Gatorade G2 Media Plan by Stacey Peters

Nicole Abrahamson Adebola Adeyemo Lauren Aguirre Melissa Antunez Elizabeth Armstrong Stacey Peters

ADV 483 December 11, 2014

TABLE OF CONTENTS Introduction………………………………………….……………………………..……1 Company/Brand Information………………………………………………………..2-3 Industry Information……………………………………………………………….…..4 Competitor Information………………………………………………………..........5-8 External Information………………………………………………………….…….9-10 Current Users……………………………………………………………………..........11 Secondary Research……………………………..…………………………11-12 Primary Research…………………………………………………….……..13-14 Online Survey………………………………………………………………..15-17 Focus Group……………………………………………………………….........18 Ethnography………………………………………………………………....19-20 Consumers………………………………………………………………….….…...21-23 SWOT Analysis…………………………………………………………….….……24-25 Target Audience Description……………………………………………............26-27 A Day in the Life of………………………………………………………..…28-29 Media Plan……………………………………………………………………..……30-32 Television………………………………………………………………….…..…33 Print……………………………………………………………………………… 34 Online……………………………………………………………………………..35 Non-Traditional……………………………………………………………….….36 Budget Overview………………………………………………………………...37 Evaluation Methods……………………………………………………………..38 Appendix………..………………………………………………………………...…39-43 Works Cited…………………………………………………………………………44-45

EXECUTIVE SUMMARY

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The market objective is to increase sales by 13% by the first four months of the year. The advertising objective is to schedule our advertising to run daily on Network TV and a flighting schedule for both the print and online mediums. As for the media objectives, the overall goal would be to reach 50% of G2’s target audience in the first year, with 30% reached in the first six months of the campaign The current primary consumers consist of men and women, between the ages of 18-44 who live in the South and West, whose annual income averages $100,000. They are experiencers who like to go out and participate in activities. Through primary and secondary research, it was determined that our target audience would be males 18-24 who have attended or graduated college. These individuals enjoy recreational outdoor activities and are involved in multiple social activities. The media plan has a $1 million dollar budget. This plan will utilize television, print, online and non-traditional mediums. There will be continuous ads on TV, with January, February, June, and December with pulsing ads. The three other mediums will consist of a flighting schedule.

INTRODUCTION •

Gatorade was created in 1965 as a drink for athletes to replenish carbohydrates and electrolytes. Since its introduction, Gatorade has become a market leader with record high sales. In 2007 Gatorade launched Gatorade G2, which is a low calorie sports drink with a variety of vitamins. Our media plan to effectively market the new G2 product will specifically target Caucasian and African American men, ages 18-24, who are attending college or already graduating, and have a high household income to spend on luxuries such as performance enhancing drinks. However, in the product category of non-aseptic sports drinks, new options are consistently entering the market consequently creating new competition for Gatorade G2.

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To combat this, the new media plan will focus on young, active, and enthusiastic consumers who are looking to move forward in their lives with new possibilities. Through a variety of television, print, online, out of home, and non-traditional methods, the target audience will gain awareness and therefore increase sales.

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Through the marketing, advertising and media objectives we plan to increase brand awareness in the target market thirty percent in the first six months of the campaign. Additionally we would like to increase sales by thirteen percent in the first four months of the calendar year. Furthermore we aim to reach fifty percent of our target audience in the first year and thirty percent in the first six months through a combination of continuous, flighting, and pulsing advertising methods.

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Overall, reaching out to young, ambitious adults will be extremely beneficial for Gatorade G2. Through the media plan, we are confident that the target market will be effectively reached, thus increasing Gatorade’s brand awareness, sales, reach and market share.

COMPANY & BRAND INFORMATION History of Gatorade •

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Gatorade was created in 1965 by four scientists - Dr. Robert Cade, Dr. Dana Shires, Dr. H. James Free and Dr. Alejandro de Quesada- who were contracted by the University of Florida Gators to create a drink that could help their football players rehydrate during practices and games. Gatorade, named after the Florida Gators, helped replenish carbohydrates and electrolytes essential to keeping the player energy up. Once introduced, it became a highly used and highly effective drink consumed across Division 1 collegiate level football teams as well as professional teams.

What is G2? • • •

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Gatorade G2 was launched in 2007 as an alternative; lower calorie sports drink the regular Gatorade. On and off the field drink Became the best-selling new beverage in 2008 with $158 million in sales its first year and grabbed 8.4% of the market share (just G2, not other Gatorade products). G2’s tag line is “1/2 the Calories. All the G”. It contains only 30 calories per 12 oz. bottle, 7g of Carbs, only 160mg of Sodium, and a slew of additional vitamins.

COMPANY & BRAND INFORMATION Perception •

According to our primary and secondary research, G2 is perceived as a lower calorie, non-carbonated drink alternative to soda. It is geared towards the professional/collegiate athlete, as well as the everyday health conscious and fitness enthusiast

Price •

G2 uses a competitive pricing strategy since these bottles are almost always placed next to their competitors’ drinks. They wish to promote an emotional rather than rational response. That being said, a single 32oz bottle is $1.08, but sales on these drinks usually make them cheaper to buy in bundles.

Place • •

Gatorade is owned by Pepsi Co. with main offices in Purchase, New York G2 is available in Australia, Brazil, Canada, Mexico, the United Kingdom, and the United States. It can be found in all major supermarkets in the United States

Promotion •

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G2 has used a variety of tactics to promote itself since its launch. Super Bowl ads, event sponsorships, and social media campaigns such as #winfromwithin. Gatorade is a current sponsor of the MLB, NBA, NHL, NFL, MLS, & PGA Most commonly however, they use their social media pages on Facebook, Twitter, and YouTube to reach their more than 8 million social media followers. G2 endorses a variety of celebrities, including: Derek Jeter, Peyton Manning, Selena Williams, and Dwayne Wade

INDUSTRY INFORMATION Category Trends • • • • • • • •

Gatorade, specifically G2, is part of the Sports Drink/Thirst Quencher Industry Sports beverage caters to professional and amateur athletes who are looking to rehydrate before, during, and after a workout In this category, Gatorade is faced by competitors such as flavored water and other sports drinks like Powerade The Sports Drink industry continues to grow – expecting to reach over $2 billion by 2016 Gatorade’s volume continues to increase in the category with an 18% rise in recent years Due to the increase in the industry, Gatorade and other sports drinks are becoming a bigger threat to carbonated beverages. Biggest concern in the Sports Drink Category right now is how healthy these drinks are and if advertising efforts are misleading More and more consumers are looking for an emotional connection with their sports drink beverages

COMPETITOR INFORMATION Direct One

Direct Two

Indirect One

Indirect Two

Powerade

Powerade ION 4

Mio Energy (water enhancement)

Nutrition Drinks (including meal replacement beverages)

Sales (2012) • • •

Powerade: $40,928,750 Powerade ION 4: $666,547,100 Gatorade G2: $50,169,240

Market Share (2012) • • •

Powerade: 1.0 Powerade ION 4: 16.2 Gatorade G2: 1.2

Powerade Total Media Spending • •

2012 annual marketing budget $9,602,900.00 99.2% spend on network & TV ads

Category Characterization • •

Oligopoly market- a small number of sellers exists in the market There are numerous competitors to Gatorade G2, many of which are also produced by PepsiCo such as Gatorade Perform, Gatorade (classic), Gatorade Frost, and Gatorade Cool Blue, while The CocaCola Company owns all other competitors such as Powerade, Powerade ION 4, Powerade Zero, and Powerade Zero ION 4

COMPETITOR INFORMATION Financial Information •

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The total sports drink product category grew substantially in the past years increasing 30% from $5.4 billion in 2008 to almost $7 billion in 2013 Slightly below Gatorade G2 in sales from the calendar year ending April 15, 2012 was the competitor Powerade. In the past year, Powerade saw an 8.4% increase in dollar sales from the previous year. This raised their yearly dollar sales to $40,928,750 yet their market share remained low at 1.0%. Another direct competitor of Gatorade G2 in the non-aseptic sports drink category was Powerade Ion 4. Their dollar sales for the calendar year ending April 15, 2012 were $666,547,100.00. Powerade ION 4 sales increase from the past year was 2.3%

Brand Positioning •

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Powerade o Representing the underdog o Ads feature young athletes, aim to overcome adversity, beat the odds, come out on top Powerade ION 4 o Unique, enhanced formula o Ads focus on health benefits

COMPETITOR INFORMATION Competitors’ Ads •

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Powerade o The Powerade campaign to promote being selected as the official sports drink selected by FIFA for the 2014 FIFA World Cup Brazil included commercials featuring a young athlete who against all odds became an exceptional soccer player with only one leg o #POWERTHROUGH- Hash tag that accompanied this commercial o Very similar to the Gatorade G2 Natural Selection commercial, which expresses that your talents and attributes are not always what you are born with but what you make of them Powerade ION 4 o “The Complete Sports Drink” commercial o Science approach, complete with the 4 electrolytes typically lost in sweat--Sodium, Calcium, Potassium, and Magnesium o Athletic outlook, promotes ambition and drive in the individual

Powerade Brand Promotion • • •

Heavy focus on network & TV advertisements, lack of social media presence $9,602,900.00 spent in 2012 on media budget Official sports drink of the AFL, PGA Tour, NASCAR, NHRA, NCAA and U.S. Olympic teams & other professional affiliations

COMPETITOR INFORMATION Pricing, Products, Place •

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All under $2.00 o Powerade, 32 oz. bottle - $1.69 o Powerade ION 4, 32 oz. bottle - $1.99 o (Source: Current Wal-Mart in store prices) U.S. Powerade Product offering: o Mountain Berry Blast, Orange, Fruit Punch, Grape, Lemon Lime, Melon, White Cherry, Strawberry Lemonade, Tropical Mango Distribution: Across US and Internationally Coca-Cola Co. headquartered in Atlanta, GA

Competitors Current Users • • •

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The current users for Powerade and Powerade ION 4 are very similar to Gatorade G2 Both brands target hard working individuals and promote hard work and ambition Targets young females and males, with a focus on male consumers, who are looking for a beneficial drink for working out and quenching thirst Powerade MRI data summary: o Education- Graduated high school (index-109) Did not graduate HS (index-133) o Men age 18-34 Women age 18-34 o Race- White (index- 87) , Black/African American (index160) o Read magazines- Black Enterprise, Ducks Unlimited, ESPN The Magazine, Hunting, Muscle & Fitness, Saltwater Sportsman, Tennis o Websites: MTV.com, ESPN.com, Yahoo! Movies

Other Competitors • •

Mio Energy, nutrition drinks, Gatorade Perform, Powerade Zero, Gatorade Cool Blue, Gatorade Frost, Powerade Zero ION 4 Although these are important competitors, we do not see them as substantial threats, so we focused primarily on Powerade and Powerade ION 4

EXTERNAL INFORMATION Economic • • •

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Recession recovery, rebranding U.S. Recession of December 2007-June 2009 Gatorade lost about 10% market share from 2006-2011 to Coca-Cola’s Powerade o G2 part of re-launch and rebranding of Gatorade o G2 priced a little less than regular Gatorade drinks o Powerade gained market share because sold at 19% discount to category average Gatorade & G2 sold at 7%8% premium price o Lost market share but (Source: The Nielson Company) gained back major sales on premium priced product o Gatorade & G2 combined had $1.2 billion in sales in 2011 (up 4.1%) o Though Powerade has gained about 10% of market share, has much smaller sales and impact of overall market 27% penetration amongst 68 million performance athletes traditionally focused on o 12% penetration amongst 55 million fitness athletes it is trying to target now o Understands that consumers are mainly drinking Gatorade on the field and need a drink for off the field o G2 is less expensive and has less calories than the regular Gatorade sports drink and therefore can compete better with water Expands target market from traditional athletes (baseball, basketball, football, etc) o Focusing more on less traditional sports and even lifestyles (i.e. yoga) o Rather than just focusing on the hydration of the product, becoming more specialized to meet needs of different athletes/active enthusiasts.

EXTERNAL INFORMATION Social • •

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Low-Cal G2 for health conscious G2, is a lighter sports drink with 25 calories per 8 oz., whereas, 50 calories for standard Gatorade. Acts as an alternative for water drinkers o Gatorade and G2 switched sweeteners – less calories G2 sees an increase in distribution and promotion to target women and adjust to the uprising healthy and active lifestyle trends o Google Trends: 35% increase in ‘Beauty & Fitness’ related categories since early 2009 o Increase in sales due to promotion and distribution (convenience/accessibility) G2, a new, lighter version of Gatorade aimed at athletes off the field and the yoga crowd o Competing with water as a substitute o Understands that consumers are mainly drinking Gatorade on the field and need a drink for off the field o G2 is less expensive and has less calories than the regular Gatorade sports drink and therefore can compete better with water Expands target market from traditional athletes (baseball, basketball, football, etc.) o Focusing more on less traditional sports and even lifestyles (i.e. yoga) o Rather than just focusing on the hydration of the product, becoming more specialized to meet needs of different athletes/active enthusiasts.

CURRENT CONSUMERS SECONDARY RESEARCH Demographics (MRI) • • • •

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Majority of consumers are male (66%) They attended college or graduated college Ages 18-44 Most likely to be in the natural resources, construction, and maintenance occupational fields; or management, business, and financial operations fields Household Income Range: $75,000-$149,999 Geographical Census Region: South and West Marital Status: Never married or engaged Child age: 2 years old or younger Race: Equal range of all races, but Black/African American and White were the top two Consumers of this demographic are more likely to drink Gatorade G2 because they are still of a younger age and have more time to devote to exercising, socializing, and outdoor/recreational activities. If the consumers are in the natural resources, construction, and maintenance fields they are prone to working outdoors and physical activity. This type of occupation can take a lot out of a body and consuming Gatorade G2 can replenish them to keep them at their max capacity.

CURRENT CONSUMERS Psychographics (VALS) •

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Top Segments based on Index o Experiencers (166) o Maker (134) o Striver (125) o Achiever (112) o Innovator (104) o Thinker (77) o Believer (49) o Survivor (46) The Experiencers are the highest index segment for Gatorade G2. Their lifestyle correlates with that of a sports drink user because these types of people value self-expression. They live life to the fullest with an air of excitement and positivity. These users enjoy exercise, sports, outdoor recreation and social activities, which would allow them more opportunities to buy products like Gatorade G2 to quench their thirst or provide hydration. They have more disposable income than others, which they spend on entertainment, fashion, and socializing. This power to consume suits their lifestyle because it fuels their high-energy atmosphere.

CURRENT CONSUMERS PRIMARY RESEARCH Rationale •

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We proposed using an online survey o Be able to obtain a lot of different information about consumer interests, values, and demographics o Access to information rather quickly o Investigate patterns, frequency, ease, and success of use of Gatorade G2 and competitors o Results are easy to analyze and straightforward o Standardized way to collect information o Easy to distribute via social media, email, or in person We proposed to conduct a focus group o Get a first hand look into the attitudes and behaviors of Gatorade G2 users and non-users o See how Gatorade is perceived by our target audience o Understand what Gatorade G2’s strengths and weaknesses are We proposed to conduct an ethnographic study o Visualize how regular consumers use sports drinks or competitor products in a gym atmosphere and how they interact with media in the same setting o Obtain information on consumer exercise and drinking habits o Understand how gym layouts are set up and where beverages can be obtained to aid exercise o Obtain general demographic information on typical campus gym attendees

CURRENT CONSUMERS Goals/Objectives • •

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Figure out what young, active individuals think about sports drinks in general User needs, expectations, perspectives, priorities, and preferences, intentions, motives o Figure out attitudes and opinions of young, active individuals about Gatorade G2 The Products o Compared to other sports drink brands The Prices o Compared to other sports drink brands The Promotion o What they like/dislike about current or past ads o What they would like to see in future ads The Place o Where they see ads most o Where they see Gatorade G2 used most Determine Personality and Lifestyle Characteristics o Activity level o Need for sports drinks o Need for exercise o Why to choose different types of sports drink or alternatives

CURRENT CONSUMERS ONLINE SURVEY

CURRENT CONSUMERS Results •

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Based on the 100 response online survey, various results were found about the current and target audience consumer preference to sports drinks in general and to Gatorade G2 specifically. Our survey included 8 sports drink related questions and 2 demographic questions. The majority of our respondents were female (76%) and the age range was 17-42 years old (average age: 20.5), with most of the respondents from 18-24, which fits into our target audience age. 51% answered that they exercise “1-3 days per week” and 28% exercise “4-5 days per week”. Water (80%) is the most used drink during and after workouts, with sports drinks (6%) and “other” (4%). 48% answered, “Yes” to drinking sports drinks (like Gatorade and Powerade) outside of your time spent exercising. For rating healthiness of Gatorade G2 on a scale from 1 to 7, with 1 being “not healthy” and 7 being “very healthy”, the average rating was 3.22. For rating importance of hydration while working out on a scale from 1 to 7, with 1 being “not important” and 7 being “very important”, the average rating was 4.16. 36% of respondents do feel or sometimes (36%) feel misled by nutritional value of sports drinks. 31% of respondents “value health information while exercising and buying sports drinks”, while 32% drink sports drinks for other aspects like taste, brand, replenishment, etc. 85% would consider switching brands based on their health/nutritional value.

CURRENT CONSUMERS Insights •

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Sports drinks for the current consumers are used in the overall sense for exercising and aided workout performance, but also use them as “thirst quenchers” in their daily routine. Gatorade G2 has only 90 calories per 32 oz. bottle compared to Powerade ION 4 which has 320 calories per 32 oz. bottle. However, current consumers believe G2 is rather unhealthy seen in the 3.22 average on a 1-7 scale. G2 advertising in the proposed media schedule will emphasize low-calorie and lowcarbs. Hydration is a rather neutral aspect to buying sports drinks. Taste, brand, and replenishment are more important to current consumers. Current consumers believe working out is part of a daily routine, at least in a college setting, which is the demographic of our online survey respondents, and on a college budget water is the most available resource for hydration when exercising. The need for sports drink is more prevalent for campus athletes or the more hardcore exercise student. It will be a challenge to put Gatorade G2 at the top of current consumers minds compared to a drink that is “free” and plentiful in every building.

CURRENT CONSUMERS FOCUS GROUP Results • • •

One focus group was conducted with six participants in the target audience Five questions focused on word association and four other questions focused on personification We learned from the participants the ideal consumer of the G2 product is someone who works out regularly and it is a very good alternative to soda

Rationale • •

We looked at personification questions to see what athletes are associated with G2 compared to its competitor Powerade Due to the concerns for health benefits that were prominent in the survey, we looked to see what words consumers associate to G2 to determine if the connection is positive or negative

Insights • •

G2 is not considered as healthy as it advertises, but it is seen as superior compared to Powerade However despite the healthier benefits of G2, many participants believed the product is watered down and should taste more like the original Gatorade recipe GATORADE

POWERADE

CURRENT CONSUMERS ETHNOGRAPHY Location: UIUC Campus Activities and Recreation Center (ARC) Date & Time: November 18TH, 7PM-8PM Objectives • • • •

Observe habits of gym attendees See what typical attendees drink when working out, if anything Observe brands of sports drinks sold and where are they located Obtain a rough outline of typical campus attendee demographics

Observations • • • • • •

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4 levels of workout spaces, including rock wall Locker rooms located on lower level At least 4 water fountains available on every level Each water fountain had easy filtered water dispenser for quick bottle refills Majority of guests drinking water, or nothing at all Sports drinks available in 2 locations o Front lobby cafe - sold sports drinks, juice, water, soda o Vending Machine on lower level across from locker rooms o Powerade was the only brand available at each location for sports drinks Average age, estimate: 18-24, or 40s/50s Signs, posters, and ads were located primarily in the lobby o All campus related Some posters by locker rooms

CURRENT CONSUMERS Insights • •

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Related to our online survey results, majority of ARC attendees consumed water while exercising. Water is easily accessible throughout the whole building and free to everyone. o The water is filtered as well If not drinking water, guests were seen with no drink at all. A majority of the ads were placed in the lobby, possibly due to it being a high foot traffic area. The lobby would be a good location for Gatorade G2 ads to help promote the use and purchase of the product if sold at the cafe and vending machines. Advertisements could also promote campus sports teams that also drink and are sponsored by Gatorade G2. The ARC specifically on the UIUC campus is a prime location to have that reaches the target audience for Gatorade G2.

CONSUMERS Geographical Emphasis Gatorade G2 is nationally sold. However, according to the MRI data the majority of our target audience is living in the South and West regions of the United States. Specifically, utilizing the U.S. Census data we were able to see that the largest population of our target audience is located within the states of California and Texas.

Brand Distribution • •

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Gatorade is distributed in six different countries, including the United States. While they primarily focus on distributing and advertising in metropolitan areas, Gatorade G2 can be found all over the country, even in rural areas. Gatorade G2 is located in all major supermarkets, convenient stores, and gas stations.

CONSUMERS Seasonality and Timing GATORADE SALES 2009-2012

(Source: Corn Naturally)

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Gatorade sales decreased during the recession (2008-2009) however their U.S. volumes grew 10% in the second quarter of 2014 and were up 3% for the first half of this year Gatorade sales peak in July and August, with the lowest sales occurring in the winter months due to the weather limiting certain sports. G2 follows a similar pattern. While we will have a continuous schedule on several media vehicles, we will be pulsing in the months June due to the high sales, as well as due to the NHL and NBA playoffs While sales are decreasing in December, they do increase come January and February, allowing us to pulse ads in these months as well. Timing is everything in this campaign due to our plans to advertise leading up to major sporting events (i.e. the Super Bowl). We also wish to advertise during the winter when people are trying to start the new year off on a healthy note. 22

CONSUMERS Consumer Decision Process Gatorade G2 faces a unique set of challenges in the consumer decision process. In the problem recognition stage, consumers are actively aware that they need a drink for working out. Gatorade can serve that need effectively. So, as the consumer searches for information about different options, we recognized that while many people are aware of the Gatorade brand, brand recall of G2 is not as high. However, G2 offers a variety of flavors that a consumer can select from as they search for the product that is right for them. Therefore Gatorade G2 needs to make consumers aware of this product through the variety of traditional and non-traditional mediums we have selected for our media plan. Then, when the consumer evaluates the alternatives; they will show a preference for G2 over the numerous other competitors sports drinks because if offers them the most benefits. After this evaluation, this will lead the consumer to the purchase stage. Gatorade G2 will solve the consumerâ&#x20AC;&#x2122;s original problem by being a low calorie and healthy sports drink. In the post-purchase stage, the consumer will evaluate their decision and how the product performed or meet their needs. Because Gatorade G2 has a comprehensive list of choices and benefits, they can attract a variety of consumers while fulfilling their needs as well. Therefore leaving them satisfied at the post-purchase stage, leading them to becoming brand loyal consumers of G2. Â

S.W.O.T. ANALYSIS

STRENGTHS · High profitability/market share · Affiliation with establish athletes/ sports teams · Huge corporate sponsor · Credible/ well-known · Unique formula · Health benefits

OPPORTUNITIES · New Markets (international)/consumers · New endorsements with athletes/ celebrities · Brand loyal consumers will try new products · Moving into water of energy drink market

WEAKNESSES · Growing market · Consumers have too much to chose from · G Series could be difficult to follow · Price point (more expensive than Powerade), especially with additional steps

THREATS · Energy drink/pre workout fad · Consumers may pick a product with fewer steps (3+ steps) · Competitors entering market · Not as much nutritional value as other performance enhancers

S.W.O.T. ANALYSIS Being a leader in the sports drink market with a total of $437,169,800 in sales in 2012, Gatorade has a massive market share and it commonly recognized as a brand. This position allows the brand to make essential partnerships with athletes and teams thus connected them to their adoring fans. Their endorsements have included Tiger Woods, Eli and Peyton Manning, Michael Jordan, Derek Jeter, and Dwight Howard. These athletes use their own credibility to promote the credibility of Gatorade. While Gatorade was originally created in 1965, they have remained on the forefront of technology, continually developing unique formulas such as G2. Additionally drinking Gatorade aids in combating dehydration by mixing a unique formula of water, carbohydrates and electrolytes. The weaknesses of Gatorade include competing in an ever-growing global market that is expanding exponentially and closing in on their market share. This gives consumers a variety of options and health fanatics are likely to base their decisions on more than just taste alone, carefully evaluating calories and other health benefits. While the Gatorade G2 line aims to fulfill this need of consumers, the 3 step series could be difficult for many consumers to follow. Furthermore, this creates an additional cost that adds to the already higher price point of Gatorade compared to competitors. Gatorade has the opportunity to combat these weaknesses. Expansions into new markets such as international would create a larger market of brand loyal consumers. Also while Gatorade has largely monopolized on endorsements in American sports such as football and basketball, ascension into other sports gives the opportunity for a diversified consumer base. Because of the loyal consumers the brand already has, Gatorade also has the opportunity to launch new products and differentiate their product line by adding products such as water enhancement of energy supplements. Products such as water enhancement and energy drinks provide a real threat to the brand. Also in other instances with diversification is positive, the additional three-step line of G2 may lead consumers to picking another product with less steps. This 3-step line also adds to the overall cost of the product, which may be detrimental as other competing products have higher nutritional value. This information is important because its analysis can be used strategically to create a relevant marketing plan to engage both new and present consumers. Tactfully addressing the strengths, weaknesses, opportunities and threats to help in identifying the target audience. Â 25

TARGET AUDIENCE Description • • • • •

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Men and women aged 18-24; primarily men Attended college or graduated from college Individuals who have never been married or are engaged to be married They have a household income between $75,000- $150,000 Occupation of these individuals are in the realm of natural resources, construction, and maintenance These individuals are mostly Caucasians and African Americans

Rationale for Target According to the MRI data, 18-44 is the current consumer age group for G2. However, within that age demographic 18-24 has the highest index (158), which is the chosen age demographic as the target audience. Moreover, the majority of the individuals who responded to the survey were in the age demographic of 18-23. Most of these individuals expressed how actively involved they are by stating that they workout four to five times a week. Also, from the responses we see that a sport drink, such as G2 is utilized the majority of the time while working out occurs and not outside of that setting. It is apparent from the responses, that nutrition plays an important role in the lives of these individuals. According to the VALS segments, the target market is focusing on the “experiencers.” These individuals are inspired through their own expression. This target segment consists of young, enthusiastic, and impulsive consumers. They look for the opportunity to move forward in their lives with new possibilities. These individuals do not walk to the beat of society but to their own beat. For them, energy is exercised through sportslike activities, recreational outdoor activities, and through their involvement in social activities. In addition, experiencers are interested in entertainment, life establishment, and the ability to purchase whatever they deem valuable.

TARGET AUDIENCE Scope of Audience According to the MRI data, the target audience is located in two main regions: • South o Top city: Houston, Texas § Total population is 2,099,451 § Males make up 1,053,517 (50.2%) of population and the remaining 1,045,934 (49.8%) are females § Within the target audience, males account for about 161,067 (7.7%) of population and women about 152,563 (7.3%) of population • West o Top city: Los Angeles, California § Total population is 3,792,621 § Of the total population, males stand for 1,889,064 (49.8%) and females 1,903,557 (50.2%) § Pertaining to the target audience, males are about 301,157 (8%) and females stand for approximately 287,759 (7.5%) of the population.

TARGET AUDIENCE A DAY IN THE LIFE OF… Anthony: “Hi, my name is Anthony. I am 22 years old. I just graduated from college with the life goal of playing professional football. I have been playing football since I joined the flag football team in elementary school. This sport has always been a passion of mine, which is why it has followed me throughout every phase of my life and why I wish to pursue it on a professional level. “While in school, I would wake up every morning for a morning workout, and then at the end of my school day I would go to football practice. I knew that if I really wanted this as a career, I needed to give it my all. Also, without this daily routine, I’m not sure where I would get energy for the day. I would have to say that my energy stems from my daily activities, especially my morning workout. “I am a very determined, driven individual that is looking forward to experiencing the finer things in life. I am the type of person that believes that I can accomplish all that I want, given that my heart and mind are focused on that desire. I put all my energy and effort into this lifestyle, no matter what life throws at me. Furthermore, when the day that I have reached my goal has come I will be grateful and begin to prepare for the next chapter in my life.”

TARGET AUDIENCE Jayme: “Hi my name is Jayme! I am 21 years old and a senior in college, majoring in architectural design. I am very enthusiastic and open to innovative ideas. I enjoy change and see it as a breath of fresh air. To me, it is important that I participate in everything that life has to offer me, instead of anticipating the moments to come because every time spent is precious. “I am a dedicated person. Each morning I wake up at 8:00AM and pour myself a cup of tea along with my breakfast. I believe that it is important to start my day off right. I also partake in a morning workout 4-5 times a week to gain my energy for the day and also maintain a healthy lifestyle. Surrounding myself in nature each day fills my mind with so many ideas, enabling my creativity. “Furthermore, I believe I am pretty crafty. With this being said, I aspire to become an architect. I want to create buildings that will capture the attention of many individuals. I have the desire to design projects that are out of the ordinary and give people an opportunity to reflect on what they see. This is the type of work that gives me life and through my life I want to inspire others to do all they can to become all they aspire to be.”

MEDIA PLAN Broad Communication Objectives •

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Develop successful Media Plan targeting males 18-24 during national professional sporting events, New Year’s Resolutions, and the beginning of the academic calendar year Increase brand awareness in target market by 30% in the first 6 months of the campaign Reinforce the idea that G2 is a healthy low-calorie sports drink and the number one choice for our target market

Marketing •

Increase sales by 13% in the first four months of the year

Advertising •

Schedule advertising to run daily on Network Television and a flighting schedule for print and online.

Media • • • • • •

Reach 50% of our target audience in the first year, ideally 30% in the first six months Achieve frequency of an average of 3 during non-flight periods and up to 5 based on popular sporting events. Continuous on Primetime Television with pulsing during sports playoffs Flighting for print based on seasonality (getting in shape, health resolutions, changing workout habits, etc.) Continuous for select sites on Internet, flighting based on program coverage Flighting for non-traditional based on o Internet Radio- seasonality o Event Sponsorship- sports coverage o Out-of-Home- academic year for the target market (males 18-24)

MEDIA PLAN MEDIA PLAN SCHEDULE

MEDIA PLAN

MEDIA PLAN TELEVISION 40% of Media Budget ($400,000)

Prime Time: • • • •

Fox Sports ESPN NBC SPIKE

Rationale: •

•

• •

Our target audience of males from 18-24 love to watch sports. Our MRI data showed that Fox Sports, ESPN, and Spike had the highest index, hence why we believe a continuous schedule would allow us to be in constant contact with our audience. We will be pulsing ads in January and February, the months leading up to the Super Bowl, to achieve a higher reach and frequency. In June, we will be pulsing during the NHL and NBA playoffs. We will be pulsing ads on NBC during January and February because that is the station that is hosting the Super Bow. In December, we will also be pulsing our ads, but for this we want to target our audience that views the drink as a low-calorie alternative to soda and the health conscious who wish to start the new year off healthy.

MEDIA PLAN PRINT 15% of Media Budget ($150,000) Magazines: • • •

Sports Illustrated Men’s Fitness ESPN the Magazine

Rationale: •

•

Flighting schedule for all three magazines taking into account seasonality and timing such as getting in shape, New Year’s Resolutions, and Spring Break The popular Sports Illustrated Swimsuit Issue released in February each year sells more than 1 million copies on newsstands ESPN The Magazine has a Composition Index of 162

MEDIA PLAN ONLINE 30% of Media Budget ($300,000)

Websites: • • •

Foxsports.com NBA.com MLB.com

Rationale: • • •

Foxsports.com has a Composition Index of 142, which is the highest listed among our MRI data that fits our target audience. All three magazines reach at least 40% of the total audience Fits in the continuous media schedule where Foxsports.com covers a variety of sports all year long as well as the flighting schedule for NBA.com and MLB.com where advertising will only be shown during the months when both sports are in season

MEDIA PLAN NON-TRADITIONAL 15% of Media Budget ($150,000)

Events:

• • • •

March Madness Chicago Marathon Iron Man Illinois Marathon

Out of Home: • • • •

Flyers in Gym Posters Vending Machines Bus Ads

Internet Radio: • •

Spotify Pandora

Rationale: •

•

Since Gatorade already is the sponsored drink as events such as the Chicago Marathon and Iron Man, we believe that focusing more on local events around college campuses related to exercise and competition would increase our awareness and reach. Our target audience works out at least 3 times a week, and they will most likely be streaming music on internet radio stations like Spotify and Pandora. In our focus group, we discovered that they perceive the brand as more of an unhealthy drink. With the ads on these stations, we would try to change that perception by advertising the low-calories and carbs With out-of-home, we want to put up flyers and posters around gyms to help promote the awareness and tie that in with placing more Gatorade G2 vending machines in easy access areas. With all of these tactics, we plan to increase the amount of 18-24 year olds who drink sports drinks while working out.

MEDIA PLAN MEDIA BUDGET OVERVIEW Gatorade G2 Media Plan will allocate its $1M budget into four different categories: • • • •

40% Primetime Television 30% Online 15% Magazines 15% Non-Traditional

MEDIA PLAN EVALUATION METHODS Non-Traditional • • •

View attendance statistics of gyms to determine how many people were reached Calculate sales from vending machines placed in gyms View bus routes and attendance statistics

Online •

•

To measure how many people we reached via our online ads, we could look at the traffic to the websites, especially during the periods where we pulse our ads Click-through rates is also vital to look at for reach

Television •

•

Look at the ratings for the stations where the ads were placed, especially during prime time sports games, i.e. Super Bowl, Stanley Cup Analyze sales a month after each prime time event to see if there was any effect.

Print • •

We would view the number of subscriptions each magazine had during that month to calculate reach and frequency To calculate total reach, we will look at the total number of magazines sold/sales statistics.

Additional Methods • • •

Analyze sales after campaign concludes and compare to previous years Conduct another survey and focus group to see if perception of G2 has changed. Find which tactic (listed above) is most effective and least effective so that we can adjust strategies for next campaign.

APPENDIX Example of Online Survey 1. How often do you exercise? • 1-3 days per week • 4-5 days per week • 6-7 days per week • Never 2. If you do work out, what do you drink during/after? • Water • Sports drinks • Energy drinks • Other • I don’t work out 3. Do you drink sports drinks (like Gatorade or Powerade) outside of your time spent exercising? • Yes • No 4. On a scale from 1 (not important) to 7 (very important), how important is hydration to you while working out? Not Important 1

Very Important 2

APPENDIX 5. On a scale of 1 (not healthy) to 7 (very healthy), how healthy do you think sports drink Gatorade G2 is? Not Healthy 1

Very Healthy 2

6. In advertisements with sports drinks, do you feel misled by their worth or nutritional value? • Yes • No • Sometimes • Depends on the brand 7. Do you take health information into account on sports drink bottle? • Yes, I value health information while exercising. • Yes, but it is not my top priority. • No, I drink for other aspects like taste, brand, replenishment, etc. • No, I do not value health information for sports drinks. 8. Would you switch brands based on their health/nutritional value? • Yes, I would consider it. • No, it would not affect my choice of brands. 9. What is your age? ______________ 10. What is your gender? • Female • Male • N/A

APPENDIX Example of Focus Group Pre-Screening Questions 1. Do you drink sports drinks? • Yes • No 2. Why do you drink sports drinks? Select all that apply. • Taste • Price • Nutritional benefits • Hydration for workouts • Other 3. Do you drink Gatorade G2? • Yes • No 4. Are you brand loyal? • Yes • No 5. How often do you drink Gatorade G2? • Never • Rarely • Sometimes • Often • Almost everyday 6. Do you drink Gatorade G2 when you are not working out? • Yes, I drink it post-workout • Yes, I drink it as an everyday beverage • Both A and B • No, I only drink it when I work out 7. What is the most appealing aspect to you about Gatorade G2? • Taste • Low calorie • Price • Other 41

APPENDIX 8. What perceptions do you have about Powerade? ____________________ 9. What perceptions do you have about Mio? ______________________ 10. Working out is an important aspect to my lifestyle. Strongly Disagree 1

Strongly Agree 2

11. Nutritional information is something I look at on sports drinks. Strongly Disagree 1

Strongly Agree 2

12. How often do you watch TV? (Does not include streaming shows online, i.e. Netflix, Hulu, etc.) • Once a month • Once a week • 1-3 times per week • 4-5 times per week • Daily 13. How often do you use social media? • Everyday, all day • Few times a week • Once a week • Once a month 14. How old are you? _________________ 15. What is your gender? • Male • Female • N/A

APPENDIX Example of Focus Group Tactic Questions Personification: • • • •

If you could describe Gatorade in 3 words, what would they be and why? If the brand were a celebrity, who would it be? If Powerade were a celebrity, who would it be? If you were the product manager, what would you do to improve the product?

Word Association: • • • • •

Who do you think the ideal customer is for G2? What is your overall opinion of sports drinks? When you think of G2, what is the first thing you think of? If you were the product designer, what would be the most important feature to you (health, taste, other, energy, hydration…)? If G2 could talk, what it would it say to you?

Extra Credit: Yes. The rubric was well organized and easy to follow. Every section was split into different parts and allowed us to have a continuous flow of our media plan booklet.

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