Presentation- Sports Drink

Both beverages are meant to hydrate athletes at a

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Both beverages are meant to hydrate athletes at a competitive as well as amateur level. Their formulas are almost identical in terms of ingredients and flavor options. The beverages are similarly priced and can be found together at nearly every retail channel Coke and Pepsi products have penetrated. Gatorade faces the challenge of competing with its similarly positioned rival, POWERade. Because the two beverages are targeting the same audience, Gatorade’s value must be clearly established through its branding effort. Gatorade Perform value as the original sports drink continues to show through its overwhelming market share and superior consumer loyalty.Gatorade has attempted to separate itself from Powerade through the use of tag lines. The most famous over the years is the posed question IS it in you? The tag line is meant to inspire hard work, and imply that Gatorade can help you perform at the highest level. Powerade’s most recognizable tag line is Power Through which send the same message as Gatorade’s Is it in you? Slide 6 - (Brand Architecture) A good way to show how Gatorade distinguishes its different products and where they fit into the market is Brand Architecture. (Channel Strategy) In short, Gatorade is everywhere. Gatorade’s system of distribution is one of the most intensive in the world. With help from PepsiCo’s highly developed distribution channels, Gatorade can be found in nearly every retail, vending, and convenience outlet where Pepsi products are available. Pepsico owns and operates its own manufacturing, and distribution company called Pepsi Beverages Company. Pepsi Beverages Company handles 75 percent of Pepsico's beverage volume in North America. Retailers go out of their way to insure that they can offer the most recognizable name in the sport beverage market. Gatorade is a perfect example of a channel captain, or channel leader. Retailers are at the mercy of Pepsico since Gatorade controls three fourths of the sport performance beverage market. Retailers are expected to carry Gatorade simply because of its status within the market. Gatorade is at a very mature stage in its life cycle, its distribution system complements this aspect of the product, and consumers know exactly where to obtain their favorite sports beverage.
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Gatorade has established a channel and distribution strategy that appropriately complements their product complexity, relative market position, and place in the product life cycle. By saturating a wide variety of retail outlets, they are able to capitalize on a greater diversity of market segments that may tend to frequent specific outlets. As channel captain of their rather directly administered system, Gatorade avoids vertical channel conflict and maintains power in their channel system that facilitates continued efficiency and flexibility.
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  • Spring '12
  • Mathwick
  • Marketing, Gatorade, Gatorade brand, Gatorade Perform

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