...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...
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...Analysis In order to understand clearly the motivating factors of this decision, it would be useful to describe the nature and position of the two companies on the global market arena prior to the merger. Quaker Oats was formed in 1901 in Raven, Ohio by joining several oat-milling companies. Before the merger, 92% of Quaker Oats' U.S. brands held number one and number two positions in their respective categories. However, throughout its life, Quaker frequently tried itself in non-food industry, which all weakened the company's greatness and left little worse off. The primary reason was that Quaker could not handle the scale of big corporation. The biggest strategic decision that followed by a huge success was acquiring the rights to sell Gatorade, as it captured 84% of the sport drink market. In 1994, Quaker bought rights to sell Snapple, but the result was much worse than expected. Quaker bought Snapple for $1.7 billion and sold it in 1997 for $300 million, making a net loss of $1.4...
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...Gerard Gio R. EMG166-T Case analysis no. 11 – Pepsico’s Diversification Strategy In 2008 December 5, 2011 Overview Pepsico is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo is a world leader in convenient foods and beverages, with revenues of about $25 billion and over 142,000 employees. The company consists of the snack business of Frito-Lay North America and the beverage and food businesses of PepsiCo Beverages and Foods, which includes PepsiCo Beverages North America (Pepsi-Cola North America and Gatorade/Tropicana North America) and Quaker Foods North America. PepsiCo International includes the snack businesses of Frito-Lay International and beverage businesses of PepsiCo Beverages International. PepsiCo brands are available in nearly 200 countries and territories. Many of PepsiCo's brand names are over 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001. PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people. Our mission is to be the world's premier consumer products company focused on convenient foods...
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...Grade Received - "A" PART 1: Research Background Research the selected brand using both its Web site and articles in the library’s full-text databases, and address the following: What does the brand mean in today’s market? How has it evolved over time? What is the target market(s) for the brand? Has that changed from the past? How is the competition positioned? This section of the assignment requires the use of articles from the library’s full-text databases. Articles are found in periodicals. These are not to be confused with eBooks or reference books. PART 2: Application Marketing is not all serious research involving scholarly, statistical, and practitioner resources; it is also about trends, buzz, and pop culture of the day. Actors, models, musicians, athletes, and reality stars of the moment are hounded by the press. Their lives unfold in the media, and many are seen wearing, carrying, eating, or driving a particular brand. For this section, you may research the following in any media outlet: What celebrities endorse your brand? Why are they a good fit? To what target market do they connect? What other famous characters could be connected to your brand? Explain why. What about the competition? What kind of endorsers do they use? Branding Introduction The brand-name of products has become an important factor over time. It can be the deciding factor on whether or not an individual will purchase their product or services based off of the brand-name...
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...COMPANY CASE BRITIVIC: CREATING A BRAND FLAVOUR Part I: Brief Background History of Britvic - Mid 19thC Chelmsford a chemist begins creating homemade soft drinks - 1986 Tango acquired - 1987 Pepsi - first 20 years bottling arrangement agreed in the UK - 1995 Robinsons acquired - 2000 Orchid Drinks acquired, inc. Amé/Purdeys - 2004 Ben Shaws acquired, inc. Pennine Water - 2006 drench launched and The Really Wild Drinks Company is established - 2007 Robinsons Smooth and Fruit Shoot 100% launched - 2008 PepsiCo awards Britvic a 15 year bottling agreement for V Water - 2008 PepsiCo awards Britvic a 7 year bottling agreement for Gatorade - 2009 PepsiCo awards Britvic a 4 year bottling agreement for Lipton Ice Tea Part II: Marketing Mix Strategies a. Market Britvic’s soft drinks become most popular drink in summer among adults and children. Major supermarkets, local shops, restaurant, pubs, hotels and cinemas are among its customer. b. Product Britvic products have a wide range variety of products in terms of their drinks. From juice drinks, energy drink, kids drink up to sports drink and etc. Britvic has it Britvic doesn’t stop from producing a quality drinks for their consumers, their design really caught the attention of every individual that sees it. Also, Britvic sees to it that each of their products is nutritional to every consumer they have, and give its customer a healthy living lifestyle. The soft-drinks market is structured into two main categories...
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... According to a 1996 fiscal report in the Wall Street Journal, venerable Chicago-based Quaker Oats Company was in the midst of a financial downturn caused by serious planning snafus. In particular, Quaker had lost $47.8 million in the second quarter of 1995, largely because of restructuring charges necessitated by its Snapple division’s poor performance and the company’s unsuccessful efforts to improve overseas sales. Quaker did not expect 1996 to be any better. Throughout the 1900’s Quaker Oats was in many businesses including Aunt Jemima pancake flour, Cap’n Crunch cereals, Fisher-Price toys, restaurants and candies. Until 1990 Quaker was still adding new products – everything from clothiers and opticians to Stokely-Van Camp, Gatorade, and Gaines dog food. A prime acquisition was Anderson Clayton & Company, a Houston food-products company that boasted such popular brands as Seven Seas salad dressings, Chiffon margarine, and Igloo ice chests. Then a downturn in 1990 convinced management to refocus the company on food. Quaker implemented this new strategy by increasing its advertising budget, reformulating its dog foods, and launching new products. Determined to emphasize its core food...
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...Case Analysis of the Alternative Beverage Marketplace Companies around the world are fighting for position in their industries. The completive world of alternative beverages is no different. The companies involved in this epic battle for market share all are challenged with the three questions outlined by Arthur A. Thompson “What’s the company’s present situation? What should the company’s future direction be and what performance targets should we set?” (Thompson, 2012) The development of a strategy for the companies involve in the alternative beverage arena is a daunting one. There are pressing internal and external environmental factors that present significant challenges in the gaining and maintaining of market share with in the industry. The obstacles faced by these organizations include global economic slow downs, dynamic distribution channels, negative press and fickle customer tastes. These companies, however, must remain focused and vigilant to attract customers to their brands. The case study presented by John E. Gamble, Competition in Energy drinks, Sport Drinks, and Vitamin-Enhanced Beverages, outlines the boons and challenges faced by the four leading distributers of alternative beverages around the world. The industry leaders (PepsiCo, Coca-Cola, Red Bull and Hansen Natural Company) in the alternative beverage market are what is know as a strategic group. “A strategic group is a cluster of industry rivals that employ similar competitive...
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...Tropicana Products, the largest marketer of branded juices. Throughout 1999, PepsiCo was closely tracking several potential strategic acquisitions. In the fall of 2000, it appeared that the right moment for an equity-financed acquisition had arrived. At this time, PepsiCo management decided to initiate a confidential discussion with The Quaker Oats Company about a potential business combination. Quaker Foods North America manufactures, markets, and sells ready-to-eat cereals, hot cereals, flavored rice and pasta products, mixes and syrups, hominy grits and cornmeal in North America. Products manufactured and sold include Quaker oatmeal, Cap'n Crunch, and Life cereals, Rice-A-Roni products, Aunt Jemima mixes and syrups, and Quaker grits. Gatorade, a key brand in Quaker’s portfolio, had long been on PepsiCo’s wish list. On October 5, 2000, an investment-banking team from Merrill Lynch met with the top executives of PepsiCo to discuss a possible business combination between PepsiCo and Quaker Oats. The goals of the meeting were: • To assess the value of Quaker Oats’ businesses; • To estimate potential synergies associated with a Pepsi-Quaker merger; and • To come up with an effective negotiation strategy. PepsiCo executives were confident that Quaker’s beverage and snack food business could contribute to Pepsi’s...
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...Introduction The sport drink market has been traditionally dominated by PepsiCo’s sport drink brand called Gatorade. Gatorade was developed at the University of Florida to increase the performance of their athletes while participating in activities in extreme heats. The creation of Gatorade has led to a multi-billion dollar sport drink market. Gatorade currently control of 77% of the sport drink market; however, that percentage is down from previous years as the sport drink industry has increased levels of competition other companies have entered the market with their own brand of sports drink. The target markets for Gatorade are athletes, teenagers, and consumers with an active lifestyle. Our project will evaluate Gatorade’s marketing...
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...share of soft drink market world wide and has over 30% share in United states alone. Pepsi has many brands in soft drinks alone namely mountain dew, diet pepsi, mirinda etc. Also pepsi has expanded its reach to other products like quaker oats, Tropicana fruit juice, lays potato chips, cheetos, Gatorade etc. One of the Pepsi’s popular product was its ‘ Diet Pepsi’. It was introduced in 1964. Its main highlight was that it was a sugar free drink making it available to all larger section people. It had zero calories and also very less sugar content it and was an instant hit among the youth. PepsiCo is a leading company in soft drinks, snacks and foods and beverages. It has a revenue of more than 39 billion dollars and has employee strength of more than 1,85,000 people. PepsiCo company consist of mainly 3 companies. PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), and PepsiCo International (PI). PepsiCo’s products are one of the most recognized products in today’s world. PepsiCo’s increase in success is mainly due to high standard of performance, commitment, determination and hard work of each and every member of the PepsiCo family. Pepsi also follows one of the best marketing strategies and business practices. PepsiCo has faced many challenges in its history. It has had its toughest competition from its rival Coca-Cola. It also faced other challenges like bankruptcy in its early stages and sugar rationing during World War 2. It has also faced a similar kind of crisis...
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...grocery store legend Quaker Oats purchased the new kid on the block, Snapple, for $1.7 billion. Fresh from their success with Gatorade, Quaker Oats wanted to make Snapple drinks just as popular. Despite criticisms from Wall Street that they paid $1 billion too much for the fruity drinks, Quaker Oats dove head-first into a new marketing campaign and set out to bring Snapple to every grocery store and chain restaurant they could. However, their efforts failed miserably. Snapple had become so successful because they marketed to small, independent stores; the brand just couldn’t hold its own in large grocery stores and other retailers nationally. Pepsi and Coca-Cola themselves began releasing Snapple-like drinks and the general public’s new-found taste for Snapple beverages was beginning to wane. After just 27 months, Quaker Oats sold Snapple for $300 million (or, for those of you doing the math, a loss of $1.6 million for each day that the company owned Snapple). CEO William Smithsburg’s reputation was forever tarnished, and numerous executives were fired. Rasmussen College School of Business QUAKER OATS AND SNAPPLE “We have an excellent sales and marketing team here at Gatorade. We believe we do know how to build brands, we do know how to advance businesses. And our expectation is that we will do the same as we take Snapple as well as Gatorade to the next level.” -Don Uzzi, President of the Quaker Oats Beverage Company, North America. 1) SUMMARY/HISTORY ...
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...Snapple. By the late 1980s, their brand had achieved near-cult status on both coasts of the United States, with its iced teas particularly in demand. It had taken 15 years, they said, to become an overnight success. In 1994 Quaker bought Snapple for $1.7 billion. The vision had been to combine Snapple with Gatorade, an earlier and very successful acquisition, to form a powerful beverage business unit. Snapple, however, did not thrive: sales fell in each of the next four years, and in 1997 Quaker despaired and sold the brand to Triarc Beverages for $300 million. In the fallout that followed, both Quaker’s chairman of 16 years and its president resigned. Mike Weinstein, CEO of Triarc Beverage Group, reflected on the acquisition. “At $300 million, Snapple is not a steal by any means. It’s in decline, and when that happens to a brand it’s seldom that it comes back. We’re in a fashion business here, and when your imagery isn’t fashionable, often that’s the end. But we’ve talked to a lot of consumers and we did a lot of qualitative research, and we’ve decided that in this case the brand still has inherent strength. People feel good about it. It will respond to the right marketing stuff.” 1972–1986: The Origins of the Brand Arnie Greenberg’s family ran a sardine and pickle store in Ridge wood in Queens, New York. His friends Leonard Marsh and Hyman Golden helped him in the store, and in turn he helped them to manage their window-washing business. In the climate of the 1960s, Arnie...
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...environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.” Performance with Purpose “At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society – delivering what we call Performance with Purpose. “ “Our approach to superior financial performance is straightforward – drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.” PepsiCo: Products * Pepsi-Cola * Pepsi, Mountain Dew, Mug Root Beer, Sierra Mist, Slice, Aquafina, SOBE, Lipton… * Gatorade * Gatorade Thirst Quencher, Propel Fitness Water, Tiger Woods Line, G2… * Frito-Lay * Grandmas Cookies, Oberto Jerky, Miss Vickie's Potato Chips, TrueNorth, Flat Earth… * Tropicana * Premium Juices, Tropicana Twister, Dole, Naked Juices… * Quaker * Quaker Oatmeal, Life Cereal, Cap’n Crunch Cereal, Aunt Jimima, Rice-a-Roni… II. Time Frame 1991 - Formed a joint venture with Unilever to sell bottled Lipton teas. 1994 -...
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...Case Study — Britvic Background Founded as the British Vitamin Products Company in the mid-nineteenth century in the market town of Chelmsford in Essex, the company changed its name to Britvic in 1971. The company began as little more than a home business run from a chemist’s shop. Soon the company was producing all kinds of soft drinks, including lemonades, mineral waters, tonics and non-alcoholic ales. It wasn’t until 1938 that the Britvic range of juices that we know today were first produced — thanks to Ralph Chapman, owner of the British Vitamin Products Company. Recognising that the Great Depression in the UK meant that many of his poorest customers needed an affordable source of Vitamin C, he found a way to bottle fruit juices so that they stayed fresh for longer without the addition of preservatives. His juices were sold in small glass bottles which ensured easy transportation. The idea was immediately successful but it was only in 1949 that the Britvic brand was formally launched into the marketplace. In the years following the Second World War, Britvic went from strength to strength, building a modern factory in its hometown of Chelmsford. In 1971, the British Vitamin Product Company formally changed its name to Britvic in recognition of its leading brand’s appeal. In 1986, Canada Dry Rawlings came together with Britvic to form Britvic Soft Drinks. The company went on to buy the Tango brand from Beechams and acquire the UK franchises of Pepsi and 7UP...
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...0 1 2 0 1 3 0 3 2009 Annual Report WHAT IS At PepsiCo, Performance with Purpose means delivering sustainable growth by investing in a healthier future for people and our planet. As a global food and beverage company with brands that stand for quality and are respected household names—Quaker Oats, Tropicana, Gatorade, Lay’s and Pepsi-Cola, to name a few—we will continue to build a portfolio of enjoyable and wholesome foods and beverages, find innovative ways to reduce the use of energy, water and packaging, and provide a great workplace for our associates. Additionally, we will respect, support and invest in the local communities where we operate, by hiring local people, creating products designed for local tastes and partnering with local farmers, governments and community groups. Because a healthier future for all people and our planet means a more successful future for PepsiCo. This is our promise. PerFormance To all our investors… It’s a promise to strive to deliver superior, sustainable financial performance.* Our GOals and COmmitments toP line: • Grow international revenues at two times real global GdP growth rate. • Grow savory snack and liquid refreshment beverage market share in the top 20 markets. • Sustain or improve brand equity scores for Pepsico’s 19 billion-dollar brands in top 10 markets. • rank among the top two suppliers in customer (retail partner) surveys where third-party measures exist. bottom line: • continue to expand division...
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