This was my group's deliverable for our Communication 462 Persuasive Communication final project.

1. KENDALL GORDON
DAVID HOOGMOED
JAIME LAPA
MELISSA RICH
EMILY WILHELM

2. 1 2
TABLE OF CONTENTS
Executive Summary
Situation Analysis
Company Analysis
Consumer Analysis
Market Analysis
Product Analysis
Competitive Analysis
SWOT
Objectives
Positioning Statement
Marketing Communication Strategy
Creative Strategy
Target Marget
Media Strategy
Media Tactics
Sales Promotions
Other MarComms
Budjet
Campaign Evaluation
References
Appendix
Sales Trends
Environmental Trends
Skills & Resources

3. 3 4
EXECUTIVE SUMMARY
The Coca-Cola Company is one of the largest beverage
manufacturers in the world. Its highly recognizable brand name and
logo along with an immense presence in popular culture contribute
to its invaluable brand equity. While Coca-Cola dominates PepsiCo
in the non-alcoholic beverage category, PepsiCo’s Gatorade controls
the sports drink category and has consistently posed unsurpassable
competition to Coca-Cola’s Powerade. Our consumer insights
revealed that despite overall loyalty to Coca-Cola, high brand loyalty
to Gatorade poses a significant barrier to encouraging consumers to
switch brands or increase their consumption of Powerade. We hope
to overcome this obstacle by reinvigorating Powerade’s marketing
strategy.
Due to societal shifts, the sports drink category as a whole
has potential to grow as consumers seek to lead healthier and more fit
lifestyles. As a result of a greater number of active consumers, Coca-
Cola has the opportunity to gain additional market share and brand
awareness among new and existing consumers with the Powerade
brand. We intend to expand our consumer base by targeting young
(13-24 years old), passionate, and active individuals--more specifically,
the amateur athlete striving for success. Because we are hoping to
capture these impressionable consumers as consistent Powerade
users early on, we expect to elicit unwavering brand loyalty as they
continue to use the product for years to come.
Although Powerade has experienced revenue growth in recent
years, it has been aligned with overall category growth, showing that
they are not gaining share relative to their main competitor, Gatorade.
According to our consumer insights found through focus groups,
Powerade’s current marketing, which consists mostly of television
advertising, is contributing to their failure to catch up to Gatorade’s
dominance. Overall, Powerade’s advertising is unmemorable among
our target consumers, who hold largely unfavorable perceptions of
Powerade as compared to Gatorade and fail to understand the
specific benefits of Powerade. Our consumers consistently choose
Gatorade because of their heart loyalty to the brand. Thus, we
believe that highlighting specific nutritional benefits of Powerade while
portraying a relatable and desirable image will cause our target
consumers to reassess their sports drink preference. The Powerade
ION4 brand must differentiate itself from its main competitor in order
to garner the trust of its own loyal consumers and establish brand
equity.
Our campaign’s primary marketing objective is to increase
market share by stealing share from our main competitor, while we
also aim to reposition the Powerade brand in our target consumers’
minds. The new Powerade campaign will highlight the ION4 formula
components by giving each electrolyte in Powerade’s formula a
unique character and personality. Using three young Olympians,
who each embody a different electrolyte, Powerade will make the
athletes come alive to reflect the attributes of the electrolyte they
represent. Finally, to encourage interaction with our target market,
young, undiscovered athletes can enter our nationwide “Find the 4th”
competition in order to win the chance to represent the brand as the
fourth electrolyte. As the campaign comes to a close, consumers will
know in their minds and their hearts that Powerade is no longer the
inferior sports drink brand.
SITUATION ANALYSIS
This situation analysis looks at the ready-to-drink sport drink
market with a particular emphasis on the Powerade brand,
which is owned by Coca-Cola, Inc. Included in this section
is an in-depth analysis on the Powerade brand with specific
focus on a company analysis--including sales, environmental
trends and skills and resources--current consumer analysis,
product analysis, and competitive analysis.

4. 5
The functional and natural beverage category industry has
seen overall growth from 2006 to 2010. In 2010, aggregated retail
sales of energy drinks, sports drinks, and functional waters were
up to $23.4 billion from $18.9 billion in 2006. Despite an intervening
recession, which saw many consumers tighten their discretionary
spending, the category grew by a compound annual growth rate
(CAGR) of 5.5% (MarketResearch, 2011).
The sports drink segment specifically has experienced growth
from 2006 to 2010. In 2010 alone, the segment increased 811.0%,
reaching $1.706 billion. The two major players, PepsiCo (the Quaker
Oats Company) and Coca-Cola together account for 98.5% of all
sales in the sports drink category. PepsiCo’s Gatorade dominates the
category with $1.3 billion in sales and a healthy 6% growth rate,
which equates to nearly 76% of the market share. On the other hand
Coca-Cola’s Powerade follows with 23% share in 2010, based on
$393 million in sales and a robust 28% growth rate (MarketResearch,
2011).
Sports drink manufactures have positioned their products in
recent years to reduce the conceptual divide between scientifically
engineered “functional” beverages (sports drinks) and “natural”
beverages (coffee, tea, and water). The number of “natural” claims
in new sports drink products is at 35%, while in comparison, 49% of
the refrigerated yogurt drinks or fruit/vegetable smoothie drinks make
similar claims (MarketResearch, 2011).
Emerging from a rebounding economy at the turn of the
latest decade was a new group of health conscious consumers.
A 2011 Datamonitor consumer survey revealed that over 80% of
consumers around the world expressed interest in buying healthier
food and beverages (Marketline, 2011). Their lifestyle habits reflected
a higher need for natural and healthier consumption options as
well as improved activity schedules. The sports drink category was
in a position to capitalize on these new trends, both from a drink
consumption standpoint as well as making consumers feel energized
to increase physical activity. While sports drinks have always
contained benefits beyond hydration, the industry created marketing
efforts to emphasize the individual properties of esoteric vitamins and
minerals (MarketResearch, 2011).
Coca-Cola took advantage of the market shift with their
Powerade brand and began to highlight the health benefits while
Gatorade continued to be marketed as a “social beverage.” First-
mover advantages of repositioning the product allowed Powerade
to realize greater market share growth than Gatorade in the past
five years (MarketResearch, 2011). Using scientific formulation,
Powerade introduced the ION4 line, which contains four essential
electrolytes: sodium, potassium, calcium, and magnesium (Marketline,
2011). While the increase in health conscious consumers was the
largest opportunity for Powerade to capitalize on, they also took
advantage of the growth in the U.S. Hispanic population as it was still
an untapped user base.
In 2010, Powerade became the official drink provider of FIFA
to hydrate players during the 2010 FIFA World Cup (MarketResearch,
2011). The marketing efforts for the soccer market was to attract this
growing segment of Hispanic immigrants now living in the U.S. Due
to the demographic having a higher probability of performing labor
intensive jobs, they were an ideal target for a rehydration product (PR
Newswire, 2012).
COMPANY ANALYSIS
The Coca-Cola Company is the one of the world’s largest
beverage manufacturers, with revenues of $46,542 million in 2011.
The company produces over 3,500 products including sparkling
beverages, juices, waters, sports drinks, teas and coffee. The Coca-
Cola Company owns four of the five top nonalcoholic beverage
brands, including Coca-Cola, Diet Coke, Sprite, and Fanta. The only
competing beverage to come close is Pepsi (PepsiCo), which is the
second top-selling beverage behind Coca-Cola. Further, Coca-Cola
and Diet Coke outsell their Pepsi counterparts by more than two to
one. Coca-Cola’s other billion dollar brands include Coca-Cola Zero,
Minute Maid, Dasani, Powerade, and Vitamin Water, among others
(Mintel, 2013).
Being the world’s largest seller of soft drinks, Coca-Cola
has various skills and resources that contribute to its success. The
strong brand variety listed above leads to Coca-Cola’s strong market
presence, which has been steadily increasing in sales and profitability.
From 2010 to 2011, the company recorded an increase of 32.5% in
revenue to reach $46,542 million (Mintel, 2013). A chart with sales
and total assets information from the last five recorded years can be
found in Figure 1.
During 2012, The Coca-Cola Company’s higher global volume
led to a 5% increase in income from $8.584 million to $9.019 million.
The company grew in global volume and value share in beverages
across almost every nonalcoholic ready-to-drink beverage in their
category (Mintel, 2013).
Other resources that contribute to Coca-Cola’s dominance
in the industry include a strong bottling partnership called the Coca-
Cola system. This network allows the company to produce different
products for the right channels and consumers, thereby maximizing
efficiency of production and increasing sales. The company also
invests in providing expertise and resources to strengthen the business
of bottling partners. (MarketLine, 2012.)
Finally, Coca-Cola’s efforts towards being a sustainable
company include reducing the impact of their packaging on the
environment. In 2009, they created and introduced a PET bottle, the
PlantBottle, which contains 30% renewable plant-based PET and is
fully recyclable. Coca-Cola hopes to use solely PlantBottle packaging
in every plastic bottle sold by 2020 (Passport, 2012). Further, Coca-
Cola uses strategies to reduce risks of water stress in its operations.
The company’s operations use only 1% of its “product total water
footprint,” with 99% of water needs occurring at the “raw material
level in order to produce packaging, sugar, and other ingredients”
(Passport, 2012).
SALES TRENDS
ENVIRONMENTAL ANALYSIS
SKILLS & RESOURCES
Figure 1: Coca-Cola Total Sales, 2013-2017

5. CONSUMER ANALYSIS
North America accounts for the most significant portion of
global sports drink sales according to Euromonitor International’s
analysis of the sports drink category in 2009 (see Figure 2). The
primary consumers of sports drinks in the U.S. are men ages 18-24,
households with children, and teenagers (Mintel, 2012). Of the male
consumers, 61% of 18-34 year-old respondents from the January
2013 Experian Simmons NCS/NHCS survey drink Powerade. Less
than half of female respondents (44%) drink Powerade and Powerade
Zero. Younger adults and teenagers have also become frequent
consumers of Powerade because they have a greater affinity for
sweet drinks, a higher level of athletic participation, and less concern
over sugar and caloric intake. Households in the $50K-99.9K range
are most likely to report usage of Powerade products (Mintel, 2013).
This fact can be linked to children participating in sporting events,
as seen in Figure 3 (Mintel, 2012). Powerade’s consumers are also
on the run, making them more likely to agree that fast food fits
their lifestyle and that they are too busy to take care of themselves
(Packaged Facts, 2011).
Athletic participation is a common characteristic among
those who consume Powerade (Mintel, 2012). Consumers who
report that they exercise are almost twice as likely to consume
performance drinks than those who do not exercise. These results
are not surprising given that performance drink brands are formulated
around consumers that require rehydration--from sports drinks like
Powerade--after physical activity. Those who report low levels of
physical activity and drink Powerade do so for general rehydration
purposes or simply for the taste of the beverage. Because of such
an emphasis on athleticism and hydration in their lives, Powerade
consumers look for and value energy boosting qualities, vitamins and
minerals, electrolytes, and protein in their performance drinks (Mintel,
2013).
Based on Experian Simmons NCS/NHCS survey data (2008-
2012), the average frequency of consuming sports drinks is 4.48-
4.63 glasses. More than half of the male respondents have had at
least five glasses over the past 30 days. The difference in frequency
of consumption is more pronounced by age than gender, which can
be seen in Figure 4. Consumers in the 18-24 age group who drink
sports drinks consumed at least ten glasses within the last 30 days
compared to less than four glasses consumed by those aged 65
and over (Mintel, 2012).
In terms of purchase location, consumers buy Powerade at
supermarkets, Walmart, Target, convenience stores, warehouse
clubs, and drugs stores. Purchasing beverages in bulk, as opposed
to individually, from warehouse stores suggests that consumers
have incorporated the product into their daily routine. One quarter of
consumers who earn less than $25K report that they purchase other
brands of performance drinks, as seen in Figure 5. This hints at the
importance of price. Private label or less mainstream brands appeal
to lower-income consumers who are price sensitive (Mintel, 2013).
Vending in the workplace and school is another channel through
which consumers purchase Powerade, as Mintel (2013) data states
that 68% of users purchase Powerade from vending machines.
Figure 2: Sports Drink Sales by Region: % Total
RTD Volume 2009
Figure 3: Purchase & Use of Sports Drinks by Households with Children, 2012
Figure 4: Personal Comsumption of Performance Drinks by Gender & Age, 2012
Figure 5: Household Consumption of Performance Drinks by Income, 2012

6. PRODUCT ANALYSIS
Powerade has two product lines currently on the market:
Powerade ION4 and Powerade ZERO, which is Powerade’s zero
sugar option. See Appendix A for full product line information and
flavors.
Based on the Executive Summary of Sport Drinks in the U.S.
from September 2012 (Mintel), sales trends have shown sport drinks
to be on the rise. As seen in Figure 6, there is a somewhat steady rise
in sales for diet sports drinks from 2008 that is forecasted to continue
into 2017. Apart from a dip in sales between 2008 and 2009, regular
sports drink sales have steadily risen, although a plateau in sales did
occur between 2011 and 2013. Though sales are rising more rapidly
for diet sports drinks, Mintel is forecasting significant growth in regular
sports drink sales starting in 2014. Based on Figure 6, sports drinks
are still in the growth stage of the product life cycle (introduction,
growth, maturity, decline). Mintel projects the market for sports drinks
to grow by 52% from 2013-2017. Diet sports drinks will lead this
growth as Americans continue to place more importance on health
and wellness (Mintel, 2012).
The distribution channels for sports drinks are vast, including
a variety of supermarkets, drug stores, convenience stores, dollar
stores and club stores. Sales in 2009 dropped across the board
(see Figure 7) and no distribution channel was immune to the decline.
However, as growth returned to the market in 2010-11, supermarkets
and drug stores did not see the double-digit growth that convenience
stores and other retailers experienced.
While supermarket sales grew from 2010-2012, convenience
stores outpaced supermarkets and category growth to gain 2.8
points of market share. Convenience stores account for the largest
share of sales in 2012 with 37% of total U.S. sales (see Figure 8).
Convenience stores and other retailers, such as dollar stores,
saw more than 10% growth in both 2010 and 2011. Keeping small-
format, grab-and-go products available for sales in these distribution
channels will be important to future sales growth (Mintel, 2012)
Supermarket sales of sports drinks have suffered from a
middle ground syndrome because they are less convenient than
convenience stores and have higher prices than mass merchandisers
or club stores, such as Costco Wholesale and Sam’s Club.
Supermarkets often resort to extreme discounting on sports drinks in
order to drive volume sales. This price promotion is important to help
curb future losses, but another important strategy will be attempting
to mimic the convenience of other outlets by keeping refrigerated
products available in store aisles and at checkout stands (Mintel,
2012)
Figure 6: Total U.S. Retail Sales of Sports Drinks, by Segment, 2007-2017
Figure 7: Total U.S. Retail Sales of Sports Drinks, by channel, at current prices, 2007-12
Drugstore sales of sports drinks grew by 18% from 2007-
2012 with slow but steady increases every year, except 2009. With an
emphasis on healthy eating, drug stores such as Walgreens position
diet and natural sport drinks near fresh salads and sandwiches,
offering a healthy pairing (Mintel, 2012)
Convenience store sales of sports drinks grew by 32% from
2007-2012 and rebounded with double-digit growth in 2010-2011
after falling in 2009. A general interest in convenience, as well as
the popularity of this channel among young consumers, explains the
rise of convenience store sales. Sales through retailers other than
supermarkets, drug stores, and convenience stores grew by 30%
from 2007-2012 as consumers looked for discounts through dollar
and club stores (Mintel, 2012).
Based on the product life cycle stage of sports drinks,
Powerade sales are forecasted to grow through 2017 and
convenience stores will remain an important distribution channel due
to consumer’s need for convenience and grab-and-go products.
Figure 8: Total U.S. Sales of Sports Drinks, by channel, at current prices, 2010-2012

7. COMPETITIVE ANALYSIS
Powerade is one of the two main competitors in the sports
drink market, which is in the larger category of functional drinks.
Also under the functional beverages category are energy drinks and
nutraceutical drinks—drinks that have some added health benefit.
There is a vast amount of diversity in terms of the products within
the overall category, largely based on the type of functional additives
used. The end consumer is thus presented with a range of products
offering similar nutritional content, which means that for Powerade,
there are a great deal of potential substitutes within the functional
drink category alone. Such a high need to differentiate among the
products in this category also decreases the prices of the products
and forces players to spend more money on advertising (MarketLine,
2011).
The functional drinks market in the United States is
concentrated; 67.7% of the market’s total volume of sales comes
from just the top three brands. However, there is an opportunity
for new entrants as long as the company is large enough to obtain
economies of scale in production and is able to invest heavily in brand
building strategies (MarketLine, 2011).
PepsiCo is Powerade’s most direct competitor, leading the
sports drink market with the Quaker Oats Company’s Gatorade,
which has 76% market share and $1.3 billion in sales in 2011. Coca-
Cola’s Powerade follows with 23% share of the United States sports
drink market and $393 million in sales (MarketResearch, 2011).
However, new launches from these two existing brands seem to
result in cannibalism rather than adding sales volume. Of the leading
20 sports drinks brands in the United States, 11 are product line
extensions of Gatorade, and 6 are extensions of Powerade. All Sport
is the only other sports drink brand accounted for, along with private
label brands. Compared to Gatorade, Powerade products are priced
lower overall (GMID, 2010).
Gatorade’s G Series Perform is the top selling product line in
the category with Powerade’s ION4 following well behind (see Figure
9). However, in 2011, a 28% growth rate was reported for Powerade
as opposed to Gatorade’s 6% growth rate (MarketResearch, 2011).
Because Gatorade and Powerade are the only primary competitors
in the sports drink category and have an immense level of marketing
muscle, there is limited attempt to enter this market. Gatorade is the
category’s largest marketer and has long had an edge in the form of
large professional athletic organizations such as NASCAR, the National
Football League, and Major League Baseball. Powerade has been
working to acquire endorsements in recent years and has worked
with organizations like the NCAA and the PGA Tour. Powerade was
also previously the official sports drink of the U.S. Olympic Team.
Powerade’s edge mainly comes from its star athlete endorsements. In
previous years, Coca-Cola’s spending on celebrity-centric marketing
for Powerade has effectively helped the company to steal a portion
of Gatorade’s brand share. Heavy marketing of sports drinks has
paid off with high U.S. usage rates overall (Euromonitor International,
2010).
Recently, due to the increasingly health-conscious consumers
in the United States, coconut waters pose distinctive competition for
Powerade. These beverages provide a natural alternative to sports
drinks from the three leading U.S. brands of Zico, Vita Coco, and
ONE. Other competition for Powerade comes from energy drinks,
nutraceutical drinks or “functional water,” and bottled water. Additional
indirect competition comes from fruit and vegetable juices, soft drinks,
concentrates or powdered drinks, and ready-to-drink (RTD) tea
(MarketLine, 2011).
Figure 9: Leading 20 Sports Drink Brands in the U.S. in 2011,
Based on Sales (in Million U.S. Dollars)
Million
U.S.
dollars
United
States;
Symphony
IRI
Group
Source:
Beverage
World
Figure 10: U.S. Functional Drinks Market Category Segmentation: % Share, by Value, 2010

8. In 2010, energy drink sales proved to be the highest in the
U.S. functional drinks market, generating total revenues of $17 billion,
which is equivalent to an 83.2% share of the functional drink category
(see Figure 10). In comparison, the sports drink market reported total
revenues of $2.3 billion and only 11.3% share of the functional drink
category, while nutraceutical drinks follow behind sports drinks with
5.5% share of the category (MarketLine, 2011).
Red Bull leads the energy drink category with about $2.6
billion in worldwide sales in 2011. Behind Red Bull are Monster
Energy and Rockstar with $1.3 billion and $472 million in 2011 sales
respectively. 5-Hour Energy dominates the related energy shot
category with $928 million in sales in 2011 (Statista, 2011).
Functional water beverages present lighter alternatives to
products in the energy or sports beverage segments, even though
they may contain some similar ingredients. Although less successful
than Gatorade and Powerade in terms of sales, Coca-Cola’s Glaceau
Vitaminwater is the best selling functional water brand in the U.S. with
$291.5 million in sales in 2010, followed by the company’s Glaceau
Smartwater with $114.6 million. PepsiCo’s SoBe Lifewater and Propel
brands also generated significant sales, with $157.7 million and $112.2
million in 2012 respectively (MarketResearch, 2011). In this sense,
Coca-Cola’s Powerade and functional waters compete against each
other, potentially resulting in cannibalism.
With its nourishing, meal substitution capabilities, the growing
trend of fresh juice and smoothie drinks in the fruit and vegetable
juice category poses indirect competition to Powerade. Naked Juice,
Bolthouse Farms, and Odwalla are the top three brands in the United
States, generating $112.5 million, $65 million, and $39.2 million in
2010 sales respectively (MarketResearch, 2011). Additionally, the
RTD tea category contains a number of potential substitutes for
Powerade for those who do not drink Powerade in an athletic-related
situation. In 2010, the Pepsi Lipton Tea Partnership generated $412.6
million in sales and Arizona teas generated $402 million, both of
which are higher than Powerade’s sales. Snapple products reported
$227.3 million in sales (MarketResearch, 2011). Potential indirect
competition for Powerade also comes from the carbonated soft drink
category, whose total revenue reached $75.2 billion in the United
States in 2012, according to Beverage Digest. As with their functional
water products, Coca-Cola’s carbonated soft drink brands—which
dominate the category—threaten cannibalism for the company when
competing against Powerade.
Finally, sports drinks like Powerade face direct competition
from still bottled water brands, as water is often the primary form
of hydration in situations involving physical activity. Encouraging
consumers to replace water with sports drinks can pose an immense
challenge. Private label brands alone accounted for $1.03 billion in
sales in 2012. $690 million in sales came from Aquafina, $660 million
from Dasani, and $4 million from Poland Spring (Statista, 2011).
Powerade faces a moderate amount of both direct and
indirect competition from various beverage categories. Notable
competition comes from the energy drink market, as it is also part
of the functional drink category and has a history of significantly
higher sales than the sports drink market. However, as Powerade’s
primary competitor, Gatorade has, and will continue, to pose a threat
to Powerade’s growth. Along with its dominance of the sports drink
category—which is almost entirely made up of just Gatorade and
Powerade—Gatorade has the advantage of tremendous brand
loyalty and the trust of consumers. While there is no lack of familiarity
with the Powerade brand, Powerade has struggled to differentiate
itself and overcome its competitor’s well-established brand equity.
CONSUMER INSIGHTS
We sent an 11-question online Qualtrics survey to individuals
via social media and email. Additionally, we recruited 10 University of
Michigan students to partake in an hour-long focus group. Four of
the participants were members of collegiate sports teams while the
other six were not. The following is a summary of the key consumer
insights from both the survey and focus group.
Of the 124 people who responded to the online survey, 35%
were male and 65% were female. Additionally, 88.5% of respondents
were between 18 and 22 years old. Twenty-eight percent of the
respondents indicated that they were on a collegiate sports team,
while 72% were not. Regarding participants’ amount of exercise, at
least 88% of respondents exercise one day per week, and over 50%
exercise between 2-5 times per week. Full results from the survey
can be found in Appendix B.
Respondents were then asked a series of questions about
their opinions of sports drinks as well as their consumption habits.
For example, when asked if they only drink sports drinks while
participating in athletic activities, 65% of individuals disagreed or
strongly disagreed. Furthermore, when asked about the importance
of certain factors when choosing a sports drink, taste was the most
important factor and also had the lowest variance among responses
compared to other factors. The second most important factor as
indicated by respondents was nutritional value. About half of the
participants (48%) report that they buy sports drinks in supermarkets
(such as Kroger or Meijer) or convenience stores (such as 7/Eleven).
Sixteen percent responded that they do not purchase sport drinks at
all.
We then asked participants to rank their feelings about
Powerade and a select few of its direct competitors, including Propel,
Gatorade, Vitamin Water, and SoBe Life Water. On a scale of
1-5 (terrible-superior), Gatorade had a mean ranking of 4.0 while
Powerade and Vitamin Water had mean rankings of 3.2 and 3.6
respectively. Although Vitamin Water had higher mean ranking than
Powerade, Powerade had a lower variance among responses,
signifying a more consistent rating of the brand across consumers.
Next, respondents were asked to indicate their opinions of
Powerade in isolation followed by its direct competitor, Gatorade,
on several characteristics: trendiness, taste, replenishment,
nutrition, flavor variety, and price. Participants were asked to rank
Powerade and Gatorade on a sliding scale from 0-100 for each of
these characteristics. Overall, trendiness, taste, and replenishment
produced noteworthy results. When asked to rank Powerade and
Gatorade on trendiness (0: uncool - 100: very trendy), respondents
gave Powerade an average ranking of 44.9 whereas Gatorade
received a significantly higher average rating of 71.7. Using a similar
scale for taste (0: tastes terrible - 100: tastes great), subjects gave
Powerade an average ranking of 60 and Gatorade an average
ranking of 76.4. Finally, survey results suggest that Gatorade has
higher replenishing ability than Powerade, with average rankings of
73.8 and 60.7 respectively on a scale of 0-100 (0: dehydrating - 100:
very replenishing).
Lastly, participants were asked to provide general
evaluations of Powerade. First they were asked to share their opinion
of the nutritional value of Powerade for an active body. Very few
participants had strong opinions of Powerade’s nutritional value,
as 51% participants “neither agreed nor disagreed” that Powerade
offers the correct amount of nutrients for an active body. Additionally,
responding to the statement, “I like Powerade better than other sports
drinks,” 66% of survey participants disagreed or strongly disagreed.

9. 6
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
Widely distributed
Existing athletic endorsements/sponsorships
Attached to widely recognized Coca-Cola brand
International presence
Unique nutritional forumal; four electrolytes
Holds a small fraction of sports drink category
~23% compared to category leader of ~76%
Weak online presence
Low advertising recall
Lack of positive brand associations
No recognizable athletes in current advertising
Poor awareness of nutritional benefits among consumers
Environmental trend in online marketing
Increase online presence & social media activity to reach
young adult/teen demographic
Emphasize formula’s nutritional value to differentiate brand
Increase brand recognition with improved logo & slogan
New athletes endorsements (U.S. athletes)
Capitalize on increasing health and wellness trends
Fierce competition from category leader
High brand loyalty to category leader
Lower brand equity could lead to difficulty in securing
athlete endorsements
Increasing competition could lead to price wars
In addition to these survey results, our focus group provided
valuable consumer insights. The focus group began with a blind taste
test comparing Powerade and Gatorade across three similar flavors
(Gatorade Cool Blue vs. Powerade Mountain Berry Blast; Gatorade
Lemon-Lime vs. Powerade Lemon-Lime; Gatorade Raspberry
Lemonade vs. Powerade Strawberry Lemonade). Participants were
equally divided in their taste preferences toward Gatorade and
Powerade among the Cool Blue and Berry Blast and Lemon-Lime
flavors. Half of the participants preferred the Strawberry Lemonade
Powerade flavor and 20% preferred the Raspberry Lemonade
Gatorade, while 30% of participants did not select either flavor. Refer
to Appendix C for complete taste test results.
The guided discussion that followed revealed that of the
participants who do not drink sports drinks, the primary reasons
included their perception that they are artificial and “sugary.” One
participant placed sports drinks in the same category as both soft
drinks and artificial fruit juices. However, those that do drink sports
drinks noted benefits that they believe result from drinking a sports
drink. All participants’ responses were centered around the common
ideas of hydration, energy, replenishment, and providing electrolytes.
Two athletes noted that drinking a sports drink gives them a slight
mental boost compared to water, while non-athlete participants
noted more physical benefits, such as the belief that sports drinks
help the body recover faster, replenish the body better than water,
and provide people with more energy. Additionally, even though
Powerade products in fact have more electrolytes than Gatorade
products, focus group participants believed that Gatorade contained
greater electrolyte content. Participants believed that this consumer
misunderstanding is primarily due to the marketing efforts of Gatorade
and Powerade. Regardless, a few focus group members voiced their
belief that the benefits of electrolytes are “over-hyped.”
When asked to associate words with the Gatorade brand,
subjects responded with: “champion,” “success,” and “number one.”
Conversely, for the Powerade brand, word associations included
“lame,” “inferior,” “second-tier,” “underdog,” “weak,” and “delicious.”
Participants were also asked to describe the typical Gatorade
and Powerade consumer. Many agreed that the typical Gatorade
drinker is a “first-tier athlete,” a “champion,” or a consumer who
is concerned with brand image. Focus group subjects described
the typical Powerade consumer as a “second-tier athlete” or even
an “elementary-aged athlete” whose mother makes the purchase
decisions for them. Notably, one participant mentioned that they
might perceive a person drinking Powerade as more unique than a
Gatorade consumer.
Most participants were more likely to choose Gatorade
instead of Powerade due to familiarity from the extensive and
prolonged marketing efforts of Gatorade. Participants indicated
that their familiarity with Gatorade leads to deeper trust of the
brand and products. Further, participants had difficulty recalling
specific Powerade marketing examples but were able to describe
various Gatorade television advertisements, print advertisements,
sponsorships, and branded sporting goods (e.g., water bottles and
jugs) in detail. Overall, our focus group members made it evident that
Gatorade is far more visible and thus has greater recognition and
brand loyalty than Powerade. Complete focus group findings can be
found in Appendix C.
Based on the results of both the online survey and focus
group, we have determined that we will be targeting our efforts
towards American males and females between the ages of 13-24.
Through our marketing communications, we hope to increase current
sales, and thus market share, as well as enhance the associations
between the Powerade brand and its superior nutritional benefits in
the form of more electrolytes.

10. OBJECTIVES
We will increase Powerade’s market share in the sports drink
category by 7% among our target consumers of Americans
ages 13-24 from February 1, 2014 to February 1, 2015.
1.
We will increase the Powerade brand association as the most
nutritional sports drink (i.e., greater electrolyte content)
by 18% among Americans ages 13-24 from February 1, 2014
to February 1, 2015.
2.
POSITIONING STATEMENT
With its unique ION4 formula, we are positioning
Powerade as the more powerful and nutritious sports
drink for a generation of young, determined individuals
who desire a competitive edge in every aspect of life.

11. MARKETING COMMUNICATION
STRATEGY
CREATIVE STRATEGY: POWER 4WARD
We believe the solution to reinventing the Powerade brand is to POWER 4WARD. The “Power 4ward”
campaign embodies the strength, passion, and determination that lies within the hearts and minds of all
athletes and young people looking to accomplish their goals. The true power behind our product exists in its 4
electrolytes--sodium, potassium, calcium, and magnesium--which give Powerade drinkers the energy to keep
moving forward.
Our objective with this campaign is to position Powerade as the superior sports drink by highlighting
the four electrolytes unique to its formula, as well as creating a strong and relatable brand image that speaks
personally to our target audience and thus enhances brand loyalty.
Based on the consumer insights we gathered, we found that sports drink users believe Powerade to
be inferior to its competitor, Gatorade, for a two reasons: 1) the formula is not as nutritious as Gatorade, and
2) the advertising behind the Powerade brand is not memorable. With these findings it became clear that the
Powerade brand needs to capitalize on the four electrolytes that make up its unique formula--something that our
competitors lack. Integrating this unique selling point into our slogan and campaign will not only dispel consumers’
negative beliefs about the product, but also accomplish our goal of creating a memorable and relatable
brand image.

12. (17) swimmer,
high-school student, and
4-time Olympic gold medalist
(17) gymnast,
high-school student, and
2012 U.S. Olympic superstar
(24) diver,
college student, and
Olympic gold medalist
MISSY
FRANKLIN
GABBY
DOUGLAS
DAVID
BOUDIA
Ca
MgNa
K
POWERADE presents...
FINDTHE TH
To create resonance with the all-important number 4, a new logo and bottle label design have
been created (see Appendix D), which along with the “Power 4ward” slogan, will carry across all platforms
of Powerade’s advertising. To headline Powerade’s new television commercials, social media campaign,
sponsorships and special events, we will hold a year-long, nationwide contest entitled “Find the 4th.” The
concept behind the entire campaign is to have three professional, young athletes act as spokespeople for
Powerade, each personifying one of the four electrolytes in the Powerade formula. The other aspect of the
campaign will be a competition to find a passionate, young, amateur athlete to join our Powerade athletes as
the fourth electrolyte.
We have chosen to use three well-known U.S. Olympic athletes throughout our entire campaign. These
athletes fall into our target age range and embody the spirit and determination behind the “Power 4ward”
campaign: Missy Franklin (17), swimmer, high school student, and four-time Olympic gold medalist, Gabrielle
Douglas (17), gymnast, high school student, and member of the Fab Five 2012 U.S. Women’s Gymnastic team,
and David Boudia (24), diver, college student, and Olympic gold medalist. These Olympians will also help to build
awareness and buzz surrounding Powerade’s sponsorship of the 2016 Brazil Olympics, which is beyond the
scope of this campaign. Most importantly, by using the Olympians in our advertisements, we are giving each
electrolyte a human persona, which will make the Powerade product more relatable to our target audience, as
well as entice them to engage in the contest and purchase Powerade products.
We are confident that by using the “Power 4ward” slogan across all Powerade advertising, including
the “Find the 4th” contest, we will successfully differentiate Powerade from its competitors, as well as create a
lasting impression on our target audience, encouraging them to always “Power 4ward.”

13. TARGET MARKET
The “Power 4ward” campaign will target young, driven individuals with a range of athletic ability. Whether
our consumer is the star athlete on her high school’s track team who dreams of making it to the Olympics,
or a college student who enjoys de-stressing with his buddies on the soccer field, we want Powerade to
speak to young people--both males and females--who are passionate and driven to improve themselves and
their performance. They look up to other young athletes who have made it professionally in their sport and
find them to be an inspiration for their own success. Because of this, we would like our target consumers to
associate Powerade and each of its four ions with our Olympic athletes in order to more personally relate to
our four-electrolyte concept and understand how it could impact their own lives. By featuring these notable
young Olympians as the representatives for our campaign, and showing them not only at the big games, but
throughout their everyday lives, we are offering a direct opportunity for our target audience to identify with the
Powerade brand.
Our ideal consumer, Peter, is a 17-year-old
high-school basketball player. Peter has always
been a determined athlete and now he is striving
to make team captain for his senior year. Though
Peter has no plans of making it as a professional
basketball player, he looks up to many collegiate
athletes and young Olympians for their talent and
drive. Powerade helps replenish his body and
keeps him focued so he can accomplish his goals
on an off the court.

14. MEDIA STRATEGY
Through our yearlong “Power 4ward” campaign, we hope that our target audience of males and females
ages 13-24 will have stronger brand associations of Powerade ION4 as providing the most replenishment of any
sports drink due to its four distinct electrolytes. We hope to form and reinforce these linkages through our media
strategy and tactics, which are designed to effectively speak to a younger target audience and seamlessly
connect the “Power 4ward” message across all touch points. Ultimately, our campaign will encourage increased
usage and sales, which will help us to steal share from our direct competitor, Gatorade, and achieve our
marketing objective of increasing Powerade’s market share in the sports drink category.
From our consumer insights, we determined that advertising through radio, print, or billboards would be
largely ineffective for our target market. We will thus focus solely on the media most frequently used by our
target consumers. Specifically, television spots will have the most creative impact and elicit positive reactions
among our target through our use of admirable, recognizable celebrity athletes. By showing various aspects
of our athletes’ day-to-day lives, a series of four 30-second spots will allow us to tell a series of relatable yet
inspiring stories revolving around Powerade ION4 and the distinct benefits of each of its electrolytes. Advertising
on a variety of channels and types of programming beyond solely sports-related television will help reach all of
our young target consumers.
The “Power 4ward” campaign will be strategically
advertised through a media mix of...
television,
Internet, social media,
special events, and
sponsorships.

15. The camera pans across an unidentifiable girl swimming
across her backyard pool. She gets out of the pool the camera
reveals Missy Franklin’s face as she takes a long swig of red
Powerade Ion4 and walks into the next scene: a jog to school.
The narrative is in constant horizontal motion across the screen,
the surroundings changing as Missy moves on to the next
activity in her busy life. Missy leaves school, takes her dog for
a jog in the park, replenishing along the way with her favorite
flavor of Powerade. The camera continues panning into the next
scene, as Missy finds her way into a limo, Powerade in hand,
and arrives at a red carpet full of screaming fans. As she walks
to exit the stage, the scene transitions to Missy walking towards
an Olympic pool. Missy swims her way to first place, and the
camera finally stops as she holds her gold medal. The screen
goes black and “Powerade ION4” appears on the screen,
followed by our “POWER 4WARD” slogan and P4 logo.
Throughout the commercial there will be a voice-over of
Missy discussing how Powerade, and specifically the properties
of the electrolyte sodium help her in all aspects of her life. She’ll
explain that out of Powerade’s four ions, the electrolyte sodium
regulates the total amount of water in her body and helps
the functioning of her brain and muscles so she can focus
and perform her best. As the screen goes black at the end,
she states, “I am sodium, one of the 4 ions of Powerade that
helps me power forward.” Lastly, a deep male voice asks, “Do
you have what it takes to be the 4th ION? Find out more at
The commercial starts with no sound, a medium close-up
frame on a diver preparing to make a big dive. The camera follows
the diver in slow motion and as soon as he hits the water, time
and sound return to the picture. He jumps out of the pool and the
viewer can see it is Olympic diver David Boudia. As he cools off he
takes a swig of blue Powerade. The scenes run seamlessly and
he leaves the pool and is now in a living room full of college-aged
guys. They are watching a big football game. The guys cheer on
the team with snacks and Powerade distributed on the card table.
David leaves the room and is suddenly on a date with his girlfriend,
showing the young and playful side of David. Finally David returns to
the pool, where he is practicing his dives. He nails a perfect double
cross-over from the 10 meter platform and the screen goes black.
“Powerade ION4” appears on the screen, followed by our “POWER
4WARD” slogan and P4 logo.
As part of his voice-over, David says, “Out of the four ions
in Powerade, the electrolyte potassium helps regulate my heartbeat
and the function of my muscles. As a diver, my muscles need to
be tight and my movements precise, but without Potassium, I could
have weak muscles muscles and leg cramps...kind of like the first
time I met my girlfriend.” As the screen goes black and “Powerade
ION4” appears on the screen, David states, “I am Potassium, one
of the 4 ions of Powerade that helps me power forward.” Lastly,
a deep male voice asks, “Do you have what it takes to be the 4th
ION? Find out more at facebook.com/powerade.” #FINDTHE4TH
flashes on the black screen and the commercial is over.
COMMERCIAL STORYBOARDS
1. “Missy Franklin as Sodium” 2. “David Boudia as Potassium”

16. A gymnast sprints toward the vault in a close-up frame,
shot from the side. The viewer cannot tell who the gymnast is, but
when she sticks her landing the camera tilts up to show Gabby
Douglas. As she steps off the platform she grabs a Powerade
to replenish herself. With the scenes run seamlessly into each
other, she is suddenly at a baseball game with her friends. The
viewer can see she is a normal 16-year-old girl who just wants to
have fun. She walks over to the next scene where she is doing a
photoshoot with her Olympic medals. After the shoot she grabs her
grape Powerade and walks into the next scene, which happens
to be at the gym again. She takes another swig and puts the
Powerade in her gym bag, right before running onto the floor to do
a flawless routine. She lands a double Arabian and the screen goes
black. The “Powerade ION4” appears on the screen, followed by
our “POWER 4WARD” slogan and P4 logo.
In her voice-over, Gabby explains that out of the four
ions in Powerade, the electrolyte magnesium is responsible for
reactions involving muscle function, energy production, and protein
and carbohydrate metabolism. “Without it, I wouldn’t be able to
produce energy, and my muscles would be in a constant state of
contraction--not a good thing for the girl they call ‘Flying Squirrel’.”
As the screen goes black and “Powerade Ion4” appears on the
screen, Gabby states, “I am Magnesium, one of the 4 ions of
Powerade that helps me power forward.” Lastly, a deep male voice
asks, “Do you have what it takes to be the 4th ION? Find out more
at facebook.com/powerade.” #FINDTHE4TH flashes on the black
screen and the commercial is over.
Depending on who our contest winner is, we will
incorporate clips from their entry video intercut with scenes we
film from their daily lives. Possible scenes will include our fourth
electrolyte representative at school, practicing their sport , playing
in a sporting event, and spending time with friends and family. Our
last scene will be our winner meeting the other three Olympian
spokespeople for the first time, providing continuity and closure to all
four of our television commercials.
Our calcium representative will say in his or her voice-over:
“Everyone, including me, needs calcium. It helps transmit nerve
impulses and forms strong bones-the foundation for any level of
athlete. I am calcium, the fourth and final ion in Powerade.” The
screen goes black and “Powerade ION4” appears on the screen.
The fourth representative, in unison with Missy, David, and Gabby’s
voices, states: “Together We Power Forward.” Our “POWER
4WARD” slogan and P4 logo flash on the screen, with the hashtag
“FoundThe4th.”
3. “Gabby Douglas as Magnesium” “The 4th ION: Calcium”

17. Powerade-sponsored special events will bring the “Power 4ward” campaign to life. The “Find the 4th ”
contest will help to put an even more relatable face to the Powerade ION4 brand while encouraging consumers
to interact with Powerade regularly. Sponsoring additional special events like the NCAA Basketball Tournament,
Under Armour High School All-American Game, Special Olympics, and Little League World Series will help
Powerade give back to the community while keeping our efforts relevant to the brand. More in-depth information
regarding these efforts can be found in the “Sales Promotion” section on page X.
Our use of the Internet, including social media and Hulu advertising, is crucial to complement the
traditional advertising we are using and to speak to a younger target audience that is highly active online. It is
a cost-effective way to keep the Powerade ION4 brand relevant on an everyday basis and to give a voice to
Powerade beyond what is seen on TV. Our social media sites are crucial to advertise our “Find the 4th” contest
and to build buzz about the rest of our marketing efforts, as our consumer insights made it clear that most
young people regularly utilize at least two social media sites.
In terms of timing, our television advertising will follow a pulsing schedule, so that television commercials will
continuously be shown during various programs, but with periods of heavier emphasis. For example, with regard
to advertising during sports-related programming, we will constantly advertise on ESPN, but there will be heavier
periods of advertising on other channels during March Madness and Sunday Night Football. Also, advertising on
reality competition shows, for example, will only take place for the duration of these competitions. Thus, on each
individual television channel, our advertising follows a flighting schedule. To complement this television advertising
schedule, our social media efforts will follow a continuous schedule so that the “Power 4ward” message is
constantly being communicated to our target consumers. Given our emphasis on television and social media as
our advertising media, our digital efforts will always be up-to-date and relevant. Lastly, because our young target
audience is constantly watching television shows online, running our commercials on Hulu using a continuous
schedule will also be a valuable advertising medium to invest in.
MEDIA TACTICS
Specifically, our television advertising will be aired during a variety of cable and network programs as well as
sports broadcasts. The commercials will be spread amongst Fox, NBC, and ABC for our broadcast networks
as well as cable networks such as ESPN, Comedy Central, FX, E! and AMC. Programs such as Fox’s Family
Guy, FX’s Always Sunny in Philadelphia, and Comedy Central’s South Park should effectively reach a significant
portion of males in our target market while NBC’s The Voice, E!’s E News, and Fox’s So You Think You Can
Dance will reach a large portion of females. Advertisements aired during sports broadcasts will certainly reach
our target consumers, albeit more males than females. Finally, we expect that our Hulu advertising will reach our
target as a whole due to the wide range of shows that can be viewed on the site based on personal taste. we
believe these channels target a young, active, busy audience that aligns with the consumers we would like to
associate with Powerade.
Our social media efforts will be focused on Facebook, Twitter, and Instagram (see Digital section). Powerade’s
Facebook page will be used mainly for the “Find the 4th” sales promotion, and the actual voting for the contest
will take place on Facebook as well. Twitter and Instagram will be used to support the contest as well as
reinforce our television advertising, special events, and sponsorships. For more in-depth information on these
platforms, see the “Digital” section on page X.

18. Through the use of strategic television channels and social media platforms, we are heavily emphasizing
the frequency of our advertising. While reach is still a significant factor in our campaign, our target group of
people ages 13-24 is specific enough that it is logical to concentrate immensely on enhancing our message
among the group we do reach by increasing the amount of times and ways they come into contact with the
Powerade brand. Because of this, our objective in terms of reach and frequency is to reach 40% of our target,
males and females ages 13-24, two or more times each week during the 12 months of the “Power 4ward”
campaign.
We anticipate the high costs of network television advertising, but believe that our commercials will be
worth the average cost of approximately $110,000 per 30-second spot. Being that the broadcast networks
we are advertising on include Fox and NBC, it is our hope that the lower average cost of running a commercial
on NBC, with the exception of Sunday Night Football, will offset the fact that Fox has consistently charged the
highest average rate per ad (Crupi, 2012). In sum, our television advertising, although inherently expensive, will be
the best way to achieve our reach objective—especially during prime time. Running our commercials on Hulu—
which boasts tens of millions of unique visitors on a regular basis—for $45 CPM for a video commercial (Hulu.
com, 2013) will help us to capitalize on our television ads while contributing to our frequency objective. It is our
hope that by coming into contact with the brand multiple times each week both on TV and online, our target will
not only associate Power ION4 with the concept of four electrolytes and the power that comes from them, but
that they will most importantly be able to personally identify with the brand.
Media Flow Chart

19. DIGITAL
Thus far, Powerade has made sufficient digital marketing efforts. They have active Facebook, Twitter,
and Instagram pages, but there is room for improvement in terms of the number of followers, user engagement
and appearance of content. Overall, we would like each of these social media sites to better exploit Powerade’s
partnerships with athletes like LeBron James and Derrick Rose as well as our Olympian additions of Missy
Franklin, David Boudia, and Gabby Douglas. We also aim to be more consistent across platforms and to
reinforce our new campaign slogan and hashtag, #POWER4WARD, as well as the new P4 logo. These
methods will ensure that Powerade’s message is constantly being communicated in a relevant manner through
these touch points, and also that Powerade’s target consumers are interacting with the brand.
In addition to the social media networks, the Powerade website and blogs will be used to drive
awareness to the promotion as well as continue to deepen consumers’ relationship with the brand. We will get
popular bloggers, including sports bloggers, to write about the ION4 promotion to build awareness. These blog
posts will drive consumers to the Powerade website, integrating our platforms and increasing web visibility.
The current Powerade website is rather simplified and could be more engaging. Specifically, Powerade
sponsors LeBron James and Derrick Rose endorse the brand, but those athletes are not a focus on the
website. We will improve the website by including player profiles and quotes, demonstrating a relationship
between the athletes and the brand. Further, we will add information about our three Olympic athletes to
increase their visibility with the brand.
Because Powerade’s Facebook page already has about 1.6 million ‘likes,’ it will be used as the primary vehicle for our “Find the
4th” contest, including users’ video submissions as well as posts encouraging people to vote by ‘liking’ their favorite video. As part of our
sales promotion efforts, consumers who vote have the opportunity to win Powerade coupons, giving them incentive to visit our Facebook.
Awareness will come through Powerade-sponsored posts on our target consumers’ news feeds. We will engage in conversations
with consumers by posting current news or events that appeals to our young target as well as polls or brief, entertaining quizzes to
encourage interaction. Our main objective is to bring new consumers to the Powerade Facebook page while also providing our existing
users with a reason to keep returning to the page. Overall, these efforts should heavily increase the number of likes on our page to get
closer to Gatorade’s 6 million likes. Providing a link to our Facebook page on Powerade’s website will enhance these efforts.
FACEBOOK

20. TWITTER Twitter will be used to provide updates on the “Find the 4th” contest’s progress as well as any Powerade-sponsored events
or current happenings. We will also tweet content that relates to the philosophy of the Powerade ION4 brand, but we will not limit
ourselves to sports-related posts, as is the current norm. Instead, we will tweet about interesting pop culture updates relating to our
target audience or impressive achievements by young people in individual communities. Because Powerade’s Twitter handle is currently
fairly active, we aim to build upon this activity by obtaining Powerade-related tweets by our sponsored athletes. Finally, we will drive
home our constantly active Twitter presence with an embedded stream of tweets on Powerade’s website as well as an embedded
‘Follow’ button.
TWITTER
INSTAGRAM
Instagram has become the most popular social media
application among our target consumers, and thus requires
increased attention as a platform for positive brand marketing.
Specifically, we expect that it will resonate most with our female
consumers. Because it is visual in nature, Instagram will lend
itself to reinforcing Powerade’s image as a young, hip, relatable
brand. Powerade currently has an Instagram, but with only
13 photos and approximately 350 followers, compared to
Gatorade’s 57,000. This provides a tremendous opportunity to
reinvigorate our presence.
Powerade’s Instagram will be used to post countless
‘memes’ that resemble print advertisements without the
expensive cost, as well as real pictures of Powerade at events
or personal pictures of Powerade’s athletes. Instagram will
also provide a space for everyday users to share pictures
of themselves using Powerade, helping to spur consumption
through word of mouth. We can further increase the amount
of photos posted through a sales promotion by encouraging
users to put the hashtag #POWER4WARD on their personal
Powerade photos in order to potentially win Powerade
discounts and swag.

21. SALES PROMOTIONS
Our main sales objective is to increase market share by expanding the Powerade consumer base to
include a younger target group, and thus increase the amount of Powerade purchased overall. Our sales
promotions will be focused on encouraging trials, as our consumer insights revealed that many are hesitant
to switch from our competitors due to brand loyalties--the strongest of which lie with Gatorade. By providing
incentives to our target consumers, we hope to see an increase in sales and as a result, conversion from the
Gatorade brand to Powerade.
More specifically, in our “Find the 4th” contest, the winner will be featured in our fourth TV advertisement,
as well as receive Powerade apparel and accessories (see Appendix F). We will also provide coupons as a
reward to those who vote for their favorite candidate in the contest, as seen in Appendix G. Those entering the
competition will be encouraged to buy Powerade products to feature in their application videos, and those who
vote will be more likely to buy Powerade due to the coupons they will obtain for participating.
We also intend to sponsor the 2016 Summer Olympics and the NCAA Men’s Basketball Tournament to
increase our appeal to retailers and provide samples and other branded giveaways to spectators. Additionally,
to more closely identify with our consumers, we are sponsoring events like the Under Armour High School All-
American Game, Special Olympics, and Little League World Series.
Finally, to encourage our customers to become loyal consumers, we plan to promote our current
Powerade Rewards program more heavily.
OBJECTIVES & STRATEGY Our main sales promotions will involve the “Find the 4th” contest. We will be looking for an undiscovered
young athlete to feature in our advertisements and represent the fourth electrolyte in Powerade’s formula. Those
who are interested will submit a video of their athletic skills and aspirations, incorporating Powerade as well. We
will choose five finalists and ask America to vote for their favorite on Powerade’s Facebook. As an incentive to
participate in the selection of our winner, voters will be asked to provide their email address in order to receive
regular Powerade coupons for the next six months. The coupons will not only encourage our target audience to
vote, but also drive traffic to our website and increase the chances that Powerade is purchased by the coupon
receivers. The winner of the “Find the 4th” contest will be featured alongside Powerade’s Olympic athletes in our
advertising, win Powerade branded gear, and receive a year-long supply of Powerade sports drinks.
We also intend to continue with the currently existing Powerade Rewards program. With every purchase
of Powerade or other participating products, consumers can earn points towards various rewards, such as
an iPod or Nike gift card. We plan to advertise this promotion through our social media accounts to drive
awareness and encourage people to sign up on our website to become active rewards members. Members
can also donate their points to various causes or to young athletes in need.
Another sales promotion will be our sponsorship of the 2014 NCAA Men’s Basketball Tournament.
Powerade signage will be clearly visible on the courts and surrounding areas, and spectators will be offered free
samples of Powerade and branded giveaways. We will also provide the drink at concession stands near our
designated sampling areas to encourage instant purchases. The competing athletes will be given free Powerade
branded refillable water bottles to use throughout the competition. We plan to pursue similar event sponsorship
tactics during the 2016 Summer Olympics, although this is not within the scope of our campaign. Lastly, our
partnership with the Under Armour High School All-American Game and Little League World Series will include
Powerade signage, Powerade-branded sports equipment, unlimited Powerade for all players, Powerade water
jugs and water bottles, and Powerade stands for spectators.
TACTICS

22. RATIONALE
OTHER MARCOMMS
PUBLIC RELATIONS
Our main public relations efforts will involve creating buzz surrounding Powerade by sponsoring events
and demonstrating cause-related marketing strategies. Events include the Summer 2016 Olympics, Special
Olympics, Under Armour High School All-American Game, Little League World Series, and NCAA Final Four
tournament. Media alerts and press releases will be distributed in a timely fashion (see Appendices H and I), and
a press conference with the ION4 athletes will be broadcast closer to 2016. Press releases will cover a variety
of topics including: the 3 ION olympic athletes, (i.e. Gabrielle Douglas, David Boudia, and Missy Franklin); the
“Find the 4th” contest; as well as news of the contest winner. Further press releases will cover cause-related
marketing strategies discussed below.
Our main cause-related marketing strategy will be to support low-income schools’ athletic departments
and provide Powerade at their games and practices. Sponsored sports include soccer, basketball, football and
track for both girls and boys teams, freshmen through seniors in high school. These will be filmed and pitched
for PR purposes. At the championship games of each division, our Powerade ION4 athletes will be present to
further show support for low-income schools. The objective is to increase awareness of Powerade’s cause-
related initiatives and give consumers a reason to purchase Powerade products. Further, these strategies will
build excitement around Powerade and exhibit a positive image of the brand.
Along with the Summer 2016 Olympics, Powerade will sponsor the Special Olympics. During that time,
10% of Powerade sales will go toward funding the athletes’ physical therapy for their events.
CAUSE-RELATED MARKETING
The rationale behind our “Find the 4th” contest and event sponsorships is to raise awareness and
excitement about the Powerade brand and to combat the perception that it is the “inferior” sports drink, as
compared to its major competitor. We also hope to boost the Powerade reputation by ensuring that consumers
link the brand to successful athletes such as our Olympic representatives. By providing branded items, we are
aiming to increase recognition and familiarity with the brand among our target market.
Our rationale behind distributing coupons is that they will encourage current consumers to purchase a
greater amount of Powerade products while enticing non-users to try the brand. Similarly, we feel that providing
Powerade samples at events will encourage those who otherwise would not buy the drink to try it. We believe
that these samples will induce immediate sales due to their proximity to the beverage stands, which could then
lead to repeat purchases in the future. Finally, we hope to retain our current consumers by promoting our
rewards program, which allows consumers to either donate to a cause or win a variety of prizes.

23. BUDGET
In 2012 Powerade had an annual marketing budget of $9,602,900. Almost the entire budget, 99.2% of
it, went to network and cable TV advertising spots. For the year 2014 we will request $12,483,770, which is
30% more than the 2012 marketing budget. To arrive at this number using the percentage of sales method, we
took our marketing objective and calculated the amount our sales would have to increase in order to achieve our
objective of a 7% increase in market share. Assuming the size of the overall sports drink market stays the same,
Powerade will realize a 30% increase in overall sales if we reach our market share objective. Considering this
30% increase in Powerade’s sales, we are requesting the same percentage increase for the marketing budget.
While our marketing budget will have a heavy TV focus, we will also allocate our marketing efforts to social
media and events. Our social media budget will be $200,000 which corresponds to 1.60% of our overall budget.
These funds will be used to manage the Facebook, Twitter, and Instagram accounts as well as cover the costs
of the online coupons and giveaways.
In terms of our events budget, we will allocate $4,626,862, or 37.06%, of our total budget to these
efforts. Much of our events budget will go towards the amount it costs us to sponsor three famous Olympic
athletes. Additionally, the events budget will cover the costs of the travel, food, and hotel expenses of the Olympic
athletes for the duration we are using them to film commercials as well as participate in other promotional events.
When Powerade is promoting cause-related efforts, the events aspect of the budget will cover the costs of the
Powerade product donations, apparel, and other promotional items, along with Powerade representative travel
expenses.
The largest part of our budget will be spent on television advertising to launch and sustain Powerade’s
2014-2015 campaign. Due primarily to the high costs of network television advertising, we will spend $7,656,908,
or approximately 61.34%, of our budget on TV advertising. The Powerade commercials will be aired on network,
cable, and sports television stations. Network advertising costs will equal $4,242,346, cable costs will equal
$264,000, and sport stations will equal $3,150,562. For a summary of our budget, refer to Appendix J.
Budget Distribution

24. CAMPAIGN EVALUATION
We are confident in the ability of the new “Power 4ward” campaign to meet our marketing and
communications objectives, but ensuring the measurable success of the campaign is of the utmost importance.
We will use both concurrent testing and post-testing to evaluate the effectiveness of our “Power 4ward”
campaign in increasing Powerade’s market share in the sports drink category as well as enhancing the brand
associations our target consumers have with Powerade as being the more powerful sports drink with the highest
electrolyte content.
Our marketing objective is to increase Powerade’s market share by 7% among Americans ages 13-
24 by the end of our 12-month campaign. In order to evaluate increased market share, we determined the
percentage increase in sales that we are looking for (30%). We will use tracking studies to determine the amount
of Powerade sales we have experienced after the first six months of our campaign as compared to sales in the
previous year, along with the nature of these sales. After the campaign has finished, we will use post-testing to
determine the exact percentage increase in sales and thus the overall increase in market share to determine if
we achieved our marketing objective.
We will also evaluate our advertising message through tracking studies and post-testing. While our television
advertising is running, we want to ensure that it is getting the job done. Thus, using phone interviews, we will
measure attitudes toward the Powerade brand among our target audience as well as communication playback
to determine whether or not we are getting our “Power 4ward” message across properly. Finally, at the 12
month point, we will conduct surveys to measure whether or not we have succeeded in improving our target
consumers’ brand associations with Powerade as being the more nutritional sports drink.
Because the digital aspect of our campaign is crucial in reaching our young target audience, we plan to
evaluate the effectiveness of Facebook, Twitter, and Instagram in supporting the “Power 4ward” message. We
will measure interactivity and engagement before the campaign as well as after the 12 months have concluded.
Throughout the campaign, we will be generating conversations with users in real-time via digital channels.
We plan to track the success of our public relations efforts throughout the campaign as necessary. After
distributing pitches, press releases, or media alerts, we will keep track of media coverage by generating wrap-
up reports for each specific initiative. We will also keep track of media attendance at our special events. We will
pay special attention to media coverage and attendance at our cause-related events to ensure that the public is
made aware of them. However, success of our cause-related marketing strategies will also be evaluated based
on how many consumers purchased Powerade to contribute to the cause, the total amount of money raised
for each event, event attendance, and social media engagement surrounding the cause. After the campaign has
finished, measuring our target consumers’ impressions of the Powerade brand as compared to their perceptions
at the inception of the campaign will provide insights into whether or not our PR efforts—and our philanthropic
efforts—were effective.
Lastly, to evaluate the effectiveness of our sales promotions, we will measure how many people entered
and voted in our “Find the 4th” contest. We will also track attendance at our other special events as well as
track the number of coupons we award to consumers. Finally, we will measure participation in the Powerade
Rewards program in terms of how many people sign up for the program and how many redeem their points.
Measure brand
association link
to highest
electrolyte
sports drink
Digital
effectiveness
is crucial
to reaching
target audience
Utilize tracking
studies to
measure
market share
changes

25. REFERENCES
Crupi, Anthony. “Broadcast Spot Pricing Continues to Creep Up.” AdWeek. N.p., n.d. Web. 01 Apr. 2013.
<http://www.adweek.com/news/advertising-branding/broadcast-spot-pricing-continues-creep-138106>.
Functional and Natural Ready-to-Drink Beverages in the U.S. May 2011, Packaged Facts. Web. 25 Feb. 2013.
Functional Drinks in the United States. Rep. N.p.: MarketLine, 2011. MarketLine. Web. 25 Feb. 2013.
Global Functional Drinks Opportunities. Rep. N.p.: Passport, 2010. Euromonitor International. Web. 19 April. 2013.
Google Images. N.p., n.d. Web. 01 Apr. 2013. <http://images.google.com/>. “How Many Users Does Hulu Online
Video Streaming Have?” www.zap2it.com. Zap2It, n.d. Web. 19 Mar. 2013.
“Hulu Ad Sales”, CTools Marketing 407 class site, Web. 14 Mar. 2013.
“Hulu Advertising.” Hulu Advertising. N.p., n.d. Web. 01 Apr. 2013. <http://www.hulu.com/advertising>.
“In Their Prime: Broadcast Spot Costs Soar; Gap between network and cable CPMs remains vast,” Adweek.
N.p., n.d. Web. 16 Feb. 2013.
<http://www.adweek.com/news/television/their-prime-broadcastspot-costs-soar-132805>.
Sports and Energy Drinks in the U.S. Rep. N.p.: Passport, 2012. Euromonitor International. Web. 25 Feb. 2013.
Steinburg, Adam. “TV Ad Prices: ‘Idol’ No Match for Football,” Advertising Age. N.p., n.d. Web. 18 Feb. 2013.
<http://adage.com/article/media/tv-ad-prices-idol-match-football/237874/>.
Marigny Research Group, Inc. Functional and Natural Ready-to-Drink Beverages in the U.S.
Rep. Rockville: Packaged Facts, 2011. MarketResearch. Web. 25 Feb. 2013.
Nonalcoholic Beverages and Soft Drinks in the United States. N.p.: Statista Dossier, 2012.
Statista. Web. 25 Feb. 2013
“PACKAGING PROFILE: COCA-COLA.” Euromonitor. GMID Passport, 24 Jan. 2012. Web. 4 Feb. 2013.
Performance Food and Drink – US – January 2013, Mintel. Web. 25 Feb. 2013. Sports Drinks – US –
September 2012, Mintel. Web. 25 Feb. 2013.
POWERADE. N.p., 2013. Web. 01 Mar. 2013. <http://www.us.powerade.com/>.
“POWERADE ION4.” Facebook. N.p., 2013. Web. 20 Apr. 2013.
<https://www.facebook.com/POWERADEION4?fref=ts>.
The Coca-Cola Company. Rep. N.p.: MarketLine, 2012. MarketLine. Web. 25 Feb. 2013.
“Thirst Quenchers and Imported Beer Are Favorites among Hispanic Beverage Consumers, Reports Mintel.”
PR Newswire. PR Newswire, 18 July 2012. Web. 25 Feb. 2013.
United States-Functional Drinks. Rep. N.p.: MarketLine, 2011. MarketLine. Web. 25 Feb. 2013.
.

26. A. CURRENT PRODUCT LINE
ZERO Mixed Berry
ZERO Grape
ZERO Lemon Lime
ZERO Orange
ZERO Fruit Punch
ZERO Strawberry
Mountain Berry Blas t
Orange
Fruit Punch
Grape
Lemon-Lime
Melon
White Cherry
Strawberry Lemonade
ADVANCED ELECTROLYTE SYSTEMThe helps to
replenish the body with four electrolytes lost in sweat .
The forumla ialso contains a 6% carbohydrate solution
to help provide energy to working muscles, along with
Vitamins B3, B6, and B12.
SODIUM
POTASSIUM
MAGNESIUM
CALCIUM
FLAVORS:
APPENDIX
A.
B.
C.
D.
E.
F.
G.
H.
I.
CURRENT PRODUCT LINE
QUALTRICS SURVEY
FOCUS GROUP- QUESTIONS & RESPONSES
VISUAL BRADNING & PACKAGING
APPAREL & ACCESSORIES
COUPON
MEDIA ALERT
PRESS RELEASE
BUDGET

27. B. QUALTRICS SURVEY
QUESTION 1:
Please specify your gender.
QUESTION 2:
What is your age?
QUESTION 4: How often do you exercise on average?
QUESTION 5:
Please indicate the extent to which you agree with the following
statements:
QUESTION 3:
Are you or were you ever on a collegiate sports team
(including club sports)?
QUESTION 6:
How important to you are the following factors when choosing a
sports drink? (1-no importance, 3-neutral, 5-high importance)
QUESTION 7:
Please indicate how much you like the following beverage brands
(1-terrible, 3-neutral, 5-superior)
QUESTION 8:
When you buy sports drinks, where do you usually purchase them?
QUESTION 9:
Please indicate your feelings about the sports drink Powerade.
QUESTION 10:
Please indicate your feelings about the sports drink Gatorade.
QUESTION 11:
Please indicate the extent to which you agree with the following statements:

28. C. FOCUS GROUP- QUESTIONS & RESPONSES
1. Describe drink X and drink Y ( X-Gatorade, Y-Powerade )
· Y has flatter, more watered down taste than X
· Y more acidic tasting
· X a bit sweeter than Y
· Y sweeter than X
· X tastes like it has more sugar and sodium than Y
2. Why do you drink sports drinks?
· Because I don’t drink soda, drinking a sports drink provides me with
a sweet taste as opposed to water
· When I’m sick with the flu
· At football practices and games
· At parties, mixed with alcohol
· I would rather have Gatorade than water
3. If you don’t drink sports drinks, why don’t you drink them?
· I drink excessive amounts of water only
· I don’t drink juices or sodas
· I do not want to consume the sugar or artificial ingredients
in sports drinks
· I hate drinking sports drinks during exercise/sports
· If I’m not in a competitive atmosphere, there is no point in
drinking a sports drink
4. What words come to mind when you think of Gatorade?
· Champion
· Success
· Number 1
· Professional athlete
· Best athletes
5. What words come to mind when you think of Powerade?
· Lame
· Inferior
· Weak
· Delicious
· Second tier
· Sugary
· Underdog
6. Identify the type of person you would associate with
drinking Powerade.
· A second tier athlete or high school athlete
· A health conscious person
· Savvy shopper who knows it has more electrolytes than Gatorade
· Someone who is loyal to the Coca-Cola brand
· Elementary school athlete whose mom buys groceries for them
· Someone more unique; not afraid of going against the grain
7. Identify the type of person you would associate with
drinking Gatorade.
· A champion
· A first tier athlete
· A brand conscious or image conscious person
8. What factors might you consider to be the most important
when choosing a sports drink?
· Brand name is most important; I just grab Gatorade
· I strictly go by taste
· Color
9. What benefits do you feel come from drinking a sports drink?
· I think electrolytes are over hyped
· I think Gatorade has more electrolytes than Powerade;
better replenishes my body
· When I drink a sports drink after exercising, I feel like my body is being
replenished better than if I just drank water
· If I’m feeling lethargic, I feel as though a sports drink gives me a boost
· The sugar in sports drinks gives me an energy kick
10. Do you feel that a sports drink gives you the motivation you
need to perform better?
· Yes, in the sense that I think a sports drink helps me recover faster
than water
11. Do you feel social pressure to use one brand of sports drink
over another?
· No
· A function of Gatorade being so much more visible than Powerade
12. Can you recall any marketing for Powerade?
· Could not recall a Powerade TV commercial
· Powerade lightening bolt
· Powerade sponsorships (athletes)
· Sleeker bottle design than Gatorade; looks more athletic than Gatorade
13. Can you recall any Gatorade marketing?
· Colored sweat drops in TV commercials
· Gatorade baths; associatied with football players
· The bold “G” has better recognition than the Powerade logo
14. What would make you switch from drinking Gatorade to
drinking
Powerade?
· Advertising more electrolytes on the Powerade bottle
· If Powerade had less sugar/calories than Gatorade
· If Powerade did something that Gatorade wasn’t doing already
· Making Powerade sponsorships more visible/known; cannot recall seeing
Powerade at a sporting event
· If Powerade endorsed sports teams; Gatorade has taken over sports
· If Powerade were significantly cheaper than Gatorade
· If I knew that Powerade was more nutritious, I would choose it, but
I trust the Gatorade brand more

29. D. VISUAL BRANDING & PACKAGING
FINDTHE TH
PRODUCED FOR THE COCA-COLA COMPANY, ATLANTA, GEORGIA 30313
2013 THE COCA-COLA COMPANY.
CONSUMER INFORMATION CALL 1-800-343-0341
REFRIGERATE AFTER OPENING www.us.powerade.com
MOUNTAIN
BERRYBLAST
FLAVOR+OTHERNATURALFLAVORS
PRODUCED FOR THE COCA-COLA COMPANY, ATLANTA, GEORGIA 30313
2013 THE COCA-COLA COMPANY.
CONSUMER INFORMATION CALL 1-800-343-0341
REFRIGERATE AFTER OPENING www.us.powerade.com
FRUITPUNCH
FLAVOR+OTHERNATURALFLAVORS
PRODUCED FOR THE COCA-COLA COMPANY, ATLANTA, GEORGIA 30313
2013 THE COCA-COLA COMPANY.
CONSUMER INFORMATION CALL 1-800-343-0341
REFRIGERATE AFTER OPENING www.us.powerade.com
FLAVOR+OTHERNATURALFLAVORS
PRODUCED FOR THE COCA-COLA COMPANY, ATLANTA, GEORGIA 30313
2013 THE COCA-COLA COMPANY.
CONSUMER INFORMATION CALL 1-800-343-0341
REFRIGERATE AFTER OPENING www.us.powerade.com
FLAVOR+OTHERNATURALFLAVORS
PRODUCED FOR THE COCA-COLA COMPANY, ATLANTA, GEORGIA 30313
2013 THE COCA-COLA COMPANY.
CONSUMER INFORMATION CALL 1-800-343-0341
REFRIGERATE AFTER OPENING www.us.powerade.com
FLAVOR+OTHERNATURALFLAVORS
LEMON-LIMEGRAPEORANGE
PRODUCED FOR THE COCA-COLA COMPANY, ATLANTA, GEORGIA 30313
2013 THE COCA-COLA COMPANY.
CONSUMER INFORMATION CALL 1-800-343-0341
REFRIGERATE AFTER OPENING www.us.powerade.com
FLAVOR+OTHERNATURALFLAVORS
SOURMELON
PRODUCED FOR THE COCA-COLA COMPANY, ATLANTA, GEORGIA 30313
2013 THE COCA-COLA COMPANY.
CONSUMER INFORMATION CALL 1-800-343-0341
REFRIGERATE AFTER OPENING www.us.powerade.com
FLAVOR+OTHERNATURALFLAVORS
WHITECHERRY
View 1
View 2

30. E. APPAREL & ACCESSORIES

31. F. COUPON G. MEDIA ALERT

32. I. BUDGETH. PRESS RELEASE