Marketing Plan for Gatorade
Vision
Our vision is to be the best sport drink in Myanmar. Being the best means providing outstanding quality,
service, cleanliness and value, so that their every customer is contented and happy with their products.
Mission
Our mission is to be the best-selling Sport Drink with the premium quality in major cities of Myanmar.
We focus on sport drink and energy drink concept. We seek to produce delightful aftertaste and
performance reward to customer even as we provide sport event and health care.
Product
Since Myanmar is still a growing economy it is not wise to distribute all of the products of Gatorade.
Furthermore, it will take lots of resources to distribute all of the products at once and it can confuse the
customers since there are many products under the same brand. It will cause lots and lots of financial in
branding and less effective in marketing. So, there will be only two product-lines which we can focus on.
These two products are:
Gatorade Thirst Quencher
G2
Thirst Quencher has 28 different flavors. However, introducing this many flavor will not be effective in
introduction stage of the product since it can lead to confusion of the customers. Therefore, we will focus on
four different flavors. These four flavors will be lemon-lime, berry, mango Xtremo and cool blue. G2 is the
second generation of Thirst Quencher which has the same effect but contain lower calorie which is perfect in
today’s trend who are trying to lose weight. There are 9 flavors in G2 but like Thirst Quencher we will
introduce only four flavors which will be orange, grape, fruit punch and glacier freeze. There will be two
packaging sizes which are 12 US fl oz (240 ml) and 16.9 fl oz (500 ml).
Price
Product name Retail Price (kyats)
Thirst Quencher 240ml 1000 kyats
G2 240ml 1000 kyats
Thirst Quencher 500ml 1400 kyats
G2 500 ml 1400 kyats
Place (Distribution Channel)
For Yangon,
Gatorade Myanmar
Warehouse
Retail shops Small stores
B2B buyers
(e.g gyms)
Consumers
PESTEL analysis on Myanmar
Political factor
In 2015, there is an Election in Myanmar which changes the whole nation. The National League for
Democracy party which is led by Aung San Su Kyi who won the Nobel Peace Prize award in 1996 won the
election. This changes the whole political instability faced before since the other countries trusted her a lot.
It is a great possibility that there will be no more sanction to Myanmar and the political policy will be stable.
Economic factor
Myanmar Economy has been growing rapidly lately and the whole economy has been blooming, since
tourism has been open to Myanmar. The currency exchange has been stable and it is the greatest effect on
the investment plan.
Technological factor
Myanmar has been slow in improving in Technology since there was oppression for about 60 years. The
greatest threat to investment is that there are shortage of electricity and not enough infrastructures for the
suburb area.
Environmental factor
There has been concern about environmental issues about deforestations and river pollutions and since
people are paying more attention and activist are watching closely it can become the threat to the foreign
companies.
Legal factor
Legal system in Myanmar can be said corrupted till now and there is no effective law to protect copy-right
and consumer protection law.
SWOT analysis
Strength Weakness
World leading brand Relatively higher price
Strong financial resources Unfamiliar product category in Myanmar
Premium quality products Lack of awareness
Well-marketed internationally
Different flavors
Opportunities Threats
The economy is still growing rapidly Lack of technology
Increasing number of fitness centres Sensitive environmental issues
Myanmar National League Weak legal system
Stable political policy Many substitute products (indirect
competitors)
Competitors’ Analysis
Direct Competitor
There is only one direct competitor for Gatorade which is Pocari sweat. This is the brand which
manufactures non-carbonated isotonic drink developed by Otsuka Pharmaceutical Company Limited in
Japan. The reason of being the only direct competitor of Gastorade is that Pocari Sweat has the same effect
on the body as the Gatorade which makes it in the same product category of Sport Drinks. Although they
have the first mover advantage as a sport drink, we can be able to compete them with the quality of the
drink as well as the variety of the flavors. Currently Pocari Sweat’s main competitors are 100 plus, Purified
Drinking Water companies and other soft drink companies including Energy Drinks.
Indirect Competitors
One of the major weaknesses of Gatorade in Myanmar is that it has many substitute products widely
available in Myanmar. These include Purified Drinking Water companies like Alpine, Designer Water, etc. ,
energy drink which has almost the same effect as sport drinks such as Red Bull, Shark, etc and soft drink like
Coca-cola, Max plus, Pepsi, Blue-Mountain, etc. Unlike the other developed countries such as United States
of America, UK, Japan etc. Myanmar people often drink water when they feel thirsty or hot. Even after
physical exercises or sports they mostly drink water or soft drinks. This is one of the reasons Pocari Sweat
has to compete against them as direct competitors since there is only little market as sport drink. However
we should not compete directly against them but try to change the mindset of the public by educating public
that sport drinks unlike energy drinks or carbonated soft drink is a healthy beverage which can boost one’s
performance in physical strain.
Marketing objectives
Year Marketing Objective
First Year To gain awareness, educated public and gain 2% of beverage market in
Myanmar with minimum losses
Second Year To increase the sales by 20% from the previous year and to gain more loyal
customers
Third Year To achieve Break-even Point of the product and to maintain our market
share through promotion and events.
Targeted Markets
Gatorade is a sport drink. So obviously, our primary target customers are athletes or people who like sports,
body-builders, trainers and the people who do exercises regularly or go to the fitness centers regularly with
the age range of 10 to 40. Other targeted customers are high school and college students with energetic and
outgoing personality.
Brand positioning of Gatorade
The Brand mantra of the Gatorade is “For that deep down body thirst.” The meaning is that it can satisfy
much more than the thirst for water. It can satisfy you for the win that you thirst for in the competition. As a
differentiation phrase in advertising, the advertising would include “healthy professional drink ““work 30%
faster than water in hydration” “refresh your fatigue” “choose your favorite flavors”. Brand positioning of
Gatorade would be difficult since it is hard to categorize the Point of Parity (POP). You have to create your
own category and persuade people to accept it as a sport drink. Point of different (POD) would be it re-
energize your fatigue and perform better and it is proven on the field of sports.
Brand Image
Gatorade has become so recognizable, thar soon enough one bolt of lightning will stand alone as the logo.
They no longer need the full “Gatorade” name for consumers to know the brand behind the product. It’s
iconic. Their later packaging design is sleek, and more sophisticated compared to past designs. A design
revamp was necessary because the intended Gatorade consumer is a confident athlete – a winner. Gatorade
is the leader in the market, and they continually prove to consumers and their competitors that they will stay
ahead.
Strategies
Firstly, there will be two kinds of products with 8 flavors with two packaging sizes; 240 ml and 500 ml for the
first year as introducing our products. By second years, we will try to add more flavors while increasing the
sales of the products. The main reason of this strategy is that if we introduce more than 8 flavors, the
customers might confuse the products since they are not familiar with the products. So we will try to focus
on those 8 flavors. Another advantage of that strategy is that after one year, people will start accepting our
products and demanding more. So it will cause effect on new product and can boosts our sales by
introducing new tastes.
For the prices, it is already expensive enough to compete so in order to control the prices, we will make
distribution by ourselves in Yangon region. However there will be more marketing channels in between in
other states and divisions since we need local knowledge and experiences. But the final price will be set by
making contract with the wholesales and the retails. Moreover there will also be bundle discounts like 12
packs discount. The core pricing strategy would be premium pricing strategy. However since it is more
important to gain market share than profit, we will use discounting and trade-in allowance pricing strategy.
Distribution
For the distribution channels for the first year we will use selective distribution strategy. As shown in above,
there will be two teams in distribution department. One team is the B2B distribution channels and the other
is the retails and small shops. B2B channels include private schools, football clubs, sports stadiums etc. the
retail shops in clued Ocean, city marts, Sein Gay Har etc. small stores would be convenience stores. Starting
from 2nd year extensive distribution channel will be used with more marketing channel partners.
Integrated marketing communication
For the integrated marketing programs we will use advertising a lot through mass media, sales promotion
plans, sports events and music festivals, CSR programs, internet and social media marketing and also
personal selling. For the advertising, we will firstly use televisions especially the programs that young people
and teenagers like. For example, Myanmar’s got talent, Myanmar Idol etc. For the radio, we will air at the
rush hour time like lunch breaks. The ads will be shown cinema that is showing the trendy movie for the first
four days. There will be bill board in the downtown area. For the sales promotions, sampling program will be
used for 5 months in selective government schools and private high schools, we will give samples to the
students who are playing any kind of sports. For the first year, each bundle buy for example 12 packs we will
give 1 extra 500 ml G2 in sales promotion. We will give free drinks to the athletes in sports events and in
second year we will sponsor the sport events like college basketball league or sponsor soccer club from MNL.
In second year we will host the music festival in Myanmar like Electro Dancing Music (EDM) which is very
popular among teenagers and young adults. The social media marketing is also very important since it is very
cost effective and its coverage is enormous. Moreover, we can gather a lot of feedback which can be very
useful in market research. We can hold artistic competition or competition of photography through
Facebook to promote the page. Lastly, personal selling is for the B2B customers. We will make an
appointment to the soccer club to sell personally since the team might buy sport drinks as facilities for the
athletes. For the CSR program, Myanmar face flood every year and we will donate 1 G2 of every 10 bottles
of Gatorade sold to the flood victims.
Marketing calendar for the first year
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
April
Mar
Feb
Jan
Ads/Radio Billboard Samples Sales Sports Music Social
promotion sponsor festival media
Marketing calendar for the second Year
Dec
Nov
Oct
Sep
Aug
Jul
Jun
May
April
Mar
Feb
Jan
Ads/Radio Billboard Samples Sales Sport Music Social
promotions sponsor festival media
Marketing calendar for the third year would be similar to that of year 2 if not identical.
Financial plan
Break-even point = Fixed costs/ (price-variable costs)
=667,200,000/750 (average)-225
=667,200,000/525
=1,270, 857 units
To get to the break-even point, the company has to sell 1,270, 857 units of Gatorade products.
Sales forecasts
First year Second Third Fourth Fifth
(Units) year year year year
(Units) (Units) (Units) (Units)
10,000 20,000 35,000 40,000 41,000
Jan
10,000 21,000 36,000 42,000 40,000
Feb
12,000 23,000 35,000 41,000 40,000
Mar
13,000 21,000 33,000 40,000 38,000
Apr
13,000 25,000 38,000 38,000 40,000
May
15,000 28,000 36,000 39,000 39,000
Jun
14,000 27,000 39,000 38,000 38,000
Jul
20,000 30,000 38,000 37,000 39,000
Aug
20,000 30,000 37,000 38,000 40,000
Sep
25,000 34,000 39,000 38,000 39,000
Aug
25,000 33,000 40,000 39,000 40,000
Nov
25,000 35,000 40,000 40,000 40,000
Dec
202,000 327,000 446,000 47,000 474,000 1,919,000
Total
According to this sales forecast and the analysis, the company would get break-even point in the third year
of august. After that point every sales that company made is the profits flowing into the organization.
After 5 year sales forecast the company is expected to get:
1,919,000-1,270,857=648,143 units *525 (contribution margin)
=340,275,075 kyats
Expense forecast
1st year 2nd year 3rd year Total
(kyats) (kyats) (kyats) (kyats)
Advs /Radio 54,000,000 30,000,000 30,000,000 114,000,000
Billboard 18,000,000 15,000,000 15,000,000 48,000,000
Samples 11,250,000 4,500,000 0 15,750,000
Soccer 50,000,000 50,000,000 50,000,000 150,000,000
sponsorship
Music festival 0 30,000,000 30,000,000 60,000,000
387,750,000
