market plan mountain dew

8/13/2019 Market Plan Mountain Dew

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A REPORT ON

MARKETING PLAN: MOUTAIN DEW

Submitted By: -

SAVIJ KUMAR


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1!"1#$1!%

MBA SE&TION'D(

E)e*uti+e Summ,y

This report is the marketing plan analysis of Mountain Dew in

India. It is a product of PepsiCo which is a well known food and

beverage company worldwide. This report emphasize on how

Mountain Dew establish itself in Indian market and also how it

has make a good brand image among its target customer. This

report is also analysing mountain dews !Ps which are important

to understand when we are analysing product. "e also included

the competitors analysis of Mountain Dew and analyse them. #orall this process we used credible and reliable sources and based

on these sources we recommended plan for ne$t one year.


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Introduction

Marketing Plan is a basic concept which is re%uired to make a

product successful. It consists of companys strategy based on

industry and targeted customers trends to make that product

successful. Marketing plan analysis is done because companies

want to distinguish the relevancy of their marketing plan in

current scenario. This analysis comprises of industry analysis&

company analysis& product analysis& competitor analysis andproducts !Ps. 's part of our academic work we have to analysis a

products marketing plan and we choose Mountain Dew because

its in soft drink industry in which every youth is interested.

Ob.e*ti+e

(. To understand the concept of marketing and marketing

strategy and market planning.


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). To understand how key trend affects the product and

industry and how consumer buying behaviour affects the

product.

*. To understand the concept of market segmentation& market

positioning and targeting by using a

The main ob+ective of this report is to understand how and what

the strategies are used by PepsiCo to overcome the competitors.

I/du0ty A/,y0i0

,on alcoholic market can be divided into soft drink and fruit

+uice. -ome common soft drinks are flavoured water& sweet tea&

iced tea& s%uash& fruit punch and lemonade. ,oncarbonated and

carbonated is further part of soft drink. Carbonated drinks are

cola& oranges& lemon while non carbonated drink mango drinksIndia 'gro Industry& )//01.

The total size of food industry in India is almost 2 34.3 billion and

soft drinks +uices and carbonated beverage1 contain 2 ( billion.

Indian soft drink market consumption in a year is )5! million

crates. -oft drink market is highly seasonal6 consumption in

during off7season is (4 million crates and in peak season is

around )4 million crates per month. In urban area consumption

of soft drinks is 849 of whole market. Indian soft drink market is


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dominated by M,C companies Coca7Cola and PepsiCo ,on7

alcoholic beverage market in India& )//01.

The consumption of -oft drink in India has a share of

!3.59 within the non alcoholic drink industry. In )//! the total

market value of soft drink was */8.) 2 billion and e$pected to

grow *38.( 2 billion in )//0 'nalytics& Press :elease for ;nergy

drink& )//01

&2m3,/y A/,y0i0

The business of PepsiCo is based on its vision of making

tomorrow better than today PepsiCo India1.

In (050 PepsiCo entered in Indian market and became one

of the leading food and beverage companies in India. PepsiCo

India and its partners have invested almost ( billion


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?urkure brands. #or supporting operations in India it has !*

bottling plants& of which (4 are owned by company and

remaining )5 are owned by franchisee @ur Aistory& )//51.

&2m3etit2 A/,y0i0

PepsiCo has a good market share in India but facing tough

competition from Coca7Cola Company. Products of Coca Cola

Company such as sprite& Coca Cola& >imca and Thums


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&im,te Key Te/d0 4PEST5

P2iti*, 6,*t2: The governments response initially was

guarded in nature as well as individuals health. The government

has decided certain rule for beverage industry regarding to

production and also has decided level of ingredients like sugar&

carcinogenic pesticide etc that are used in soft drink. PepsiCo has

to follow seriously these rules and set of criteria PepsiCo India1.

E*2/2mi*, 6,*t2: -oft drink is not e$pensive and it is used

by most people. -o soft drink industry is not much tilted towards

the economic influences.

But the raw materials they use in their soft drinks& +uices and

snacks like sugar& vegetables& fruits and potato may slightly


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affect the production cost and the profit. The distribution channel

and transportation also affect the product cost slightly.

'nother factor is the role of government like increase in ta$.

S2*i, 6,*t2: People today are very trendy& sensitive towards

the advertisement. It means people drinking Dew are fashionable

and are very trendy. Taking this into account PepsiCo targeted

new generation people& and they are able to differentiate

between them.

-ome people are conscious about caffeine so they might

have negative anticipation about soft drinks. 'lso some people

think that soft drinks companies spread pollution in

manufacturing process. #or this Pepsi has a column in their

website mentioning about their social responsibility.

Te*7/228i*, 6,*t2: Technology for manufacturing and

packaging of a product& transportation of raw material or delivery

of a product is changing time to time& and thus it also affects the

production cost& transportation cost and unskilled labour.

Technology also plays a big role in packaging and designing of a

product.


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SWOT A/,y0i0

In this part we are going to analyses the strength& weakness&

threats and opportunity of the PepsiCo.

STRENGT9

(. PepsiCo has good brand name& reputation and broader

product line in international market.

). "ith the revenue of more than *0/ 2 million PepsiCo is

global leader in convenient snacks

*. International brand& innovative capabilities& strong

distribution network.

!. Pepsi is market leader in making of snacks& sports drink and

bottled water.

4. @ne of ma+or strength of PepsiCo that it has developed into

a large& strong organization because of its good franchise system.

3. -trong advertising campaign and marketing policy for

promoting brands.

8. lobal presence& -ponsorship& #ocus on most important

customer trend 7satisfactionE.

WEAKNESS


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(. Pepsi is far away from main competitor Coca7cola in

international market.

). More than 4/ percent of sales come from snacks #rito7lay1&

it is a big threat if snacks market comedown.

OPPORTUNITIES

(. #ood is must for everyone so it can be e$pand

internationally.

). @ffer and increase new healthy food and beverage because

people are moving towards healthy food.

*. The fastest growing part of industry is noncarbonated

drinks.

T9REATS

(. -trong competitor in the market like coca7cola& Cadbury

-chweppes& Craft food and small bottle firms.

). People are moving towards healthy food.


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M,et Se8me/t,ti2/:

roup of individuals who possess similar needs and choices

represent a segment of market. Mountain dew has segmented

itself mainly on the basis of demography and lifestyle in a niche

market of adventurer and e$treme sports. In this niche market

most of the consumers are youth. The key features of this

market7

A8e: Mountain dew is targeting the consumer of age ()7)5means youth or teenagers. Cold drinks are very popular among

this age group and became a part of lifestyle. In the term of life

stage this age group falls in youth or teenage who lives with their

parents and are depends on their parents economically. To target

this age group Mountain Dew is making its availability easily to

consumer in different volumes.

Li6e0tye0: They are targeting lifestyles of their consumer and

it is reflected in their advertisements. The chief and main

consumers of mountain dew are the youth who are ready to take

on e$citement& e$treme sporting and adventure. They are daring&

fun loving& confident and energetic. It is targeting the consumers

tendency of fearlessness.

I/*2me Le+e:It is not concentrating on income levels because

their target consumer can easily purchase the product as it is


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charging the standard price that is 3& (/& (4& )/ and !4 :s. for

different volumes. It is also not important because all the other

ma+or soft drinks also have the same price of their variants.

T,8eti/8: Mountain Dew is targeting customers which are

generally college students and young e$ecutives. enerally

customers of youth group are not concerned about price. This is a

niche market of adventurer& daring& and e$treme sports lover and

most of the people falls in this category are young.

P20iti2/i/8:

Positioning of brand or product is choice of a company to target

the market where it can compete and take advantage over

competitor David =obber& )//41. Positioning statement of

Mountain Dew by PepsiCo isF

To (37(5 year old males& who embrace e$citement& adventure

and fun& Mountain Dew is the great tasting carbonated soft drink

that e$hilarates like no other because it is energizing& thirst

%uenching& and has a one of a kind citrus flavour -himp& )//51

Companys positioning statement itself defining dews strategy

that this drink will target and made impact among the personswho are adventurer& funny& e$cited and daring. 'lso it is


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positioning itself by promoting itself as a high energy and citrus

flavour drink "atts& )//31.

Se8me/t,ti2/ T,be:

M,eti/8 Mi)

A8e 1%-;

Li6e

St,8e

Gouth and

Teenage

W72 -tudents and Goung

;$ecutiveLi6e0tye

0

'dventurer& ;$treme

-ports& DaringP20iti2/i

/8

;nergy and

;$hilaration drink


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The term Marketing Mi$ was originally developed by ,eil A.

Borden to e$plain the right combination& in a specific set of

situations& of the four foremost factors that are the heart of a

products marketing plan Mackay& )//41.

P2du*t: Mountain Dew is available in different sizes and

volumes

)//ml

)4/ml can1

*//ml

(.4 lt.

I/8edie/t0: :egular glass bottle contains carbonated water&

high fructose& corn syrup& concentrated orange +uice and other

flavours& citric acid& sodium benzoate& caffeine. -odium citrate&

gum arbic& erythorbic acid& calcium disodium ;DT'& brominates

vegetable oil and yellow 4. #or a regular glass bottle it provides

calories kcal1 ((/ and caffeine *4mg Product Details& )//01.

P2du*t Le+e: There are five type of product level which a

marketer need to concentrate on for the success of product

?otler& ?eller& ?oshy& H =ha& )//01.


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o &2e Be/e6it: The basic buying reason of that product by

customer. The core benefit for mountain dew is to %uench their

thirst.

o B,0i* P2du*t:Basic product is the vital features of that

product. Basic product for mountain dew is carbonated water

with some added flavours.

o E)3e*ted P2du*t:;$pected product for mountain dew is

a soft drink which gives more energy and taste to consumer.

o Au8me/ted P2du*t:It is the e$tra features provided by

company to their customer. It is giving more energy and taste to

their customer by providing them more caffeine in their offering.

o P2te/ti, P2du*t: It is the all possible changes and

transformation that a product can undergo in future. Because it istargeting youth it can modified its regular bottle shape into some

different and innovative way so youth can attract. It can launch a

new designed art form bottle CC> and Mountain Dew Turn the

'luminum Bottle into an 'rt #orm& )//51.

P2du*t &,00i6i*,ti2/0

Du,biity ,/d N2/ Du,biity: It falls under the category

of non durable goods because it is has been used on regular

basis by the consumer


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&2/0ume-G22d0 &,00i6i*,ti2/:


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Im,8e Di66ee/ti,ti2/: It has made a different image in

customer mind by its effective advertising. Their

advertisements generally consist of e$treme sports and

'dventure by which it is targeting youth Peter H @lson&

)//41.

P2du*t Mi) ,/d P2du*t Li/e A/,y0i0

P2du*t Mi): The width of product mi$ or the number of

product line offered by Pepsi in India is 4 and the length of

product mi$ is (!. The depth of Beverage product line where due

is situated is 3. These all product lines of Pepsi are consistent and

Pe30i&2 I/di, P2du*t

Be+e,8e0 Jui*e0 S32t0

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Pepsi Tropican

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atorade '%uafina >ays

Miranda Cheetos8up ehar

-lice ?urkureDukes >emonade


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related to each other as they all are drinks or snacks PepsiCo

India1.

P2du*t Li/e A/,y0i0: In product line analysis we can

classify mountain dew in specialties because lower sales with

higher promotion.

P2du*t De3t7: Mountain dew has no other variant

available in market. It is available only in one variant but in

different volumes i.e. )//ml& )4/ml can& *//ml and (.4lt bottle

so its product depth is !.

P2du*t Li6e &y*e: Company changes its marketing plan and

strategy as products life stage changes so it is important to

know that product is in which life cycle. -oft drinks industry is a

very old industry in India. It is now saturating and stepping

towards maturation stage of product life cycle. -oft drinks are

easily available in urban area and it is now getting popular in

rural areas also so it is better it to put it in the stage where it is

moving from growth to maturation.

Pi*e

Market segmentation& positioning and competitors pricing

strategy plays a ma+or role in defining a products pricing

strategy.


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In shaping price of a product a company should analyze the

consumers buying behaviour to purchase that product on the

basis of price ?otler& ?eller& ?oshy& H =ha& )//01. -o company

has to think * important aspects7

Re6ee/*e 3i*e0: It means what the other brands are

charging for the same. It is available at the same price as the

others products of the same category are available in market

our market research1.

Pi*e-=u,ity i/6ee/*e0: Many consumers take price as a

%uality indicator. Dew is a product of PepsiCo which has an image

of good %uality at low price in consumers mind.

Pi*e *ue0: Perception of consumers plays an important

role in price setting. In the beverage industry consumers have a

perception to give money in round figure so most of the prices in

this industry end with the digit of 4 or /.

Setti/8 t7e Pi*e:

' company has to take some steps before defining the price7

(1 See*ti/8 t7e Pi*i/8 Ob.e*ti+e0: The pricing ob+ective

for mountain dew is survival because intense competition in

sector as well as to increase market share they are using market

penetration pricing strategy #und& )//*1.


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)1 Detemi/i/8 t7e Dem,/d:The customer which mountain

dew are targeting are less price sensitive and also it is a low price

product so price do not effect so much to demand. It is in a

segment where price is inelastic and change in price doesnt lead

to a big change in demand #izz goes flatF ,on7colas have

slipped& )//51.

*1 E0tim,ti/8 &20t0:Before establishing the cost companies

have to count its own e$penses. Mountain dew has several costsin his production and distribution process like intergradient&

bottle& packaging& promotion and advertising& carriage etc.

!1 A/,y0i0 26 *2m3etit2(0 3i*e: ' company should also

take a look over its competitors price because it also helps to

determine price. Mountain dew has the same price as its rivals.

41 See*ti/8 t7e 3i*i/8 met72d0: PepsiCo has selected

value pricing method for its cola products because it wants

customer loyalty with low price and high %uality PepsiCo India1.

31 See*ti/8 6i/, 3i*e: 'fter passing through all this

process company decide the prices of product which will reach to

customer. "e have already mentioned the prices of different

variants of mountain dew1 sometimes on different occasions

company announces discounts or allowances but mountain dew

has no such type of strategy.


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Di0tibuti2/:

'fter company manufacture the product& it has to decide that

from how many and which type of channels through product will

reach to customer.

Mountain dew is PepsiCos product and PepsiCo has a huge

supply channel network for its entire product. Through these

channels it distributes mountain dew. -o instead of analyzing

supply channels of mountain dew we are analyzing Pepsis supplychain management and distribution systems @ur Aistory& )//51.

Mountain dew is available through intensive distribution because

it is easily available at everywhere. It has implemented this

intensive distribution to supply saturation e$posure of the market

by using all accessible channels. Thats why Mountain Dew is

available in all parts of rural and urban area at all the miniature

and large retails stores& supermarkets& departmental stores.

There can be zero to 4 levels of intermediaries implicated in the

intact supply chain before product reaches to the end consumer.

This is because India is a big country and PepsiCo dont actually

have an e$tensive network of sales agents& brokers and

additional force which is very important and is perfect for make

product approachable to the markets. This work is done by

distributors& wholesalers and retailers. The margins reserved by


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these mediators sort from )9 to 49. PepsiCo transported its

products from !* manufacturing units which are in separate parts

of India via different CH# agents or warehouses to distributors

who further sell it to the stockiest who lastly sell it to the

retailers. Because beverage industry is highly unstable and

vibrant so products should be available in market at all the time.

The supply of product primarily depends upon the %uantity

re%uired by retailers and it can be supplied on the regular basis

or after some intervals.

PepsiCo also have a bundled service with Pizza Aut where Pepsi

products including mountain dew is available with pizza at special

price. It is a zero level channel system. It has tie up with A to

distribute in rural area because A has a very large network in

rural areas of India. PepsiCo has provided +obs to (4//// people

in India including its distributors.


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P2m2ti2/

Ad+eti0i/8: #or advertising different kind of media is being

used by mountain dew which is as followsF

Television

:adio

Internet

,ewspaper

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Be+e,8e0 Jui*e0 S32t0

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Miranda Cheetos8up ehar

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@thers

The main product of PepsiCo is Pepsi but they are spending

849 of its advertising budget on mountain dew advertising.

Ad0 26 m2u/t,i/ de>

1?@ne of the most appealing ad of mountain dew is with tag

line cheetah bhi peetah haiE where it is targeting there target

customer by showing a fighting with a leopard for Dew. This ad is

suitable which its image of daredevil and fearlessness.

. -econd ad includes one man fighting with long horny

animal for the dew can. It also shows hardiness nature and also

tells how powerful the drink is with the tag line Do the Dew.

S,e0 P2m2ti2/

Mountain dew is not using many type of sales promotion because

it is in a niche market and customers are loyal. It is using some

contests on its website to create awareness about product and

the price for right answers is free adventure tour which is also

suitable to its positioning.

Pubi* e,ti2/0 ,/d 3ubi*ity

It is not using this tool of promotion very much but in recent in

the movie mission Istanbul it was one of the partners and got

publicity by this.


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E+e/t0 ,/d E)3eie/*e0

;vents are the important part of its promotion as it is targeting

youth. It is organizing many bike racing& mountain riding events

where youth participates. It has also organized road shows with

=agran -olutions for consumer awareness in (54 cities of 8 states.

W2d 26 m2ut7

This is the important way of promotion where satisfied customers

encourage other people who come in his contract. Mountain dew

is en+oying this tool of promotion because it is youth targeted

drink and satisfied youth themselves promote it as a good drink

among his friends.

P,/ 62 t7e Ne)t 1 ye,

'fter doing the whole analysis for mountain dews marketing

strategies we are now able to give our opinion that what should

company do for better results.

P2du*t

's we have already described that what is the mountain dews

product strategy at the time so now we will only emphasize on

the key points they can change in their product.


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There is only one flavour of mountain dew available in

Indian market. "e will make this e$isting mountain dew more

specifically targeted at these youngsters by including additional

features like stylish shape of bottle and design etc.

"e will launch more variant of mountain dew like caffeine

free mountain dew for the consumers who are more health

conscious& flavoured mountain dew which can be lemon& orange

etc. "e will also like to launch an energy drink variant of Dewwhich made of coconut water.

Mountain dews differentiation strategy is good at the time

and it has made an image in customers mind. "e will also like to

differentiate it on the basis of social awareness issues like

pollution& poverty& population& corruption etc. with this strategy

we segment market on the basis of psychographic.

Pi*e:

Mountain dew is available at different price range in India.

'll prices at which it is available are reasonable and less

marginable because of intense competition in market. 'll the soft

drinks in Indian market are available at same price range so it

cant hike its price also it cant cut down prices because already


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there are less margins. But there are very less discount offer are

provided by mountain dew so it can give some discounts on a

bundle purchasing like 4rs. @ff on the purchase of two )liter

Bottles.

P2m2ti2/

There is no brand ambassador for it so we will like to

select a brand ambassador to endorse and promote mountain

dew. "e will like to select ,arayanan ?arthikeyan as the brand

ambassador for it because he is from #( racing and suitable for

the brand image of mountain dew.

"e will to promote it mostly near colleges and BP@ centres

because most of the people there are young. In beverageindustry personal selling is not applicable. Instead of this we like

to sponsor more adventurer program and associate with them.

"e can also advertise on the social and public issues like

pollution and corruption because todays youth is so sensitive

about these issues and he will associate themselves very soon

with these advertisements.

P,*e


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Indian soft drink industry is estimated to grow at 59 per

year so it is important to secure good supply throughout country.

#or this we will apply Pepsi Bottling roup PB1 in India because

it has successfully managed PepsiCos distribution in


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communication. To defeat both competitors we would like to

organize some adventures events and road show.

&2/*u0i2/

'fter analyzing and describing the whole marketing

strategy of mountain dew we can conclude that mountain dew is

doing well in market. "e want to conclude that practices makesimproved but not ideal so we hope that this report will help

PepsiCo to improve results. "ith the best marketing plan a

product cant be successful because outside forces will affect it

but with the marketing plan process you can achieve success

because then you are also adopting conditions.


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market plan mountain dew

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