Pricing –

At 32 Oz, the 'intent to purchase' price was $1.65.

28 Oz However for 28 Oz, a proportionate price would be $1.44.
But since the packaging size is reduced, we can slightly charge
more, making it $1.5, i.e. ~$ 2 CAN

At 2000ml, the proportionate price would be $3.66.

140g However, with reduced packaging costs and to incentivise larger

purchase, we can reduce it to some extent.
The price could be made at $3.26 which would be about $4.5 CAN

Promotion-
Above the line Promotion –

Enhance the position as an ‘Instant Re-energizer’ and position it as a drink for

active & healthy people, attracting the health-oriented population of Canada .

Association with NHL games will prove to be a boost to the brand and will keep the
product in conjunction with physical activity.

Television and Print advertisements are necessary to establish Gatorade in the

market, wherein the position can be strengthened using ads targeted towards the
consumer segment leading a healthy lifestyle.

Below the Line –

Eye-catching Point-of-sale-material (POSM) with attractive graphics at convenience stores

and sports stores, and buntings at grocery stores will enhance shelf visibility.
Distribution Channel –

Grocery Stores

Grocery stores will serve as the primary distribution channel as they are one of the
frequently visited places for adult buyers/users, which is the primary target segment of the
product.

The success of the channel in the US market is also an indicative of its potential in Canadian
market.

Convenience Stores

These stores form a huge portion of the retail market in Ontario with over 2,900 such
outlets. This makes this channel a necessary place to be for higher visibility.

The channel needs some efforts and investment for tapping the full potential as the current
sales force do not service convenience stores. Hence advisable to use employees and not
summer students

Sports Stores

Placing the product at sports stores will attach a positive image to Gatorade for the target
audience.

Instant product form of Gatorade will be the most suitable for this distribution channel.

High distributor margins may cause a hit in the margins in this channel.
Product-

FLAVOURS

- Flavours available – lemon-lime, orange and fruit punch.

- Test marketing to be done to decide which flavor to launch as cost of relisting is very
high
- However, the Lemon-lime flavour is being produced the most and is the first flavour to
be introduced. It also gives a refreshing feeling to people and adds an aspect to the
health proposition for the Canadian people

PACKAGING SIZE AND DISTRIBUTION SITE

-Retailer’s Margin at Grocery and -Retailer and Distributor Margin
convenience stores is about 29%. combined would be at 64.5%
 Convenience stores & grocery
stores – use 28 oz (~800ml) size
(small) and 2000 ml cannister
(large) as these are most common
sizes at the stores
32oz was already considered
bigger, hence 28oz seems
reasonable for one serving for a
colder country than US
Most people shop their week's
groceries together and hence
would take the larger pack of
140g (2000ml)
Sports distributors – use 28 oz
(~800ml) to maintain consistency
in size
The presence in sports stores
would have a highly positive
effect on the image of Gatorade
for all audiences
Small size preferable as
convenient for instant
consumption, assuming most
people in these stores are trying
to play some sport and would like
to try out the product