PepsiCo’s Organic Gatorade’s Marketing Options

The First Strategic Option

In the first place, PepsiCo’s Organic Gatorade is targeted at athletes, as its primary intention is to restore sugar and sodium levels after training (George, 2016). To interest this consumer group, it is critical to pay attention to the drink’s positive features. For example, employing “Hello Goodness” and describing a product as a drink that can restore energy and assure future good health are the main aspects that have to be highlighted in the mission statement (George, 2016). It will comply with Canadian sportsmen’s primary needs and increase the revenues and consumption of this beverage while the prices will be the same. As for marketing channels, the management can use TV advertisements with athletes and increase recognition by sponsoring sports events. Using this differentiation strategy by attracting a new market’s attention with specialized features can help modify the company’s image. PepsiCo can produce not only delicious and sweet soft drinks but also organic beverages that can improve one’s health and stamina. As for financial projections, if marketing campaigns are successful, PepsiCo will maximize its profits (see Table 1). Nonetheless, an intensified rivalry and the inability to satisfy the selected target audience’s needs may be a potential reason for the negative financial performance. It pertains to expensive marketing campaigns.

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The Second Strategic Option

Alternatively, another strategic option may be related to marketing the beverage as a health and diet product that complies with society’s rising consumer trends. In this instance, the company can promote its products as healthy, organic, low-calorie beverages that help lose weight (George, 2016). Focusing on these features will be useful to make the drinks attractive to another consumer group such as women, who are interested in dieting. Advertising Gatorade on television by using female actors and athletes, who exercise and drink this beverage, will help create an image of PepsiCo as a company that cares about its consumers and supports a healthy lifestyle. Using this differentiation strategy to occupy a share in a new market will require the enterprise to change its marketing campaign by referring to “Hello Goodness is a new prosperous way to health.” In this case, as for positive sales projections, the company’s sales will increase by 5% to 10% in the second year while prices will be the same. However, similarly to the first option, the most likely and negative cases will be profoundly affected by intensified rivalry in this segment.

The Third Option

Lastly, PepsiCo can take advantage of the unique features of Gatoradesuch as its fruity flavor that can be actively used as a refreshment (George, 2016). In this instance, the company is not required to highlight its connection with healthy eating and dieting. Instead, it has to focus on the pricing strategy and unique features of the product related to its delicious flavor. This concept will help expand the coverage of this beverage by attracting the younger generation (15 to 25 years old). To comply with its existent image, advertisements (TV and social media) have to be colorful and positive while claiming that one can get a high-quality drink for a reasonable price. At the same time, introducing special offers with the help of retailers will also support PepsiCo’s intentions. This strategy will dramatically increase the company’s revenues, while a high level of competition can make them less than expected. All options will be sold with the help of retailers.

Sales Forecast

This section’s primary goal is to present financial projections and sales forecasts that reflect the situation from optimistic, most likely, and pessimistic viewpoints (the values are estimated). The table is shown in a thousand dollars.

Sales forecast for each option for the first two years of operation.
Table 1. Sales forecast for each option for the first two years of operation.

Reference

George, R. (2016). PepsiCo: The launch of organic Gatorade. Web.

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StudyCorgi. (2021, February 19). PepsiCo’s Organic Gatorade’s Marketing Options. Retrieved from https://studycorgi.com/pepsicos-organic-gatorades-marketing-options/

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"PepsiCo’s Organic Gatorade’s Marketing Options." StudyCorgi, 19 Feb. 2021, studycorgi.com/pepsicos-organic-gatorades-marketing-options/.

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StudyCorgi. "PepsiCo’s Organic Gatorade’s Marketing Options." February 19, 2021. https://studycorgi.com/pepsicos-organic-gatorades-marketing-options/.

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StudyCorgi. 2021. "PepsiCo’s Organic Gatorade’s Marketing Options." February 19, 2021. https://studycorgi.com/pepsicos-organic-gatorades-marketing-options/.

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StudyCorgi. (2021) 'PepsiCo’s Organic Gatorade’s Marketing Options'. 19 February.

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