In Thailand for more than a decade, and despite its premium image, Gatorade has managed to secure just a five per cent share of the sports drinks market. With Pepsi-Co's acquisition of Quaker Oats in mid-2001, the drink came under the cola giant's portfolio, but Pepsi waited until this summer, when distribution moved from Green Spot to long-time associate Serm Suk, to tackle the issues.
The company's strategy is three-fold: to take Gatorade beyond sports players to the general public; to introduce a 250ml option in addition to the 400ml bottle to bring unit-price lower; and to push brand awareness via an intense 30 million baht (about US$750,000), three-month advertising onslaught. The goal: to double Gatorade's market share to 10 per cent over the next 12 months.
At Serm Suk's existing network of 200,000 outlets nationwide, the 250ml bottles will be the spearhead, said Serm Suk marketing director Dhitivute Bulsook. The 400ml bottle will be pushed at places such as golf courses, sports clubs, fitness centres, universities and factories.
Gatorade is also supported by the marketing savvy that has made Thailand one of the few countries worldwide where Pepsi leads Coca-Cola in the cola category. Gatorade now has an integrated marketing campaign in the mass media, including TV and outdoor ads with the global tagline 'Is it in you?', focusing on the individual's drive to bring out 'the best in him or her'.
Pepsi's marketing onslaught comes at a time when Thais are becoming more health conscious and the sports drinks industry is growing five to 10 per cent a year. But it is competing in a category long dominated by two strong players: Red Bull Beverage's Sponsor and Osotspa group's M-Sport control 60 per cent and 35 per cent of the market respectively.
Will Pepsi's strategy be strong enough for it to win drinkers from its well-entrenched competitors? Also, is its premium image strong enough to justify its relatively more expensive price? At 13 baht for 250ml, the brand is priced above the eight to nine baht for Sponsor and M-Sport.
VITAL SIGNS
Sports drinks: market share % Baht (billions)
Sponsor 60 1.80
M-Sport 35 1.05
Gatorade 5 0.15
Source: Serm Suk
DIAGNOSIS - Andy Wheatley - Managing director, Enterprise IG Bangkok
What will make or break Gatorade in Thailand will be its relevance to the target market, consumer affinity with the product and the brand proposition.
You can't miss the Gatorade ads currently occupying center stage at Bangkok's skytrain stations. The sports drink positioning and key visual elements of the brand identity are clear and the famous Gatorade lightning bolt logo has pride of place. So far, spot on.
But where's the relevance to the consumer, the affinity with personal values and the compelling brand proposition?
And is the use of Michael Jordan as a key brand ambassador appropriate?
Of course, 'MJ' is one of the greatest ex-professional sportsmen of all time, but therein lies the issue - he is an ex-sportsman.
Given that one of Gatorade's greatest advantages is its track record, it seems like a great opportunity missed not to utilise a younger, more relevant and still active sporting icon.
Gatorade is a great brand built on a proven product that does exactly what it claims. Yet, without a compelling proposition and a clear point of connection with its target audience, it's going to have to work very hard to achieve the 10 per cent market share it is striving for.
DIAGNOSIS - Apirak Paul Apisarnthanarak - Account planning director, FCB Worldwide/Thailand
With Serm Suk, Gatorade, the world's number one sports drink, will now be able to enjoy more consistent marketing support and distribution strength.
The new 250 ml-sized bottle also bridges the price gap. But there are challenges and issues that Serm Suk needs to address before it can fully taste the fruits of Gatorade's success.
Gatorade has tried to establish itself in the Thai market at least three times over the years. Gatorade isn't a new brand in the market, and there is not enough 'new' news to generate consumers' excitement over Gatorade.
Its past success around the world, especially in the US, can be attributed to its association with Michael Jordan - a true sports icon. Like his trademark fade-away move, Gatorade was able to inspire sports enthusiasts around the world to want to be, play, and drink like Michael.
But Jordan's mileage and superstar aura are fading, as he is no longer playing basketball and has less media exposure.
Lastly, Gatorade is also facing a fierce competitor, Sponsor - which has captured 60-70 per cent market share. Sponsor is launching a promotional campaign, 'Enjoy stomping, winning prizes', as a pre-emptive move to slow down Gatorade's resurrection.
TREATMENT
Wheatley's prescription
- Get inside the minds of the target consumer to establish key insights that will help build relevance. Give them a reason to want Gatorade above all other sports drinks.
- Use more appropriate and compelling sports personalities, or at least ones that are still active, to endorse the brand to drive greater affinity.
- Be synonymous with sports, fitness and health by ensuring maximum exposure at targeted, high profile events. Make the Gatorade thunderbolt an icon of physical activity.
APIRAK'S REMEDY
- Currently, all of the sports drinks are offering the same core product benefit of replenishing bodily fluids. Go one-up on its competitor's benefits in the performance enhancement area.
- Build the Gatorade brand experience. This category is about hard work, 'no pain, no gain', and real experience.
- Reflect the target's attitude and personality: in Thailand, the attitude of consumers regarding sports is different from that of sports enthusiasts in other parts of the world.
