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.
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. The rise to 15% market share came after Coke revamped the PowerAde line. They re-launched it with new packaging, flavors, ad campaign, and distribution avenues. Following the lead of Gatorade, PowerAde has tried relentlessly to place its products into schools, universities, and health clubs. Their new marketing strategy has proved effective and PowerAde is slowly increasing sales, and stealing marginal amounts of market share away from Gatorade and smaller competitors below them. The European market was always more illusive for U.S. sports drinks makers, because the All-American competitive sports attitude used in the U.S. didn’t prove effective in Europe. But in November of 2001 Coca-Cola Co. launched the revamped PowerAde into seven European countries from Britai
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Approximate Word count = 623
Approximate Pages = 2 (250 words per page double spaced)
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