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Swot Analysis Of Gatorade

1368 Words6 Pages

1.1 Company background
1.1 Introduction and financials to the company

Gatorade is one of the main brands of PepsiCo, the third largest company in the world with net revenue of 62.8 billion in 2016 and a long term record of profitability, stability and growth (Statista, 2017).
PepsiCo’s mission is to be the principal consumer product company in the food and beverage industry whilst providing financial remunerations and development opportunities to its employees, partners and communities (Pepsico, 2017).
The company has had an above-average dividend yield over the past five years of 2.73%. The lowest was 2.44% on 2nd December 2014 whilst the maximum was 3.13% on 28th December 2012. Moreover its revenues-per-share have grown at 9.7% a year …show more content…

Moreover for future growth, Gatorade’s strategy is to become more digital as 75% of athletes are resorting to the internet to learn about their sport (Beuley, 2017). Target Market: Individuals aged between 13 -40

Market Share: 28.8% (Bailey, 2015)
Company objectives: Powerade has been improving its portfolio to reach different market segments which were not being reached. A Zero calorie beverage has been introduced into the market for consumers who are looking for an energy boost without consuming excess sugars. Powerade aims to deliver new products through innovation and new process technology (Merrett, 2017). Target Market: Athletes and anyone who has an active lifestyle
Market Share: 2% (Latif, 2016)
Company objectives: Marketing strategy is focused on the natural elements that make up the product to emphasis the different from other brands which are based on artificial compounds.
BodyArmor is growing and in 2016 (after just 5 years) sales went up by 190%. Bodyarmor aims to become the number one sports drink by 2025 (Barrabi, 2016; Golden, …show more content…

Gatorade can be bought from various shops including supermarkets and also online. A value-based pricing strategy is used. It is the perception of value that is given importance rather than cost for the manufacture of the product.
Pricing is set on the high side (yet still 20% lower than that of Gatorade) as it is mostly consumed by established athletes and sport teams and the consumers are willing to pay for the benefits that it offers.
Powerade can be bought from various shops including supermarkets and also online from various different websites. Bodyarmour uses market penetration and in the last two years, there was price reduction and discounts have also been introduced for customers who buy more than one bottle.
The brand is not found in large supermarket and grocery stores to avoid being placed next to Gatorade and Powerade which would be heavily discounted. Instead, it can be found in small convenience stores and in colleges and high schools (Klineman, 2014).
The sports drink can also be bought online from the company 's official

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