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Sports Drink Market

            Since its inception in 1965 Gatorade has had a complete hold on the sports drink market. Gatorade had gone largely unchallenged except for a few small regional competitors. In 1990 Coca-Cola, realizing the control that Quaker Oats Co.'s Gatorade had on the market, decided to launch it own sports drink named PowerAde. PowerAde started as a fountain product that was primarily distributed in convenience stores. This distribution strategy differed from the bottle and concentrate powder strategy of Gatorade. The launch of PowerAde was looked at as an extremely risky move on Coca-colas part because of the virtual dominance of Gatorade in the isotonic, sports drink market. Michael Bellas, president of Beverage Marketing Corp., acknowledged that up until PowerAde's entrance into the market, Gatorade was almost a generic term for sports drinks. In 1990 Gatorades market share was close to 90% or 500 million in sales.
             Before the successful launch of PowerAde, Coke failed in its first attempt into the sports drink market. They first challenged Gatorade with a powdered form sports drink called Max. This product failed to even get out of the test market. Coke was more confident in PowerAde's introduction than previous failures because of its successful test market run in California, and its early launch in Japan under the name Aquarius. Another key factor that Coke looked at in its launch of PowerAde was its stronghold on the fountain drink industry. Coke believed that strong relationships and loyalty from its fountain accounts would help drive sales of PowerAde. Coke miscalculated the U.S. markets desire to drink sports drinks during active competition. Even though Coke never had any plans of bottling PowerAde in cans or bottles, they soon realized that bottles are the preferred method of consumption for U.S. consumers of sports drinks.
             PowerAde's gain of market share in the U.S. isotonic drink market was slow, but by 1999 they were estimated at holding a 15% share of the market.


Essays Related to Sports Drink Market

1. "Sports Drinks Refresh Rivalry For Coke, Pepsi"

The company hopes that by using these methods they will gain more of the market share in the sport drink industry with the rival of Powerade. In the article Rohan Oza, a senior brand manager who is in charge of the Powerade campaign, claims the company is, "evolving the sports-drink category". Coke is using a proactive process of change, since they are setting a new course of action for their sports drink rather than correcting the current one. ... I think that the "war of the sports drinks" will improve Powerade's sales at least in the short-term. However, I believe with Pepsi'...

  • Word Count: 503
  • Approx Pages: 2
  • Grade Level: High School

2. Pepsi

Some of these new products and opportunities are isotonics, juices, sports and energy drinks, and water. ... This looks good for Pepsi because they have acquired the sports drink leader, Gatorade, and a major alternative beverage leader in the SoBe brand beverages. ... Pepsi soon tried producing many alternative versions of its drink, including a sugar-free drink called Diet Pepsi. ... It sells in 39 international markets. ... Three-Year Stock Performance Using a three-year chart that includes the bull market and bear market, PepsiCo (PEP) stock had a total return of 35%. ...

  • Word Count: 5138
  • Approx Pages: 21
  • Grade Level: High School

3. Sport drinks

So many choices, for all we know some of them aren't even real sports drinks. But nevertheless, our sport drink is Verve. ... The target market we chose was the demographic aged 18-35. ... Our target market is also the type that is becoming predominantly more "active-, whether "active- means exercising at the gym or running to store with 30 pounds of groceries. ... Our competitors want to win over the market. ...

  • Word Count: 452
  • Approx Pages: 2
  • Grade Level: High School

4. Drinking

European teens and college students have an opportunity to drink more often and at an earlier age and therefore better manage their drinking habits. ... This amendment simply created a black market for alcohol with no regulation. In a sense prohibiting alcohol to teenagers and college students is doing the same thing, creating a black market for alcohol with no regulation. ... In the past two weeks I have been exposed to a lot of new things: college academics, sports, peers and alcohol abuse. ... Like alcoholics, they drink to get drunk. ...

  • Word Count: 1078
  • Approx Pages: 4
  • Grade Level: High School

5. Gatorade

Recently, Gatorade has put a new product onto the market. Gatorade has introduced Propel fitness water into the already crowded market of bottled waters. ... Gatorade tries to focus on America's notions of fitness, athletes, and sports drinks by trying to aim their advertisement to the average person by portraying a drink for the "hardcore" athlete. ... There are several different types of water on the market, but fitness water is a new concept to me. ... It is a new era, and this is a new sports drink. ...

  • Word Count: 854
  • Approx Pages: 3
  • Grade Level: High School

6. Promotion and Price Analysis Paper - Pepsi

Additionally, soccer, racing, and football are all featured on the sports page. ... Pepsi football is another intriguing area of the sports page. ... For the sports guru, Pepsi's sports link is an attention grabber. ... The product life cycle is divided into four major stages: market introduction, market growth, market maturity, and sales decline (Perreault, McCarthy, 2001, p. 270)."" ... Despite its turbulent history, Pepsi has maintained a firm grip on the soft drink market. ...

  • Word Count: 1657
  • Approx Pages: 7
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7. Hockey

Sports Marketing The National Hockey League (NHL) is by far the least watched sport of the four major sports. ... Labatts Blue commercials contain the beer playing hockey and then after the game drinking a Labatts Blue. ... Other sports have been successfully marketed to the United States because the sport was promoted with an American born player. Basketball had Michael Jordan and now promotes the game with LeBron James; football was marketed around Jerry Rice and is now marketed with Peyton Manning and other upcoming players; baseball is being marketed around Barry Bonds. ... All...

  • Word Count: 613
  • Approx Pages: 2
  • Grade Level: High School

8. Steroids In Sports

Another effect is permanently deformed bones (Sports). ... Two other side effects are damage to your kidneys and muscles (Sports). ... Steroids are legal in some sports even though they jeopardize players' health and damage sports credibility (Dark). ... All athletes no matter what sport they play need to eat well and drink a lot of liquids. ... (CIF 1) Performance-enhancing supplements should be taken off the market. ...

  • Word Count: 2117
  • Approx Pages: 8
  • Grade Level: High School

9. Ad Analysis

These drinks not only add as an additional source of revenue, but support the sales of the companies" other products. ... Similar to any other advertisement in Sports Illustrated, this ad is meant to appeal to young to middle-aged men who enjoy sports. ... The company has worked hard in the past to forge a recognizable image so that now it is well known in almost any market. ... Jack Daniel's also reminds customers to drink responsibly, establishing a good connection its consumers. ... When an advertisement is compared to sports, the average reader of Sports Illustrated is more likely t...

  • Word Count: 635
  • Approx Pages: 3
  • Grade Level: High School

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