Competitive Analysis Of 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.

Powerade and Gatorade are two very successful companies; in some ways, they?re alike and in other areas, they are very different. To compare and contrast these companies, we?re going to look at a television commercial advertising they?ve each produced. Each of these commercials involve basketball as their sporting backdrop, but more importantly, both commercials utilize the rhetorical triangle: Ethnos, Pathos, and Logic. These three things are used to persuade the audience.

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.

My hypothesis is that powerade would give that boost to make runners run fast. 10 runners are placed in a track to do a 2 mile run. 5 of them would be given powerade to drink in the mile mark while the other 5 are not given anything. The 5 runners that drank the powerade ran 2 miles in 10 minutes while the other 5 runners that didn’t drink anything ran the 2 miles in 12 minutes. As a result powerade helped the runners run faster for their times were faster than the ones that didn’t drink it.

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.

The concentration of sugars in two well-known sports drinks, Powerade and Gatorade, were determined by monitoring an enzyme-catalysed reaction sequence involving the appearance of NADPH. Sucrose and glucose concentrations were calculated from the concentration of NADPH formed by the reaction of glucose-6-phosphate and NADP+. Spectrophotometric absorbance readings were taken at 340nm, this is because NADPH absorbs strongly at this wavelength, whilst NADP+ does not (1015MSC, 2010). The concentration of glucose and sucrose in

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

| Weaknesses: * Pays extra payment for new flavor. * More expensive to produce than other sports drinks. * Deciding the segment to target. * How to position the product in the mind of its potential consumers

The Gatorade Company is mainly concerned with the manufacture and distribution of sporting equipment for commercial and domestic uses based on their knowledge of the best industry practices for the production of sporting equipment. The primary agenda of this market plan is for it to work as a strategy to guide the company on how to supply the customers of Gatorade with quality yet affordable products. This brand of sporting equipment will be produced and supplied in many different designs and colors that will be appropriate for both genders. Approximately half of the clients of the Gatorade brand, range between the ages of 18-34.These clients are ardent customers as they make the most purchases and are the company’s primary target. Gatorade sporting equipment are purchased more by those who dwell in the Northeast regions and Midwestern parts of the United States. This market plan focusses on the introduction of a range of Gatorade environmentally friendly brand of sporting equipment into the United States market.

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.

A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still

The effect of this aggressive competition can be seen in Figure 2, which shows a sharp decrease in Lucozade’s market share from 2002, following the introduction of Powerade (owned by Coca-Cola) and C&C Club Energise (introduced in 2003) to the market. Every year since 2006, however, has seen Lucozade Sport regain market share, firmly consolidating its position of market dominance in Ireland. This trend endorses the quality of Lucozade Sport’s marketing, as it is succeeding in fighting off stiff competition. “Functional drinks is dominated by Lucozade brand, with Lucozade Energy and Lucozade Sport recording a combined volume (market)  share of  54%  in 2009” as stated in Euromonitor International (2011).

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

Powerade is a sports energy drink manufactured by Coca-Cola. It has been around since 1988 and was intended to compete with Gatorade in the sports drink industry. After being introduced, it successfully became the official sports drink for the Olympics of that year. Their product line consists of only beverages and lacks complementary goods like protein bars or energizing snacks. Their two specific products is the Powerade ION4 and Powerade ZERO. ZERO is a healthy alternative for consumers in which the product has zero calories in the beverage. It is not typically recommended for intense heavy training. Instead they have the ION4 as a substitute for those who train hard. Despite the differences, both products include the electrolytes needed to replace the ones lost to respiration and sweating during workouts. In terms of this product’s current lifecycle, many arguments could definitely be made for its status. Since there is only two major giants or manufacturers in the sports drink industry, I would consider Powerade to be in a late maturity stage of their product life cycle. It is obviously behind Gatorade in terms of sales. I would argue late maturity because of the product’s longevity on the market. They have lowered their costs over the years and in return this means lowered profits, but this strategy allows them to compete. Gatorade is the premium on the market and their sales are still up. According to Business Insider, I reviewed graphs of the market share of both

1.) Why do companies like Pepsi need to globalize? What are the various ways in which foreign companies can enter a foreign market? What hurdles and problems did Pepsi Face when it tried to enter India during the 1980s?