target market who does pepsico market mountain dew to?
TRANSCRIPT
Target Market
Who does PepsiCo market
Mountain Dew to?
Who first bought Mountain Dew?
• It was originally marketed as “zero proof moonshine”
• Until 1973, it had pictures of hillbillies on the bottles
Who buys it now?
• 12-30 year old demographic group
• Extreme Sports Fans/Athletes
• Outdoor activists
• Video Game Culture
Why would one need MD?
• Physiological needs- Need for drink
• Social needs- Need for status
• Personal needs- Fun and relaxation
What influences one to drink MD?
• Extreme Sports Athletes
• Video Gamers
• Celebrities
Product Strategy Plan
Features/Benefits
• Fourth Best Selling Soft Drink in the United States• 2.7 Billion Dollar Industry• By far the biggest contributor to Pepsico's gains in recent years. • 10 percent of Pepsico's worldwide carbonated-beverage
volume• Bright yellow green soft drink• Caffeinated• Sweet Limon Lime Flavor• Citrus Flavored • Has Orange Juice for a tangy but smooth taste• Energy Booster- 55 mg per 12 ounce per can
Product Line
• Mountain Dew• Diet Mountain Dew• Mountain Dew Code Red• Mountain Dew Live Wire • Mountain Dew Baja Blast• Mountain Dew Amp Energy
Packaging
• 12 Ounce Cans• 20 Ounce Bottles• 1 Liter Bottles• 2 Liter Bottles• 12 Ounce Glass Bottles• 12 Ounce Aluminum Bottles
Competitive Situation
• Mountain Dew- Holds about 85% of the heavy citrus market
• Mello Yellow- Holds a distant second at 11%
• Sundrop- Only about 3%• Royal Crown Cola’s Kick- Only at 1%
Differentiation
• Offers a variety flavors
• More popular
• More commercials
• Offered at more places
• Well known company backs it up
Place/DistributionStrategy
How does PepsiCo get Mountain Dew to
consumers?
Bottling Plant to Distributor
• When inventory gets low at PepsiAmericas, in Sedalia, electronically orders more Mountain Dew
• P-A receives about 85% of it’s products from a Kansas City bottling plant
• P-A receives the other 15% from a St. Louis bottler
What does Pepsi Americas do?
• Gets Mountain Dew to retailers• Builds displays, coolers, and shelves• Places vending machines• Discusses delivery and placement
with retailers
Mountain Dew channels of distribution
Who purchases Mountain Dew from Pepsi Americas , to sell to
consumers?
Mass Merchandisers and
Supermarkets
• Largest purchasers of Mountain Dew• Stores include: Wal-mart, Sam’s Club,
Target, and K-mart• Merchandiser and P-A work together• P-A’s account mgr. will visit store 3-4
times per week• Deliveries occur about 4 times a week
C&GConvenience & Gas
• Stores include: Casey’s, BP, Shell, and Conoco
• Trucks deliver based on previous sales volumes
• Merchandiser and P-A work together
Food Service
• Stores include: Rib Crib, Applebee’s, Taco Bell, and Arby’s
• Trucks deliver based on previous sales volumes
• P-A and store mgr. discuss selection
Full service Vending Machines
• Placed in public places or in/near businesses
• Business gets check at the end of each quarter
• P-A maintains, stocks, and collects money from vending machines
• Highest Gross Margin of all channels
Other Channels
• These include: schools, golf courses, offices, and hospitals
• Trucks deliver based on previous sales volumes
Advertising
• National Commercials-Chuck Norris Commercial• Website-Graphics-Games-capture the cube-Pro Athlete Profiles and facts-Commercials
Advertising
• Billboards
• Magazines
• Giveaways(X-box, cars, games etc.)
• Partner with Halo and introduce a limited edition “Game Fuel” flavor
Promotion
12 limited edition bottled designed by various artists www.greenlabelart.com
DEWmocracy.com The Next Dew is Up to You• Consumers help create a new flavor
Sponsors• X Games
• Dew Action Sports Tour
• Mountain Dew Vertical Challenge
• NASCAR
Price Strategy
• Pepsico Line• Ingredients• Economy• Competition• Price over time
Pepsico Line
• Same price strategy for the entire Pepsico line– Pepsi– Diet Pepsi– Mug Root Beer
Ingredients
• Demand of sugar– If price of sugar increase then price of Mountain
Dew will increase• Has to be able to adjust to the price inflations
of ingredients used
Economy
• Have to be able to adjust to the economy• Gas Prices– Gas prices increase– Cost of distribution increases– Therefore cost of product will increase
Competition
• Close competitor– Mellow Yellow, Coke Brand
• Have to be able to compete with Coke brand– Keep prices at a low cost– Have a high demand
Price Over Time
• 1985 2-liter– $0.89
• 2005 2-liter– $1.09
• 20% increase over 20 years• Shows price strategy reacts to economy over
time– Keeps a high demand