2021

MARKET ENTRY PLAN

WI21_ADM 4355_ GLOBAL MARKETING

THAILAND AND GATORADE ENERGY DRINK

NAME: LINH DINH
STUDENT ID: 3677745

DUE DATE: APRIL 20, 2021

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Table of Contents
1.0 EXECUTIVE SUMMARY...................................................................................................................2
2.0. THE MARKET....................................................................................................................................3
2.1 Company Analysis
2.2 Product Lines
2.3 Global Reach
2.4 Organization’s Assets and Skills
2.5 Market Analysis
2.5.1 Thailand's Business Climate
2.5.2 Thailand's Market Analysis
2.6 Thai's Consumer Profile
2.7 Competitors
3.0. MARKET ENTRY STRATEGY........................................................................................................10
3.1 The Strategy
3.2 Action Plan
3.2.1 Product Offering
3.2.2 Timing of Entry
3.2.3 The Communication Plan
3.2.4 The Distribution Plan
4.0. CONTIGENCY PLAN.......................................................................................................................13
4.1 Investment Budget
4.2 Exit Strategy
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1.0 EXECUTIVE SUMMARY

Taking into the account of political turmoil and the current international pandemic, we plan for
Gatorade to enter the market through an established business venture with Japan’s Suntory Group – which
have the experience of working with Gatorade’s parent company PepsiCo since 2018. This venture will
let Gatorade have access to the local distribution network with minimal risks and take advantage of
Suntory Group’s experience in operating in Thailand.

The marketing promotion in Thailand will an extension of global marketing plan from Gatorade’s
North America and therefore will not incur significant cost. Under the waterfall model, within the first
year, we plan to have Gatorade Bolt24, launch in Thai market at competitive price points, then we hope to
add in various flavors in the second-year couple with a launch of and Bolt24 Energize that would be
marketed toward “serious athlete” to potion the brand as the “best of both world” a healthy sport drink
that give you energy boost like an energy drink.

Bolt24 and Bolt24 Energize will be caffeinated sports drink that target young active adult, it will
be advertised using Gatorade’s sponsored worldwide athletes such as Messi, Usain Bolt, Serena William
to utilize the halo effect of the Gatorade global brand.

Thailand’s domestic sport drink market is dominated by energy drink companies. Due to the fear
of product cannibalization, these companies hesitate to spend big on promoting healthy sport drink which
lead to the sport drink category has limited growth of 2% annually. The Thai consumer trend of health
awareness which sparks by the pandemic crisis and raising household spending (catalyzed by the increase
rate of urbanization) – Energy drinks are losing its market share its core consumer group and pose a great
opportunity for Gatorade to gain a foothold in the second largest economy in Southeast Asia.
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2.0. THE MARKET

2.1. Company Analysis
Gatorade is a brand of flavored non-carbonated sports drink. The drink was first formulated in
1965 by University of Florida. In 1983, it was purchased by Quaker Oats Company, which in turn, was
bought by PepsiCo in 200 in a deal worth $14 billion Gatorade is currently manufactured by PepsiCo and
distributed in over 80 countries. Gatorade commands 46% of the worldwide sports drink market
according to Euromonitor International. Its sales are of about $3.3 billion. Backed by more than 40 years
of scientific research, Gatorade has proven rehydration and performance benefits over water. No other
beverage or sport drink company has established such a strong expertise in rehydration and sport
nutrition.
The Gatorade brand has become so successful through advertising deals with large professional
sports associations and players. Gatorade is the only beverage besides water that athletes can drink
courtside at NBA games. Product pitchman for the brand include Derek Jeter, Dwyane Wade, Peyton
Manning, Serena Williams, and Usain Bolt.
General Manager: Brett O’Brien
Founded: 07/19/1990
Address: 555 West Monroe Street Chicago, IL 60661
Phone: 1-312-821-1000
Number of employees: 2600

2.2. Product Lines

Gatorade possesses a wide breadth of product range. The company has 3 main product line:
Gatorade Thirst Quencher, Gatorade Endurance Formula, Vodka-ade. Each line of product also has
dozens of flavors to add variety and reach in Gatorade’s customer base.
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Source: The Gatorade Company, Inc. - Company Fact Sheet

In 2020, Gatorade release its first caffeinated drink - Bolt24 Energize – its produced under
partnership with Athlete Usain Bolt. The electrolyte drink has no artificial sweeteners and contain 75mg
of caffeine in a 17-oz bottle (Devenyns, 2019)

2.3. Global Reach

Gatorade is currently available in 80 countries, with more than 30 flavors available in the U.S.
and more than 50 flavors available internationally. Gatorade expanded to Canada in 1984, Asia in 1987
and Europe and South America in 1988. Gatorade is also the worldwide leading sport drink brand and
very capable of expanding due to its parents’ company – PepsiCo - decades of experience in penetrating
global/foreign markets.

2.4. Organizati on’s Assets and Skills

Gatorade competitive advantage being their brand name which they have developed over the year
by expanding into many foreign markets and becoming the market leader in sport drinks industry in all
these markets. Gatorade also success in associating their brands with sport personalities since the time
their brand was introduced in the international market. Gatorade is the official sports drink of the UEFA
Champion League, NBA, NHL, NFL, PGA, MLB, MLS and has a portfolio of worldwide athletics under
its sponsorship umbrella from a wide range of sport such as Usain Bolt, Lionel Messi, Serna William,
Tood Gurley, Bryce Harper.
Gatorade also regularly come up with a new marketing campaign and improved bottle design to
freshen up the brand. The brand has gone from “thirst quenching” image to “performance hydration” over
the years to continue transform the brand from a generic occasion drink for athletic to a “packaged
solution with tailored nutrition ingredients, thus open new doors to the sport fuel market. This elevates the
brand beyond the billions sport hydration category and into the blue ocean market of sport fuel space.
Gatorade calls its core target the “competitive athlete”, the customer who exercises 4-6 times a
week, who identify themselves with playing sport and sweating on a daily basis. While this group may
only account for small percent of the population in Canada, and less than half of Gatorade’s total sales, it
has an immense halo effect because it is the group that many people aspire to be a part of. Couple this fact
with their sponsor portfolio of world-famous athletics, and the appeal of a bottle of Gatorade becomes
something average customer must want to relate to their sport idol.

2.5 Market Analysis

2.5.1. Thailand’s Business Climate
Economic Environments
Thailand is the second largest economy in Southeast Asia after Indonesia. Thailand had a labor
force of 39 million people in 2020, out of its 69.8 million population.  Tourism plays an ever more
important role in the Thai economy. According to Thailand’s Ministry of Tourism, in 2019 (up to
November), Thailand welcomed 35.8 million foreign visitors and the country is a top 10 travel destination
in the world. Therefore, capture Thailand’s market is important to gain a foothold in Southeast Asia and
South Asia region.
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To combat decline in economic sphere by the global pandemic crisis, Thailand’s government has
implemented significant fiscal measures (9.6% of GDP), including health measures as well as social and
economic aid (financial support for households, businesses and sectors hardest hit by the crisis) that will
continue to be implemented in 2021 and that should help next year’s recovery. Thailand is planning for
public-private partnership investments worth USD 33 billion between 2020 and 2027, in order to boost its
economy over the long-term. The plan includes 92 projects, 18 of which are focused on infrastructure. As
a result, The Thai Baht has held its value strongly during the Covid-19 crisis.
Political Environments
Thailand has been a constitutional monarchy since 1932. It is plagued by chronic political
instability and numerous army-led coups. Since the beginning of 2020, the country has seen a series of
student-led demonstrations to response to disputed elections in 2019; the situation has been further
exacerbated by the Covid-19 crisis. Currently the authorities refusing to make concessions, protests are
continuing despite being banned and may be severely repressed with arm force. Gatorade would do well
to keep tab of Thailand’s political turmoil and avoid offending either side of the current crisis.
Regulator Environment
Thai business regulations are governed predominantly by criminal, not civil, law. Despite that
improper business activities rarely mean jail time, but violations of business regulations can still carry heavy
criminal penalties. Corruption is punished heavily by the Thai’s government, therefore there is less worry
about this matter when doing business in Thai’s major cities.

Thailand’s Corruption Index & World Bank’s Doing Business Index

Source: US official Thailand 2020 Investment Climate

The Thai government maintains a regulatory framework that broadly encourages investment. The
Board of Investment (BOI) is Thailand’s principal investment promotion authority, this will be
Gatorade’s primary government’s conduit for investment activities. BOI will offer assistance in
navigating Thai’s regulations and provides pointer to guide Gatorade’s investment toward (both tax and
non-tax) government privileges.
A company is required to have registered capital of two million Thai baht per foreign employee in
order to obtain work permits. Additionally, foreign companies may have no more than 20% foreign employees
on staff. Companies that have obtained special BOI investment incentives may be exempted from this
requirement. Gatorade needs to be mindful of this requirement and make sure this issue is raised when meeting
with BOI.
Finally, in 2019 there are new regulations on cybersecurity and personal data protection that can
raise concerns about local Thai’s government can potentially demand confidential and sensitive
information. As Gatorade’s E-Commerce and Sponsorship’s information can be very sensitive and
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important to keep private, therefore we advise Gatorade to seek legal advice regarding the privacy
protection of client info before moving into Thailand (US Embassy Bangkok, 2020).

Social and Cultural Environment

Thailand has a population of 69.8 million people and 51.1% of that is urban dwellers. There is a
strong emphasis on familial connections in Thailand, and often several generations will live under the
same proof - this causes the advertising market in Thailand is dominated by television (61% of ad spend
in 2016) and TV are watched and followed by a large portion of the population (98% of penetration in
2015) (Santander Trade, 2021).
The business culture of Thai has some characteristic of work etiquette of its neighbours countries
in Southeast Asia such as collectivism, courtesy, saving “face” and a strong hierarchy. Thailand culture is
shaped by the concept of “Sanuk” and “Mai Pen Rai” (Never Mind). Respectively, they mean: the effort
to make the most of any situation and the expression to stay content with what you have. Therefore, Thais
are productive and hard-working they are also satisfied with what their current situation. This is reflected
in the fact that unemployment rate of Thailand remained very low in 2020 (1%) and this official rate is
among the lowest in the world due to low birth rate, lack of social insurance and informal sector (such as
street vendors, motorbike taxis) employing the bulk of workforce (Santander Trade, 2021).
Hierarchies define not just the business environment but the Thai society as a whole. As top
management of Thai’s corporations is often family members, individual status must always be taken into
account in any business interactions. There are long chains of authority that is clearly defined within
firms, which can cause decision making process to be slow. We advise Gatorade to be mindful of these
particulars when sending business executives to deal directly with business partners in Thailand.

2.5.2. Thailand’s Market Analysis

Overview of the Energy and Sport Drinks Market

Most sport drinks in Thai market contain mineral or vitamin to compensate for energy loss. In recent
years, the sport drink market had registered average growth rate of only 1.8% per year with overall
market valued at 8.2 Billion Thai Baht. This is due to very little marketing efforts from companies except
to continue to promote the product as a drink post-exercise or after working in the sun. It is also due to the
fact that most major sport drinks companies in Thailand also produce energy drink and the lack of
marketing effort is due to these companies afraid of product cannibalization and losing the stable energy
drink revenue.
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The overall energy drink market is valued at 30 Billion Thai Baht and has been growing by an
average of 2.7% per year over the past five years. No country consumes more energy drinks than
Thailand (Winn, P., 2010). According to Zenith International average adult Thai consumer drinks three
gallons per year – four times more than American.
The profile of energy drink consumers in Thailand has slightly different from that of internationally
(Appendix 1); they mostly are lower-to-middle income earners aged between 26 and 45. The caffeine
content of these energy drinks is very high, typically at 9.5mg per Oz (Bolt24 for example only contain
4.44mg per Oz) (Appendix 2) They are usually come in condensed bottle of 250 ml or 150 ml as opposed
to North American 477 ml to 500 ml bottles. These traditional energy drink (priced at 10 Thai Baht)
primarily targets the blue-collar population. These key demographics are usually male working class,
these laborers rely on energy drinks to push through long shifts.
It is our beliefs that Gatorade needs to differential itself to gain a foothold in Thailand - Gatorade
products have to be positioned to capture both Thai’s Energy Drink and Sport Drink market share. In
order to do this, the firm will leverage its global leader expertise in sport drink and take advantage of the
changing aspect of the country’s urbanization landscape, the increase level of E-commerce among young
Thai generation as well as a post-pandemic business climate that drives demand of the customers to
pursue healthy choice product. We strongly recommend the firm to bring Gatorade’s Bolt24 Energize
Caffeinated drink to Thai market and market it as a lifestyle drink, couple with a waterfall market entry
with heavy sponsorship in Thai’s popular sports (Muay Thai, Boxing, Soccer).
Rising health awareness
Thai consumers trend of rising health awareness in recent years has prompted companies to
expand its portfolio to appeal to youths and white-collar employees, by offering premium value-added
energy drinks. These drinks may contain ginseng, fruit juice … compared to traditional energy price of 10
Baht per bottle, these premium products are sold at 15 Baht. The premium energy drinks market is
growing faster than traditional energy drink market and hold 12% share of the total energy drink market.
On the other hand, the consumption of energy drinks overall in Thailand has been declining,
because consumers, especially the white-collar workforce, who are seeking mental - long term benefits,
rather than short term boost. With the increased number of white-collar workers employed (7.6 percent
increased from 2018 to 2019). Because energy drinks are commonly perceived as sugary and artificial,
rising health awareness trend will continue to be detriment to overall the energy drink’s market grows
(Koe, T., 2021).
Distribution Chain
The majority of sales for energy drinks and sport drinks in Thailand is from traditional retailers
such as independent stores, small resellers. Due to higher sales margin, these traditional distribution
channels are typically the preferred mode of distribution by energy drinks/sport drinks manufactures.
Traditional retail/reseller contributed to 69% of total sales in 2019 (Sachon, V., 2021).
The modern retailers are the preferred channel for companies that want to position their drinks
that are targeted for new urban market segments. This is mainly due to the higher concentration of
modern retailers in new urban areas. The patrons of these are urban citizens and white-collar consumers.
However, the sales margin is usually lower in this distribution segment, as modern retailers and
ecommerce sites often purchase in high volume to negotiate a lower bulk price point.
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With the added trend of increase urbanization, we can expect consumers in Thailand to use more
disposable income as well as their leisure time to start seeking products and activities with added health
benefits. This can all contribute to a golden opportunity for Sport Drinks market in Thailand to grow and
capture Energy Drink market share.

2.6. Thai’s Consumer Profi le

R
ising Household Income
Rising incomes in the country are generating optimism in Thai population and are increasing
consumer demand for a wide variety of products. Price, quality, and availability of service become the
key selling factors in Thailand. Thai consumers are the most brand-conscious and brand-loyal in
Southeast Asia. They also spend more than their neighbours, which is reflected in their higher debt levels.
Moreover, Thai consumers tend to indulge and make impulse purchases to try out new brands, instead of
saving their money - which is typically seen in other Southeast Asian countries (Santander Trade, 2021).
Thai household spend most of its money on food and beverages with the younger generations
tend to be interested in a healthy lifestyle. Therefore, they spend a lot on healthier food options and
supplement products. Influenced by social media, they are also very appearance conscious, so they also
spend their disposable income on the latest trends.
Urbanization
With Household income in Thailand has grown rapidly over the last decade in line with growing
urbanization. Since July 2011, the World Bank has categorized Thailand as an upper middle-income
economy. Stable economic growth continued to expand the country’s middle-income population. These
factors will act as catalyst for the increased demand of energy/sport drinks in the country.
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The UN projects Thailand’s urban population would grow to comprise 72% of its population by
2050. In preparation for this socio-economic trend and to boost the sluggish economy after the pandemic,
Thai government has been approving many infrastructure projects including airports, rail, road, ports
throughout the country. Consequently, there will be higher demand for blue-collar (construction) workers,
who along with white-collar population, are the major consumer for the country energy/sport drinks.
These projects would also increase disposable income for the blue-collar population, which
would also help to drive consumption of energy/sport drink. Also given the trend of increase urbanization,
there is a strong potential for sport drink demand to grow rapidly along with urbanization.
E-commerce is the future.
There are currently 12.1 million e-commerce users in Thailand, with an additional 1.8 million
users excepted by 2021. In 2018, user penetration is 54% and is expected to increase to 64.6% by 2022.
The Thai E-Commerce market is the second largest in the Southeast Asia region. According to the
Electronic Transaction Development Agency, the sectors using e-commerce platforms to increase their
productivity include the food and service sector with 31%, followed by manufacturing at 16%, and retail
and wholesale at 15%. International courier businesses such as UPS, FedEx and TNT have established
domestic delivery networks, and there is growth in the number of warehouses and local providers offering
express services.
Around 50% of all online purchases are done using mobile devices, with an average purchase
twice a month. E-commerce is particularly popular among the younger generations, with 33.4% of users
aged between 25 and 34 years old. These age group are similar to that of energy/sport drink market and
should be Gatorade primary target audience. Couple with the Thai consumer’s tendency to impulse
purchase, we expect Gatorade products to do well with a promotion focus on Ecommerce channel.

2.7. Competi tors

TCP G ROUP

A powerhouse in both Energy and Sport drink market. Owner of the brand Krating Daeng (or Red
Bull as it knows globally). The firm currently dominating the sport drink market with Sponsor, at 83%
market share. Unlike other Sport Drink makers, TCP Group invested heavily into the marketing of
Sponsor with over 300 million BHT invested in 2019 and three new product lines in the same year.
Sponsor has a competitive price point starts at 14 BHT, the price is comparable to normal energy shots
which are usually priced at 10 BHT (TCP Group, 2019). The company is in prime position to rival
Gatorade on both energy drink and sport drink markets.

OSOTSPA PUBLIC COMPANY LIMITED

The 127-year-old company is currently the market leader of energy drink segment with its
main product line M-150 and Shark energy. It holds a market share of 54.4 percent and uses Shark
energy drink to introduced new carbonated variants with fruity flavours to attract millennial
consumers (Reuters, 2018)

CARABAO GROUP

Formed in 2001, Carabao holds the second place in Thailand’s energy market with its Carabao
Dang product with infused vitamin B12. Unlike other traditional energy drink producers, Carabao drinks
are designed and promoted toward white-collar, urban, younger audience. They also have a line of
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product in sport drink market under the name Carabao Sport. Internationally, Carabao spent big on
sponsorship in big soccer event to promote its brand. The company has a Cup competition name after
them in English football (Nguyen, A., 2020).

COCA-COLA

In North America, Coke is challenging Gatorade’s market leader spot with its continual
commitment in Powerade brand and its expansion in BodyArmor sport drink brand (in 2014, Body armor
held 0.2% market share and at the end of 2019, its hold was 10.3%) (Lucas, A., 2020)
Coca launched Aquarius Sport Drink in Thailand in 2015. The Aquarius brand is available in 26
countries including Japan, China, and South Korea. It has success in Japan, where it becomes the most
popular enhanced-beverage brand in the country. Coca-Cola has invested 300 million BHT on Aquarius
and poised to launch the product in more market in Southeast Asia (The Nation Thailand, 2021).

TIPCO FOODS

Tipco Foods is Thailand’s leading firm in canned fruit and fruit juice. It currently pouring 80
million BHT into Tipco Wave sport drink product to take a large stake in the healthy drink sector to
further securing its leading position in Thailand’s juice market. Tipco Wave is promoted through hosting
activities such as marathons, cycling and fitness centers throughout the country (Rungfapaisarn, K.,
2021).

3.0. MARKET ENTRY STRATEGY

3.1. The Strategy
We decided to forgo Indirect exporting, Direct Exporting, Licensing, Franchising due to the need
for quality control that will be required to produce Gatorade’s variety of products in Thai’s market. We
also decided again Contract Manufacturing because the risk of bad press (e.g. child labor) and diversion
to gray markets that is prominent in Southeast Asia.
Greenfield as mode of entry would allow Gatorade to have full control of the production line as
well as minimize the risk of cultural conflicts. But the cost in both capital and time plus the current
political turmoil in Thailand diverse our attention away from choosing this route.
Acquisition while offer full control of the production also reduce the competition field in the
market for Gatorade. However, it is an option that comes with high risk as the personnel will need
significant time to adapt to the Thailand’s business/national cultures. Also because of the interrelate
nature of the Sport Drink and Energy Drink producers, it will be high risk (and wasteful) for Gatorade to
acquire producer’s portfolio that include Sport Drink in them.
Finally, we believe Joint Venture is the most optimal choice for Gatorade’s mode of entry. This
venture will minimize the risk of entering the market for Gatorade, take advantage of past business
relation to reduce the demand of resources (fresh water in Southeast Asia), and give Gatorade access to
local distribution network.
Suntory Beverage & Food Ltd and Pepsi in 2018 launched a joint venture in Thailand under
Suntory PepsiCo Beverage Limited (SPBT). It is an alliance of powerhouses that involves Gatorade’s
parent company. We believe with SPBT currently serves as operator and distributor of PepsiCo beverage
brands; Gatorade’s offering would be a perfect fit for the joint venture to continue flourish in Thailand.
(Jitpleecheep, P., 2017).
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3.2. Acti on Plan

3.2.1. Product Off ering

 Bolt24 and Bolt24 Energize product line will be the main offering from Gatorade.
 Using a product extension strategy, these products will maintain the taste that as it is
known globally.
 At launch, each 16.9-Oz bottle will come in three flavors: Strawberry Lemon, Orange
Passion Fruit and Cherry Lime. The drink will contain 50 mg of caffeine per bottle and
have 100% of the recommended daily intake of antioxidant vitamins A, C, B3, B5 and B6
 The hydration effect of the drink will come from natural ingredients watermelon and sea
salt (both obtainable in Southeast Asia)
 It is also our belief that the distribution price of Gatorade will need to be competitive in
both Energy and Sport drink market. Therefore we believe in pricing the non-caffeinated
Bolt 24 at 10 BHT to match the price of an energy can and undercut the current sport
drink market leader, which is TCP’s Sponsor at 14 BHT
 The caffeinated Bolt24 Energize will be launch later at 15 BHT with goal to position it as
the “best of both world” drink – that can satisfy your hydration needs and give consumer
much needed energy for sport or work.

3.2.2 Timing of Entry

As the market leader in sport drink market globally, we believe Gatorade can use Product
Extension - Communication Adaption strategy to penetrate the Thai’s market. Gatorade’s extensive
product portfolio and the slow growth of Thai’s sport drink market mean the Waterfall strategy is
preferable.
This Waterfall approach will allow Gatorade drinks at launch to be marketed tailored to local
conditions and it offers the downstream supply chain partners (supermarkets, resellers, retailers) the
opportunity to improve from the experience of the launch. It will also allow the drinks to arrive at Thai
market earlier than Sprinkler models, thus allow Gatorade to test out the market as well as more time to
plan out appropriate marketing plan for subsequence products after launch. This model will allow
Gatorade chance to revamp public interest in its marketing every time a new line of product being
deployed. Most importantly, this Waterfall model will help Gatorade to plan its strategic marketing better
and reduce chances of crucial market flaws from taking place (Nijssen E., 2019).
Within the first year, we will have Bolt24 launch in Thai market at the competitive price point,
then we hope to add in various flavors such as Mixed Berry, Tropical Mango, and Watermelon
Strawberry in the next year couple with a launch of Bolt24 Energize that market toward “serious athlete”
with promotion that coincide with Gatorade’s Player of The Year Award event to further extent the halo
effect of the brand.

3.2.3. The Communicati on Plan

The Halo effect of Gatorade’s sponsorship in global sport needs to be fully taken advantage of to
help push its product in Thailand. The firm current athletic ambassador in Tennis, Soccer such as Usain
Bolt, Serna Williams, Lionel Messi; and its existing sponsorship in popular soccer clubs like FC
Barcelona, Manchester City FC and the competition UEFA Champion League would be a perfect for an
image marketing promotion for Gatorade product in Thailand. Moreover, Thailand is known worldwide
for its success in Boxing and National Sport – Muay Thai, the two current living legends of these
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respective martial arts are Somrak Kamsing and Khaosai Galaxy. We encourage Gatorade to extent their
sponsorship offers to the two legends for a cross-martial art promotion fight event to make use of the
event to promote the launch of Gatorade. We expect these strategies will resonate very well with the age
bracket of 25 to 69, and to lesser extent the 16 to 24 group.

For the 6 to 14, as well as 16 to 24 age group, we believe Gatorade can extent its Player of the
Year award to Thailand to put a spotlight on Thailand’s best high school athletes in various sporting
events. The award is known globally and the prestige it brings to young athletes will help associate
Gatorade drink with further sporting excellency.
These promotions will be an extension of the global promotion of Gatorade team in North
America, therefore most of the work has already been done. A team of local advertising and martial art
promotors will be hired to secure venue for the launch as well as make localized adjustment to the
campaign.

3.3.4. The Distributi on Plan

After using its venture with Suntory Beverage & Food Ltd to gain production foothold, we want
Gatorade to employ territorial salesforce that target urban area, blue-collar, and white-collar workers.
With ecommerce promotion and sport sponsorship to target younger adult/teenagers. As Thai household
usually include multigeneration living under same roof, we want members of a family to see how
effective and refreshing Gatorade is from seeing their family member using the product. Therefore, we
hope to push Gatorade distribution so that it is easy to be purchased in both traditional and modern retail
channel with a split of 70 percent through traditional stores and 30 percent to the rest.
With support from the Thai government, a “Digital Thailand” (International Trade
Administration, n.d.) initiative that started in 2016 brought about a wave of E-commerce transition. The
grow in Thailand is rapidly as a result of increasing penetration of the internet, smartphone, credit cards
and pandemic climate as a catalyst. We want Gatorade to offer its product with special promotion with
popular e-commerce site such as Pantip, Lazada, Shopee to capture the younger adult market.
.
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4.0. CONTIGENCY PLAN

4.1. Investment Budget
The cost to launch a non-alcoholic beverage in Thailand is between 150 million BHT (Sanvo) to
300 million BHT (Sponsor). With investment in production is estimated at 200 million BHT for 12
million liters per year (The Nation Thailand, 2021).
However, with most of the promotion marketing will be an extension of Gatorade NA’s Global
Marketing push couple with the reduce in production cost due to joint venture with Suntory PepsiCo
Beverage Limited. We expect the cost of the Market Entry Plan to be at 300 million BHT or north of 12
million USD. An acceptable cost for Gatorade Advertising Department as they spent over $100 million
on advertising in digital, print, and national TV in 2020.
Most of the 300 million BHT will go into a media campaign on TV as it is the advertising
channel with the highest level of penetration in Thailand (Santander Trade, 2021). As the channel with
the most potential to grow, we believe digital ad during pandemic climate will have significant reach to
urban as well as sub urban area of Thailand.

Budget Spending
15.00%

50.00%

30.00%

15.00%

TV Others Digital Physical

4.2. Exit Strategy

Although exiting Thai market can bear significant signal to surrounding market in Asian, Gatorade should
consider forfeit their share in the business venture if:

 The current political turmoil in Thailand is the biggest obstacle in doing business in Thailand.
And as it worsens in the upcoming months, the situation presents a big risk toward all foreign
business venture.
 The dominant of Energy Drink market over Sport Drink market proves to be too much for
Gatorade to gain a substantial foothold. Sustained losses occur for years after the launch.
 Resource allocation to focus more on others emerging markets like Vietnam, China, or home
North American market where Coca-Cola is planning to take Gatorade leading position.
 There is Ethical concern regard child labor at bottling plant.
The exit strategy should be to liquidity their partnership with Suntory PepsiCo Beverage Limited and
allow their parent company Pepsi Co to absorb their production capability for others strategic products.
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REFERENCES
Devenyns, J. (2019, December 17). Can caffeine added to Bolt24 sports drink energize
Gatorade sales? Food Dive. https://www.fooddive.com/news/can-caffeine-added-to-
bolt24-sports-drink-energize-gatorade-sales/569199/

International Trade Administration. (n.d.). Thailand - eCommerce. Retrieved April 5, 2021, from
https://www.trade.gov/knowledge-product/thailand-ecommerce

Jitpleecheep, P. (2017, September 1). Source: Suntory in talks with Pepsi in Thailand. Retrieved
April 5, 2021, from https://www.bangkokpost.com/business/1316571/source-suntory-in-
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Appendix

Appendix 1
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Appendix 2: Caffeine lelve in Gatorade Bolt24 Energize and Carabao Energy Drink