Gatorade Strategic Media Plan: COMM 3345 Marketing Situation Analysis: Marketing Problem and Competitor Identification: In order to analyze the marketing problem, we conducted a SWOT analysis of Gatorade’s 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 Bull’s 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 Bull’s 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) PowerAde’s 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 Glaceau’s 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 Gatorade’s 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 Year’s. 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 audience’s 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 Year’s. 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 media’s 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 won’t 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 Facebook’s 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 people’s 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 women’s 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 “Women’s 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 “Women’s Health” circulates roughly 1,500,000 copies. “Women’s 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. Cosmo’s tagline is “Fun Fearless Female,” which is consistent with Gatorade’s 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-Magazine’s tagline of “Empowered. Inspired” also coincides with Gatorade’s campaign as it encourages and empowers young females to pursue a healthy lifestyle (codenast.com). We plan to place a full-page ad in Women’s 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 we’ve 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% Women’s 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 + Women’s health- (Cosmo/self X Women’s 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 Gatorade’s message of the print ads and strengthen target audience involvement. The television ads will help to attain the desired frequency of Gatorade’s 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 Gatorade’s. 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 Family’s “Pretty Little Liar’s”. “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 Fox’s “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 Year’s. 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 Gatorade’s brand message Selena Gomez’s 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 Women’s Health: $430,000 $215,000 for a 2 page advertisement (Gaebler - Women’s 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 Women’s Health Magazine and a 1-page layout in Cosmo. Women’s 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. 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