Week6_CaseStudy_PepsiCo - The Launch of Organic Gatorade_Group4.docx

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Assignment Week #6: PepsiCo - The Launch of Organic GatoradeBUOL 533: Marketing ManagementProfessor: Dr. Douglas RossGroup 4Saloni Rajesh JoshiManan Hemanshukumar ModiMaheswari SatharlaVijendra Kalyan Chakravarthi NanduriPepsiCo - The Launch of Organic GatoradeQuestion 3: Why do consumers buy Gatorade and sports drinks? What are the emerging trends in the market? What is a functional drink?Solution: The latest trend in food consumption and beverages is healthy and organic. People arepreferring healthy drinks which give them energy and strength. Hence consumers are preferring
gatorade and other sports drinks even if they are costly when compared to normal drinks. This is encouraging companies to come up with some healthy ideas. A functional drink is the beverage which has proteins and other healthy minerals and provide energy. People stoppen drinking normal coll drinks as they are unhealthy and preferring energy drinks and fruit juices. Hence the companies are also concentrating on this.The main draw of beverage manufacturing industry is because people are worried and conscious about the ill effects of sodas on their overall health and hence lean towards sports drinks such as Gatorade. Gatorade in particular was rated as one of the top 10 beverage product in the United States. A lot of people love to drink Gatorade because it contains adequate amount of electrolytes that boosts the metabolism of the body. Consumers prefer Gatorade or other sports drinks while working out at the gym or in an everyday work schedule to gain energy and stay hydrated throughout the day. Healthy people substitute tea, coffee and sodas with sports drinks/Gatorade in order to avoid consumption of high amount of sugars and caffeine. Different flavors offered by Gatorade are also an attraction for the consumers. Place like Costco, Target, Wal-Mart etc offer a good price for these products when purchased in bulk and hence it is cheaper and affordable for consumers. According to March 2015 data from the Beverage Marketing Corporation, sports drinks are performing better than carbonated soft drinks. Gatorade had 69.5% market share of the US sports drinks market in 2013. In 2014, Gatorade was ranked the 6th largest LRB brand in the United States, based on volumes. The brand slipped from 5th position in 2013 and was replaced by Nestle Pure Life, a popular bottled water brand. In 2014, Gatorade’s volumes increased by 3.7% year-over-year to 990 million gallons. Growth in Gatorade volumes has slowed down compared to 2010 when volumes rose 6.2%. Emerging markets also present a huge opportunity for Gatorade, given the

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