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Relaunching Mountain Dew in the U.KTRANSCRIPT
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
2
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
4
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
8
Mountain Dew has strong brand awareness
76%
24%
Brand Aware
Brand Unaware
9
Consumers show high probability of purchase of Mountain Dew
10
57% 19%
24% Brand Aware,Would Buy
Brand Aware,Wouldn't Buy
Brand Unaware
Mountain Dew can compete with existing CSD competitors for share
11
0%
10%
20%
30%
40%
50%
Carbonated soft drinks’ brand U.K. market share
PepsiCo can compete with existing energy drink competitors for share
12
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
15
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
17
PepsiCo can leverage its existing promotional ties
• Retail consolidation increases importance of relationships with major vendors
• Opportunities exist to renegotiate contracts annually
18
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.
19
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
20