This paper discusses the major strategies Quaker Oats and its competitors used to segment the sports-drink market, what types of market coverage strategies Gatorade used during the early stages of the sports-drink market's life cycle, and what coverage strategies Gatorade and its competitors are using now. It also identifies new market segments that Quaker should pursue for Gatorade, and justifies those recommendations. 12 pgs. 14 f/c. 10b.