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Gatorade Price Strategy Essay

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Below is an essay on "Gatorade Price Strategy" from Anti Essays, your source for research papers, essays, and term paper examples.

In the sports business world, there are few brands that show complete and seemingly perpetual domination. There's Nike, and its Jordan brand, in basketball shoes. And there's PepsiCo, and its Gatorade brand, in the sports drink space. Gatorade has the largest consumer market in the sports drink field in the United States and is the largest sports drink producer in the world. They have a competitive advantage. Being the largest sports drink producer allows them to reach out to many more consumers then others can, and as well have many for manufacturing plants all over the world. With manufacturing plants across the world, Gatorade is able to reduce prices. Gatorade has become the most popular sports beverage.   It is widely known and is easily distinguishable among its competitors. Gatorade's main competitive brand is PowerAde, made by the Coca-Cola Company, but until recently, they did not present a challenge to Gatorade. PowerAde does not have a good target market perception and are considered a second place drink to Gatorade. PowerAde does not have the same quality of winning athletes that Gatorade has. They also lack scientific research behind their product without a research institute. Gatorade has a very simple pricing strategy. Gatorade uses Value-Based Pricing, which is a pricing strategy that takes research on how much a product is worth to the consumer and prices products. In other words, the product's price is changing dependent upon its demand. Currently, Gatorade prices vary, but the standard 250ml sports drinks price varies from $1.29 to $1.59, which is lower than its main competitor PowerAde which varies from $1.79 to $1.99. The PowerAde brand that used to try to gain market share by unveiling wacky flavors that Gatorade hadn't tried, brought to us ION4 in 2009, telling the public that this drink had calcium, magnesium and B vitamins that Gatorade didn't have. In an interesting move, PowerAde brought Dr. Bob Murray, long time director of the Gatorade...

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