Marketing Plan On Mountain Dew

Muhammad shafique Farhan Adeel Umair Qyum Tahir Ashfaq Fatama Batool Sabahat Naheed Rao Khalil

An Overview For International Market For CSD

ESTIMATED WORLDWIDE SALES IN BILLION DOLLARS

US TOP 10 CSD COMPANIES

COKE VS PEPSI

PAKISTANI SOFT DRINK INDUSTRY About 75 million cases a year for Pepsi alone The total beverage market is about 120 million cases of which 65% are Pepsi products About 22% are Coca-Cola products

INTRODUCTION TO MOUNTAIN DEW

CHANGED BRAND POSITIONING Mountain Dew used to be positioned as the hillbilly soft drink. They didn’t change the formula of the drink, they simply changed its packaging and marketing. Now you can’t keep Mountain Dew stocked in any soft drink machine patronized by kids.

MOUNTAIN DEW Mountain Dew A Product of PEPSI CO Mountain Dew has grown a staggering 74.1% over the last five years. Mountain Dew has a 6.3% market share Recently become the #4 soft drink in world. Mountain Dew is the first non-cola to reach to 1 billion gallon mark in one year.

MARKETING PLAN CONTENT

We Have Covered The Following For Our Marketing Plan RETAIL SURVEY CONSUMER SURVEY SWOT ANLYSIS MARKETING MIX ACTION PLAN MARKETING STRATERGY

SURVEY FINDINGS

SURVEY FINDINGS RETAILER

FOCUS GROUP TOP OF MIND When asked what is the first thing that comes to the mind when we hear the word Mountain Dew What comes to your mind we got the below answers

SURVEY FINDINGS In which business you are in?

Which soft drink brands you sell? (Tick the appropriate)?

SURVEY FINDINGS Do you have refrigeration system available (if “No” then proceed to 9)

Refrigerators for soft drink provided by the company

SURVEY FINDINGS Refrigerators for soft drink provided by the company

Soft drink users in term of gender

SURVEY FINDINGS

Out of thirty (30) days, how many times you face “Out Of Stock” issue?

Perceptual Map

Survey Findings For Consumer

SURVEY FINDINGS Which drink you preferably choose?

If you choose soft drink then which soft drink you drink most?

SURVEY FINDINGS Reason of choosing the above drink

Alternate brand if your favorite brand is not available?

SURVEY FINDINGS From where you mostly purchase the soft drink

Your age

SURVEY FINDINGS Your current title is

SURVEY FINDINGS Your current salary (in Pakistani rupees)

How many family members you have

SURVEY FINDINGS Perceptual Map

SWOT ANALYSIS

SWOT STRENGTH Demand of Mountain Dew is more than its competitors. Company has a very established name and a good reputation. Mountain market share is increasing with great rate than its competitors. As the target customers of Mountain Dew is young generation, so Mountain Dew has more brand loyal customers. Mountain Dew spends a lot of budget on its advertising. Mountain Dew has a very vast distribution channel and it is easily available everywhere. The Distribution Channel used is same for

SWOT WEAKNESSES Mountain Dew does not offer any sort of incentive or discount to its retailers. Mountain Dew target only young customers in their promotions. Crown of the disposable bottle is not good. Demand of disposal bottle is declining. Mountain Dew tin pack is not available in far off rural areas. Mountain Dew is not considering many potential outlets like hotels, college canteens etc.

SWOT OPPORTUNITIES Company may start entering rural areas also. The company may also diversify its business in some other potential business. Increased interest of people in musical groups, cultural shows and sports has provided an opportunity for Mountain Dew to increase its sales through them. Cola drinks are not good for the health so the awareness level of the people is in creasing which is a big threat to the company.

SWOT THREATS The main competitor of the company is the Sprite and Sprite 3G. At the local level, Mountain Dew has a very strong competition with different type of cola and non cola products. Sprite has started its advertisements more effectively to increase their demand and it is a very strong threat for Mountain Dew.

MARKETING MIX

PRICING 250 ml: 12/-Rs 1.5 Liter: 60/-Rs 2.25 Liter: 75/-Rs

PRODUCT OUTFLOW Pepsi Cola International has given franchises all over Pakistan with plants in different parts of Pakistan e.g.

Pepsi has 12 different units in different areas of Pakistan. The cities in which the Pepsi units are: Lahore, Sukkur, Karachi, Multan, Dera Ghazi Khan, Islamabad, Faisalabad, Quetta, Hyderabad, Sahiwal, Hattar

CHANNELS OF DISTRIBUTION Direct Distribution Indirect Distribution 　 Local Zone Outside Zone Direct Routs – 45 　 Authorized Dealers - 17 Agencies – 62 　

COMPETITION   DIRECT COMPETITION

 The direct competitor of Mountain Dew is Sprite 3G.   THE INDIRECT COMPETITION 

The indirect competition of Mountain Dew consists of all the other CSD’s including the following: Major competitors like Sprite and Coke etc Within the company i.e. Pepsi & 7UP etc Other brands e.g. Gourmet Cole, Shandy Cola, Double Cole, Mecca Cola etc Local products in each country i.e. lemon soda etc Laal sharbat Substitutes e.g. Jam-e-Shierien and Rooh Afza. Other substitutes like tea and lassi etc

PRODUCT POSITION Positioning statement Existing “To 16-18 year old males, who embrace excitement, adventure and fun, Mountain Dew is the great tasting carbonated soft drink that exhilarates like no other because it is energizing, thirst quenching, and has a one of a kind citrus flavor”

Proposed “To young and mature fun loving male and female, active soft-drink consumers who have little time for sleep, Mountain Dew is the soft drink that gives you more energy than any other brand because it has the highest level of caffeine. With Mountain Dew, you can stay fresh and keep going even when you have not been able to get a good night’s sleep”

MOUNTAIN DEW POSITIONING STATEMENT: Target group Young, active soft-drink consumers with little time for sleep

Benefit Gives you more energy than rival brands, because it has more caffeine.

Resulting goal facilitation You can stay alert and keep going even when you haven’t been able to get a good night’s sleep.

PREVIOUS CAMPAIGNS MOUNTAIN DEW was able to attract a certain set of customers to buy the product by associating itself with young people who are energetic, fun loving and daring. The taglines in the commercials such as "DEW NA KYA TO PHIR KYA KIA" , "DO THE DEW" and "DUR KAY AGAY JEET HAI" left a very good impact on this certain set of consumers. People who inhabits these attributes of outgoing, fun and daring felt itself highly associated with the brand "MOUNTAIN DEW".

PRODUCT LIFE CYCLE In Pakistan “Mountain Dew” falls in “Growth Stage” of the Product Life Cycle. Mountain Dew is a New Product Category and it has recently moved into its growth stage. It has gained acceptance, the sales have increased more which has results in the increasing production process.

KEY ISSUES Strengths the mother brand is so strong, it helped Mountain Dew a lot in creating its name in the beverage industry Weaknesses The increasing inflation rate in Pakistan may result in an upcoming weakness for Mountain Dew. Secondly, fragmentation in the beverage industry of Pakistan is another weakness. Thirdly, and most importantly, The ever increasing popularity of Mountain Dew might be a threat to the parent product and cannibalization of market share of own products Opportunities  People are now fed up of ordinary cola’s and citrus segment like mountain dew, sprite 3G etc.

KEY ISSUES Threats  The biggest threat for mountain dew is the competition threat from Sprite, “Sprite 3G” and a little threat from energy drinks like “Red Bull” etc. Before Sprite 3G, Mountain Dew enjoyed the monopoly in the citrus segment of CSD’s industry. Now, the competition is very high between the two brands. Secondly, from the Pepsi’s perspective, Mountain Dew can be a threat for the mother brand.  Stronger built image by COKE in local market in recent years Effective distribution network by competitors Change in consumer preferences and taste Increased costs/ disruption of supply and shortage of raw materials Unfavorable economic conditions due to global financial crises High quantity of caffeine may be taken as negative Internal hit on the sales of parent brand PEPSI Brands like Mecca Cola trying to create an image of an Islamic brand.

FUTURE OBJECTIVES We are continuing with the same campaign along with adding the new potential segment age 12-29  Demographics The new target segment would be: Age Group 12-29 Gender Male and Female

FUTURE OBJECTIVES Geographic: From a national perspective, Mountain Dew is consumed more in urban areas than rural areas, probably due to the massive campaign targeted there. Psychographics Activities: People who are involved in adventurous activities like mountain climbing, car racing, hunting etc are targeted in its promotional advertisements, as the concept behind “Dew” is something thrilling. Interests: People who are interested in recreational activities. Opinions: People who want to have fun and thrill in their lives are targeted by the Mountain Dew advertisements, as it inspires the people to try it out, without which life is considered dull and boring. Behavioral Usage rate: It is medium probably because of the high level of caffeine it has

POPULATION PYRAMID FOR PAKISTAN 2007

GOALS & OBJECTIVES CURRENT Total annual sale of soft drink in Pakistan 120 million Pepsi annual sales in Pakistan 75 million Market share of Pepsi 65% Market share of Mountain Dew is 22.1% (30% within Company) Consumption growth 1.7 % per year

TARGET  Our sales target for the coming year is to increase sales up to 30 million. Achieve at least 38% of the Share within the company. Whereas increasing total market share by 2.9% (22.1% to 25%).

SELECTING MEDIA Selecting Media Outlets With an objective and a budget in place, the advertising campaign needs to focus on developing the message.  PepsiCo’s main product and major CSD is Pepsi, hence they are spending additional 25% budget on Pepsi advertisement, and 75 % of Pepsi’s advertising budget is being spent on Mountain Dew advertising

SELECTING MEDIA Will be able to support Mountain Dew to cover all these media: 1. Television 2. Radio 3. Print Publications 4. Internet 5. Direct Mail 6. Sinage 7. Product Placement 8. Mobile Devices 9. Sponsorships

SELECTING MEDIA SUGGESTIONS The marketing world is full of surprises. Who could imagine that Coca Cola would be overtaken by Pepsi? If Coke could be overrun by Pepsi, it would be no wonder that Pepsi might be overtaken by some other beverage. The need then is to combine quality with ingenuity. Along with that, the reputation of the company has to be kept robust. Today we live in a fast moving world where novelty and newness count a lot. One cannot rest on one’s laurels. Fresh efforts, newness of approach must remain the cardinal principles of a well orchestrated marketing strategy and the campaign must be relentless. A continuous bombardment in advertisement would convince the clients that Pepsi is a part of their lives. In order to live with style, Mountain Dew ought to be an essential ingredient of one’s life full of adventure and thrill. The Mountain Dew is at its growth stage and the sales of the product are growing very rapidly. Company is doing a lot of promotional activities to let the product grow in the market. It holds a large share of the market and whenever the sales state still, the company can improve it by different promotional activities. Marketers of Mountain dew can try to improve sales by improving one or more marketing mix elements. They can cut prices to attract new users and competitor’s customers. They can make better distribution strategies to the areas where still it is not available. They can also launch a better advertising campaign or use aggressive sales promotion to improve the sales. A lot more work is required on cannibalization as well.

ACTION PLAN AND IMPLEMENTATION First Quarter

TVC Ads in the first quarter 

Ad shall appear four times a day for 30 sec 4 days a week on Geo TV, and Other channel which have better options.

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Two times from 8:00 pm – 9:00 pm

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Two times from 10:00 pm – 11:00pm

Radio Ads 

Ad will be on air four times a day for 10 sec 4 days a week on FM- Channels (KHI /LHR /ISD)

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Ad will be on air 2 times from 8:30 am – 9:00 am

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Ad will be on air 2 times from 5:30 pm – 6:00 pm

BUDGET PLAN FOR 1ST QUARTER

CONCLUSION Mountain Dew is a well renowned brand and it has maintained its position well by understanding the client psychology, by ensuring quality, by introducing ingenuity in products, by enlarging its product base, by keeping economic factors in view and by intense and jazzy advertisements. Whenever and where ever there is a spotlight event, Mountain Dew must figure in, like the one day international cricket matches between India and Pakistan many other such occasions. The key word for success in the

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