A New Morning for Mountain Dew

“A New Morning for Mountain Dew”

Name: Ali Zafar Class: MBA-3(A) Course Title: Brand Management Course Instructor: M.A Butt

Brand Management Page 1


I consulted him in case of problems. at every step cooperated with me and corrected me regarding my approach towards this report. where he whole-heartedly assisted me. Brand Management Page 3 .A New Morning for Mountain Dew ACKNOWLEDGEMENT First of all I would like to thank Almighty Allah for blessing me with the strength. courage and temperament to go through all the case study. It has been an honor for me to work under the supervision and guidance of respected Sir Muhammad Ahmed Butt who. For many times. He has been very kind upon me and helped me at every step where I needed assistance and companionship.

I have applied consumer based brand equity (CBBE) model. I was asked to make the SWOT analysis. strategic brand objectives and branding strategy. but like other companies. I have planned PepsiCo branding strategy associated with its eminent brand “MD-ULTRA”. In order to do this specific task. PepsiCo is a very reputative company. At the end. PepsiCo too has some Strength and weaknesses and being a gigantic it has some threats and opportunities as well which are also conversed in the subsequent pages.A New Morning for Mountain Dew Introduction to the Case I am assigned by PepsiCo as their consultant to work out the provided case study and prepare the case study analysis. I have studied the whole case comprehensively and in depth. four steps of strong brand building that comes under it. I moved toward with some major judgments and recommendations which have been discussed in the following pages. While doing so. I have given some important recommendations in order to improve the weaknesses faced by the company and also preparing for the threats to be faced in the future Brand Management Page 4 .4P's and point of difference.

Mountain dew also launched a loyalty program “Dew You” to attract and keep its audience loyal. mountain dew was the “4 th ranked among carbonated beverages in America” in terms on sales. That was the time mountain dew changed its tag line “Do the DEW”.2% from 2. Later in 2005.7% in 2000. In early era tag line for mountain dew was “Yahoo Mountain Dew!! It’ll tickle your innards”. mountain dew comes up with an extension in product line with “Dew Code Red” which was cherry flavor drink and had unqualified success in initial stage. Slowly and gradually Mountain dew start capturing the market share and in 1980’s market share shoots to 7. In early 1990’s mountain dew start focusing its advertising campaign on sports including skateboarding. That was the first time mountain dew was consider as the fastest growing major soft drink. Despite focusing on X sports. and snowboarding. Mountain Dew launched a highly caffeinated drink named MDX.A New Morning for Mountain Dew History of the Case Mountain dew was first launched by PepsiCo in 1969. Through this move sales volume grew to 1. Before launching it. Brand Management Page 5 .5% in 2004 and in 2006. skydiving. At that time its target market was urban teenagers for which its starts its advertising on MTV channel. they called for several games for “Beta Test”. mountain dew also hired the hip hop star “BUSTA RHUMES” in its marketing campaign In 2000.

Mountain dew is adhering to the convenient/ articles of laws. The industry is subject to regress laws pass by the government from time to time. OPPORTUNITY:     USA economy is packed by recession however.A New Morning for Mountain Dew SWOT ANALYSIS STRENGTH:       Mountain dew is carrying strong brand. Companies maintain healthy relationship in upstream. Reasonably saying customers are less inclined towards mountain dew brand. Mountain dew is financially sound Production policies/procedure/systems are reasonable consistence with industry spelled out standards. THREATS:     The industries experiencing social shifts and society are seeking out value in there. Collective bargaining agent (CBR) behavior is more profession. WEAKNESSES:       Customers have become savvy. International component portrait reasonable and friendly environment. USA political/government pare subject to some sort of instability. economies still manageable. Overall the industry is also feeling the impact of technology. HRM needs improvements in the functional area. Marketing management is reasonably suffering from miss management. The strategic directions including vision/mission/ and corporate objectives needs improvements. Mountain dew is adequately equipped with receipt technology. Mountain dew is facing extreme competition both from direct and indirect competitors. Mountain dew is reasonably fit to take care for social shifts. Brand Management Page 6 .

Since PepsiCo has never come up with the idea of energy drink or something like “MD-ULTRA”. Get the market share approximately 30%. silver bottles and red caffeinated beverages. This could either be a celebrity. as everything should flow from the brand strategy. Brand Strategy Objectives The branding strategy in this case is to make awareness about the newly launched product name “MD-ULTRA”. Our market is also for those who work heavy work out. the brand needs to be unique with others with the help of certain strategies and branding model. (Dorian Yates). As I have defined the objectives previously. Sports like Rugby. so we have to focus on those market which is highly involved in consuming energy. in order to gain the share of mind and share of heart. Muhammad Ali. It is basically a plan of action for accomplishing the objectives. Brand Association: Brand associations are those pleasant images which customer associates with the current consuming brand. smell. Michael Jordan. Our secondary associations will be high profile models. including naming. Brand Image: As PepsiCo and Mountain dew has never come up with anything like “MD-ULTRA”. Therefore. Enhance the Brand Equity of MD-ULTRA over time. American Football etc. Olympia. To return at the sale sales level of MD-ULTRA in three months instead of six months.A New Morning for Mountain Dew Marketing Objective     Creating awareness of goodness of exercise for health. so now I have to plan the branding strategy according to those objectives. Brand Management Page 7 . It is about how uniquely we position a product or company to make it the most compelling and appealing to its prospective customers? This should precede all other marketing. color any image etc… In case of our case our primary associations will be Mr.

A New Morning for Mountain Dew Segmentation Strategy As previously when Mountain Dew was launched in 1969 its target market was urban teenagers. Nature of competition: In energy drink sector there is moderate type of competition. But. they would have the same formulation for the beverages. And now in 2007 when a new an extension has arrive with a name “MD-ULTRA” we have chosen psychographics segmentations. It increase stamina and gives extra boost energy and provide high quality and performance. behavior and who require similar marketing mixes. The filtration and the segmentation criteria are not going to be really hard to be measured. the positioning would take time. whoever they serve. MD-ULTRA would not need to customize the market much. Because. Red Bull a competitor enters a market with low price attracting the consumers. Point of difference: “MD-ULTRA” provide unique selling proposition (USP). Target market: Segmentation: divide the market into distinct group of homogeneous customer who have similar needs. The company will have to build the trust that it will enjoy for years. Our targeted consumers will be above 20 males and specially high profile body builders. Brand Management Page 8 . Positioning Strategy Focusing particularly on the body builders and those sports athletes which really make the maximum use of their muscles. MD-ULTRA would have to position the brand in the minds of the consumers in order to gain their maximum trust.

High quality posters in Gyms and health clubs Brand Management Page 9 . PRICING STRATEGIES: Adopt value pricing. Billboards promotion. Selling through stores or malls. Focusing on MD-ULTRA intangibles as well. Sales promotion to increase the market share and for speedy awareness.A New Morning for Mountain Dew MARKETING MIX (4P'S)  PRODUCT STRATEGIES:         Accurately paying attention on customer’s perceived quality and value of the product.  PROMOTIONAL STRATEGIES:      Extensive advertising through both radio and television to make the consumers aware about the MD-ULTRA. Do not charge premium at the high level. Internet promotion through websites and online ads.  CHANNEL STRATEGIES:    Adopt direct channels. Conduct loyalty programs and after marketing. Selling through electronic means. Price of the brand will be found by consumers appropriate and reasonable.

PepsiCo should make consumer to recognize the MD-ULTRA brand when it is presented to them. Style and design: MD-ULTRA comes in triple-sealed tamper proof package. for increase stamina.5 higher than competitor. Thus consumer must think of it when ever certain set of need arises.  Brand quality: MD-ULTRA brand has a good quality it satisfies consumer and increase stamina without any side effects. Reliability: is that it quickly gives energy and increase stamina. Price: PepsiCo price MD-ULTRA at $ 2.  Purchase and usage situation: consumer can buy MD-ULTRA without prescription. Salience: MD-ULTRA is an energetic product which gives extra energy and confident. Brand Management Page 10 . 1. Brand judgment: Customer personal experience and evaluation of MD-ULTRA brand. 4. and they should think of MD-ULTRA brand when ever considering maximum boost of energy. 3. Imagery: How MD-ULTRA will meet the customer psychological or social need through  User profile: divide its user in psychographic factor and demographic factor. consumer trust it Service effectiveness: it satisfies the need and requirement of consumers. 2. Performance:       Primary ingredient: is a carbonated drink and energizer protein. Secondary ingredient: is that it increases stamina.A New Morning for Mountain Dew BUILDING BRAND STRATEGY CBBE MODEL This model will help PepsiCo to incorporate theoretical advances and managerial practices in understanding and influencing consumer behavior.

I would offer reward to apprehend the culprit of tampering and the compensation money to the affected consumer individuals. Brand resonance:   Loyalty: consumer will prefer to buy it in any condition because they prefer it over other energizer drinks. After the launch of product I would be offering a couponing scheme for the free trial of the product. I would make people aware beforehand that tamper resistant packaging will be shortly available in market within the period of two months. 6.  5. I would recommend PepsiCo to do relationship marketing. Feeling:  Security: it provides a feeling of security can be buying without a prescription. Brand consideration: getting so much attached to it consumer will go to recommend MD-ULTRA to others. And this creates likability of purchasing MD-ULTRA. RECOMMANDATION TO THE MANAGEMENT      Make sure the channel distribution system is safe and effective.A New Morning for Mountain Dew  Brand credibility: MD-ULTRA has come up with triple sealed tamper proof packaging by keeping in view consumer interest. accompanies with mass customization. Attachment: MD-ULTRA satisfied all their need in an effective manner so consumer has a sense of attachment to it. after marketing and loyalty programs. Brand Management Page 11 .

Sign up to vote on this title
UsefulNot useful