Download - Pepsi co presentation (1)
Relaunching Mountain Dew in the U.K.
Caitlin Joshua, Tom Licitra, Brea MacIsaac, Tony Weaver, Sijie Xia
PepsiCo should launch the Mountain Dew brand in the U.K.
• Hybrid branding strategy makes U.K. market attractive
• Mountain Dew can capture market share
• PepsiCo can leverage existing assets
• PepsiCo can leverage existing relationships
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Will generate revenue
Will be cost
effective
PepsiCo should launch the Mountain Dew brand in the U.K.
• Hybrid branding strategy makes U.K. market attractive
• Mountain Dew can capture market share
• PepsiCo can leverage existing assets
• PepsiCo can leverage existing relationships
3
Will generate revenue
Will be cost
effective
Hybrid branding strategy makes U.K. market attractive
• Both U.K. energy drink and carbonated soft drink (CSD) markets are growing
• U.K. offers attractive growth in target market of 15-34 year-olds
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U.K. energy drink and carbonated soft drink (CSD) markets are growing
5
11.4
13.7
0
2
4
6
8
10
12
14
16
2005 2010
2005 2010
366% Since 1996
Energy drink market has grown
U.K. offers attractive growth in target market of 15-34 year-olds
6
15.87
18.74
0
5
10
15
2007 2012
2007 2012
PepsiCo should launch the Mountain Dew brand in the U.K.
• Hybrid branding strategy makes U.K. market attractive
• Mountain Dew can capture market share
• PepsiCo can leverage existing assets
• PepsiCo can leverage existing relationships
7
Will generate revenue
Will be cost
effective
Mountain Dew can capture hybrid market share
• Mountain Dew has strong brand awareness
• Consumers show high probability of purchase of Mountain Dew
• PepsiCo can compete with existing competitors for share
• Cannibalization of existing Pepsi products will not occur
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Mountain Dew has strong brand awareness
76%
24%
Brand Aware
Brand Unaware
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Consumers show high probability of purchase of Mountain Dew
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57% 19%
24% Brand Aware,Would Buy
Brand Aware,Wouldn't Buy
Brand Unaware
Mountain Dew can compete with existing CSD competitors for share
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0%
10%
20%
30%
40%
50%
Carbonated soft drinks’ brand U.K. market share
PepsiCo can compete with existing energy drink competitors for share
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0%
10%
20%
30%
40%
50%
Red Bull Lucozade Own Brand/Other
Energy drinks’ brand U.K. market share
With only two large competitors, there is room for competition
Cannibalization of existing Pepsi products will not occur
Lemon Lime Caffeine
Pepsi ✓
7Up ✓
Mountain Dew ✓ ✓
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PepsiCo should launch the Mountain Dew brand in the U.K.
• Hybrid branding strategy makes U.K. market attractive
• Mountain Dew can capture market share
• PepsiCo can leverage existing assets
• PepsiCo can leverage existing relationships
14
Will generate revenue
Will be cost
effective
PepsiCo can leverage existing assets
• U.K. has largest operations of PepsiCo’s international division
• U.K. has $2.1B of PepsiCo’s long lived assets
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PepsiCo should launch the Mountain Dew brand in the U.K.
• Hybrid branding strategy makes U.K. market attractive
• Mountain Dew can capture market share
• PepsiCo can leverage existing assets
• PepsiCo can leverage existing relationships
16
Will generate revenue
Will be cost
effective
PepsiCo can leverage existing relationships
• PepsiCo can leverage its existing promotional ties
• PepsiCo can leverage is existing vendor relationships
• PepsiCo can leverage its existing supplier relationships
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PepsiCo can leverage its existing promotional ties
• Retail consolidation increases importance of relationships with major vendors
• Opportunities exist to renegotiate contracts annually
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PepsiCo can leverage its existing vendor relationships
• PepsiCo spent $2.9B on promotions in 2007
• Strong relationship with global marketing company OmniCom
• U.S. Mountain Dew strategy targets youth segment and can easily be leveraged in U.K.
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PepsiCo can leverage its existing supplier relationships
• Collaboration is essential to the success of PepsiCo’s supply chain
• Resources are available from a limited number of suppliers with which Pepsi has strong relationships
• Greater economies of scale can be gained through higher quantity orders
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