Gatorade vs. Powerade

Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.

The third-largest company in the U.S. is Dr. Pepper/ Seven Up, Inc. (DPSU) which consists of 14.7% market share. It is the most famous brands are Dr. Pepper and Seven Up among the Soft Drink Brands. It has been Squirting the market by this company since 1995. The Unit Sales Volume Squirt is $39 million to $54.6 million from the year 1990 to the year 2000.

Gatorade also targets average citizens who are physically active. During commercial breaks, Gatorade is always broadcasting their product, not only is Gatorade advertised on television, but they also advertise their products on the sidelines of professional sports teams by having large jugs and Gatorade cups on the sideline that is often shown during timeouts. As result, Gatorade advertisement is a success, because when going to buy a sports drink they’re going to remember that Dwayne Wade or whoever their favorite professional athlete drinks

Gatorade is a company that has been making sports drinks since 1965. In 2001, they eventually branched off into making other sports nutrition products like energy drinks, energy bars, and nutrition shakes. Some of the company’s newest products include energy fruit chews. Gatorade advertisements reach millions of Americans every day, which undoubtedly increases their sales. My analysis will focus on a Gatorade ad featuring Dwayne Wade.

Gatorade has a big impact on sport culture in America. From fans, athletes, and sponsors this drinks has become the symbol of American sportsmanship. In the early era many players would drink Gatorade to refresh themselves before continuing to play. By the mid-1980’s Gatorade changed its position to shower coaches and players after victories. This drink would revolutionize the entire sport world. By the 21st Century teams across the world would use Gatorade to celebrate. In America many teams and players are sponsored by the Gatorade Company to use their product and name new flavors after themselves. By far Gatorade is the official sport drinks of many sports, such as football and soccer.

Rivalry: The rivalry between Coca-Cola and Pepsi is extremely high; however, both companies continue to remain profitable. Prior to the 1980s, pricing wars negatively affected profitability for Coca-Cola and Pepsi. After Coca-Cola renegotiated its franchise bottling contract and both companies increased concentrate prices, the rivalry began to focus on differentiation and advertising strategies. Through creative advertising campaigns, such as the “Pepsi Challenge” where Pepsi ran blind taste tests to demonstrate that consumers

Gatorade is a company that manufactures sports nutrition products, and they usually have different athletes

The Gatorade sports drink was founded in 1965 by a group of university physicians at University of Florida after an assistant coached asked the why his football players were so affected by the heat. This lead to the discovery and invention of a carbohydrate and electrolyte drink to help replenish and refuel the nutrients lost through sweat and exercise. The University of Florida’s mascot is the Gator, which is how they came up with the name Gatorade. PepsiCo acquired Gatorade in 2001. Gatorade also has a 69.5% market share in sports drinks.

Have you ever gotten a sports drink instead of a soda thinking you were choosing a healthier option? Well this might change your perspective. Powerade and Gatorade are just watered down soda; yes,  it gives you electrolytes which is what you lose when you sweat, but that does not mean it is good for you. There are many other healthier ways of getting electrolytes than by just drinking a sugar drink. In the Powerade article written by the company does not argue about how water is not helpful to athletes and does not have the opposing argument. Although the gatorade article written by David R. Lamb they make it more persuasive than informational.

Gatorade was invented for several reasons. It all started with Florida's football coaches realizing their players were being seriously affected by the heat. So the Coaches went to physicians and asked why there players were being affected by the heat. The physicians soon realized the players were losing fluids and electrolytes through sweat. So the researchers took that evidence into the lab and made a

1.Attention device: Did you know that there was actually a Gatorade and beer mixture called Hop’n Gator. It was made by the Pittsburgh brewing company and sold until the mid- 1970’s. 2. Topic Revelation Statement: Today I am going to be informing you all on the sport drink Gatorade. 3. Significance Statement: This is a drink that has changed the way athletes perform. It is so effective that it is actually given to refugees to aid in dehydration. 4. Preview the main points today I will be going over a brief history of Gatorade, current products, and the future of Gatorade

Also soft drink companies diversify business by offering substitutes themselves to shield themselves from competition. Rivalry:

Gatorade has emerged as the global leader in sports nutrition beverages by continually managing their brand to signify high energy, athletic excellence combine with one of the most efficient new product development and introduced processes in the beverage industry. As a result of being able to consistently synchronize these many components of their business so well, Gatorade today holds a 75% market share in the sports nutrition market globally today. Gatorade is owned by PepsiCo, which has made it possible for the company to sell in 80 countries today. Gatorade relies heavily on the PepsiCo distribution and retail network globally. Gatorades' revolutionary approach to managing branding for beverages has served to increase the total market size for this product category globally (Huang, Sarigöllü, 2012). Despite the continued widespread adoption of Gatorade as a healthy energy drink, the company has encountered resistance to its brand and the ingredients used for creating the many variations of Gatorade energy drinks (Tallon, 2009). Despite these setbacks the Gatorade brand continues to experience exceptional growth and stability over time.

The case explains the economics of the soft drink industry. There activities that add value to consumer at nearly every stage of the value chain of the soft drink industry. The war is primarily fought between Coca-Cola and PepsiCo as market leaders in this industry; who combined have roughly a ninety percent market share in their industry. The impact of globalization on competition has allowed both of these major players to find new markets to tap which has allowed each continued growth potential.

The change in the consumers' taste is another key trend in the industry. Many substitutes to carbonated soft drinks gained more popularity among consumers. Exhibit 5 shows an increase in the consumption of bottled water from 11.8 in 1998 to 13.2 gallons/capita in 2000, and that of juices from 10 to 10.4 gallons/capita at the expense of