PRINCIPLES OF MARKETING

PROJECT DETAILS

NEW PRODUCT
DEVELOPMENT
DIET MOUNTAIN DEW
IN PAKISTAN

PRESENTED BY:
RIZWAN HAFEEZ (PROJECT LEADER)
ADIL UMAR (PROJECT ASSISTANT)
HAFIZ TAJAMAL (PROJECT ASSISTANT)
M. AYOOB (PROJECT ASSISTANT)

COURSE: MIT

INTRODUCTIO
N
TO

Introduction to PepsiCo
In 1965: PepsiCo, Inc. is founded by Donald M.

Kendall, President and CEO of Pepsi-Cola and

Herman W. Lay, Chairman and CEO of FritoLay, through the merger:
Pepsi-Cola In 1898: Caleb Bradham, a New

Bern, North Carolina, pharmacist, created

"Brad's Drink," a carbonated soft drink he
created to serve his drugstore's fountain
customers.

Introduction (continued)
Pepsi products are in almost 200 countries

throughout the world

There are more than 22 different brand lines

that account for at least $1 billion per year per

brand

MISSION STATEMENT
Our mission is to be the world's premier consumer

products company focused on convenient foods and

beverages.

VISION STATEMENT
Our vision is put into action through programs and

a focus on environmental stewardship, activities to

benefit society, and a commitment to build
shareholder value by making PepsiCo a truly
sustainable company.

MARKETING
In 1975, Pepsi introduced the Pepsi Challenge

marketing campaign where PepsiCo set up a

blind tasting between Pepsi-Cola and rival CocaCola.
Pepsi also has sponsorship deals in international

cricket teams. The Pakistan cricket team is just

one of the teams that the brand sponsors. The
team wears the Pepsi logo on the front of their
test and ODI match clothing.

COMPETITION WITH COCA-COLA

Coke is the biggest

competitor of PepsiCo.
Major competition is
between Pepsi Cola and
Coca Cola.
6%

80%

14%

PepsiC
o
CocaCola
Others

Competitor of PepsiCo
The Carbonated Soft Drink (CSD) industry in Pakistan fall into
four main segments: Colas, Citrus segment, Lemon-lime
segment & Orange segment. Please refer to the following
table:
Segment
PepsiCo Products
Competing Products
Cola
Citrus
Lemon Lime
Orange

Pepsi
Mountain Dew
7up
Miranda

Coca Cola
Sprite 3G
Sprite
Fanta

STRENGTHS
1. Strong brand equity
2. Well-known worldwide
3. Innovating company
4. Ethical, socially responsible, and sustainable company
5. Strong advertising company with more than 40 slogans and
songs
6. PepsiCo as the largest part of the market share after CocaCola
7. PepsiCo owns a wide variety of smaller brands which able
them to offer a large product range from beverages to snacks

WEAKNESSES
1. PepsiCo production is really expansive because of the need
to constantly develop new products to meet the changing
customers demands
2. PepsiCo is experiencing a lack of focus towards Pepsi sodas
3. PepsiCo is experiencing product recalls
4. PepsiCo has a low employment productivity and a weak
distribution
5. PepsiCo depends too much on the US market
6. PepsiCo is far behind Coca-Cola in the international market

OPPORTUNITIES
1. Opening in market for less costly products
2. Growth opportunities in developed countries as well as
international non established countries
3. Pepsi recently reacquired ownership of its two largest
bottlers, Pepsi Bottling Group (PBG) and PepsiAmericas (PAS)
4. Compete in more than one industry (non-alcoholic beverage
industry, the salty or savory snack food industry, and the
breakfast food industry)
5. Growth in the carbonated drink market is the largest in Asia
and Europe
6. The world's demand is experiencing a growth with the
sports drinks, bottled water, and energy drinks

THREATS
1. Fierce competition from Coca-Cola, which owns the largest
piece of the market share
2. The downturn in economy, which lead customers to shift
away from bottles of water to tap water.
3. Because of the recession, customers are finding cheaper
alternatives to the national brands.
4. Customers are getting more conscious and concerned about
their eating habits and general health.
5. Campaign against plastic containers has impacted the sale
of bottled beverages
6. Highly dependent on supplies of clean water, to prevent
contamination

MOUNTAIN DEW

Mountain dew is the brand of PEPSICO. It

falls in the citrus segment of carbonated
soft drink (CSD).

First launched in Pakistan: in the year

2001.

Re- launched: In the year 2003 along

with massive promotional campaigns, it
was a huge success.

Mountain dew enjoyed the status of the

only citrus carbonated soft drink in the
beverage market until sprite 3g entered
the market.

SHARE OF MOUNTAIN
DEW

In Pakistan the total market share of citrus CSDs is 14% out

of which 95% is held by mountain dew and the rest 5% by
others. (Sprite 3G and others)
Carbonated
Citrus
Cola,
Mountain
Sprite
Orange
3G and
DewLemon
others Lime

DIET MOUNTAIN DEW

THE ONLY DIET
WITH DEW IN
IT.

DIET MOUNTAIN DEW

A Low Caloric and Healthy Citrus

Soft Drink
For Health
People.

and

Diet

Conscious

But not only for Health and Diet

Conscious People. Its for every one.
No Change in taste but only change
is low calories.

MARKETING MIX

20

PRODUCT
Diet Mountain Dewis a no-calorie
Mountain Dew that was first introduced
in 1986 in United States.
It was formerly known as "Sugar-Free
Mountain Dew" until 1988, when it was
given its current name.
In 2006 Diet Mountain Dew was
reformulated with a new "Tuned Up
Taste", using a blend of sucralose and
aspartame as sweeteners. The previous
formulation was sweetened exclusively
with aspartame.

Nutrition Comparison Between

Mountain Dew and Diet Mountain Dew
Nutrients in
500 ml Bottle

Diet
Mountain
Dew

Mountain
Dew

Juice %age

Caffeine

77mg

77mg

Potassium

110mg

110mg

Phosphorus

1mg

1mg

Sweeteners

Fructose

Sucralose
Aspartame

Calories

240

Sugars

65g

<1g

SUCRALOSE
Sucraloseis a non-nutritive
sweetener.
It is no caloric.
Its E number isE955.
Sucralose is about 320 to 1,000
times as sweetassucrose,twice as
sweet as saccharin.
It can be used in baking or in
products that require a longer shelf
life because of its stability under
heat.

Diet Mountain Dew

Products in Pakistan
500 ml Bottle
220 ml Tin
Pack

PRICING
The brand uses value based pricing. It
means that when consumer is buying Diet
Mountain Dew they are not just buying the
beverage but also the image which goes with it.
Prices usually dont fluctuate but they may
suffer sometimes due to the prices of
competitors or increase in the prices of raw
material.
Trade offers like price off and free products are
given to the retailers. Final consumers are also
given discount on special occasion like Eid,
Ramadan etc.

PLACEMENT
Launch it in major cities of Pakistan
only i.e. Islamabad, Rawalpindi,
Lahore, Karachi, Hyderabad,
Peshawar, Quetta, Multan,
Faisalabad.
direct distribution method for
Diet Mountain dew.
Diet Mountain dew floods all possible
retail stores with their product.
1.5 formulas

PROMOTION
ATL (media) and BTL (consumer
related) activities for promotion.
We will gain attention of consumers by:
Commercials on Electronic Media
Sign Boards
Advertisements in News Paper.
Pamphlets

Different samples of Green bags,

Green T-shirts, key chains, caps etc
in order to capture consumers interest.

SWOT Analysis

Strengths
Weaknesses
Opportunities
Threats

STRENGTHS
The primary and key strength of Diet
Mountain dew is that it is the brand of
one of the strongest and globally
recognized company that is PepsiCo.
It also increased the creditability of the
mother product.
Reputation of Pepsi Cola and Mountain
Dew will be an advantage for Diet
Mountain Dew.

WEAKNESSES
The increasing inflation rate in
Pakistan may result in an upcoming
weakness for Diet Mountain Dew.
Secondly, fragmentation in the
beverage industry of Pakistan is
another weakness.
Thirdly, and most importantly, Diet
Mountain Dews fame can hurt the
credibility of the mother brand,
Mountain Dew.

OPPORTUNITIES
Capture a market segment consisting
of health conscious people which
require an energy drink with low
calories and less sugars.
People are now fed up of ordinary
colas and other existing CSDs, hence
strongly moving their interest towards
the citrus segment like mountain dew.
Diet Mountain Dew can make its
name in Market by capturing these
customers

THREATS
The biggest threat for mountain
dew is from its competitors
Sprite 3G and other energy
drinks like red bull etc.
So, It is also expected in case of
our Diet mountain dew. Coca
Cola can launch a product on
our competition.

THE END
ANY QUESTIONS