Gatorade Competitive Advantage

Competitive Rivalry: Competitive rivalry is relatively high as seen in previous competitor analysis. There are many competitors in the local market and on the shelf within the mainstream markets.

The competition among rivals is very high due to price and non-price factors. Companies try to attract customers to their products by introducing

The highest percentage of the company sale is as a result of making impulse purchases; hence this requires a good point of sale support team. The market is very competitive. There are a couple of competitors that offer the same products as Gatorade, for example, MW, M.I.T and A.U.I. The experience that the firm has in the

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.

Gatorades success with using athletic figures and role models to promote food and beverage products has paved the way for many other companies. Other companies since Gatorade have hired athletic spokesman to endorse products including the likes of PowerAde, Gatorades main competitor. PowerAde was actually only developed by Coca-Cola Co. for the sole purpose to compete with PepsiCo’s Gatorade. (Smenyak, 2011). By receiving great feedback from their communication plans, Gatorade has been able to grow and expand ideas.

Companies have to strife for a competitive advantage over its rivals. Industry concentration is measured through concentration ratios. A higher concentration

Nike will have a number of different marketing objectives for their isotonic sports drink, Nike Go. A main market objective will be to establish the isotonic drink as the most credible sports drink in the market. This will not just happen though, this can only happen through a lot of promotion and appeal. Creating strong consumer awareness is very important in gaining market share as it is a completely new product from Nike. This can be done through promoting the product, Nike Go, and allowing consumers to become aware that Nike has this new product. In order to establish brand recognition, there needs to be a capture of market shares in the sports drink segment. This will mean the product, Nike Go, will be well known

The Intensity of Rivalry among Competitors in an Industry (High): Equally balanced competitors exist within the industry such as BCF and KMD; these firms also face competition from retailers and wholesalers. The growth of the industry is relatively agile in both financial and technological aspects. The intensity or rivalry is further accentuated by relatively high storage and fixed rental costs, extensive product differentiation and minimal switching costs.

For new companies to enter the marketplace where Coca-Cola and Pepsi control the majority they need to spend time heavily on branding. The company should be easily recognizable on shelves by name and packaging. Taking, for instance, Voss Artesian Still Water, this water basically like any other water bottle, but the company decided to place the water in glass cylinder bottles reusable for use noticeable to consumers to grab their attention. A company should also give consumers a variety when it comes to their products whether it be types of drinks or flavors. Consumers like that can pick and choose what they want and they can choose with an array of options from sodas, teas, energy drinks, or sports drinks. With the negative connotation that soda drinks receive and slowing sales beverage companies should look toward the future when entering the beverage market and give consumers other options when purchasing

Competition being one of the major issues that often must be addressed in the business world, it is important for a firm to learn on ways to reduce the impact of the competition. Competition is definitely an important factor in helping a business

As technology continue to refine how products and services are delivered to consumers, competition among industry participants becomes more refined. Organizations that are able to keep up with changing technologies become leaders while those that are not fall behind. Mergers and acquisitions are increasing while causing small businesses to sell out or seek partnerships and cooperatives in order to remain competitive and relevant.

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

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.

➢ Product differentiation - Products that are relatively the same will compete based on price. Brand identification can reduce rivalry.

Today’s markets hold aggressive competition between companies in order to dominate as much share as they can from the market. That is why most companies are seeking for a competitive advantage that will differentiate them from their other competitors and makes consumers buy their services or products over the others.