Promotion

To reach the target market, I’m going to promote Gatorade-Power through the elements of advertising and online marketing. It will help me out to reach the end consumers because the TV and the Internet ads are attracting a large number of people at one time. However advertising is an expensive element of promotional mix, it will definitely pay me a return on investment, as I will gain my customers fairly easy and very quickly. Moreover, I’m going to use online marketing such as the Facebook and the Twitter in order to attract people’s desires. The Facebook is a good tool to promote a product as most of people of Generation Y and other generations such as tweens and teens are surfing the networks to look for different special advertisements every day. It is an easy way for customers to keep track of advertisements. For example, if a person who registered in the Facebook had put information about himself such as his interests in the gym, bodybuilding, and different sport activities, he will get the links of advertisements on the right side of webpage from sport interests. On this matter, Gatorade-Power will pop-up on the right corner, as it is a sport drink, and the user might click the link and he will be able to go directly to the company’s website and search more information of sport drink Gatorade-Power. In order to reach wholesalers and retailers I’m going to use an element of sales promotion. To be more precise, premiums, price deals, gifts, and free samples of my product will help me to attract wholesalers and retailers. Regarding to the Product Life Cycle, the company of PepsiCo with Gatorade’s brand is in a maturity stage, so my role will be to persuade my loyal customers and try to steal Powerade’s and Vitanminwater’s consumers with a product differentiation competitive advantage.

Place

In order to distribute Gatorade-Power to the end consumers, I will use four both direct and indirect channels, so my distribution strategy in terms of alternative channel arrangements is going to be a dual distribution. The first one will be a direct channel where I, as a manufacture, will supply my Gatorade-power drinks to the final customers through the online marketing. It is a non-traditional way of distribution. The PepsiCo company with Gatorade’s brand has made their personal website where the customers may order sport drink in large quantities to their homes. It is a good approach nowadays, as customers in that case do need to be worried about going outside and purchase drinks in grocery stores. The products will be delivered to their homes directly. In addition to this channel, I will use a retailer channel structure of traditional way of distribution. It means that I will be supplying different retailers with my products at the special prices, and they will be buying them and selling to the end consumers at different determined prices. I’m going to supply Gatorade-Power drinks to retail stores such as Loblaws, Walmart that have a high quality of products. To distribute my products, I also will be using wholesaler and agent/broker channels that are traditional channels. The first wholesaler channel is distributing indirectly to the consumers. So, the wholesaler Costco will be buying goods from manufacture PepsiCo in big quantities with large discount and supplying them to the retail stores Lablaws and Walmart. The end consumers will purchase sport drinks from these stores. The second agent/broker channel is also distributing indirectly. Agents and brokers of Gatorade’s company will represent and determine the prices for wholesalers; the wholesalers are going to order the goods from manufacture, and the rest of the chain is going to be the same. Retailers such as Lablaws and Walmart will buy the goods from wholesalers; the target market will purchase the products finally in retail stores. As a type of my consumer product is shopping product, I will use a selective level of distribution because my products (Gatorade-Power sport drinks) are more expensive than convenience ones and they have a fewer range of distribution; in that case, I “will eliminate all but a few in any single area” (Lamb et. al. 194)

Price

To set a price of Gatorade-Power drink, I will use profit oriented pricing objective that includes profit maximization, satisfactory profit and target return on investment (ROI). In other words, my total revenues will be as large as possible relative to the total costs (Lamb et. al. 298). I will try my best to maximize my profits and earn more net-income. The price strategy will be a price skimming as a sport drink, Gatorade-Power, is unique, and I will use high prices in order to gain large profit and will promote the product heavily. Also, I will use odd-even pricing tactic to make consumers feel that they will be paying a lower price for a product (Lamb et. al. 327). In that manner, my suggested retail price will be $12.99 per 32 fl. oz. and $9.99 per 20 fl. oz. So, Walmart and Lablaws will buy Gatorade-Power sport drinks at these prices. Obtaining that prices were developed on analysis of pricing skimming strategy to maximize prices, as the products are unique. The wholesaler, in that case Costco will be able to buy my products with a discount of 20% of retail price. It means the discounted price for them would be $10.99 per 32 fl. oz. and $7.99 per 20 fl. oz. This strategic move is to offset the promotional costs of the new product during the maturity stage of the growth life period and to gain profit for PepsiCo Company.