In essence, Gatorade is the world’s first sports drink to be introduced in the athletics and
sports sectors. This drink has one more aggressive competitor that is PowerAde from the CocaCola Company. Gatorade is a product of the PepsiCo firm whose aim is to give athlete in the
field the energy to persevere in their efforts (Dunford and Doyle 260). Moreover, this drink is
used as an alternative for water on the field. With US nation hosting numerous sports functions
and having many players in the field it provides a ready market for the drink. Therefore, one of
the most competitive markets in the US is that of sports drinks like the Gatorade. Thus, the
energy drink used in sports competitions is facing threats from rival drinks such as PowerAde.
This paper provides Recommendations on the product strategy that the company can use to
improve the sports drink.
Gatorade is recognized as a market leader in the world’s sports drinks. Thus, it has
managed to dominate the market, especially during sports events. However, the hold this drink
has on the market is decreasing as more people prefer t consume the substitute drinks in the
economy. Drinks such as Red Bull are being used as an alternative to the sports drink. Therefore,
as people try to find alternative drinks from water during sports events, they are not considering
the Gatorade drink. However, the majority of them are shifting towards the substitutes and rival
The company responsible for producing the sports drink should make adjustments in the
product strategy to improve its quality in the market. Moreover, the approach should ensure that
the product's attractiveness is evident to the target markets. Additionally, this drink should be
what the players in the field or sports desire to quench their thirst. Moreover, the product strategy
should focus on making the target individuals aware of its rehydration capacity, increased
performance in the sport for an athlete and lastly assistance in muscle recovery. These are some
of the key areas that the product strategy should focus on to making the drink more attractive to
the public and target market.
The first strategy in the plan that the section of producing Gatorade should be centered on
is designing the sports drink. The design of the drink should be appealing to the eye of the target
market most especially the individuals involved in sports. This should apply to the existing
products as well as the ones the company plans to launch new products. The design of products
helps to sell the item first to customers and gains good returns (Steinhardt 204). In turn, the
decrease in market share by the sports drink will shift to increase from the changes in the design
of the Gatorade. The design can include changes in the shape of the bottle used as storage for the
drinks before consumption. Moreover, more color should be added to the papers used as covers
for the bottles.
Secondly, communication is an important strategy in promoting product quality and
increasing sales in the market. Through communication, the public should be made aware of the
benefits the sports drink offers to consumers. Moreover, the firm can use this communication to
make the target market aware of the products used to make the drink to determine whether they
are ingredients fit for their health. The majority of the sports individuals strive to perform
properly in the fields. Also, they want to recover fast from any problems they experience in their
muscles. Therefore, sharing the detail that the Gatorade drink helps a player in muscle recovery
and boosting performance will enable the sales of the products to increase. Therefore, as people
plan to purchase the product, they are aware of what it offers to them and their body as well as its
impact on the sports.
Consequently, product quality is crucial in determining the best product strategy to
follow. The quality of any product is always important to the firms and end users of that item
(Guffey and Loewy 441). As such, the drink’s quality should be high and one that players in the
field can appreciate. Furthermore, quality forms a basis for the most difficult decisions
organizations makes. Thus, Gatorade should meet the expectations of the target market as well as
satisfy their need. These expectations include the recovery from muscle problems and an
improvement in performance.
Additionally, the company should consider branding the sports drink utilizing a different
approach as the one in current use. A brand in product strategy is essential as it boosts the sale of
goods. A brand has the power to boost sales fast and attract more customers (Chitale 496). This
is because having a brand for a product enables target markets to identify the level of confidence
that a firm has over the item produced. Moreover, this brand also acts a representation of the
quality and validity of a product to the target market. In this case, the firm PepsiCo should
consider having a different brand of the sports drink to power up its sales and prevent the
growing decline in returns from this product.
Also, the product strategy should be veered towards identifying the target market,
competition, pricing of the product as well as distribution means to the public. The first objective
of identifying the target group is not hard as the drink seeks to serve the people involved sports.
It seeks to attract the attention of people who want to increase performance in sports activities as
well as help them recover from any muscle problems. As such, the product strategy should
include this objective of establishing the individuals that will be the target for Gatorade.
Secondly, once the target market is identified, the next step is to establish the competition
which in this case is the PowerAde from Coca-Cola Company. The drink should be in a position
to defeat the rivals in the competitive market. Therefore, the firm should make changes in the
products used to make the sports drink to make it stronger and better than the competition.
Moreover, it should make an effort to include the ingredients added to the drink to make the
target market aware of new modifications that can benefit them from consuming Gatorade.
Gatorade should be priced at affordable cost for the sports people to purchase it.
However, if the price is below that, it will cause a loss to the firm. Therefore, pricing should be
included in the product strategy to ensure that both the firm and customers benefit from the cost
of the product. High prices may bring good returns to the company but will also shift the demand
of the target market to rival drinks or substitutes such as red bull.
On the other hand, PepsiCo can decide to diversify the sports drink in a way that makes it
a product to be consumed by others and not just sports people. The people who go to matches
also deserve an energy drink to boost their morale to cheer for their teams on the field. As such,
the product can be produced in a way that allows for not just the sports people to drink but also
others who are the audiences in the activities. This can be accompanied by a statement that
acknowledges the benefit spectators will have from taking the new sports drink.
Promotion strategies such as adverts are essential in promoting the sales of the product.
Through promotion, the firm can make the public aware of the new changes made to the sports
drink (Mullin, Hardy and Sutton 299). Moreover, through adverts, the target market is made
aware of what is being sold to them as the new drink will have an indication of the ingredients
used to make it. Also, h public becomes aware of the benefits the drink will provide after
consumption such as improved performance for the athletes and increase in morale for the
Gatorade is a sports drink that has been used to energize the people involved in sports
activities. It has also lead in the market despite the growing competition from a rival company
and substitute drinks. However, the product is lacking market since more individuals are opting
for the new products or drinks introduced in the market. Nevertheless, if PepsiCo was to
implement the recommended product strategies, it could boost the quality and market for the
Chitale, A K. Product Design and Manufacturing. Place of publication not identified: PrenticeHall Of India Pv, 2011. Print.
Dunford, Marie, and J A. Doyle. Nutrition for Sport and Exercise. Stamford, CT: Cengage
Learning, 2015. Print.
Guffey, Mary E, and Dana Loewy. Business Communication: Process & Product. , 2014. Print.
Mullin, Bernard J, Stephen Hardy, and William A. Sutton. Sport Marketing. , 2014. Print.
Steinhardt, Gabriel. The Product Manager's Toolkit: Methodologies, Processes, and Tasks in
High-Tech Product Management. Heidelberg: Springer, 2010. Print.
Rachel and Kaylee
Overall gatorade is a strong company, they have a lot go for them. Gatorade just like
their parent company Pepsi has a lot of strengths, weaknesses, opportunities, and threats. That is
also known as the SWOT analysis, which tells how the company is doing overall. First is
strength, they are a good product quality, strong brand name, and has science to back up their
product and is proven to excel and maintain physical performance during competition. Second is
the weaknesses which are low advertising and visibility, people unaware about product benefits,
high price, and many varieties tend to confuse the customers. Third would be the opportunities
are leverage successful brand Pepsi, advertise more, celebrity endorsements, tap into new
performance products ex Protein etc., and they could add a vitamin enhanced hydrator to
compete with brands like Vitamin Water that take some of their target segment. Lastly threats
which are from other drinks competitors, from substitutes like fruit juices. Even with the
weaknesses and threats gatorade is a really good company. They find ways to overcome every
thing negative that has come their way.
Gatorade has used Pepsi as a successful leverage brand. Gatorade is a PepsiCo brand so it
had a successful start and their success is still relevant and in fact growing. With the growth of
social media, there has become more advertising opportunities for the company. During the NFL
Playoffs and Super Bowl LI Gatorade provided a filter on the smartphone application, Snapchat.
They also reach people via Twitter, FaceBook, and Instagram. They use videos with their
sponsored athletes to promote and advertise their new and trending products. Athletes and team
supporters see the product being advertised and next time they go reach for something to quench
their thirst, they will think back to all-stars like Abby Wambach or J.J. Watts, and reach for a
Gatorade Whey Protein Bar or Gatorade Frost drink to fuel them for a game/ match. Gatorade
also benefits from celebrity endorsements from athletes, sports teams, and sport associations.
They know the demographics of their market, athletes or sport-lovers of all ages.
Gatorade does face threats from outside competitors from companies like Powerade,
Vitamin Water, and protein bar/ powder companies Cliff Bars or Muscle Milk. In recent years
they’ve launched their protein bars, drinks, and powders as well as their G-Series to attempt to
compete with those companies, they have been successful, but still continue to battle other
companies for that top spot.
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