OBJECTIVES:

1. To identify the problem of the case.

2. To present the SWOT and the possible strategies per quadrant.

3. To provide alternative courses of actions and its advantages and disadvantages.

4. To present the Chosen Alternative.

5. To summarize and conclude the case.

MOUNTAIN DEW HISTORY:

 In the late 1940s Mountain Dew was being produced out of the Hartman Beverage Company of
Knoxville, Tennessee.

 Mr. Allie Hartman, owner of the beverage company, claimed the recipe was that of his brother.
Although Hartman felt his brother’s lemon lime soda would be a big seller, the Dew didn't catch
on as he had hoped. In fact, it sat on retailers’ shelves, and little revenue was generated.

 In 1958, Mr. Bill Jones - a well known soft drink supply salesman - acquired a company by the
name of Tip Corporation, located in Marion, Virginia.

 It was rumored that Jones acquired the name for Mountain Dew at a dinner with Allie Hartman.
Hartman was said to want to donate the recipe and name, on behalf of his brother to the newly
formed Tip Corporation. But, it was said that Jones was not happy with the gesture, and offered
to purchase the dinner that evening for the rights to the name and recipe of Mountain Dew.

 In the 1950’s the Tip Corporation, the owners of the Mountain Dew brand, distributed the drink
all over the Eastern Seaboard.

 Mountain Dew as we know it was born, and Pepsi bought Dew’s new brew on September 2 nd,
1964.

STATEMENT OF THE PROBLEM:

1. How to keep the "Do the Dew" campaign working hard to build the brand, given that
extreme sports were becoming overexposed?

2. How to respond to the growing threat of non-CSDs, especially Gatorade and the new
highly-caffeinated and sugary energy drinks like Red Bull?
RELEVANT FACTS:

  The direct competitor of Mountain Dew is Sprite.

 The indirect competition of Mountain Dew consists of all the other CSD’s.

 Major competitors like Sprite and Coke, etc.

 Within the company i.e. Pepsi & 7UP etc

 Local products in each country i.e. lemon soda etc

ALTERNATIVE COURSES OF ACTION:

A. Continue its existing strategy

Advantages:

1. There will be no additional investment/cost

2. Keep loyal customers

Disadvantages:

1. Non action may outdate the product

2. Substitution of customers to other or non-CSDs/alternatives.

B. Introduce new creative

Advantages:

1. The creation of new target market.

2. Possibility to increase sales and profit

Disadvantages:

1. Risk of customer rejection.

2. It is costly.

C. Reinforce existing strategy and extend the product line

Advantages:

1. The creation of new target market.

2. Possibility to increase sales and profit

 3. Retain loyal customers

Disadvantages:

1. Risk of customer rejection for the new product line

2. It is costly.

CHOSEN ALTERNATIVE:

C. Reinforce existing strategy and extend the product line

CONCLUSION

 Mountain Dew is a well renowned brand and it has maintained its position well by
understanding consumer behavior, 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 sports. The
key word for success in the Marketing World is to “remain in the spotlight” and that is what
Mountain Dew should do more.

MARKETING EXECUTION

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.

Product Position

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 for the existing Mountain Dew

“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.”

Proposed for new product line

1. To introduce new product lines to compete with non-CSDs or other alternatives.

2. The existing brand image of Mountain Dew will be extended to its new product lines.

Examples:

• Mountain Dew XXX

• Mountain Dew Hard

• Mountain Dew Hydro

• Mountain Dew with L-Carnitine

Market Segmentation

Demographics

 The new target segment would be:

Age Group

 12-29

Gender

 Male and Female

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.

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

 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. Signages
7. Product Placement
8. Mobile Devices
9. Sponsorships

CONCLUSION

 Mountain Dew is a well renowned brand and it has maintained its position well by
understanding consumer behavior, 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 sports. The
key word for success in the Marketing World is to “remain in the spotlight” and that is what
Mountain Dew should do more.