Opportunity Cost and Investment

Opportunity cost and investment: the price guarantees cost for Gatorade which is higher than other opportunity cost and this investment is reasonable.

The needs and wants of the target market and its perceptions of the product: demand of athletics in Vietnam with sport drink is increasing and sport players need more sport drinks like Gatorade. Customers understand about their demand about quality sport drink and it impact on the pricing issue of marketer: people use more Gatorade => the price is higher.

The price and characteristic of competitive offering: other competitor of Gatorade like number1 Active, Revive is estimated lower quality than Gatorade, these price is also lower but it is insignificant.

 The price issue is setting suitable price for Gatorade products as equivalent as its quality and having ability to compete in the market.

3.3.d Price positioning: High price

To compare with other sport drink brands, Gatorade has higher price. The reason is company spends high expense to invest in technology and provides high quality inputs to guarantee about product’s quality.

 It meets the company objective that develop products to meet the requirement of customers so company can increase the revenue.

3.3.e Pricing strategy:

With the quality of the products, the “More for more” strategy is a most appropriate. However, the current price is fairly high (VND 30,000), compared to the direct competitors. So in the future, Gatorade’s price should remain in average VND 28,000 /bottle.

 Find the best way to delivery Gatorade’s products to customers with high quality but in an acceptable price.

PepsiCo do not have all power

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