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Gatorade Ovhd

Gatorade was created in the 1960s at the University of Florida to combat heat and humidity for football players. It gained popularity through word-of-mouth after the Gators had success in games. In 1967, Stokely-Van Camp bought the rights to produce Gatorade. It became the official sports drink of the NFL and used athlete endorsements to promote the brand. Gatorade was sold to Quaker Oats in 1983 and became a billion dollar brand by 1993, dominating the sports drink market with over 80% share. However, competitors like Powerade and All Sport began gaining share in the 1990s and 2000s as Gatorade expanded its product line, potentially diluting the core brand strength

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Kodi Israel
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58 views8 pages

Gatorade Ovhd

Gatorade was created in the 1960s at the University of Florida to combat heat and humidity for football players. It gained popularity through word-of-mouth after the Gators had success in games. In 1967, Stokely-Van Camp bought the rights to produce Gatorade. It became the official sports drink of the NFL and used athlete endorsements to promote the brand. Gatorade was sold to Quaker Oats in 1983 and became a billion dollar brand by 1993, dominating the sports drink market with over 80% share. However, competitors like Powerade and All Sport began gaining share in the 1990s and 2000s as Gatorade expanded its product line, potentially diluting the core brand strength

Uploaded by

Kodi Israel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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GATORADE

 Disruptive technology? created an entirely


new “sports drinks” category
 Typical odd origin—early ‘60s—Univ. of
Florida—hot, humid, football
 1965: tested on ten members of the Univ.
of Florida’s Gator football team
 Serendipity: Gators had a winning season
 reputation as team that excelled during the
second half of play. Was it Gatorade?
 word-of-mouth and unpaid publicity
 January 1, 1967—Gators beat Georgia
Tech in the Orange Bowl 27-to-11
 More serendipity: Georgia coach quoted
by Sports Illustrated: “We didn’t have
Gatorade. That made the difference.”
 coaches all over the country clamored for
Gatorade.
A Product in Tune With the Times
 1967: Stokely-Van Camp, a canned fruit
and vegetable company, bought the
exclusive rights to make Gatorade
 NFL’s “official” sports drink
 professional athletes promote image of
magical elixir to armchair athletes
 good for you: Gatorade versus Kool-aid
Sales Soar Higher: More Money Needed

 1983: Quaker Oats buys Stokely-Van


Camp
 sports drink sales are $85 million per year
 Quaker Oats money creates larger market
 heavy promo spending for Michael Jordan
 1993: Gatorade sales reach $1 billion/year,
22 percent of Quaker Oats profits
 CONSUMER SIDE FIGURED OUT
Competitors Enter: Brand Transference
 1992: Coke introduces Powerade
 official sports drink of ‘92 and ‘96
Olympic games and World Cup Soccer
 Distribution and marketing advantage used
to muscle market share
 1992 Pepsi All Sport
 hires Basketball’s Shaquille O’Neal
 1995: Gatorade hold over 80% share
 Powerade and All Sport less than 4% each
 Jan 2000: Gatorade still 80% market share
but losing share
 2000: 40% OF QO SALES/profits.
NUMBER ONE PRODUCT
 Oatmeal, Life cereal, Aunt Jemima, Rice-
A-Roni, Near East, Cap’n Crunch
 DO THE SAME WITH SNAPPLE?
Summer 2001: Pepsi Buys Quaker
 Pays $13.8 billion (Coke passes)
 Pepsi has distribution—Gatorade has
“brand equity”
 Powerade gains share—up 2.5% points to
13% by 2002
 Gatorade loses share—down 2.5% points
to 78%
 Still holds a virtual monopoly
 2005: Gross Retail Sales exceed $3 billion
 2006 sales grow by double digits
 2007 sales flat
 Challenge lies in international markets
 80 countries—Canada ’84, Asia ’87,
Europe and South America ‘88
 Market still growing briskly BUT merging
with other categories
Product Proliferation—Is it
“Hyperextension?”
 Endurance Formula in 2004 (more
electrolytes—calcium and magnesium)
 Meal supplementation—energy bars
 Thirst quenchers
o A.M.
o Rain
o Front
o Fierce
 Propel Fitness Water in 2000
 G2—half the calories
o “off-field hydration
 Tiger (Woods)?

ARE THEY HURTING


THE BRAND?
GLACEAU
VITAMIN WATER

 Created in 1996 by J. Darius Bikoff


 From that hotbed of innovation—
Whitestone, Queens
 What makes it special?
 It is vapor distilled
 Deionized
 Reverse osmosis
 Sweetened with crystallized fructose
 Slogan—“hydrate responsibly
 The rapper 50-Cent was an early investor
 April 5, 2005—Pepsi’s SoBe “Life Water”
I sued by Glaceau for violation of Trade
Dress

 May25, 2007—Coke buys


Glaceau for $4.1 billion
 Rapper 50-Cent makes $400 million
 Coke uses Vitamin Water to attack
Gatorade
 Product Proliferation—Smart Water,
Fruit Water

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