For my Advertising and Sales Promotions Class, we were tasked with selecting an existing advertising campaign and developing a new one via a creative brief. I chose Gatorade and it’s introduction of it’s new sports drink Gatorade Tiger. Announced in October 2007, Gatorade and Tiger Woods have agreed to a 5-year licensing deal worth as much as $100 million[1]. In the deal, Gatorade will introduce the new sports drink in March 2008. Gatorade Tiger will be available in 3 flavors – Red Drive (Cherry Blend), Cool Fusion (Citrus Blend), and Quiet Storm (Grape).

Basic Problem – The advertising must introduce a new sports drink to the already crowded beverage market while taking into consideration Gatorade’s current offerings and advertisements. Currently, Gatorade offers a multitude of products including Gatorade, Gatorade Frost, Gatorade Rain, Gatorade All Stars, Gatorade Fierce, Gatorade X Factor, Gatorade AM, Gatorade Xtremo, and the newly introduced G2. As of May 2007, Gatorade accounted for 85.5% of the bottled sports drink market with Powerade as their largest competitor. Gatorade is also competing in the bottled water market. Their Propel Fitness Water offering currently holds 5.1% (Appendix B) of the market. One of their more direct competitors is Vitamin Water. Much like Gatorade, their marketing strategy revolves around the sports industry as well. Over the years, they have signed several marquee athletes such as New England Patriots’ Tom Brady, Chicago Bears’ Brian Urlacher, and Houston Rockets’ Tracy McGrady. They also have branched into the non-athlete promotion arena with rapper 50 Cent. Gatorade’s biggest challenge is to expand the bottled sports beverage/functional water markets and not cannibalize their own sales. A secondary challenge is take into consideration their current marketing efforts as well as the image that Tiger Woods has already established. Tiger has and is continuing to endorse several other products/brands including Accenture, Nike, Buick, and American Express.

Objectives of Advertising – For Gatorade Tiger, there are several important objectives that we need to attain:

1. Create Product Awareness and Introduce Gatorade Tiger – This is a new product that will be introduced in March 2008. Consumers need to be aware that this product does exist and what it looks like. This is the first sports beverage to be endorsed by Tiger Woods and the first one to relate to the sport of Golf.
2. Induce Trial – The advertising must also create interest in the product so that consumers will purchase and try Gatorade Tiger.
3. Leverage and Strengthen the Gatorade Brand – The advertising should add to and not deviate from the Gatorade Brand. According to Gatorade’s website, “Gatorade is scientifically formulated and athletically proven to quench thirst, replace fluids and electrolytes and provide carbohydrate energy to enhance athletic performance.”
4. Goal of $150M[2] in retail sales for Year 1 – This is an internal goal for Gatorade, which would require Gatorade Tiger to become the #3 bottled sports drink.

Target Audience – Gatorade Tiger’s target audiences differ slightly from the usual Gatorade consumers. Their Platinum Customers (Primary Target) would be males aged 18-35 with interest in sports, particularly golf. Most likely these would be weekend warrior golfers who are passionate about the sport, purchase high end golf equipment, and are looking for ways to improve their game. These are not professionals but rather those who enjoy playing the sport when they have the time. Gatorade Tiger’s Gold Customers (Secondary Target) are golfers of both sexes and of all ages. While Gatorade naturally skews younger, Tiger Woods has a presence that seems to transcend all ages. His current endorsements of Nike, American Express, and Buick definitely are attracting two sets of demographics. Nike skews younger whereas American Express and Buick skew towards the 50+ age crowd. Key Benefits – Gatorade Tiger has several key benefits that will resonate with their target customers:

• Tiger Woods Endorsed – Tiger Woods is the #1 Golfer in the World and is an aspirational figure for the primary and secondary targets.
• Quenches thirst – An 18-hole round of golf will take an average of 4 hours or longer. A constant flow of fluids is essential for peak performance.
• Replacement of electrolytes, vitamins, and mineral loss in sweat – Golf is a sport and requires athletic performance, stamina, and skill. As energy is exerted, carbohydrates, electrolyes, vitamins, and minerals might be replaced.• Great flavor – Gatorade Tiger comes in 3 great flavors chosen by Tiger Woods himself.• Sports shaped bottles – Gatorade Tiger comes in easy to grip bottles that are easier to use when trying to replace fluids. Future benefits might be enhanced through Gatorade Tiger’s relationship with the Gatorade Sports Science Institute (GSSI). According to the Gatorade Tiger press release, “As a first step in our relationship, Tiger recently underwent sweat analysis testing with the Gatorade Sports Science Institute (GSSI)…A measurement of sweat rate, sweat electrolyte concentration, fluid and electrolyte balance and energy needs were analyzed during a vigorous round of exercise.”[3] More research might unearth future claims and benefits of drinking Gatorade Tiger on golfing performance.

Brand Personality – Gatorade Tiger must personify two brands – Gatorade and Tiger Woods. Gatorade stands for high performance, thirst quenching, and science. The personality is intense, focused, and is a winner. Tiger Woods has a lot of these characteristics as well. He is the undisputed #1 golfer in the world today. He is on track to break every major golf record and stands for excellence, winning, determination, focus, hard working, and a leader. According to his agent Mark Steinberg – “We wanted to get away from a straight endorsement deal in the beverage category. We thought this would be the best fit for his first licensing deal. It’s authentic to what Tiger does every day, as hard as he works out every day.”[4] Tiger Woods is also has two personalities when he is on the golf course. He is very calm, collected, and focused when he is getting ready for a shot but is fiery and emotional when he makes a big putt.

Special Requirements – There are a several requirements that the advertisements must incorporate:

• Use of the Gatorade Lighting Bolt Logo and consideration for the color sweat design in current Gatorade ads.
• Use of the Gatorade tag line, “Is it In you?”
• Must adhere to Tiger Woods existing brand reputation.

Creative Development – For Gatorade Tiger, The Big Idea can be summed up as – “Getting the most out of your golf game and obtaining peak performance on the golf course just like Tiger does.” For the two print advertisement concepts, they will have similar but distinct messages. Both will incorporate The Big Idea.

Print Advertisement #1 – The first print advertisement is called “Eye of the Tiger”. It features a black and white image of Tiger Woods’ intense stare with color enhanced sweat. It emphasizes performance with the statement that “being a winner takes hard work and sweat.” There is also a large close-up image of the product with the tag line, “it’s in Tiger. is it in you?” For the verbal part of the message strategy, the intent was to emphasize four areas:

• Tiger’s Association and Endorsement – It was important to ensure that Tiger’s name was prominent and was accomplished through the text on the product itself and within the tagline.
• Reinforcement that Gatorade helps athletes compete at their highest level – Words such as “winning” and “peak performance” are there to associate the product with great athletic feats. Many individuals who participate in athletics such as golf want any advantage they can get in order to be at their best.
• Mention product features and attributes – There is text explaining that the product provides energy (carbohydrates) for performance and provides replenishment of vital nutrients and compounds that one would lose during strenuous activities.
• Association with previous Gatorade Ads – The tagline, “it’s in Tiger. is it in you?” is a modification on the “is it in you?” tagline on traditional Gatorade Ads. It is familiar to the consumer and creates the association that if the product is good enough for Tiger, it should also be good enough for the average consumer.

For the nonverbal part of the message, there were several intentional elements that were added to emphasize the key benefits and brand personality:

• Tiger’s Eyes – Tiger Woods is an asset and the use of his piercing eyes offer a dramatic backdrop. It also plays off of the “Eye of the Tiger” phrase which elicits images of the motion picture, Rocky. Rocky is a story of an underdog who succeeds in performing at his highest level through hard work, sweat, and determination.
• Red Sweat and Color – The colored sweat is a tie-in to previous Gatorade advertising. This creates an element of familiarity and understanding that this is a Gatorade advertisement. The red color is significant to Tiger Woods and stands for victory. Tiger Woods always wears the color red on Sundays when he is looking to win a golf tournament.
• Close Up of Product – The product of Gatorade Tiger is in a close up to emphasize the Tiger Woods association and to give the potential customer a good view of the new logo. Since this is a new product, the consumer needs to be able to identify the product while shopping.

Print Advertisement #2 – The second print advertisement is called “Be Tiger”. It features 3 consecutive statements that follow the same sentence structure. It also showcases Tiger Woods in his trademark fist pump and all 3 Gatorade Tiger flavors. The same tag line, “it’s in Tiger. is it in you?” is also used. Like the first advertisement, the 4 main areas of the verbal part of the message strategy is still the same – the words reinforce Tiger’s association with the product, the idea that Gatorade helps athletes compete at their highest level, product features and attributes, and an association with previous Gatorade Ads. Unlike the first advertisement, the second one uses a repetition of similar sentences. The use of the word “be” is there to be aspirational for what the consumer wants to be. All three adjectives “amazing”, “inspiring”, and “best” represent Tiger and invokes the desire from the consumer standpoint to be like Tiger. For the nonverbal part of the message, the second advertisement used different intentional elements to emphasize the key benefits and brand personality:

• Tiger’s Trademark fist pump – Tiger Woods is known to pump his fist after sinking a key and/or unbelievable pump. It is his emotional signature for success. The use of the fist pump is to bring this association of winning to the product as well as a reinforcement of the logo which also features the fist pump.
• Red Color – As with the first advertisement, the red color is to signify peak performance, winning, and Tiger Woods.
• All 3 flavors of Gatorade Tiger – All three flavors of the product are shown so that consumers understand what they will see in the grocery stores. The copy mentions the flavors of red drive, cool fusion, and quiet storm but it is hard to visualize what the names mean. Having product images, makes the flavors clearer to the consumers, while showcasing the unique shape of the bottles.

[1] http://sports.espn.go.com/golf/news/story?id=3066280

[2] http://www.cnbc.com/id/21332360

[3] http://www.gatorade.com/pdf/2007_gatorade_tiger_woods.pdf

[4] http://www.usatoday.com/sports/golf/pga/2007-10-16-tiger-gatorade_N.htm

It’s funny how the power of the Internet is still a mystery to some in the corporate world.  Yes, it’s new.  Yes, it’s a change from traditional media such as television, print, and radio.  Yes, it’s still not fully understood.  Yes, it changes faster than other channels.  It’s also something that needs to be embraced and not taken for granted.  It has the ability to raise voices when you least expect it.  It also has a life of its on that would be extremely difficult for a large corporation to counteract.

We’ve all heard past stories of companies blissfully ignoring what’s going on the Internet while forum posts, user comments, and blog posts are being written about them and their products.  These days we are being taught these cautionary tales.  Whether it be in your business, through school, or your peers – it’s important to monitor what is being said out on the Internet.  Sadly, not all companies take this to heart and some are slow to adapt.

I tell a story of a chain of events where the power of the Internet is clear and apparent. 

Last week, I received my weekly newsletter email from the WOMMA (Word Of Mouth Marketing Association) and a headline catches my attention.  It reads CNN Blogger Fired for Having A Blog.  I immediately open it since I do blog and I will be employed somewhere after I complete my MBA this May.  The WOMMA posting leads me next to a blog post by Matthew Ingram, a Technical Writer for the Globe in Toronto.  Matthew writes a clear and concise posting on some of the issues surrounding Chez Pazienza, the fired CNN producer.  He links to other prominent bloggers and their postings and their opinions about the subject.  He also links to the Chez Pazienza’s own blog and his posting recalling his termination.

In short, Chez seems to have been fired for having his own blog, not disclosing it to his superiors, and becoming popular enough to be picked up on other websites.  The conflict of interest obviously lies in distribution of content however where are the lines drawn from what you do on the job to what you do in your free time?  Chez’s blog is a non-commercial entity that was written outside of his CNN producer position.  Sure, CNN has the right to investigate whether or not it is a conflict of interest but how many employees know about what really is a conflict of interest or not?  Should there be more explicit guidelines outlining what is acceptable and what is not? 

With the rampant trend of blogs popping up left and right, should companies have the right to terminate someone for expressing their opinion outside of the workplace?  I’m not sure of the answer to this but what I do know is that if someone at CNN didn’t like the fact that Chez Pazienza was blogging, firing him probably was not the best course of action.  The voice of one can quickly move around the Internet.  As apparent in this case, the viral nature of how far this story has spread is dramatic.  The voice that was created from one firing is now a linked collection of many voices around the Internet.  For a company like CNN that wants to embrace technology and blogs, it’s very interesting that they did not foresee this one firing developing into a much larger discussion.

Starbucks announced today that it was switching its store wi-fi service from T-Mobile Hotspots to AT&T Broadband.  It will allow customers to have 2 free hours of access with a drink purchase.  Existing subscribers of AT&T Broadband or U-Verse will get unlimited access.  Alternatively, customers can purchase a two-hour session for $3.99 (might as well buy a latte) or a monthly membership would cost $19.99.  This is a substantila reduction from T-Mobile Hotspot pricing, which started at $9.99 per day and ranged between $19.99 and $39.99 per month.

Let’s examine some of the strategy behind their reasoning:

• To receive the free wi-fi, customers must purchase their drinks with a prepaid starbucks giftcard.  This will obviously increase the number of cards sold and tie customers to spend more of their “coffee dollars” at Starbucks.  Giftcards are basically forward selling future lattes — that is Starbucks gets cash upfront without having to deliver the goods until later.  The revenue generated from giftcards can be used as investments and Starbucks can benefit greatly from the interest.  Imagine if Starbucks sells a million gift cards with an average of $10 on each card.  That would give Starbucks $10M in capital to invest.  If they received a conservative annual return of 5%, that’s an instant $500,000 in added revenue.
• Starbucks is also builing on the Apple, iTunes, and now iPhone connection.  Everyone is probably aware that the iPhone is currently solely on the AT&T Wireless network.  Some tie-ins must be in the works.  Last fall, Starbucks had already given free wi-fi access to iTunes and offered customers the ability to instantly purchase music playing in Starbucks stores and other special Starbucks music collections.  With nearly 36 million unique users of iTunes, having a strong tie with the customer base is probably a good idea.  They target similar demographics and Starbucks desperately needs to gain some of its fashionable charm after going quite mass market.
• Starbucks is also hoping that free wi-fi also means that coffee house goers with sit on the couch longer and buy more lattes.  Maybe they’ll average 1.5 lattes a day versus 1.  This could add up to quite a nice bump in sales.

No, it will never really be called Microyahoosoft or Microsofthoo or even Yahoosoft but the proposed $44.6 billion bid by Microsoft for Yahoo! was definitely really big news last Friday.  It takes two huge Internet players and creates a beast of a company that just might have a chance at slowing down the Google machine.  So what’s the potential impact of such a merger?  Let’s take a look at some of the obvious and not so obvious synergies:

Search and Advertising Platforms

The most obvious outcome of the proposed merger would be to combine the #2 and #3 players in the U.S. Search Market.  According to a CNN article, Google holds approximately 58.4% of the U.S. search market, while Yahoo has 22.9% and Microsoft’s share is just 9.8%.  In terms of online display ads, combined Microsoft and Yahoo! would control around a 25% share.  This is big business especially since it’s projected that online advertising could reach $60 billion by 2010.  Both Microsoft and Yahoo! have been struggling to keep up with Google.  Both companies search marketing tools are inferior to Google’s on a variety of dimensions.  Combining forces could help both companies share existing research, development, and other resources. 

E-Mail and IM 

A Microsoft-Yahoo! marriage would combine to create a force in E-Mail and Instant Messaging.  Adding a strong Microsoft Hotmail to #1 Yahoo! Mail only creates an even more dominant player.  Combing both MSN Messenger and Yahoo! Messenger would allow more users to connect to one another.

Social Media

E-Mail and Instant Messaging creates instant networks that Microsoft-Yahoo! could tap into to use use to their advantage in the larger social network context. Also, a Microsoft-Yahoo! would have a much richer portfolio of web properties.  Combined you would have an interest in Facebook (which Microsoft has invested heavily in) and Yahoo! owned del.icio.us and Flickr.  Couldn’t you imagine a larger social network being developed that gets integrated with these web properties and overlayed by these e-mail and instant messaging networks? 

Mac vs. PC ads 

Yes,PC isn’t as cool as Mac.  But perhaps the proposed merger could give PC a flashy purple suit just as a shot of Yahoo! culture might be beneficial to Microsoft. 

All in all, just some food for thought.  We still have a bit of time to consider more effects of the proposed merger — if it does move forward, it probably won’t be finalized until the end of 2008.

Uploaded a few new and more recent pieces of artwork to my online gallery.  Hopefully, I’ll have a chance to throw up some more while finishing up my MBA.  Enjoy!