Competitor Analysis of Gatorade

Competitor Analysis of Gatorade

Competitor Analysis

When analyzing the competitors of Gatorade G2 series our goal is to assess the strengths and weaknesses of current and future companies. Although Gatorade is the largest company in the industry with a strong brand image, maintaining that against its competitors is vital to the company. Effective marketing is a critical aspect of Gatorade because this is where the majority of the profits generate from. The main competitors in the sports, energy, and health nutrition industry are The Coca-Cola Company, Energy Brands Inc. and Red Bull GmbH.

The leading competitor of Gatorade is PowerAde which is owned by the Coca-Cola Company. The target market for PowerAde is essentially the same market for Gatorade. Perhaps one of PowerAde’s biggest strengths is that it is owned by Coca-Cola which is the world’s largest beverage distributor. Although the products seem to be alike they are different in content. PowerAde contains less sodium for hydration and more sugar than Gatorade. PowerAde justifies this by saying their product has a better taste because of the extra sugar. This helps PowerAde establish where they stand in the market.

In PowerAde’s attempt to gain market share from Gatorade they added different variations of their product line to expand to a larger market. Instead of relying on huge endorsers to get to its highest market share ever, PowerAde has relied on the innovation of their new products. Since Gatorade has come out with a more health conscious version called G2, PowerAde has stepped up to the competition by adding their new product PowerAde Zero. These products are somewhat similar but PowerAde Zero contains no calories whereas G2 contains fewer calories than the original formula. This means that PowerAde Zero might have a competitive strength with the more health conscious individuals worried about calorie intake. As of the third quarter of 2010, PowerAde Zero sales have grown almost 75 % and market share has increased from 25% to 27%, its highest ever. This shows that PowerAde’s expansion of their product line is making an impact in the industry. Although PowerAde was made for athletes upon its discovery, they’re new market strategy will be aggressively pursuing casual athletes. This allows them to expand their position in the market to a greater population of consumers.

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Another rising competitor that shares the market with Gatorade is Energy Brands Inc., which is also known as Glaceau. Glaceau is a subsidiary of the Coca Cola Company which brands consist of Vitamin Water, Vitamin Energy and Smart Water. All of these water enhanced products pose a threat to Gatorade in the soft drink manufacturing industry. These beverages