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College of Business Administration Cooperative Education Student Report

Marketing Analysis on Mountain Dew
Submitted to Dr. Ghada Alanany Department of Marketing By Lujain Dakhil With Cooperation of Beverage services incorporation - PepsiCo International (GCCI BEV) Tahlia Street In Partial Fulfillment of the Requirements of Bachelor Degree in Business Administration Date dd/mm/2011 Lujain Dakhi Marketing Fall 2010
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Beverage services incorporation - PepsiCo International (GCCI BEV)

Jeddah, Tahlia Street

Marketing analysis on Mountain Dew
“I have read this co-op report and agree that it contains no proprietary information and it may be submitted for the Cooperative Education Program at CBA.” Title: Marketing / PR Manager for GCCI Business Supervisor’s signature: _________________ Business Supervisor’s name printed: Ibrahim Binaquil Business Supervisor’s email: Date signed: _______________________ COOP REPORT COMPLETION CHECKLIST: ____ Report is in proper format. ____ Report sources are properly documented (if applicable). ____ Updated resume is submitted with report. ____ I have an additional copy of the student report for the department records.

Certified by: Department Chairman’s name printed: ___________________________ Chairman Signature: ____________ Approved by: Associate Dean for Academic Affairs: ___________________________ Date signed: ___________________________ Date signed:__________________

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At the submission of this report, I would like to extend my sincerest appreciations to a number of individuals that played a role in my life to make this report possible. First of all I would like to express my enormous appreciation to my supervisor Ms. Ghada Alanany who gave me some of her precious time from a hectic work routine, inspired and guided and gave me endless support and motivation to the final draft step by step throughout the whole process of my Bachelor report program at the College. Secondly, the management at PepsiCo, especially the marketing department whom considered me as a team member and their efforts by being patient, providing training, and giving me their thoughts to make this project possible. Last but certainly not least, my family members whom supported me and gave me the strength to accomplish this professional task with accuracy and ease. I hope this project serves its purpose and helps PepsiCo in increasing its customer growth in the future.

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The following report explains my co-op experience while doing my internship in PepsiCo. This co-op report deals with the marketing and related aspects of operations in PepsiCo Saudi Arabia. The Marketing Plan which is conducted for Mountain Dew, one of PepsiCo’s leading brands, is a basic concept which is required to make the product more successful in terms of sales and customer satisfaction. It contains the company’s strategy based on the industry and the target customer’s trends to make this product boom in the Saudi market. A marketing plan analysis is frequently prepared because companies want to distinguish the relevancy of their marketing plan in current market. This marketing plan analysis contains an industry analysis, company analysis, product analysis, competitor analysis and the products 4P’s which are very important to understand while analyzing a product. Mountain Dew has been selected because it’s one of the leading brands in the carbonated
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soft drink industry specifically the citrus segment in which every youth is interested in Saudi Arabia market. This product belongs to PepsiCo, one of the largest well-known food and beverage companies worldwide. The report emphasizes on how Mountain Dew established itself in the Saudi market and how it has made a good brand image among its target consumers. A competitor’s analysis of Mountain Dew is also included in this report. Reliable sources have been used throughout the whole process of conducting this study, and based on these sources, useful recommendations are given in order to help this product improve and for its market share to increase. The report explains the procedures, methodologies and opportunities that were conducted from the researches. It ends with recommendations and a conclusion. The appendix contains the sample questionnaire, and the results as well as analysis thereof.

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3 Escalating competition in the market 1.Table of contents 1.1Soft drinks in Saudi Arabia 1.2 Health concerns 1. Introduction and literature review about the beverage market in KSA 1.4 Trade 6 |Page channels .

4Climate key trends 3. Background about PepsiCo 3.5SWOT analysis 3.1. Research hypothesis 7. Data collection and Research Methodology 8. Problem Definition 5. Marketing plan 3.5 Majors players in the market 2.1Industry analysis 3.6Market segmentation 3.2Company analysis 3.7Marketing mix 4. Research objectives 6.3Competitor analysis 3.1Retailer and consumer surveys 7 |Page . Data analysis and results 8.

The Coca-Cola Company is modifying its approach so that it can strike into these distinctions and provide the fitting marketing activities. Recommendation 11.2Websites 12.2Findings 9. 8 |Page .1Books and publications 11. Conclusion 10. given their individual references and location. References 11.8. Appendices Introduction and literature review about the beverage market in KSA: According to the marketing strategies used by Coca-Cola. Customers will have diverse experiences and preferences.

Coca Cola is placing more liability and answerability in the hands of its managers who are closest to the target market. 9 |Page . Source :Washington Post (2009)"an article on marketing strategies of coca-cola". act local" strategy to marketing permissible adopting communications to suit local and global situations.pricing strategies and beverages to be connected with current and potential customers. It wants to offer consumers with beverages to be adaptable with their different life styles and life stages. 2009. and gain its loyalty. to create good channels of communication. and achieve the company marketing and overall goals. Efforts were made to give flexibility to managers to be adaptable with the market shocks. Coca Cola thrives when people are permitted to utilize their insight to construct the business in ways best suitable to their culture and business conditions.Retrieved August 16. and try to make the significant modifications. Its "think local.

com’’ In recent years a rapid health growth was witnessed in the Saudi Arabian food it sets price for selected products at 10% below market leader to maximize sales. ‘’Source : www. The food and beverage industry is being reinforced by the Saudi government by offering financings and grants on designated equipment. which has established to a degree in current years to the point where they are meeting most of the local demand. dairy.Moreover P& G used to utilize a flexible pricing strategy to avoid any loss in market share to other rivals. comprising meat. it depends in certain scenarios to price its products low and obtain maximum profit on spare parts. and through the burden of high prices on imports that competes with local products. and to allow increased production and reduce unit production cost. 10 | P a g e . along with a few of the local companies reporting massive growth.In other scenarios. in addition it uses different prices and different price lists for different markets to extract the fitting one . Important sub segments in the Saudi Arabia’s food and beverage processing industry. and juice business.

Carbonates soft drinks and bottled water are the most popular in terms of volume and value. along with their massive availability all over the country. and secondly. and low calorie carbonated soft drinks.  Health concerns Consumers in the kingdom are becoming increasingly health-conscious. 11 | P a g e . This trend is driven by a couple of elements. on the other hand. first of all. People are b ecoming more aware of the importance regarding this matter. non-carbonated soft drinks are classified second in terms of value. Soft drinks in Saudi Arabia In 2007 the beverage market recorded 6% growth of total volume and value. The most active growth driven by a beverage in 2007 was recorded to be the functional beverages such as energy drinks. the effect of the media and the high number of television programs addressing health problems. which are drinks that are alternatives for alcohol drinks. The variety of products is one of the key factors behind the popularity of soft drinks in Saudi market. hence the tendency demanding for healthier products grew. juices. the influence of foreign expatriates whom are more conscious when it comes to health matters than local users. Comprising bottled water.

2009 • The Sales volume of total carbonated soft drinks in the Saudi market maintained flat in the Eateries channel in 2010 vs. the most important ones are the quality. The demand on beverages in the market is usually measured by a few features. which is the fast food chain restaurants. and hyper markets. Escalating competition in the market There is a big competition which is escalating between both international and local players in the Saudi market. health assurance. and are highly popular in terms of volume and value.  Trade channels There are three types of trade distribution channels that fast moving consumer goods (Beverage industries) deal with. 2009 • The Sales volume of total carbonated soft drinks in the Saudi market decreased in Traditional trade channel by -2% in 2010 vs. And there is the traditional trade channel such as mini markets. 2008 2009 2010 MT 24% 23% 25% TT 49% 49% 47% Eateries 25% 25% 25% • The Sales volume of total carbonated soft drinks in the Saudi market increased in modern trade channel by 2% in 2010 vs. There is also the Eateries channel. and innovation followed by price. and wholesales. The Modern trade channel such as supermarkets. Non-carbonated soft drink dominates the local market including juices and bottled waters. 2009. 12 | P a g e . While global products such as Pepsi & Coke are dominating the market of carbonated soft drinks.

PepsiCo Al Eysae beverage company (Stream product) 13 | P a g e . Al Rabie. Major Beverage Players in the KSA There are quite large numbers of beverage players in the Saudi market. but they also export to other countries such as: • • Beverage services incorporation. NADEC. There are also a few companies that are not limited in their businesses as they don’t only operate in the country. NADA. Aujan and Abuljadayel). whereas only some of them act as trend setters such as (Almarai.

Inc. The company has Frito-Lay under its umbrella. 14 | P a g e . snacks. PepsiCo. Inc. also has Tropicana Products. this major chips brand is the largest manufacturer and distributor among its competitors. is among the most successful consumer product companies in the world.Ltd Alsafi danone Company ALRAI Food Industries Background about PepsiCo PepsiCo.• • • • • • • • • • • • • Almarai Dairy Company Al Rabie Saudi Foods Company Abuljadayel Beverages National Factory for Foodstuff Production NADEC Al Othman (NADA) Arrow Juice Company Aujan Industries Co. which is the largest marketer and producer of branded juice. it’s a world leader in handy foods. Pepsi-Cola Company. Karim Food Industries Gulf Union Foods Company Najdiyah Marketing Co. PepsiCo products are considered one of the finest and most appreciated products available worldwide in more than 200 territories. was founded in 1965 through the union of Pepsi-Cola and Frito-Lay. beverages and fast food franchise businesses with revenues of more than $60 billion and an estimated number of almost 198.000 employees worldwide.

Also.In 1998 Tropicana was acquired to the company. from Savola Snack Foods. Lipton Ice tea. and Tasali all of these are brands for sale to franchised bottlers in the Saudi markets. Mirinda. through its subsidiaries. and markets. Brands such as Pepsi. Europe. Middle East and Africa These businesses are involved in six reportable segments: 15 | P a g e Latin American beverage . plus Sabritas and Gamesa businesses in Mexico • PepsiCo Americas Beverages (PAB). the Company sells and distributes various snacks and beverages in Saudi 2001 PepsiCo declared that it has acquires Tasali Snack Foods. 7UP. PepsiCo also operates several food franchises (Eateries) throughout the world. PepsiCo businesses in the United Kingdom. Lays. but in general the company is moderately young. is responsible for PepsiCo Beverages North America and all of businesses • PepsiCo International (PI). Aquafina. handling Frito-Lay North America (FLNA). Asia. PepsiCo joined with the Quaker Oats Company and Gatorade in 2001. Diet Pepsi. Quaker Foods North America (QFNA) and all of Latin American food and snack businesses (LAF). Quaker Oats products. Tropicana. which includes several entities worldwide. Mountain Dew. PepsiCo’s soft drink business is divided into three business areas: • PepsiCo Americas Foods (PAF). Pepsi Max. Gatorade. Today. shani. Saudis leader salty snacks in the market. Some of PepsiCo's brand names are 100 years old.

16 | P a g e . Enhancing the value of their shareholders investment is their prime objective. investing. Their strategy is to concentrate their resources on growing their businesses. This is done by cost control. The success of this huge corporation is the outcome of excellent products. and packages in different shapes and sizes to fulfill the growing demand for better and healthier choices. Its main concern is seeking ways to guarantee that their consumers find the products they desire. high values of executions. both through internal growth and carefully selected acquisitions. Middle East. and financing activities. Frito-Lay North America QFNA. The overall mission of PepsiCo is increasing the wealth of the shareholders investments. through integrated operating. sales growth. Quaker Foods North America LAF. products. and clever investment of assets. introducing new flavors. The tactics used by the company is continually fine-tuned to address the opportunities and risks of the global marketplace. Latin America Foods PAB. Africa & Asia Today. PepsiCo Americas Beverages UKEU. when and where they want it. PepsiCo continuously carries on to breaking new grounds. The corporation's success reflects their continuing commitment to grow and a focus on those businesses where they can drive their own growth and create opportunities. unique competitive strategies and the high integrity of their people.      FLNA. United Kingdom & Europe MEAA.

cola drinks. Throughout the summer and during the hot seasons. Soft drinks were named “soft” because they contain no alcohol opposite from the "hard drinks" which contained hard liquors and alcohol. Marketing plan ♦ Industry Analysis Nonalcoholic markets such as the Saudi market can be divided into two types of soft drinks the carbonated soft drinks (CSD) and noncarbonated soft drinks. Yet. seasonality does not have a solid effect on our business. It contains the characteristic of Carbonation which 17 | P a g e . Carbonated beverages are often known as soda drinks. They are also referred to as the nonalcoholic drinks. These types of drinks are normally sweet and may be served at room temperature or chilled. offering safe healthy products. The weekly sales are usually low in the first quarter of the year and higher in the third quarter of the year caused by seasonal and holidays associated prototypes. PepsiCo’s beverage and food divisions are subject to seasonal variations. overall.The company trusts that their profitable success is subject to presenting value and quality to their customers. beverage sales increase whereas at the winter and cold season particular types of food sales increase. Economically Independent and environmentally friendly and giving reasonable revenues to the investors while devoting to the maximum principles of truthfulness. or carbonated soft drinks.

♦ Company Analysis The business of PepsiCo is based on its vision of making tomorrow better than today including suppliers and distributors. Canada Dry. lemon. mango. and Sprite. Mirinda. Also. CocaCola Company and Cadbury Schweppes Company. Non-carbonated soft drinks contains no carbon dioxide gas in it. low calorie product such as Diet Pepsi. 18 | P a g e . Coca-Cola’s product line has numerous of popular soft drinks including Coca-Cola. blueberry. and Dr. grape.creates bubbles and fizzing in the beverage due to the presence of the carbon dioxide gas. It provides a diverse range of products including Pepsi. Lipton Ice tea. Pepper. flavored water. These market leaders are PepsiCo Company. but contains Some of the many great fruit flavors such as black currant. lemon-lime. 50. Fanta. apple. shani. strawberry and many more. fruit punch. Diet Coke. Pepsi Max. The company provides more than 1. ♦ Competitor Analysis There are three market leading companies who have noticeable presence in the beverage industry. orange. and ginger. Gatorade. Ice tea. On the other hand. 7UP. sports drinks and many more are categorized under the non-carbonated soft drinks. Tropicana. Mountain Dew. Aquafina. Common flavors for carbonated soft drinks include cola. Cadbury Schweppes product line consists of soft drinks such as A&W Root Beer.000 Jobs for people in Saudi Arabia.

0 7 .0 1 .0 0 .The most important drawback of PepsiCo’s competitors is their promotion and advertisement. S T . and the way its positioned to its target audience. It is a local Saudi product with international characteristics and creative design b.0 0 .0 19 | P a g e . The main Saudi competitor who is reducing slightly the market share of Mountain Dew is ‘Stream’ product . The taste and flavor is similar to Mountain Dew c.0 6 . a competitive price vs. The Price is only 1 riyal. A lot of people whom were X Mountain Dew decided to shift to stream after the change in pricing which affected its sales noticeably.0 8 .0 4 .6 8 . Coca-Cola has less number of brand ambassadors as opposed to PepsiCo. Market leaders.0 20 08 20 09 M U T IND W O NA E S a tre m 21 00 0 . till a local competitor named stream appeared with the same characteristic’s as Mountain Dew.0 0 9 .0 2 .T ta K A OM o l S 1 .7 8 .0 3 .0 5 .1 1 . When looking at Mountain Dew it was one of its kind in the market in terms of taste and flavor.Its success in the Saudi market depends effectively on a few main factors: a.2 7 .

which shows that people who drink Mountain Dew are 20 | P a g e .Post pricing. fruits. This shows that the beverage industry is not vastly flexed towards the economic influences. PepsiCo has to go by the book and firmly follow these regulations. Other B-brands on the other hand.  Economical factor: Carbonated Soft drinks are not costly and are purchased by the majority of people. we realized that Mountain Dew’s SOTM in KSA has declined by (-0. and potato could to an extent affect the production cost and the profit. the distribution channel and transportation may slightly have an impact on the production cost.1%) points. The government has set strict regulations for the beverage business when it comes to production and the formula’s ingredients. ♦ Climate Key Trends (PEST)  Political factor: From the very beginning The Governments concern was the importance of the society’s health and their protection. particularly (stream) has shown an increase in SOTM within the same period by (+1. consumers have become extremely responsive regarding advertisement. vegetables. Also. and snacks such as sugar. noncarbonated soft drinks. Mountain Dew is all about acceleration adventure and extreme sports.  Social factor: Today. But the raw materials which are applied to the carbonated soft drinks.6%) points By end of 2009 and continued to decline in 2010.

21 | P a g e .people with adventurous spirits and extreme attitudes that forces them to continuously push themselves to limits of physical challenges. in-kind product donations and human resource contributions to help those whom got affected from the community. Therefore. such as. Corporate Contributions: At 2009 PepsiCo started a program of corporate contributions by supporting and funding a variety of global organizations. doesn’t only care about doing business and gaining revenues. when a tragedy occurs. they are able to distinguish between them. There for. They show their support through generous contributions. by giving out donations to non-profit local organizations and associate volunteerism. from arts and culture groups to social services and educations. but also giving back to the communities. and are aware of caffeine and its side effects which might lead them to have negative expectations about carbonated soft drinks. PepsiCo. Moreover. Each and every brand in PepsiCo has its own responsibilities. Humanitarian Aid: PepsiCo offers financial assistance. in addition. A lot of people nowadays have become health conscious. Some of the contributions that PepsiCo offers to the public are: Grants: PepsiCo has an old admired history of helping and backing communities where they do their businesses. PepsiCo has a part on its website stating their corporate social responsibilities. PepsiCo’s targeted audiences are from the youth and youngsters. others believe that carbonated soft drink companies spread toxic waste in the process of manufacturing.

Pepsi the mother brand contributed significantly in building Mountain Dew’s name and reputation in the beverage market of Saudi Arabia. weakness. 22 | P a g e . transportation cost. transportation of raw material or delivery of a product is changing from time to time.  Technological factor: Technology for manufacturing and packaging of a product. ♦ SWOT Analysis This section will be about analyzing Mountain Dew’s strength. from arts and culture groups to education and social services. Programs: PepsiCo involves in helping the community by engaging with other organizations to develop innovative projects for the youth of the community. ✔ STRENGTH The main key strength of mountain dew is that it’s a brand that belongs to one of the most competitive and internationally distinguished companies in the world. Technology still plays a big role in the packaging and designing process of a product.PepsiCo Division Contributions: at 2009 PepsiCo came up with a program for providing offerings and contributions from diverse divisions within PepsiCo to several global organizations. and unskilled labor. threats and opportunities. It also raised its creditability. and thus it also affects the production cost.

giving the fact that it could fall under the same category as mountain dew in terms of its market consumers. Now. the rivalry is relatively high between the two brands. and extreme sports. thrill seekers. Mountain dew has segmented itself chiefly on the foundation of demography and lifestyle in a niche market of explorers. Mountain Dew had got the monopoly in the citrus line of Carbonated Soft Drinks’ industry. ✔ OPPORTUNITIES One of the best opportunities for mountain dew is that the consumers are now losing interest and gradually beginning to feel fed up of the usual cola drinks and other obtainable CSD’s. ♦ Market Segmentation: A Group of individuals whom own the same needs and alternatives stand for a segment of market. from the Pepsi’s viewpoint. Mountain Dew can be a threat for the mother brand. Secondly. hence powerfully moving their attention and interest towards the citrus segment.✔ WEAKNESS The main weakness in mountain dew is mainly competition from other brands in the local market such as (Stream). specifically mountain dew. Before Stream brand. ✔ THREATS The main threat for mountain dew emerges from its competitors such as Stream and in many cases other energy drinks such as red bull. In this niche market the majority of the customers are the main characteristics of this market 23 | P a g e .

Income Level : It is not concentrating on income levels because what’s acknowledged about their target consumers is that they have the ability to purchase the product. It is targeting the consumer’s propensity of bravery. considering the consumers whom come from lower classes specially the youngsters and the ones that don’t make their own living. They are daring. Mountain Dew is making its accessibility easily to customers in diverse volumes. extreme sporting.Age : Mountain dew is focusing on the target market of consumers aging between 16 and 26 which means the youth. and exploratory route. but at the same time it might concern the brand manager’s. teenagers. love the entertainment. Lifestyles : Lifestyles are taken into consideration in market segmentation of mountain dew and it is obviously shown in their advertisements. The main and key consumers of mountain dew are the youth who are eager to take on enthusiasm. To reach this targeted age group. Targeting : 24 | P a g e . positive and energetic. and youngsters. Chilled CSD’s are very popular in this age group and became a component of their way of lifestyle. teenagers. and youngsters whom resides with their families and are depending on their parents economically in our culture. In the expression of life stage this age group represents youth.

Wherever there is a possibility to compete among other competitors.Mountain Dew is targeting customers which are generally college students and youngsters. and has a unique citrus flavour. daring. Mountain Dew will target and make a great effect among the people who are daring. Mountain Dew is the best tasting citrus carbonated soft drink that excites like no other brand because it simply quenches the thirst. adventure and enjoyment. thrill seekers and heroic. Positioning : Positioning Mountain Dew is the company’s selection of the target market. adventurous. exhilarating. Segmentation Table: 25 | P a g e . and extreme sports lover and most of the people that fall in this category are from the young group. Positioning declaration of Mountain Dew by PepsiCo is: Consumers between the age of 16 and 26 year old who are eager for enthusiasm. And as we know this is a niche market of adventurous. From our observation we have noticed quite a shift from Mountain Dew to a competitor brand (stream) which led us to conduct a questionnaire in order to find out if the change in pricing had an impact on its target audience from the young group whom don’t make their own living. It is also positioning itself by promoting itself as a high energy and citrus flavour drink.

Age Life Stage Who Lifestyles Positioning 16-26 Youth and teenagers College Students and Young Executives daring. it will be easy to reach a huge amount of consumers within the targeted market. The marketing mix is a mixture of marketing tools that are used to fulfill the customer’s satisfaction and the company’s objectives. The marketing mix is also known as the four P’s in marketing it is controlled by the following categories: • Product • Price • Place (Distribution) • Promotion By using the above categories. 26 | P a g e . Extreme Sports. heroic accelerating and excitement drink ♦ Marketing Mix A marketing mix is a term that was found by Neil H. Borden.

While conducting the study. usually requires several learning factors such as market researches and experiments. sodium benzoate. the marketer has to consider several things such as confirming that all categories are correctly coordinated. The achievement of any marketing program is the aptitude to work efficiently in shaping marketing mixes that get together to the nature and requirements of specified target market. and the marketing mix contain the same message. corn syrup. Cheeta Target Drive Lav Car Ra Practice ➢ PRODUCT Park m h a r Mountain Dew is available in different Stock Keeping Units: • • • • • 1. To put off prospective consumers from getting diverse messages which might direct to misunderstanding. concentrated orange juice and other flavours. high fructose. 27 | P a g e .75 Liter PET Non-Returnable Bottle 2.The development of a successful marketing mix increase the outcomes. The combination of these different categories is much more beneficial than just depending on one. citric acid. researchers shouldn’t depend only on a single mix but explore several avenues.25 Liter PET Non-Returnable Bottle 300 ML Glass Non-Returnable Bottle 355 ML Non-Returnable Can 500 ML PET Non-Returnable Bottle Ingredients: Regular glass bottle contains carbonated water.

28 | P a g e . Product Level: All marketers have to focus on five types of product levels for the sensation and success of their product. and taste to their 2002-2004 2010 2008 2007 2006 2005 ✔ ✔ ✔ consumer by providing them more caffeine. For a regular glass bottle it provides calories (kcal) 110 and caffeine 35mg.caffeine. The core benefit is to satisfy their thirst (need for liquids). brominates vegetable oil and yellow 5. Augmented Product: It offers more power. Sodium citrate. erythorbic acid. gum arbic. energy. ✔ Potential Product: It can use special creative and innovative ways to reshape and redesign the bottles in order to attract the youth and youngsters. Basic Product: Basic product is the fundamental components of that product. ✔ Core Benefit: The primary purchasing reason of that product by customer. energy. Mountain Dews basic product is carbonated water with some extra flavors. calcium disodium EDTA. and taste to customer. Expected Product: it offers more power.

Classification: it falls in the non-durable goods convenience goods because it has been utilized on usual basis by the customer ✔ classification as it is very effortlessly available and needs less search Product Differentiation: ✔ Shape: It is distinguishing itself in the market by the size and shape of its 300ml bottle glass. This different shape adds to the uniqueness of this drink in terms of taste and flavor a different feel which attracts the teenagers and youth whom are the target audiences. ✔ Image Differentiation: It has completed a dissimilar representation in consumer mind by its efficient advertising.Product Classifications: ✔ Durability and Non Durability: Mountain Dew is Consumer-Goods endeavor. whereas the neck of the bottle is thin and long. 29 | P a g e . The bottle is well designed in a different unique shape unlike other drinks. Their ads normally comprise of extreme sports and Adventure by which it is reaching its target market.

30 | P a g e .PepsiCo Product CSD Pepsi Miranda 7up Mountain Dew Shani NCB Tropicana Lipton Ice tea H2O Sports Drink Gatorade Bottled Water Aquafina Snac ks Lays Cheet os Tasali Product Mix and Product Line Analysis: ✔ Product Mix: The width of Mountain Dew mix or the numeral of product line provided by Pepsi in Saudi Arabia is 5 and the length of product mix is 14. These all product lines of Pepsi are reliable and related to each other as they all are drinks or snacks.

the new competitor. and created same product . 31 | P a g e . at which stage of the life cycle. ✔ Product Life Cycle: Company modifies its marketing plan and strategy as product’s life stage modifications.5 Riyals. Product Depth: Mountain dew comes in different SKU’s as we mentioned earlier so its product depth is 5. It is now drenching and stepping towards maturation stage. the price reached 1. has used the shift of target market toward this unique taste. and even the colors of can. and this change has effected slightly the percentage of market share due to existence of real competitor who copied the shape (the external appearance).✔ Product Line Analysis: In product line analysis we can categorize mountain dew in ‘specialties’. Stream.The strength points that Stream depend on are: Saudi product with international features. the taste. so it is important to be familiar with that product. Soft drinks industry is a very old industry in Saudi Arabia. Because the lower the sales the higher the promotions. ➢ Price Mountain Dew initial price was 1 riyal till the mother company has changed the global pricing strategy and increase its products prices by 50%. and cost differentiation.

wholesalers. It has executed this concentrated distribution to supply infiltration revelation of the market by utilizing all reachable channels. ➢ Promotion: Advertising : 32 | P a g e . shops. The gross profit margins kept by these mediators sort from 2% to 5%. and through these channels it performs the distribution role. There can be 0 to 5 levels of mediators associated in the whole supply chain before product attains to the end consumer. products should be obtainable in markets at all the time.➢ Place (Distribution): Mountain dew has an enormous supply channel network. The supply of a product focuses upon the quantity needed by retailers and it can be completed on the usual basis or after some periods. Since the soft drinks industry is highly unbalanced and vivacious therefore. That’s why Mountain Dew is obtainable in large retail stores. This is because Saudi Arabia is a large country and PepsiCo don’t actually have an extensive network of sales agents. and supplementary force which is very imperative and is just right for compose product amicable to the markets. This work is completed by distributors. Mountain dew is obtainable through concentrated distribution because it is easily accessible at everywhere. and retailers. brokers. PepsiCo moved its products from 43 mechanized units which are in disconnect parts of Saudi Arabia via diverse agents or stores to distributors who additionally sell it to the stock owners who finally sell it to the retailers. and departmental stores.

It is utilizing some competitions on its website to generate awareness about product and the 33 | P a g e . The type of media being utilized by mountain dew is mentioned below: • • • • • Television Radio Internet Newspaper Others Cheeta Target Drive Lav Car Ra Practice Park m h a r Sales Promotion : Mountain dew is not utilizing diverse type of sales promotion because it is in a niche market and consumers are dedicated.Strong positioning coupled with the best scoring Ads slogans to express Mountain Dew’s unique identity.

I will conduct a study on the business and its competitors. Mountain dew is mastering this tool of promotion because it is teenagers and youth targeted drink and satisfied customers themselves support it as a good drink amongst his friends. This new pricing strategy has affected the product severely which led to shifting a percentage of its consumers to other competitor brands despite their loyalty. It is making many bike racing. Events and Experiences : Events are the significant part of its promotion as it is targeting teenagers. keep the old customers.R 1 to S.price for right answers is free exploit tour which is also appropriate to its positioning. and give new preferred recommendations which could help in driving the market share of the product to increase once again. mountain riding events where teenagers contribute word of mouth. Research objectives 34 | P a g e . this act have had a negative impact on Mountain Dew’s sales. and give a chance for new potential customers. Problem definition Sales decline in Mountain Dew is the main problem due to the new pricing strategy used by PepsiCo which is changing the consumer price from S.5.R 1. This is the vital way of promotion where pleased customers give confidence to other people who come in his contract.

➢ There is no significant relationship between the taste of Mountain Dew and the purchasing of the product ➢ There is no relationship between advertising and purchasing of the product. strong competition is the main reason of this report. • • Examining the pricing plan designed for Mountain Dew and give Understanding how and what are the tactics to kill Mountain Dew’s recommendations to help increase its sales size. Research hypothesis H0: ➢ There is no significant relationship between the new pricing strategy and the sales decline.• • Gaining a better understanding on the market strategies and planning Comprehending how key trend affects the industry and Mountain Dew used by the company for marketing the product of Mountain Dew. Data collection and Research Methodology 35 | P a g e . as one of PepsiCo’s products and how a consumer buying behavior affects the product. positioning and target audience in order to develop an effective marketing plan. • To Understand and differentiate between the market segmentation. and achieve the overall objectives of the company.

We usually consider the observational research method when planning to develop a product or alter it which has a human interaction. After analyzing the findings of the observation and fixing them. To find accurate results. Primary Data: The primary data is a study that will focus on an observation. This type of research usually contains both customer questionnaires and surveys. Observing how people communicate with one another is very important. In order to get perfect results the researcher needs to analyze things by observing with his own eyes and ears. it’s a must to have a huge number of consumers that represents the target audience of the product surveyed. This tool helps in generating new concepts that exceeds custom constrains. through post and emails might require offering incentives to consumers in order to encourage them to 36 | P a g e . quantitative and qualitative research.This type of data is typically generated from two kinds of tools. The Quantitative research Method demonstrates the consumer’s opinion about the product in an organized manner in order to come up with statistics to guide the researcher through the study. Put himself in the place of the consumer to make a new opinion on the product. via the telephone isn’t quite preferable because not all people have the time to speak over the phone. changes should be applied to the product. Both tools shall be compiled together after analysis and used to collect the desired data. mostly paying close attention to the human component to all the products that are being developed. the primary and secondary sources. There are several ways conducting a survey either face to face on papers and its used when you need to explain and show the product to the consumer.

and experiences through the following: In-depth interviews: are ideal for gathering information on individuals’ personal histories. 37 | P a g e . What does quantitative research show? • • • • • • If there’s a market for the product Type of awareness of the product Number of people interested in the product whom are the best customers What are the consumers buying habits How are the needs of the target market changing Qualitative research methods show the consumers behavior. As it is attitudes. but the contact with these people tends to last a lot longer. attitudes.   Focus group discussions: are effective in eliciting data on the cultural norms of a group and in generating broad overviews of issues of concern to the cultural groups or subgroups represented. behavior. It attempts to get a detailed view about the product from consumers. very few people participate in the qualitative research. and experiences. When conducting the survey. or via the website. mainly when sensitive topics are being discovered.participate in filling up the questionnaire. and experiences which are important. questions must be measured accurately in order to get a meaningful outcome. perspectives..

effectiveness of in-store display and promotion efforts. the Internet. sales trends. or market using retailer scanner-based sales and causal information gathered weekly from tens of thousands of retail outlets. magazines. Another type of data which is always used by organizations is the Key Performance Indicator (KPI) which is an industry term for a type of measurement of performance. Millward Brown. stock levels. and other associated aspects ACNielsen is a good example on a research company that measures and monitors what consumers are buying and what are their behaviors. and having contracts with external research company’s which provides up to dated data such as Retail Audit which is the study of a selected sample of retail outlets. They also offer a unique set of tools that examine key business trends by product. This information enables PepsiCo to identify the “why” as well as the “what” behind changes in product sales for fine-tuned marketing strategies.Secondary Data: Collecting useful data from books. A very common method for choosing KPIs is to apply a management framework such as the balanced scorecard strategic performance management tool .a semi-standard structured report supported by proven design methods and automation tools that can be used by managers to keep track of the execution of activities by staff within their control and monitor the consequences arising from these actions. category. They are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged. 38 | P a g e . the leading global research agency specializing in advertising. provided as subscription-based service by market research firms Retail-audit service providers gather information on a brand's sales volume.

A statistical analysis will be conducted to overcome the results showing whether the hypothesis is confirmed or not. a quantitative and qualitative methods have been designed for collecting information from people to analyze the characteristics.  Findings: This part will show the results generated from the survey that was distributed to both the retailers and customers. and perceptions of target market. 39 | P a g e . Data analysis and results This section of the report contains two parts  Retailer and consumer surveys: As we mentioned earlier in the Data collection and research methodology. media and brand equity research is a good example for an agency that provides KPI data. communications. behaviors.

and it won’t be shared by anyone else. or inconclusive.My name is Lujain. 40 | P a g e . The accessibility of the data in this survey will only be by the researcher. I am currently working on my coop training report which is about Mountain Dew’s Marketing analysis. I have prepared this survey and would very much appreciate your time and effort in filling it up in order for me to be able to complete my data collection and see whether the hypothesis in my report is confirmed. disconfirmed.

Wholesales 1. Eateries (Fast food restaurants) b. What type of soft drinks do you sell? a. Stream 41 | P a g e . Unique taste b. Pepsi c. hypermarkets) c. Traditional Trade (Mini markets) d. Modern Trade (supermarkets. Mountain Dew d. Refreshing taste c. What is your first impression about Mountain Dew’s taste? a. New taste 1.Retailler questionnaire: 1. Perfect taste d. Coke b. What type of business are you in? a.

No 1. Do you have cold space (coolers) available in your store? a. are these soft drink coolers provided by the company? a. Fanta h. Yes b. No 42 | P a g e . Sprite f. Please specify 1. Yes b. Other. 7 UP g. If yes. Mirinda i.e.

Pepsi b. Over 26 1. which companies are providing coolers? a. Others. If yes. Please specify 1. Coke c. Younger than 16 b.1. The majority of buyers are from which gender? a. 20-26 d. Males b. 16-20 c. Every day 43 | P a g e . Females 1. When do you usually get your stocks? a. The majority of buyers are from which age group? a.

Other.b. Every month d. What is the most selling brand from the bellow? a. Coke b. Fanta h. Once 44 | P a g e . Mirinda i. Please specify 1. Stream e. Sprite f. 7 UP g. Mountain Dew d. Every three month 1. Pepsi c. In length period of a month how many times do you get “Out Of Stock” issue? a. Every two weeks c.

Neither agree nor disagree Disagree Strongly Disagree Strongly Agree Agree 2. More 1. No 1.b. Yes b. How favorable or unfavorable to the consumers are both stream and Mountain Dew’s Adventism’s? Poor Mountain Dew Stream Fair Good Very Good Excellent 45 | P a g e . Three times d. Do you ever get complains about the prices of a soft drink? a. Twice c. Many customers have shifted from PepsiCo products to other B-brands after the new pricing strategy.

Over 26 1. In what age group are you? a. What is your current salary: a. 20-26 d.Consumer survey 1. 16-20 c. What is your gender? a. Below 1000SR b. Between 5000-10000 d. Male 1. Between 1000-5000 c. Younger than 16 b. 10000 and above 46 | P a g e . Female b.

Employed by a multinational company 47 | P a g e . 1-3 b. Student c. 4-6 c. 10 and above 1. 7-9 d. Employed by a local company e. Housewife b.1. How many members are in your family? a. Businessman d. What is your occupation? a.

Shakes e. Flavored water 1. Fanta h. Stream e. 7 UP g. Which type is your favorite drink? a. Carbonated Soft Drinks b. Mountain Dew d. Non-carbonated Soft Drinks c.1. Sparkling water g. Non-alcoholic beer d. Coke b. which brand is your favorite? a. Pepsi c. Sprite f. Other. Mineral waters f. Please specify 48 | P a g e . If you choose carbonated soft drinks. Mirinda i.

Fanta h. Other. Sugar Free drink d.1. Pepsi c. Sprite f. Regular drink b. Fresh fruit drinks 49 | P a g e . 7 UP g. Mirinda i. Coke b. Diet Drink c. What is the alternate brand if your favorite drink is not available? a. Stream e. Mountain Dew d. Which kind do you prefer? a. Please specify 1.

From a scale of (1 to 5) how loyal are you to your favorite drink? 50 | P a g e . flavor e. Incentives (discounts) b. Traditional Trade (Mini markets) d.colleges. Where do you usually purchase your drink from? a. Change the formula. Yes b. Change the name g. schools) 1. Eateries (Fast food restaurants) b. Modern Trade (supermarkets. hypermarkets) c.1. Wholesales 1. Change the color f. Do you read the ingredients on your drink before drinking it? a. What other improvements do you suggest for the brand? a. Broaden the target market c. Potential outlets (Hotels . Change the design of bottle d. No 1. Add a New distribution lines h.

You would prefer drinking an international drink over a local one 51 | P a g e . you look at the price before purchasing it 4. How often do you drink a soda Neither agree nor disagree Disagree Strongly Disagree Strongly Agree Agree 3.1 2 3 4 5 Never Rarely Sometimes Often All the time 2. When picking a drink.

and that both products have same taste. Most customers described the great similarity between Stream and mountain Dew. and as it is a Saudi brand.Neither agree nor disagree Disagree Strongly Disagree Strongly Agree Agree 5. and introducing new flavors to differentiate its taste from other rivals. • • 52 | P a g e . Any comments? Most comments were focusing in necessity of offering real incentives for customers as a gift for their loyalty.and their financial budget is always limited to a monthly salary from their parents Important share of customers are supporting Stream due to its price. and same look. Findings: • • Most consumers prefer Mountain Dew over other brands Most customers are students and teenagers .

Whenever and where ever there is a attention event. • • Conclusion and recommendation Conclusion Mountain Dew is a well famous brand and it has preserved its position well by accepting the client psychology. by confirming quality. and it has a very established name and reputation due to its taste. Mountain Dew must figure in all important occasions in the Saudi market. even though the products are higher than other rivals products prices. The pricing strategy used by Mountain dew has a slight effect on reducing the market share by approximately 8% to other competitors. by introducing originality in products. most people are 53 | P a g e . and appearance. Even of the shifting in the price of product. Social activities are recommended to be more involved with the Saudi society and life . Mountain Dew is a popular drink in Saudi market. by taking into consideration the economic factors in view and by powerful and flashy advertisements. by increasing its product base. and the same bottling shape. More advertising and promotional activities should be conducted depending on the product value and popularity. The new pricing strategy used by PepsiCo has affected the level of sales and market share of mountain dew.• • Necessity of introducing new flavors . Mountain Dew is targeting a selective market.and effective promotional campaigns which match target market expectations Most customers are loyal for Pepsi company products. as more than 8% of current customers have shifted to a very similar Saudi product which copied the same taste. and it should broaden its target.

energetic. challengeable male and female. and show the benefits of its product ingredients Increase the quality and quantity of advertisements to increase the demand for this product Build effective distribution network.and support the environment avoiding disposable bottles Should establish outlets inside colleges and schools.which will increase its sales effectively. special soft-drink consumers who have little time for sleep. or ‘’Give you power and energy more than other competitors’’ • • • • • • • 54 | P a g e . Create an events related to youth ambition and adventure spirit. Make agreements with restaurants (alliances ). Mountain Dew gives you energy as it has higher scale of caffeine. Recommendation • • • Mountain dew should offer sort of incentives and discounts for retailers It should broaden the target market in its promotions Should participate in society activities .youth or mature. Repositioning is also recommended Proposed: to all ages . like car racing Should consider the health factor in its products.still loyal for Mountain Dew as it is a global brand coming from a well known company. you can stay well concentrated and keep going even when you are not ready.

com www.Appendix • Philip K. • Philip • • 55 | P a g e . Published 1997. and Kevin L. McGrawhill Publications. and Gary A. (2005) Marketing Management. McGrawhill Publications • Business to Business Marketing by Victor L. K. McGraw Hill Publications. Hunter. (2005) Principles of Marketing .pg. David Tieytan. URL: http://pepsico.

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