Marketing Report: Gatorade, Data, Segmentation, and Innovation

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This report provides a comprehensive analysis of Gatorade's sales and marketing strategies, with a focus on how data is utilized to enhance customer relationships and improve service delivery. The report delves into the importance of data in understanding customer requirements, preferences, and expectations, particularly in the context of Gatorade's new smart watch product. It examines the application of segmentation, targeting, and positioning (STP) strategies to effectively reach and serve specific customer groups. Furthermore, the report explores the rationale for innovation in new product design, aligning with Gatorade's overall business strategy, and proposes viable solutions to meet the needs of target customers. The report highlights the significance of data-driven insights in optimizing marketing efforts and maintaining a competitive edge in the sports drink market, including practical strategies for data collection, analysis, and storage. It also discusses the role of relationship marketing and its benefits in building customer loyalty and brand recognition.
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Sales and Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Your report should include a comprehensive evaluation of the role of data in improving
relationship marketing within your chosen business. You must also evaluate how the role
of data improves the target customer’s expectations and level of service provided..............3
TASK2.............................................................................................................................................6
The concepts of segmentation, targeting and positioning specific to a product or service....6
TASK 3............................................................................................................................................8
You are required to create a rationale for innovation in a new product and/or service
design for your chosen product/service in meeting the needs of customers in line with your
chosen organisation’s strategy................................................................................................8
TASK 4............................................................................................................................................9
Choose a specific target group within the framework of your chosen business and create
viable solutions that would appropriately those specific target customers’ needs.................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
Books and Journal................................................................................................................13
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INTRODUCTION
Sales and marketing are two important functions in an organisation as the whole profit of
the organisation is depended on these two departments. Sales in simple words means
increasing the potential customers that are ready to purchase the company's product basically
it means selling of more and more goods. Sales is incomplete without marketing as it is the
marketing function that makes aware people about the product and service and attract them to
buy the product or avail the service (Agrawal and Sareen, 2016). Marketing is a broader term
and includes sales in it. There are many methods that are used by companies to attract more
and more customers and to satisfy the needs of customers it is important to know and
understand their needs and wants as they are the one who will improve the sale of the
organisation. The organisation to grow and achieve success it is important to perform both of
the functions hand in hand as they lead to success of the organisation. The report will focus
on an American Company naming Gatorade which has its operations in around 80 countries
and the make sports-themed beverage and food products, built around its signature line of
sports drinks. For success of the company it is essential to find out the potential customers
and then fulfilling their needs and wants and it is also important to build a image of its
products in the minds of its customers so segmentation. Targeting and positioning strategy of
the company is used. A research is to be conducted for making a rationale of new product that
is matching the strategies of company. The strategies and techniques that attract the
customers are also mentioned in the report. Also an evaluation of the importance of data in
improving the customer relationship in part of this report.
TASK 1
Your report should include a comprehensive evaluation of the role of data in improving
relationship marketing within your chosen business. You must also evaluate how the role of
data improves the target customer’s expectations and level of service provided.
Relationship marketing is a way to build loyal relationship with the customers. Marketing
is a way to promote the products of the brand by devising effective strategies in order to
maintain competitive edge. The company focuses on building relationship through effective
marketing which enhance the growth prospects of the company. The company focuses on
building longer term customer engagement rather than building short term customer
relationship (Borchardt, Souza and Viegas, 2018). Data is factor which is important to be
analysed by the research and development department to ensure that it will be used for the
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marketing purpose wisely. Organisation use data to analyse the trends and preferences of the
customer to make sure that they purchase the product of the company. In context with the
chosen organisation, the company is launching a smart watch after evaluating its needs in the
current scenario. The company also analyses the latest technology that will reduce their
operational cost and will maximize their profit. Data also helps in developing effective ways
to serve the customers in a better way (Cometto and Labadie, 2017). Relationship marketing
is a technique used by the Gatorade Company to attract the youth generation who will get
attracted towards the new launch of product. There are many benefits of using data for
relationship marketing which is explained below:
Identify the customer requirements: Data is a way to get an insight of the customer
needs. The company uses the relationship marketing as a way to understand the
customer experiences and disappointment of the customers regarding the product of
the brand. Customers are dynamic in nature and to understand their needs and want is
not an easy task. It requires experience personnel for understanding their preferences.
The company uses data to know the reason for negative feedback of the customer
which will ensure that their needs and wants are satisfied in an efficient way. Also,
the company focuses on maintaining their effective ways to ensure that the purchase
the product immediately.
Helps in understanding the requirements: The Company uses the data in
understanding and evaluating the preferences on their resources. The company
analyses the trends and plan a budget for the product development. The aim of the
company is to launch the product in minimum operating cost with enhanced customer
base. The customers plan to purchase the product by analysing the features of the
products precisely. The company tries to attack the social networking of the
customers to get their data regarding their preferences. The relationship marketing
helps in promoting the products and functions of the company across the globe. As
the company work at a global level, so they have diversified customer’s base (Cont
and Schaanning, 2017). For understanding the needs of diversified customers they
need effective tools to develop the survey and analyse them effectively.
For the collection of data following process is required to be followed by the company
which are explained below:
Including a catchy title: The Company must provide a catchy title to the data to
ensure that the customers get full knowledge of the product and its features. This
will promote the product of the company and ensure that the customers make an
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immediate purchase. Also, the company aims at building competitive advantage
by selling the product effectively.
Analysing the data: The Company analyses the data collected to ensure product
development. Also, the company tries to implement various tools to analyse the
data and research workforce. The workforce will analyse the data and uses it to
make improvement in the current offerings of the product. The company always
try to those tools that will minimise their marketing cost and maximise their profit
ratio. The company focuses on identifying the features that can be eliminated from
the product to maintain their effectiveness.
Storing the data: The Company stores the data in their secured system. Their
system is effective and maintains the privacy of the data to ensure integrity. The
company tries to install the software which safeguards the customer data from
misusing (Devanur, Peres and Sivan, 2019). The customer data must be used
effectively by the company to enhance their customer base. The company
classifies the data into different storage system. It will enhance their skills of
managing the data efficiently. If the data gets lost, then it will tarnish the image of
the company and affects the promotional technique of the company.
Use of data: The data is used by the company for improving the performance of
the company. Also, the company focuses on building their brand recognition and
try to enhance the awareness of the product through effective relationship
marketing. The company focuses on maintaining their competitive advantage by
devising the strategies for promoting the products. In context with the chosen
organisation, the company tries to gain the customer data regarding the usage of
smart watch by the customers. The company also targets the customers who are
using the smart watches of other brands to influence the customers for switching
towards their brand. The company tries to utilise the effective strategies in order to
maintain their customer base (Dewenter, Heimeshoff and Thomas, 2016).
The relationship marketing is a concept in which data develops a base for the
company to achieve their objectives. The data collected will be used for evaluating the
customer preferences and to know what the expectations of the customers from the brand are.
Then the company tries to collaborate the customers’ expectations with the objectives of the
company to maintain effectiveness. The goal of the company is to build the trust of the
customers over their brand so that they will not switch the brand. In context with the chosen
organisation, they devise the strategies that will be able to maintain the competitive edge of
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the company. The company focuses on enhancing their smart watch market share to capture a
leading position in the competitive market. The company aims at analysing the purchasing
habits of their customer (Fensel, Akbar and Gruber, 2020). This will help them in targeting
the customers which will help them in achieving the organisational objectives effectively.
The current working environment of the company affects the market share and their
operations. The workforce must work effectively to protect the data of the customer and use
them effectively to enhance their customer base.
TASK2
The concepts of segmentation, targeting and positioning specific to a product or service.
Gatorade Company deals in making sports drinks and products. So the company is
now taken an innovation and has m manufactured a Smart Watch that will show the
requirement of energy drink to the person wearing it. The new products are always required
to compete in this competitive market.
STP of the product
Segmentation: It is the process of dividing the population into groups. These groups are
decided according to needs and wants of people. Homogeneous people are categorised in one
group. It is a process which makes it easy for the company to manufacture the goods and
services according to preference of customer an then serving them to those who really like
them. This increases the chances of the manufactured good and increases the sales of the
company. Gatorade Company as it is launching new products needs to segment the market
and then fulfil their needs and wants accordingly. They are making a smart watch so it is
important to divide the whole population into small group that are in needs of the product.
The market is vast and to carter their needs and wants it is the companies task to segment the
customers (Guidolin, Guseo and Mortarino, 2019). The way to segment should also be
appropriate to carter the preferences of customer and to satisfy them. There are basis on
which the company can segment the customers and some of them are discussed below:
Demographic segmentation- This is most commonly way used by companies to
segment their population. The points that came under demographic segmentation are
age, gender, population, family income etc. As the people of same demographic
profile normally have same needs and wants and usually prefer same products. In
relation to Gatorade company they have segmented the population on the basis of age
as the people from age group 18 to 60 years are more conscious about their health and
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use these gadgets, so the company is manufacturing the product by keeping in mind
the peopl3e of age 18 to 60 years and their motivation towards energy drinks and their
health. If seen in case of income the people of middle and high are basically targeted
as they will like to spend money on the gadgets that will help them to focus on their
health. The pricing policy is also decided by having focus on the income group and
variants are4 given so that it can be used by the targeted groups.
Psycho graphic segmentation: Under this the customer are divided into small groups
on the basis of beliefs, value of the customers. The group that share same type of
lifestyle normally have same preferences (Jha, Deitz and Royne Stafford, 2019). The
values that they share impact the buying behaviour of the customer and will boost the
sale of the company. In context of Gatorade Company it has launched a smart watch
that is focusing on the people that carry a hygienic and healthy kind of lifestyle. It is
vital for an organisation to group its customers and then serve them that increase the
chances of more sales. This factor also includes interest the people who like to use
gadgets and like to wear smart watch will be attracted towards the product.
Geographic segmentation: This includes differentiation the customers according to
the places where they live. They are grouped on the basis of geographical location
like city, country and region. The Gatorade company is present is 80 countries so they
need to understand the needs and wants of people living at different places and serve
them accordingly. They can change the design and shape and language shown
according to the region they are serving in. This will attract the customers more and
create a good image of company in minds of customers which will boost the sale of
the product.
Targeting: It is the next step in the process of STP under which the company has to decide
the segment that it will serve. It is important to target the right customers and then fulfil their
needs and wants. The group is analysed and all their demands are also understood to provide
them with what they want. The marketing takes place and now the strategies and promotional
acclivities are done to make the customers aware about the product launched and also to
make them aware about it (Khasawneh and Dasouqi, 2017). In this step the customers come
to know about the new product that is launched by the company. The potential customers are
attracted by using the available resources to carter their needs and wants.
Positioning: it is the third stage and the final one as it is the time to make a image of the
product in the mind of customers. Positioning should be done appropriately was the image
once created cannot be changed easily and the companies that reposition its product and
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services are normally not preferred by customers. In case of Gatorade company they hav3e
made a innovation and made a smart watch that will be used by people that are concerned
about their health and the company is in line of making juices and drinks that are for energy
so the image created is of gadget that will help people to remain healthy. It is important to
make people think well about the product and satisfying them will increases the image of
company and will boost the sales (Kolassa, 2016).This is the method of STP that is to be
followed by companies to decide their target group and provide those goods and services
accordingly to make the product a profitable product.
TASK 3
You are required to create a rationale for innovation in a new product and/or service design
for your chosen product/service in meeting the needs of customers in line with your chosen
organisation’s strategy.
Gatorade Company has used innovation and made new product that is smart watch that
tells the requirement of energy drink in the body. The American company has understood the
needs and wants of customers and have taken the decision of making the products. The
rationale behind innovation is as follows:
Enhancing the profitability by 10% within a period of 6 months.
Attracting more customers and focus on increasing sales by around 15% in a year.
The company has targeted the people who are health conscious. Basically the would be
attracted as they will come to know about the need of drink by their body as and when it arise
so the customers will increase the sales if they will understand the product (Kouvelis and Shi,
2020). It is a good product as the alarm will ring when there is need to increase the energy
level and use the drink. Excess of everything is bad and if used in large quantity can harm the
body so by used of this watch this fear is also gone and people will come to know about the
need of their body. Some principles that are used by Gatorade Company that would help them
to meet the customers’ requirements are as follows:
Understand your consumers at granular level: As now everything is changing
companies are also evaluating their customers in a different manner so as to
understand them better and their needs and wants are satisfied easily. To understand
them better the customers are to be studies and the companies have to make strategies
that will help the company to influence the customer’s more and better. The
information and researches are to be done by the company to improve the analytical
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skills and to provide the customers according tom their needs and wants. The needs
are growing so it is needed by the organisation to know about them and understand
them is important.
Treat customers as assets which would develop in value: The organisation is able
to work and operate for long if they consider the customers as their assets. As they are
the one for which the company is working and because of which company is working
so it is the company who can make the process smooth by making relationship with
customers. Building good relations with customers is a thing that will help company
to grow in long run. If the customers start liking the company and the services offered
by them they no one can stop the company from being successful and the customers
that are loyal promote the company. The company not only has the relation of just
selling the goods and services to the customers but also to provide them pre and post
services. The companies that serve the customer after the sales are happier and have
comparatively more loyal customers. And loyal customers don't switch the customers
are loyal if their needs and wants are satisfied and them after sales service like if they
have some problem with the product that should be solved with time. Overall to gain
good position and be successful in the market the company should maintain good
relations with the customer’s.
TASK 4
Choose a specific target group within the framework of your chosen business and create
viable solutions that would appropriately those specific target customers’ needs.
The Gatorade Company is introducing their new innovative product to attract the
young generation. The company have developed a smart watch which will inform the
individual that when they have to consume water or energy drink after evaluating their body
requirement (Kurlat, 2018). For this company is targeting the customers of middle and upper
class. The company uses this target market to make sure that the customers will create a
direct link with the products of the brand. The manager plays a significant role in developing
effective strategies to achieve their objective. Moreover, the company have decided to opt for
the following strategies which are discussed below:
Marketing strategies: These strategies target the consumers after evaluating their
preferences. This helps them in enhancing their customer’s base. The Gatorade Company is
implementing the following strategies:
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Social media marketing: It is a technique which concentrates on enhancing the
customer base of the company by implementing the innovative ideas in their product
development. The aim of the company is to enhance their social media traffic by
increasing the likes and share ratio on their platforms (Leach, Epler and Wang, 2020).
The firms can able to share videos, photos of their products on Facebook, Instagram,
and Twitter. In relation with Gatorade Company, they focus on utilising effective
strategies which will ultimately minimize their marketing expenses resulting in an
increased profit.
Search engine optimization: SEO is a process to enhance the awareness and
popularity of the brand and its products. For this the company develops an attractive
website which helps them in tracking their targeted customers. This will provide
unpaid search outcomes to the company on the top platforms namely google, yahoo
and many more. In context with Gatorade Company, the company opt for this strategy
to ensure that their product development and awareness reaches at higher levels. This
technique helps in building their leading position in the competitive market.
Search engine marketing: This strategy is essential to ensure brand recognition.
Also, this helps in maintaining brand competitiveness which leads to enhanced
productivity. The effective method used is the pay per click which is implemented in
online advertising procedure. Also, the form buys the link or the websites to enhance
their advertising platforms. The Gatorade Company adopts these strategies to enhance
their productivity and profitability. This also ensures their online visibility to their
potential customers. For this company these strategies are effective as they believe in
online exploration. Also the company is dynamic and can adapt various marketplaces
with diversified customers. It is necessary to make an effective position in the search
engine as this will enhance the customer base of the company.
Email marketing: This method is considered to be highly effectual method as it has
diversified nature. The method covers every segment of various customers group. But
there is a possibility that the firm’s message can be delivered to spam folders which
will result in failure of this technique. Also, it will be wastage of effective resources
and funds of the company (Magnotta, Peev and Steffes, 2020). Moreover, email
marketing is a technique that targets the clients with the aim of persuading their
buying decision. In relation with Gatorade Company, this marketing strategy will help
them in developing the relation prospects with potential customers. This marketing
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technique also helps in reaching the prospective customers and develops strategies to
retain their current customers.
Sales strategies: The aim of these strategies is to enhance the sales of the company by
reaching to potential customers. Some of the strategies implemented by Gatorade
Company are as follows:
Use you phrasing not we phrasing: This is an effective strategy for evaluating the
competitors. This strategy is also used by the companies to evaluate their position in
the competitive market. Furthermore the vision of the company is to perform the
research for testing the effectiveness of you versus we. This has been analysed that
“you” factor is effective as it relates to the personal accountability. This will separate
the firm’s message from its rivals. So, it is helpful for the Gatorade Company in
enhancing their revenues and sales which results in increased productivity. This factor
helps in achieving a leading position in the competitive market. The company focuses
on the strength and weaknesses of the competitor in order to ensure enhanced sales.
Up sell through reinforcing relationship: It builds effective relationship with
customers. The company adopt ways to reinforce their customers effectively. They
devise various strategies in order to maintain the competitive edge and develop their
ratio of customer relationship. For that the company target the emotional rationale of
the customers to retain them as loyal towards their brand. Also, the company tries
effective ways to connect with their customers. The company devise strategies to
develop effective relationships with their customers. Sometimes customer
communicates their problems with the company through the way of feedback. Also,
the loyal customers share their good experience with the product of the brand through
social media platform.
Hence, these are the various ways used by the companies to attract the customer base.
Also this ensures that the needs are fulfilled through development of effective products for
sale. The company evaluate the customer’s preference through understanding the current
trends of the industry (Magnotta, Peev and Steffes, 2020). It is necessary to under their
preferences which will be easier for the company to enhance their sales ratio. Furthermore,
the company focuses on building and developing effective strategies in order to make
effective use of resources and workforce opf the company towards their attainment of goals
of the brand.
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CONCLUSION
It can be said that sales and marketing are two functions that help the organisation to
serve its customers according to their needs and wants and increase the sales of the
organisation also the profits are also increased. In the report their is discussion about
Gatorade company that is American company and has its operation in 80 countries and has
made a new product v6that is smart watch that helps the customers to know the need of
energy drink in the body and is targeting the consumers who are diet conscious. The people
will prefer the product as the product is launched after analysis. There is rationale about the
innovate product. The importance of understanding customer relations and the success of the
organisation. Also the role of data to understand and influence the relationship of with the
organisation. Also the target customers should be served and their needs and wants should be
fulfilled. The marketing strategies are important and should be formed after analysis and
implemented effectively for growth of business.
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