Gatorade Strategy Essay

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Abstract Gatorade is an international sports energy drink brand owned by PepsiCo that was founded in Florida. The company has researched new innovative ways to promote hydration and nutrition among athletes across the globe. Gatorade was founded by Dr. Robert Cade and Dr. Dana Shires in 1965 and has been a leader in the sports energy drink industry with a significant amount of market share. Currently, Gatorade is the official sports drink of the NFL, NBA, PGA, and many other athletic organizations. As the first mover in the sports energy drink market, Gatorade has set itself apart from rivals like PowerAde and Vitamin Water by creating value for customers by establishing business relationships, conducting scientific research, and product innovation. The Gatorade Company is part of QTG (Quaker, Tropicana, Gatorade) and has been a subdivision of PepsiCo since 1998. When Quaker Oats acquired the company in 1983, it was the largest energy drink company in the world with market share of 97% (Rovell, 2006). The company’s product line focuses on rehydration, recovery, energy, and sports performance. Gatorade is considered an innovative product as it was the first mover in the sports energy drink market. Prior to Gatorade entering this market, water was the only other source for hydration among athletes. This paper will analyze how Gatorade aims to achieve the five elements of strategy by focusing on product, place, and promotion. Gatorade was founded by Dr. Robert Cade and Dr. Dana Shires, two medical professors at the University of Florida. In the 1960s, dehydration became a serious problem. That is, at least twenty-five athletes across the nation were dying every year because they were not properly hydrated (Rovell, 2006). Players who were drinking water as a means of hydration had stomach cramps. There was a need in the market at the time for another resource to

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