Pepsico Case Study

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With Gatorade being connected with PepsiCo, the top and number one competitor to both, Pepsi and Gatorade, would be Coca-Cola and PowerAde (under Coca-Cola). According to Hoovers, next on the list that would come close to competing with PepsiCo and Coca-Cola would be Mondelez International, Inc. (Hoovers.com). Gatorade is in the “Energy, Sports, Health & Nutritional Drink Manufacturing (primary)” industry (Hoovers.com).
With the two main competitors being with PepsiCo and Coca-Cola in the beverage manufacturing industry and both companies producing multiple products, it is no wonder why they are head to head in almost everything they produce. PepsiCo has their headquarters located in New York (Hoovers.com), with over 274,000 employees totaled for the year of 2013. PepsiCo was founded in 1919 and have their primary industry considered ‘Soft Drink Manufacturing.’ Going back on Hoovers, PepsiCo surpassed $66 billion in 2013 with a net income of $6.74 billion (Hoovers.com). PepsiCo relies heavily on their marketing skills and the ability to advertise their product and make their product the go to for consumers, “To promote its products, PepsiCo uses a combination of sales incentives, discounts, advertising, and other marketing activities. Advertising and other marketing activities totaled $3.7 billion in 2012 vs. $3.5 billion in 2011” (Hoovers.com). On Hoover, it went on further to state what PepsiCo’s strategy is, “Key to PepsiCo's growth strategy is to drive snack brands to new markets as it bolts on new and more nutritious foods categories through small acquisitions and alliances.”
When it comes to Coca-Cola, producer of PowerAde, Hoovers states, their headquarters are located in Georgia and employed 150,900 in the year 20...

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...try of sports beverages, have a low bargaining power. These particular industries of sports beverages have a low bargaining power because of the competition within the industry. Gatorade is not able to charge too much for their product because of their key competitor in PowerAde and opposite with PowerAde not being able to charge too much because of losing their consumer base to Gatorade. The two things that Gatorade and PowerAde have in common are their brands images and the loyalty created too many consumers. So their price strategies do not base completely off one another because they have buyers that will stay loyal to what they believe best works for their body, as well as taste the best and provides the highest recover factor. But, companies do have to be conscious to what their competition is doing to be able to maintain the loyal base they have created.

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