The Homa Files

TakeAway: Since its inception, Gatorade sales have increased every year.  However, with a tough economy and intense competition, sales have decreased for the first time in Gatorade’s history.

To right the ship, Gatorade is introducing a revamped product line closely aligned with a versioning strategy. 

Not only will there be three different types of Gatorade for the main product line, but there will be a similar “pro” series for serious athletes. 

It’s been a winning strategy for software, but will it work for sports drinks?

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Excerpted from Brandchannel, “Gatorade Focuses Brand on Athletes with G-Series Pro,” by Dale Buss, August 14, 2010

Gatorade took a huge step in the revitalization of its brand today by revealing a new structure for its mainstream product line, the G Series … and … “G-Series Pro” products … for serious athletes.

Gatorade’s chief marketing officer, Sarah Robb O’Hagan, shared the rationale behind the new brand architecture …

Gatorade “is a formidable franchise,” … “But we haven’t had the right performance the last few years.” …

Despite being one of PepsiCo’s most profitable brands, Gatorade lost significant sales volume last year for the first time ever because of financial pressures on consumers — most of that loss … going to lower-priced carbonated soft drinks and even to tap water. Gatorade also had lost market share over the years to a proliferation of other better-for-you beverage types and products, and to its own shift in emphasis to “lifestyle” rather than hard-core athletic consumers. …

Gatorade’s new product-line structure carries the “G” branding in the next logical step with the G Series. G Series 01 Prime is positioned as “pre-game fuel” and an “energy to start” beverage for consumption before athletic activity; 02 Perform drinks include the brand’s pre-existing Gatorade Thirst Quencher line and G2, a low-cal Gatorade for hydration during activities; and 03 Recover drinks include 10 to 20 grams of protein per serving to help body recovery from exertion.

The G-Series Pro line, which is to be carried exclusively in the U.S. in GNC’s 5,500 stores, uses the same functional logic. “But this is a line that has only been available to elite athletes in pro locker rooms for the last 15 years,” O’Hagan explained to analysts. “For the first time we’re choosing to commercialize them and take them to the consumer.” …

The brand’s presentation today to analysts went a long way toward answering questions about Gatorade’s future. The crucial next step: executing the new rationale so that consumers develop a thirst for Gatorade — and keep coming back.

Edit by DMG

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Full Article
http://www.brandchannel.com/home/post/2010/09/14/Gatorade-Overhauls-Brand-Architecture.aspx

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This entry was posted on September 21, 2010 at 6:20 am and is filed under Mktg - Positioning, Mktg - Versioning. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.