Advertising and Marketing Research Essay

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Assignment 3: Advertising and Marketing Research and Essay
Sharon L. Price
Topic: PowerAde
PowerAde was presented to the public in 1988 as a fountain beverage by researchers at the Coca-Cola Company. However, it wasn’t until 1992 when it was suggested that the product be released as a ready to drink thirst quencher or better known as a sport drink. This idea was the spark that ignited a competitive sports drink market. Before PowerAde's launch in 1992, the sports drink market was solely monopolized by Gatorade. Nevertheless, PowerAde extricated itself from Gatorade by adding vitamins B3, B6, and B12, which were said to enhance the metabolism of carbohydrate energy. At this time, PowerAde took 36% of the market share in the Fitness Water category behind Gatorade’s fitness water Propel. Since its introduction in the 1990’s, PowerAde has brusquely catalyzed into the sports drinks industry with the assistance of its parent company Coca-Cola which eventually lead to PowerAde being the official sports drink of the Olympic Games. The sports drink that the world knows as PowerAde was spawn and became internationally recognized due to its Olympic Games title. It quickly emerged into commercial sports drink industry and became a drink desired by many in particular adolescents. Its claim to combine carbohydrates with fluids for energy and hydration were the main attraction for adolescents. The marketing strategies of PowerAde thrived on the idea that it quenched the thirst and restocked minerals and carbohydrates exhausted by athletes especially those that engaged in intense activities like Olympians. In 2008, PowerAde hit the marketplace even harder by introducing PowerAde ZERO. PowerAde had an exclusive weapon against its main competitor Gatorade. While adolescents might seek to be ambitious and drink what athletes drink, the beverage marketer knew that parents would buy the new beverage due to its zero calorie count. This was ingenious in an age of sky rocketing obesity rates of adolescents. The zero calories strategy was a way for parents to help their adolescents fight the war against obesity. The launch of PowerAde Zero lead to record sales which generated approximately 685 million dollars in sales by the year 2010. Despite the fact the product changed and refined its principle marketing strategy, it did not surpass Gatorade’s title of being the number one sports drink in the world. Nevertheless, it preserved the second place position. As of December 2010, PowerAde had an estimated 22% market share compared to that of Gatorade’s 77%. The marketing battle between PowerAde and Gatorade materialized over the course of several years in the wake of PowerAde’s introduction to the sports drink industry. This battle climaxed in 2009 when the original PowerAde was re- instigated as Powerade Ion4. The premise to the new name was its new formulation of containing four electrolytes which were sodium, potassium, calcium, and magnesium. Its marketing scheme was instituted on the knowledge that these four electrolytes provided the essential ingredients to perform better during activities while at the same time it prevented dehydration. It claimed to empower those that drank it. The empowerment campaign caught many people by storm particularly adolescents. Empowerment represented a social sense of recognition, promotion, and enhancement of an adolescent's ability to meet his or her needs to battle obesity by consuming a beverage that enhanced energy in a manner that would boost physical performance in a healthy fashion. The four electrolyte formula was something PowerAde claimed no other sport drink contained. Nevertheless, this marketing strategy that sought out to set itself apart from its competitors caused negative publicity. In April of 2009, Gatorade filed a lawsuit against PowerAde claiming that the campaign deceives consumers and exaggerates the benefits of its PowerAde Ion4. To avoid any more...
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