Essay - Business Marketing Proposal for Gatorade's Expansion into International Markets Please...

Business Marketing Proposal for Gatorade's Expansion into International Markets

***** see the attachment, which contains my analysis and marketing recommendations on Gatorade's Strategy for ***** Markets. The analysis and recommendations have been developed based on recent market trends. I am strongly convinced that given ***** undisputed success in ***** U.S. sports dr*****k market; there is a strong case to invest in expanding its consumer franchise in international markets. Such expansion will allow Gatorade to build on its already existing status as the world leader in sports drink, reduce dependence ***** ***** U.S. market and lead to strong revenue and profitability increases.

*****: Ga*****rade's sales, ***** was acquired by Quaker Oats in 1983, has grown from $100 million in 1984 to over $2 billion worldwide ***** **********. The brand commands 85% share of the sports drink category in the U.S.,1 contributing 33% ***** total sales and growing at an *****nual double-digit rate, outpacing the ********** general foods industry. Realizing that 80% of its customers were in the U.S. and Canada, Gatorade turned ***** attention to potentially large ***** important global markets such as Latin America, Europe and China. 2 ***** w***** launched in Australia, Brazil, Singapore and Mexico in 1994; Ch*****a, Indonesia, Columbia and ***** Philippines in 1995; and the Middle East and South Africa ***** 1996.3 Ho*****ever, ***** Quaker's relative lack of global resources, Gatorade faces many challenges in international *****.

*****: The objective ***** this paper is to evaluate the opportunities ***** challenges ***** Gatorade in key international markets and to recommend marketing solutions.

Situation Analysis: A ***** fac*****r in *****'s success has been the ongoing research conducted ***** the Gatorade Sports Science Institute (GSSI), where scientists work to ensure that nothing hydrates an athlete's body faster and better than Gatorade.4

This implies ***** Gatorade's target audience lies among the youth. Though the 'Baby Boomers' are ageing in the U.S., this trend is also accompanied by an emerging 'youth bulge' (refer Table 1). Therefore, Gatorade will continue to see further growth potential, especially since non-carbonated drinks still account for only about *****4 gallons of single-serves, as compared to 55 ***** per year for carbonated beverages. Year *****000 saw the $17.8 billion ***** market ***** individually sold ***** beverages grow by 13%, while the $60 ***** carbonated soft drink market increase by only 4%.5

However, competition ***** increasing, with ********** becoming more health conscious leading to soda sales becoming flat, resulting in both Coke *****d Pepsi turn*****g their attention ***** the higher margin, non-soda business (including *****ll Sport and Powerade) and launching a number of brands in segments ranging from calcium-fortified waters to vitamin-enriched drinks.6 The increased focus of the cola majors on *****s is taking place, not just in ***** domestic market, but globally as well. October 2001 will see ***** launch ***** ***** Europe, with plans to make the campaign its biggest marketing project in the region in six years, with ********** ranging ***** $40 to $50 million 7 (including a high level sponsorship plan such as Powerade