Powerade Case Study

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.

As you watch the Gatorade commercial you notice that Gatorade wasn’t only promoting hard work and dedication, but they were also promoting hydration, strength, power, and energy. Dedication is shown by waking up early in the morning, going for your daily jog or walk, while others are still sleeping. Staying hydrated helps the body keep moving and fully functional. Gatorade shows the importance of hydration by athletes taking breaks between workouts. Hydration also reduces the risk of cramps and soreness. Gatorade promotes energy by showing, before eating a Gatorade chewy the athlete did not have the energy he needed to start his morning run or weight lift. However, after eating the chewy they instantly gained energy. Power is symbolized by the lightning bolt, which

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.

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.

After so many years of repetitive advertising, Gatorade is the name that comes to mind if someone thinks of energy drinks. Consumer visualizes it as a product that meets his goals of extra stamina, energy and efficiency. Some customers buy multi packs of products for value. Buying in bulk results in additional discounts for the customer that leads to continued association with the brand, where Gatorade is a conditioned stimulus and six-pack buying is a conditioned response.

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

There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion

| 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

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

The energy drink market is a growing market and a lot of companies are entering it as they have found it to be attractive and profitable. Some of these companies are growing rapidly and they present a threat to Red Bull. One of those companies that are getting stronger by time is Power Horse.