Case Analysis Ultimate_Writer

Mallory Humphrey

Snyder, B. (2015, June 4). For this sports drink startup, Gatorade is the No. 1 target. Fortune.

Retrieved from http://fortune.com/2015/06/04/bodyarmor-sports-drinks/

This article introduces one of Gatorade’s many competitors. BodyArmor is a new drink in the sports drink industry founded by Lance Collins (founder of former Fuze beverages) and Mike Repole (founder of vitaminwater and Smartwater). Although this company is small, it is mighty and one of the largest competitors Gatorade should keep a close watch on. BodyArmor was founded because the founders thought, “to me, it sounds weird that a brand I grew up with 35 years ago is the same brand that my kids grow up with. It doesn’t make sense” (Paragraph 3). Gatorade is dated in their eyes and it is time for a new brand. The article includes a video advertising BodyArmor with the message: Gatorade and other sports drinks aren’t with the times, nutritionally speaking. But BodyArmor, naturally, is. (Paragraph 4). Gatorade holds an immense market share of the sports drink industry and typically knocks small competitors out of the market within two years, however, BodyArmor is currently the only sports drink startup to still be kicking after four years since its founding (Paragraph 5). One aspect of BodyArmor that challenges Gatorade is its nutrition. “Body Armor is made of 10% coconut water and what it touts as all-natural ingredients, including 15 mg of sodium, 300mp of potassium, and a slew of vitamins. Compare that to a standard serving of Gatorade, which contains 250 mg of sodium, 65 mg of potassium, and no “significant source” of vitamins, according to its nutrition label”(Paragraph 7). Another aspect that is a threat to Gatorade is the fact that it is recruiting an all-star cast of athletes who aren’t paid to endorse the product but are instead invited to take an equity stake in the company. (Paragraph 11). They are interested in the brand itself and believe in it as athletes. Andrew Luck, Rob Gronkowski, Buster Posey, and Richard Sherman are all athletes invested in BodyArmor. They enjoy the fact that the company is very open about their strategic sales and marketing. “They wanted a lot of input from us…. The folks at BodyArmor appreciate the opinions of the athletes, and I think it’s neat for us to be involved” (Paragraph 13).

This article is crucial for Section V, Competitive Analysis. As shown in the article, Body Armor is a huge competitor for Gatorade to watch. The health statistics, celebrity backing, and the success in the industry for over four years (longer than the industry average) are all strengths Body Armor has over Gatorade. However, the scale of their operation is very small which a company weakness is. In terms of market share, Gatorade holds most of the market share and BodyAmor struggles to gain market share again, because of the scale. However, in order to gain competitive advantage, they are trying to show that they are the best new brand and that Gatorade is dated. They are marketing to the same target market, buy their product is healthy and youthful. All of these reasons and more are causes for Gatorade to be threatened by BodyArmor.