MKT 431 M1 A3 MKT 431 M1 A3

Target Market Assignment

MKT 431 M1 A3

Target Market Assignment

The targeted consumer segment are athletes. Nearly in all parts of the world, Gatorade is known for its benefits and how to market to athletes. The core of the marketing strategy is to have star athletes endorse their products, which includes the TV commercials. The TV commercials are very vivid, causing a memory of those commercials.

Gatorade has put out many commercials, however, there is one that stands out a bit from the rest. It stars a young Michael Jordan playing one-on-one against an older Michael Jordan. At the time, Michael Jordan was the super star athlete of all time. That Gatorade commercial had multiple Michael Jordan’s, which appealed to athletes of all ages, demonstrating why Gatorade was the top name in sports drinks.

Gatorade is a sport-themed beverage developed at the University of Florida in 1965. The intended purpose was to create drink which would aide football players from being affected by the heat and heat related illness. Researchers discovered that players were losing electrolytes, along with huge amounts of carbohydrates, which were not being replaced.

The researchers formulated and developed a beverage to replace the electrolytes and carbohydrates that were eliminated when players would sweat. Thus, the birth of Gatorade! Seeing the success of the University of Florida’s Gators football team, Gatorade skyrocketed. It got the attention of the Kansas City Chiefs, who won Super Bowl IV. By 1983, Gatorade became the official sports drink of the NFL.

Two years after being named the official sports drink of the NFL, the Gatorade Sports Science Institute was established in Illinois. The sole purpose of the science institute was to study in-depth, the effects of nutrition on the body before, during and after exercise. Gatorade optimizes its hydration formula, and has expanded its brand with the creation of different flavors and products, including the Gatorade Performance Series.

Gatorade, in 2017, is the official sports drink of all the professional sports teams in America. Their clientele also includes several other elite and professional organizations, including teams. Aside from teams and businesses, Gatorade also sponsors individual athletes, which include Usain Bolt, Dwight Howard, Dwayne Wade, Sidney Crosby, Cam Newton, Peyton Manning, Eli Manning, Hope Solo, Mia Hamm, and Michael Jordan.


In 2001, Gatorade was acquired by the Pepsi Company. Since that time, Gatorade has expanded outside of the United States to its global targeted market. PepsiCo, the owner of Gatorade share the same mission statement:

“We aspire to make PepsiCo the world’s premier consumer Products Company, focused on convenient foods and beverages. We seek to produce healthy financial rewards for investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, openness, fairness and integrity.”

This researcher also conducted a SWOT analysis:


Strong Product Name

Excellent Product quality

Strong Relationship with athletes

Good reputation

Fair Price

Solid Company Image


To Many Varieties

Product Comprehensiveness

Product Line Revenue

Lack of International Presence

No Endorsement Deal with Young Athletes


Develop New Product Lines

Expand to a Different Target Market

Expand Advertising

New Endorsements with Top Entertainers

New Sponsorships



Price Changes

Substitute Brands

Losing Interest

Supply Current Demand

Direct Competition

Global Economy

The targeted market is children between the ages of 5-14 in the United States. Per the US Census Bureau, there are nearly 35,000,000 in the United States between the ages of 5-14. Children have a great deal of influence when it comes to purchasing power, both directly and indirectly. Researchers have discovered that Teens spend approximately $160 billion a year, and children up to 11, spend approximately $18 billion annually.

The Tweens”, ages 8 to 12-year-old, has an enormous presence as well, to the tune of approximately $30 billion in other spending by parents. In the space of some 30 years, the role of children in American life changed dramatically; they became, and remain, pillars of the consumer economy, with economic power rivaling that of adults. — Richard Robbins, Global Problem and the Culture of Capitalism, (Allyn and Bacon, 1999), pp.24-25

In the age of technology, television still captures the attention on kids and tweens. However, television is making its last stand, as children today are on the cutting edge of the digital revolution. Almost from birth, children are bombarded by brand messages, especially the brightly colored and appealing branded packaging in the supermarket, as well as movies, fast food restaurants, toys and games. Research has shown that children do not develop a concept of other people’s beliefs, desires, and motives, until they are at least six years old.

Rationale for target market is that children are one of the most powerful consumer group. Gatorade would be warmly welcome in the children’s demographic. As noted, children have a great deal of influence over purchasing decisions; directly and indirectly. Children also create their own brand loyalties at a young age that can last a lifetime, which be an advantage for Gatorade to peruse this target market, simultaneously building a new customer base.

Those at the top of the business world, sets the standard for all others to follow. The meaning of that is, the way a company conducts itself should always be professional and


courteous. However, society is moving at an accelerated pace, which has forced some companies to cut corners to stay competitive.

That type of unprofessional business behavior could result in serious ethical repercussions, as well as have to deal with a public relations nightmare in the form of public backlash if their conduct is perceived as unethical” (Masters). “A problem can occur when the researcher leaves relevant information out of a report that is circulated to the public” (Murphy & Laczniak, 1992). “The practice of misleading reporting involves presenting research results in such a way that the intended audience will draw a conclusion that is not justified. Misleading reporting sometimes happens when research findings are used in advertising campaigns” (Murphy & Laczniak, 1992).


Argosy University On-Line Library

Laczniak, G.R. & Murphy, P.E. J Bus Ethics (1991) 10: 259. … to Ethical Marketing Decisions, Allyn & Bacon, 1992 (both with P. E. Murphy)

Richard Robbins, Global Problem and the Culture of Capitalism, (Allyn and Bacon, 1999), pp.24-25

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