Since its launch in 1967, Gatorade has been a power player in the sports drink category. Gatorade dominates the U.S. sports drink market, garnering 67.7 percent of the market, followed distantly by the Coca-Cola\u2019s Powerade and BodyArmor brands at 13.7 percent and 9.3 percent, respectively.[footnote]Rachel Arthur, \u201cGatorade, Powerade & BodyArmor: How PepsiCo and Coca-Cola Are Playing in the Sports Drink Category,\u201d BeverageDaily, William Reed, updated March 25, 2021, https:\/\/www.beveragedaily.com\/Article\/2021\/03\/25\/Gatorade-Powerade-BodyArmor-How-PepsiCo-and-Coca-Cola-are-playing-in-the-sports-drink-category[\/footnote] The fact that Gatorade has maintained such a large market share demonstrates parent company PepsiCo\u2019s understanding of the marketing mix (product, price, place, and promotion), how to integrate these elements for its target market, and how to continually adapt its marketing mix to meet changing consumer demands.<\/p>\r\n
First, let\u2019s consider its approach to the product itself. Gatorade managers saw the exercise boom coming as baby boomers began to age and wanted to be the performance and thirst quencher for everyone from kids to pros. The product, which was intended to replace electrolytes lost in sweat, was scientifically formulated first at the University of Florida and later at the Gatorade Sports Science Institute. But Gatorade didn\u2019t stop there. For example, in order to lure back \u201clapsed\u201d consumers with concerns over sugar, it launched Gatorade Zero, a thirst quencher without sugar. It also launched its G Series Performance, a new line of food and beverage products designed to provide fuel, fluid, and nutrients before, during, and after activity.[footnote]Id.[\/footnote]<\/p>\r\n
Gatorade originally priced its product using a premium strategy because the product was unique. However, in order to retain its lead, the company subsequently adopted competitive pricing policies when competitors entered the market.[footnote]Darren Rovell, First in Thirst: How Gatorade Turned the Science of Sweat into a Cultural Phenomenon (New York: AMACOM, 2006)[\/footnote]<\/p>\r\n
Gatorade has continued to pump marketing dollars into advertising campaigns. For example, in 2020 it launched an iconic advertising campaign that featured some of the world\u2019s \u201cgreatest of all time athletes\u201d (GOATs) \u2014 the NBA\u2019s Michael Jordan, tennis star Serena Williams, soccer legend Lionel Messi, and track star Usain Bolt. In the commercial, the sports stars appear at a mythical GOAT Camp where youth athletes, future GOATS, can train with these stars.[footnote]Georgie Heath, \u201cTennis Legend Serena Williams Stars Alongside Lionel Messi, Michael Jordan and Usain Bolt in New Ad,\u201d NewsChain, Not a Newspaper, February 25, 2020, https:\/\/www.newschainonline.com\/news\/tennis-legend-serena-williams-stars-alongside-lionel-messi-michael-jordan-and-usain-bolt-in-new-ad-4408[\/footnote]<\/p>\r\n
In 2020, Gatorade launched an impactful digital strategy. When NBA games were canceled due to the COVID-19 pandemic, ESPN aired a 10-part documentary, \u201cThe Last Dance,\u201d about Michael Jordan\u2019s last year with the Chicago Bulls. Because Gatorade wasn\u2019t an official sponsor, it partnered with the NBA to stream 1998\u2019s Game 6 of the NBA Finals featuring the Jazz versus the Bulls in what would be superstar Jordan\u2019s last game with the Bulls. Gatorade sponsored a \u201cwatch party\u201d keyed to the hashtag #Game6Live.[footnote]\u201cHow Gatorade Ran It Back to \u201998 with #Game6Live,\u201d Marketing, Twitter, accessed May 7, 2022, https:\/\/marketing.twitter.com\/en\/success-stories\/gatorade-game6live-twitter[\/footnote] Review a description of Gatorade\u2019s strategy<\/a>, which shows examples from their [pb_glossary id=\"8794\"]Twitter[\/pb_glossary] campaign, steps taken, and results.<\/p>\r\n Gatorade is an example of how one company built market dominance by creating the optimal integration of its marketing mix\u2014product, price, place, and promotion\u2014throughout a product\u2019s life cycle.<\/p>\r\n