Sports Drinks Case Study

Register to read the introduction… Regarding the distribution of sales in regards to beverage type, carbonated soft drinks came on top with 12,919.3 (millions of gallons) being sold and leading to a market share of 48.2%. Next in volume of sales was bottled water with a sales volume of 8,435.3 and 29.2% market share. Fruit beverage sales were 3,579.2 and a market share of 12.4%. In the alternative beverage category, sports drinks sales were 1,157.8 and a market share of 4%, ready-to-drink tea sales were 901.4 with a market share of 3.1%, flavored or enhanced water sales were 460 with a market share of 1.6%, energy drink sales volumes were 354.5 with a market share of 1.2%, and ready-to-drink coffee sales volume was 51.5 with a market share of 0.2%. In 2009, the industry worldwide sales of alternative beverages were 40.2 billion, with sales in the US accounting for 42.3% of the sales. Asia-Pacific accounted for 31.5%, Europe 22.2%, and the Americas (excluding the US) …show more content…
The underlying drivers of change include changes in growth rate (decrease) and innovation. Worldwide dollar sales of alternative beverages grew by more that 13% annually between the year 2005 and 2007, however, it slowed down to about 6% between 2007 and 2009. One might argue that the reason for this decline is the impact the ongoing recession has on the beverage industry. Beverage producers continue to maintain their optimism for the industry regarding future prospects that will be brought to fruition by innovation in brands, flavors, and formulations. These are the facets that they believe will support their premium pricing and volume …show more content…
Portraying the right image in advertisement and marketing could lead to retention in customer loyalty and regaining lost market share.
Since PepsiCo is ranked number one worldwide for the sale of alternative beverages, with it’s best-selling alternative beverages including Gatorade, which held a 75% share of it’s 1.57 billion US sports drink market, Propel, SoBe Lifewater, Amp Energy drinks, and No Fear energy drinks, I would recommend that the company continue to build upon this ranking by taking the necessary steps to boost their brand image. I would also recommend that PepsiCo include energy shots to it’s product line-up to further boost sales.
There is no doubt that Red Bull GmbH has found its niche in the alternative beverage market as the world’s number one seller of energy drinks, making it the third-largest producer of alternative beverages worldwide and the number two seller of alternative beverages in the US and Europe. To continue it’s growth in the US and Europe, I will recommend that the company continue to innovate and develop new products. I will also recommend that in order to further solidify the Red Bull brand, they should venture into production of he other types of alternative