PepsiCo: The Launch of Organic Gatorade

Description

In the summer of 2016, PepsiCo Beverages Canada faced a choice: whether to launch its new product, organic Gatorade, in Canada. Only a few months previously, PepsiCo North America Beverages’ chief executive officer had announced a company-wide initiative that was designed to offer consumers a greater variety of healthier products. Would such a product ultimately make PepsiCo more competitive in the Canadian market in light of recent trends that emphasized healthy options? Did Canadian consumers want organic Gatorade? PepsiCo also had to keep in mind its long-standing competition with The Coca-Cola Company, and decide how that would affect its strategic choices.

Learning Objective

This case is appropriate for an introductory marketing course. It would also fit into a course on business strategy. Students at various levels, from undergraduate through MBA, will benefit. There are many issues to consider, including the healthiness of the product, new trends in the market, and the nature of the consumers. After completing the case, students will be able to do the following: ·Understand competition among food and drink companies and the challenges facing them. ·Discuss the problems consumers face in making healthy choices. ·Decide whether “nudging” consumers toward healthier choices is ethical and/or profitable.

Keywords

Competition energy drinks health concerns Market entry