Does the type of sweetener in sports drinks drive sales? Get an in-depth analysis on how Pepsi switched its sports-drink brands Gatorade and G2 from high fructose corn syrup (HFCS) to sugar, and what effect, if any, the switch had on sales. You'll learn: - What factors happening concurrently with the switch affected Gatorade and G2 sales, and how - How consumers’ concern for added sugar in general, and not the type of sweetener, affected sales - How Gatorade’s main competitor, Powerade, stuck to HFCS as its primary sweetener, and how it paid off, despite perceived consumer concerns - Explore the difference between functional benefits to consumers and customers’ perceptions of healthfulness, and which really affects sales of sports drinks. Learn more: http://bit.ly/1iwQChc.
Text of Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?
Does Sweetener ChoiceAdd Energyto Sales? Gatoradevs.Powerade:
In the quest to meet consumer demand, many manufacturers have put specific sweeteners under scrutiny.
However, recent research shows consumers dont care. 67% of consumers agree that moderation is more important than sweetener ingredients. Source: Mintel Consulting (2013) 67%
So we put this theory to the test and looked at top sports drink brands Gatorade and Powerade.
Until 2010, both brands formulated with high fructose corn syrup (HFCS). Then Gatorade made the switch to sugar.
Would Gatorades sweetener- switching strategy pay off?
year ending january 2010-2011 2011-2012 2012-2013 CAGR Gatorade 5.9% 2.7% 1.1% 3.2% powerade 20.3% 9.5% 10.4% 13.3% total 9.5% 4.8% 1.3% 5.1% sports-drink sales growth by brand, 2010-13 NO ... sales growth declined.
WHY WASNT THE SWITCHING STRATEGY SUCCESSFUL? To get the full story, download the case study here >