Marketing Objectives for Nike Sports Drink

Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.

Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.

The aim of this paper is to use the “Nike - The art of selling air.” case study and concepts from strategic marketing theory to identify marketing challenges and how those challenges could be best addressed using marketing principles. The paper will:

6). This strategy is a major component of Nike’s business strategic level plan. In applying this strategy, Nike has attained a great deal of consumer insight, which it uses to offer uniquely designed premium products to the athletes. Still on product differentiation, Nike focuses more on research and development at a greater level. These unique features to Nike, have transformed the competition levels in this competitive industry, leading to a trend of a paradigm shift in the market. Most consumers opt for Nike branded sports products and apparels, at the expense of the other brand names.

The major reason anyone drinks fluid before, during and after physical activity is to replace the water that is lost through sweat. If the water isn't replaced dehydration will occur and performance will be hampered. The purpose of sports drinks is to help rehydrate your body quickly and help improve performance and productivity. This is accomplished through a well-balanced mix of water, sugar (carbohydrates) and salts (electrolytes), the major ingredients in most sports drinks. These ingredients, combined with a variety of fruit flavours, create pleasant tasting drinks that, according to the companies, are suppose to help your athletic performance. Results prove that commercial sport drinks generally accomplish what they set out to do.

Currently, Nike stand as a leading figure in producing high quality sports and fitness equipment and apparels. Bearing just a simple start of selling Japanese imported shoes from a station wagon has transformed

The company I am presenting is Nike which was founded in 1965 by the athlete Phil Knight. Nike is a well known brand which is selling its products worldwide and has 36% of the market share.

| Weaknesses: * Pays extra payment for new flavor. * More expensive to produce than other sports drinks. * Deciding the segment to target. * How to position the product in the mind of its potential consumers

Gatorade has emerged as the global leader in sports nutrition beverages by continually managing their brand to signify high energy, athletic excellence combine with one of the most efficient new product development and introduced processes in the beverage industry. As a result of being able to consistently synchronize these many components of their business so well, Gatorade today holds a 75% market share in the sports nutrition market globally today. Gatorade is owned by PepsiCo, which has made it possible for the company to sell in 80 countries today. Gatorade relies heavily on the PepsiCo distribution and retail network globally. Gatorades' revolutionary approach to managing branding for beverages has served to increase the total market size for this product category globally (Huang, Sarigöllü, 2012). Despite the continued widespread adoption of Gatorade as a healthy energy drink, the company has encountered resistance to its brand and the ingredients used for creating the many variations of Gatorade energy drinks (Tallon, 2009). Despite these setbacks the Gatorade brand continues to experience exceptional growth and stability over time.

Lucozade has managed to promote Lucozade Sport by segmenting, targeting and positioning Lucozade Sport. Lucozade Sport has been scientifically proven to benefit athletes to give them more energy and due to this Lucozade Sport targets sport enthusiasts by advertising it through athletes and on sports programmes. It is sold at a similar price to competitors and therefore doesn’t have competition for price. Lucozade Sport is stored in most shops that sell drinks across the country therefore strengthening the positioning of Lucozade Sport. Finally, Lucozade Sport has a strong consumer awareness which has helped it become UK’s most recognised and most popular sports drink.

Sports drinks are used to receive energy while doing an active, or athletic, event. There are three popular types of sports drinks: isotonic (average athlete), hypotonic (low-perspiration athletes; jockeys and gymnasts), and hypertonic (long distance runners that need the extra carbohydrates and electrolytes). Isotonic sports drinks quickly replace fluids lost by sweating and supply a boost of carbohydrates. Hypotonic sports drinks quickly replace fluid lost. Hypertonic sports drinks supplement daily carbohydrate

Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.

One of Nike’s main opportunities is product development. Developing their product range makes them more competitive and because products tend to go out of fashion quickly, Nike must introduce new products relatively fast because consumer demand the newest and latest products. Increase in internet shopping will no doubt reduce the cost and improve prices making them even more competitive.

• young active people (between 15-19 years of age, who practice sport for good body shape or just for health, approx. 220 937) and

Nike, Inc. has been the world’s leading innovator and provider in athletic footwear, apparel, equipment and accessories for 50 years. Their mission has been to bring inspiration and innovation to every athlete in the world; if you have a body, you are an athlete. Arguably one of the most innovative companies in the world, Nike has built its brand into an iconic world-class powerhouse that continues to dominate the market with no signs of slowing up. Nike’s marketing and advertising have been breakthrough, aspirational, and legendary over the years, featuring high-profile athletes and heroes.