red Bull can on top of the car. The Red Bull Wings Team passes out free samples to
people. Lastly, they advertise to those watching extreme sports from Formula One
Racing, NASCAR, and other such events.
Timing of media delivery:
Red Bull targets their audience continuously throughout the year. They do not
advertise more heavily during one season than another. They sponsor different
athletes like Lindsey Vonn (professional skier) in the winter and a NASCAR racer in
the summer. Red Bull also owns a professorial soccer team in the U.S. and Austria,
the New York Red Bulls and the Salzburg of Austria Red Bulls.
Other key information:
Red Bull may be the most well-known energy drink. Red Bull started as an energy
drink in Austria on April 1, 1987, in its home market by founder Dietrich Mateschitz
(Red Bull, 2013). Red Bull is sold in more than 165 countries and more than 35 billion
cans of Red Bull have been consumed (Red Bull, 2013).

PowerAde
Budgets:
The 2007 Never Give Up campaign had
a budget of $3.4 million, which was much
smaller compared to other sports drink
companies of the time. (Mike the monkey,
2013) PowerAdes financial budget is kept
private, but we can estimate that
PowerAde operates on a lower budget of
about $3-$5 million per year, which is
much smaller than other competitors
budgets.
Media selection:
In 2007, PowerAde ran the Never Give
Up campaign. It was considered one of
the best campaigns run by the Coca-Cola
Company. (Mike the monkey, 2013) The
campaign was the direct cause of a 42.5%
increase in sales. It utilized TV ads and

online videos through YouTube in order to reach their target audience. (Mike the
monkey, 2013)
In 2012, PowerAde ran an integrated advertising campaign titled Power Through.
The campaign was tied to the Olympics and targeted both low-intensity, more
everyday atheletes and also high-intensity athletes. The campaign focused on the
moment when athletes hit a wall and feel like they cannot go on. PowerAde
positioned itself in these ads as the voice of motivation and ambition (Duncan, 2012).
PowerAde has a heavy presence on Facebook, Twitter and YouTube. With over 2.5
million likes on Facebook and over 50,000 followers on Twitter, the Coca-Cola
Company has had a very strong social media presence (Coca-Cola Company, 2013.)
PowerAde also has celebrity athlete icons LeBron James and Derrick Rose as strong
predominant faces of the brand (Coca-Cola Company, 2013).
PowerAde has started a student-focused hashtag on Twitter: #powerthrough. This
hashtag shows that PowerAde supports students, encourages them to keep strong
and drink PowerAde for the energy to power through their long and tiring days
(Coca-Cola Company, 2013).
Timing of media delivery:
PowerAde utilizes sporting events, major sports seasons, and the start of the year to
reach their target audience. Examples include advertising with the Olympics, the
Super Bowl, March Madness, etc. (Coca-Cola Company, 2013).
Other key information:
PowerAde holds approximately 22% of the U.S. market share for sports drinks. They
are the official sports drink sponsor of the Australian, New Zealand, and Ireland
rugby teams, the AFL, PGA Tour, NASCAR, NHRA, NCAA, and the U.S. Olympic
Team excluding the U.S. Basketball and U.S. Soccer teams.

VitaminWater
Budgets:
The Coca-Cola Company bought Glaceaus VitaminWater in 2007 for $4.1 billion. It
is distributed under EngergyBrands, which oversees VitaminWaterZero,
VitaminWater10 and SmartWater. The brand has become the top selling enhanced
water brand in the United States and is also sold around the globe. In 2007,
VitaminWater had an annual revenue of $444.5 million in sales (VitaminWater
Campaign Media Plan, 2011). In 2012, the Coca-Cola Company spent $3.0 billion on
advertising, $500 million of that being spent on EnergyBrands, which oversees
VitaminWater (VitaminWater Campaign Media Plan, 2011).

Media Selection:
VitaminWater advertises uses
media channels such as
television, magazines, and
billboards. VitaminWater also
uses social media and other
interactive online
advertisements to market to the
public. Currently VitaminWater
has 3.9 million Facebook likes,
122,000 Twitter followers and
10.5 million views on YouTube
(VitaminWater, 2013).
Celebrities such as Carrie
Underwood, Michael Phelps and
Ellen DeGeneres have
endorsed VitaminWater. The
brand is also well known for
catchy slogans used in their
advertisements and brightly
packaged bottles.
Timing of media delivery:
VitaminWater markets their product all throughout the year. The brand specifically
focuses on major sports events and concerts in their strategic advertising plan. In
2010, VitaminWater hired singer Carrie Underwood for their fall advertising
campaign. Underwood starred in various commercials and print ads for the brand,
which focused on her concert tour Play On Tour which was also sponsored by
VitaminWater. During the 2012 London Olympics, VitaminWater enlisted swimmer
Michael Phelps for their summer advertising campaign focusing on the London
games (VitaminWater, 2013).
Other key information:
Each drink has a unique name, specific color and different mood slogan.

Media Objectives:
Our media objectives will address the importance of conveying Gatorade as a
consumer product that is Not Just for Athletes.

Target females ages 18-24 who engage in moderate to low intensity

activities such as yoga, aerobics, and Zumba.

Target advertising in major metropolitan areas.

Follow a pulsing pattern to promote the idea of a consistently healthy
lifestyle and the ways in which Gatorade can fit into the everyday lives
of our audience.
Focus on reach more than frequency, but both will be important.
Achieve a reach of 50% of female college students ages 18-24 and a
frequency of 3.
Focus advertising on the Selena Gomez campaign.
A budget of $10,000,000.

Target Audience Analysis:

Females ages 18-24 who engage in more low-intensity workouts constitute our target
audience. We are targeting this group because they are a segment of the market
that has previously been ignored. The typical target audience of sports drink
companies is males ages 18-34 (Gaynes, 2013). By marketing only to this segment,
Gatorade is excluding a large demographic and is missing out on increased
revenue. There are about 15,000,000 females ages 18-24 in the United States (U.S.
Population, 2012). This segment is a largely untapped demographic for Gatorade.
Currently, only six out of Gatorades twenty official spokespeople are females
(Gatorade, 2013). By reaching out to a population of about 15,000,000, Gatorade will
be able to effectively increase their market share.
We will use a pulsing pattern of advertising because we are marketing to those who
engage in a healthy lifestyle every day, while also putting more weight on the back
to school time and the time around New Years.
We are targeting females of college campuses in major cities. Major metropolitan
areas are home to some of the largest colleges in the nation, and therefore have a
denser population of our target audience. About 57.4% of the total U.S. population of
college students are females, equating to about 13,017,623 females attending
college nationwide (College Enrollment Statistics, 2013). Targeting college
campuses in metropolitan areas is the most efficient way to reach a large number of
females ages 18-24.
We want to change our target audiences perception of Gatorade by achieving a
reach of 50% of female college students ages 18-24. In the U.S., there were roughly
13,017,623 females in college in 2008 that were ages 18-24 (Borzelleca, 2013). With a
reach of 50%, 6,508,812 females would view our advertising. For example, we
picked five college campuses. We can estimate that these five colleges can achieve
a quarter of our estimated reach among total females in college.

University of Chicago has 7,639 females 18-24 in 2011 enrollment (ASU,

2013).
University of Southern California has 19,765 females 18-24 in 2012-2013
(USC, 2013).
Texas A&M has 29,257 females 18-25 in 2012-2013 (TA&M, 2013)
New York University has roughly 27,663 females 18-24 out of 40,000
enrolled (NYU, 2013).
The Ohio State University has 27,864 females 18-24 in 2013 (OSU, 2013).

To develop a new perception of the brand, we will seek an average frequency of

three. A frequency of three works for our target audience because the Naples study
results show that having three exposures within a purchasing cycle causes
advertising to become more effective as frequency increases (Sissors and Baron,
2010).
With a reach of 50% of our target audience and an average frequency of three, we
will be seeking 150 GRPs per market. There are five markets coinciding with one
market per city where the colleges are located. These GRPs will be enough to
achieve the media objectives and to emphasize reach more than frequency.
A budget of $10 million is necessary in order to reach such a large target audience,
to advertise continuously throughout the year, and to afford the different chosen
media vehicles in each target market.
Time: The campaign will begin in August during the back-to-school time period for
most college campuses. The campaign will then run for six months until February
1st. The campaign will take advantage of the incoming flux of students around
college campuses at the beginning of autumn semester. Gatorade will also take
advantage of many students creating resolutions to become healthier and physically
fit around the time of New Years.
Geography: The campaign will focus on major metropolitan areas throughout the
United States. These areas have a denser population and also a higher percentage
of people ages 18-24. Therefore it will be more effective to concentrate advertising
in these areas.
Internet Advertising
Media Strategy: Use Internet advertising to spread awareness to target audience.
Media Selection: Gatorade will use the following social media vehicles to advertise
to females ages 18-24: Facebook, Twitter and YouTube.

It is very important that Gatorade use social media vehicles to spread their message
to its target audience. Social medias primary strength is relationship building and
brand advocacy, which are the two highest levels of brand engagement (Young).
This fits our brand because we are targeting a new audience and we want to form a
strong relationship. We want to build a strong relationship between our brand and
the target audience in order to achieve brand advocacy. Brand advocacy means that
our target audience will spread positive word of mouth online. Using Internet
advertising allows Gatorade to adjust to the new media playbook by recognizing the
importance of word-of-mouth and targeting the consumer with user generated
content and personalization (Young). Using Internet advertisements on social media
sites is important because out of the 74% of women who use social media, 89% are
ages 18-29, which gives us a reach of 66%. Since we wont be able to advertise on all
social media all the time, our estimated reach is about 40%.
Gatorade will buy advertisements in fitness videos on YouTube. The ads will play
in-stream, which is when ads play before you can watch a video. Each ad will be 30
seconds and will run for the duration of the six-month campaign. We want 17,000
views a month for the six-month campaign.
Gatorade will buy Facebook ads and sponsored tweets in order to reach the target
audience. Facebook is the most important to use because Facebooks primary
audience is women ages 18-29 (Young). About 14,668,420 out of an estimated 15
million females ages 18-25 in the U.S. use Facebook (Bullas, 2011). If we are
effectively posting and sharing our ads on Facebook, we can reach a large amount of
our target audience. We will seek a reach of 50% through advertisements on
Facebook. Gatorade will purchase up to 17,000 clicks throughout the campaign in
order to attain the desired reach.
Gatorade will use their Twitter handle @Gatorade to buy ads that can be promoted
by Twitter to show up on peoples Twitter feeds at a frequency of 5 times a month
that are consistent with other internet advertisements during the campaign. It is
important that Twitter also be a media vehicle because the medium appeals to 18-29
year olds (Young) and can promote the message that Gatorade is not just for
athletes, but also for the everyday young female. Twitter ads will also support
promotions for the Selena Gomez campaign. Gatorade will buy 17,000 clicks from
people who newly follow @Gatorade, retweet, reply or click on our promoted
tweets.

Magazines:
Media Strategy: Position print advertisements in womens magazines to spread
awareness among the target audience and achieve the necessary reach to
complement the social media campaign.
Media Selection: Magazines primary strength as a medium is spreading awareness,
and increasing involvement and active consideration (Young). These touch points
are key as it is necessary that our target audience becomes aware that Gatorade is a
brand that they can identify with. Gatorade will include print advertisements in
magazines that correspond with the target audience. These print advertisements
will support promotions for the Selena Gomez campaign. This vehicle makes sense
as a method of paid promotions for the campaign because Selena Gomez relates to
the same target audience of the chosen magazines.
Gatorade will utilize popular magazines targeted at young women, such as
Cosmopolitan, Self and Womens Health. Our campaign is focused on
communicating that Gatorade is also for girls who are not intense athletes and also
for promoting healthy lifestyle choices among this audience. These publications
often contain articles and sections regarding health and fitness alongside other
articles that females ages 18-24 can easily identify with.
The publication Womens Health circulates roughly 1,500,000 copies. Womens
Health dedicates about 17% to food and nutrition material and 16% to health and
fitness material. Self-Magazine also circulates about 1,520,570 copies (2011
Circulation) and Cosmo Magazine circulates about 3,032,00 copies
(cosmomediakit.com). Cosmo magazine reaches about 26.2% of women ages 18-24
and ranks above shows such as American Idol and The Bachelor for reaching the
target audience. Cosmos tagline is Fun Fearless Female, which is consistent with
Gatorades campaign as the brand reaches out to younger females and encourages
them to engage in fun fitness activities (cosmomediakit.com). Cosmo is also the
number one magazine for reaching women ages 18-24 and women in college
(cosmomediakit.com). Self-Magazines tagline of Empowered. Inspired also
coincides with Gatorades campaign as it encourages and empowers young females
to pursue a healthy lifestyle (codenast.com).
We plan to place a full-page ad in Womens Health and Self-Magazine. We will place
a two-page ad in Cosmo. We will have a total of 10 ad spots in the magazines weve
chosen.

Sainsbury Formula:
(According to Meredith.com, megamediamarketing.com, Cosmo media kit,
Erickson, 2012)
Magazines
(Women)
Publications

Total
Readership

Audience 1824

Total
Population

Reach

Cosmo

15,740,000

5,128,000

15,000,000

34%

Self

5,390,000

970,200

15,000,000

7%

Womens
Health

2,750,000

440,000

15,000,000

3%

Cosmo + Self -(Cosmo X Self) = Total reach for Self and Cosmo
.34 + .07 (.34x.07) =
.41-.024=.386
.386 x 100= 38.6% Reach for Cosmo & Self
Cosmo/self + Womens health- (Cosmo/self X Womens health)
.386+.03 (.386 x .03)
.416- .012 =.404
Total reach for Magazines is 40%
Television:
Media Strategy: Gatorade will use network TV to spread awareness among the
target audience. Network TV allows Gatorade to access a large number of people.
Gatorade will also advertise on cable TV. Cable TV allows Gatorade to reach a more
specific and segmented audience.
Media Selection: Using television as a medium is very important in increasing
consumer awareness, involvement and active consideration (Young, Ch. 9). The
television commercials will reinforce Gatorades message of the print ads and
strengthen target audience involvement. The television ads will help to attain the
desired frequency of Gatorades new brand message.
Commercials will run for 30 seconds. Based on research on 800 plus packagedgoods brands from over 200 product categories, it has been found that 30 second ad
spots are more effective than those that run for 15 seconds (Adwords Study).
In order to attain desired reach, Gatorade will buy advertising time for specific
programs whose target audience is similar to Gatorades. Gatorade will also
purchase television dayparts for prime time during Monday through Saturday 8-11
pm and also Sunday 7-11 pm. This daypart is ideal for reaching the target audience
because it is when the highest total number of people are watching television.
Gatorade will buy advertising time during shows on both cable and network TV that
are popular for young females ages 18-24.
The cable shows Gatorade will use are E!s Keeping Up With the Kardashians, and
ABC Familys Pretty Little Liars. Keeping Up With the Kardashians on E!
network has 3 million viewers. Pretty Little Liars has 3.184 million viewers. These
shows are targeted towards the 18-24 female demographic because they focus on

strong main female characters that females of our demographic may easily identify
with.
The network programs Gatorade will use are Foxs American Idol and Glee
American Idol has 17.93 million viewers and a rating of 10.2. Glee has 7.39
million viewers and a 2.90 rating (tvbythenumbers.com).
The commercials will run on a pulsing pattern continuously from August through the
end of January, but there will be a heavier emphasis on advertising during the start
of the school year and around the time of New Years. Continuity is key for effective
advertising. TV ad effectiveness increases as the average annual number of
consecutive weeks on air increases (Young). Gatorade will buy 16 spots during the
month of August, 6 spots during September, 4 during October, 2 during November,
16 during December and 1 during January.

Transit and Outdoor Media:

Media Strategy: Focus heavy advertising on major college campuses nationwide.
Media Selection: The public relations department selected Selena Gomez as the
spokesperson for this Gatorade campaign because she relates and connects with our
target audience of females ages 18-24.
Her contract will include live performances at the college campuses in metropolitan
areas. Advertisements promoting Gatorades brand message Selena Gomezs
performances will be posted on university bus systems and on billboards throughout
the city.
We will advertise on three campus bus services of the chosen colleges and on two
city area bus services in which the college is located. They will run the duration of
the campaign, which is six months.
Gatorade will buy five billboard advertisements per month starting in August until
the end of January. These billboards will be placed in cities in which the chosen
colleges are located.

Total Budget: $10,000,000

Television Budget: $7,330,800
Network TV: $1,450,000
Keeping Up With The Kardashians (E Network): $1,000,000
$50,000 for each commercial
(Vulture)
20 commercials (30 seconds)
7 in August
3 in September
1 in October, November,
January
7 in December
Pretty Little Liars (ABC Family): $450,000
$50,000 for each commercial
(Vulture)
9 commercials (30 seconds)
3 in August
1 in September, October, November
3 in December
Cable TV: $5,880,800
Glee (FOX): $2,136,000
$267,000 for each commercial (Vulture)
8 commercials (30 seconds)
3 in August
1 in September and
October
3 in December
American Idol (FOX): $3,744,000 (Vulture)
$468,100 for each commercial
8 commercials (30 seconds)
3 in August
1 in September and
October
3 in December
Justification/Explanation: Spending 75% of our budget on TV advertisements will
help promote the Gatorade campaign to our demographic of females 18-24. These

specific shows are popular among our demographic and are some of the most
watched programs on TV making us reach our audience; this is justified by the
following:
Keeping Up With the Kardashians: 3 million viewers, 1.2 rating.
Pretty Little Liars: 3.184 million viewers 1.4 rating.
American Idol: 17.93 million viewers, 10.2 rating.
Glee: 7.39 million viewers, 2.90 rating. (tvbythenumbers.com)
Magazines (Press): $1,903,000
Self: $525,000
$175,000 for a 2 page advertisement
(Gaebler - Self)
3 (2 page) Advertisements
1 in August, October and
December
Womens Health: $430,000
$215,000 for a 2 page advertisement
(Gaebler - Womens Health)
2 (2 page) Advertisements
1 in August and December
Cosmo: $948,000
$189,600 for a 1 page advertisement
(Gaebler - Cosmo)
5 (1 page) Advertisement
2 in August
1 in October
2 in December
Justification/Explanation: Spending 15% of our budget on magazine advertisements
will let readers spend more time looking at our campaign and becoming interested
in our products. There will be a total of 10 advertisements, 2-page layout in Self
Magazine and Womens Health Magazine and a 1-page layout in Cosmo. Womens
Health circulates roughly 1,500,000 copies. Self Magazine circulates 1,520,570
copies (2011 Circulation) and Cosmo Magazine circulates about 3,032,000 copies
(cosmomediakit.com).
Billboards: $375,000
We will purchase 5 billboards in each city at a cost of $2,500 each, making the total
of 5 billboards $12,500 per month. These billboards will be up for 6 months,
bringing the total for 5 billboards $75,000 per city.

Billboards will be within our geographic locations: (eHow)

The Ohio State University (Columbus, OH): $75,000
New York University (New York, NY): $75,000
University of Chicago (Chicago, IL): $75,000
University of Southern California (Los Angeles, CA): $75,000
Texas A&M University (College Station, TX): $75,000
Justification/Explanation: Spending 5% of our budget on billboards will help reach
our demographic in these specific cities and schools at a frequent rate. Will we
purchase billboards throughout the city and campus area.

Transit Media: $375,000

We will purchase 3 campus area bus service and 2 city bus service advertisements
at a rate of $2,500 per bus, per city, per month. These advertisements will run
August January.
Transit Media ads will be within our geographic locations: (eHow)
The Ohio State University (Columbus, OH): $75,000
New York University (New York, NY): $75,000
University of Chicago (Chicago, IL): $75,000
University of Southern California (Los Angeles, CA): $75,000
Texas A&M University (College Station, TX): $75,000
Justification/Explanation: Spending 5% of our budget on advertisements on campus
and city area bus services will help reach our demographic in these specific cities
and schools at a frequent rate.
Internet Advertising Budget: $61,200 (Gatorade Account)

$0.20 per click or view (Social Media)

Facebook: 17,000 click per month for 6 months: $20,400
Twitter: 17,000 views, favorites, retweets and clicks on the promoted tweet
per month for 6 months: $20,400

YouTube: 17,000 clicks per view per month for 6 months: $20,400

Justification/Explanation: For this campaign we are spending under 1% of our

budget on social media. We will continuously advertise on our campaign on these
media outlets by paying until we reach our amount of clicks or views per social
media site. This will reach our demographic at a frequent rate getting them involved
with the brand.
Time Periods Budget: 50% in August and December (25% each) and 50% split
evenly throughout other months.

6-month period (August January)

Back to school session (August)
New Years (December)

Justification/Explanation: During this campaign we will allocate 50% of our budget to

advertising in August and December (25% each) advertising heavily during the
Back to school session and New Years resolution time period. During the other 4
months we will allocate the remaining 50% of budget to evenly advertise through
the outlets we have chosen.
Spokesperson: $0, Contract signed with Gatorade Marketing Team
Selena Gomez: to perform concerts at colleges and be used in advertisements.
Justification/Explanation: Selena Gomez will be used throughout our campaign in
TV, Magazine, Billboard and Social Media advertisements. She will connect our
brand with the target demographic of 18-24 females. She will also promote the
brand and campaign with concerts at the colleges listed above.

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