a new morning for mountain dew

A New Morning for Mountain Dew

“A New Morning for Mountain Dew”

Name: Ali Zafar

Class: MBA-3(A)

Course Title: Brand Management

Course Instructor: M.A Butt

“MD-ULTRA”

Brand Management


TABLE OF CONTENT

Brand Management

NO. TITLE Pg #.

1 AKNOWLEDGEMENT 03

2 INTRODUCTION TO THE CASE 04

3 CASE HISTORY 05

4 SWOT ANALYSIS 06

5 MARKETING OBJECTIVES 07

6 BRANDING STRATEGY OBJECTIVES 07

7 SEGMENTATION STRATEGY 08

4 POSITION STRATEGY 08

5 Marketing Mix 09

6 BUILDING BRAND STRATEGY 10

7 RECOMMANDATION TO THE MANAGEMENT 11

8 ATTACHMENTS


ACKNOWLEDGEMENT

First of all I would like to thank Almighty Allah for blessing me with the strength, courage and temperament to go through all the case study. He has been very kind upon me and helped me at every step where I needed assistance and companionship.

It has been an honor for me to work under the supervision and guidance of respected Sir Muhammad Ahmed Butt who, at every step cooperated with me and corrected me regarding my approach towards this report.

For many times, I consulted him in case of problems, where he whole-heartedly assisted me.

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Introduction to the Case

I am assigned by PepsiCo as their consultant to work out the provided case study and prepare the case study analysis. In order to do this specific task, I have studied the whole case comprehensively and in depth. While doing so, I moved toward with some major judgments and recommendations which have been discussed in the following pages.

PepsiCo is a very reputative company, but like other companies, PepsiCo too has some Strength and weaknesses and being a gigantic it has some threats and opportunities as well which are also conversed in the subsequent pages. I was asked to make the SWOT analysis, strategic brand objectives and branding strategy. I have planned PepsiCo branding strategy associated with its eminent brand “MD-ULTRA”. I have applied consumer based brand equity (CBBE) model, four steps of strong brand building that comes under it,4P's and point of difference. At the end, I have given some important recommendations in order to improve the weaknesses faced by the company and also preparing for the threats to be faced in the future

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History of the Case

Mountain dew was first launched by PepsiCo in 1969. At that time its target market was urban teenagers for which its starts its advertising on MTV channel. Slowly and gradually Mountain dew start capturing the market share and in 1980’s market share shoots to 7.2% from 2.7% in 2000. That was the first time mountain dew was consider as the fastest growing major soft drink.

In early era tag line for mountain dew was “Yahoo Mountain Dew!! It’ll tickle your innards”. In early 1990’s mountain dew start focusing its advertising campaign on sports including skateboarding, skydiving, and snowboarding. That was the time mountain dew changed its tag line “Do the DEW”. Despite focusing on X sports, mountain dew also hired the hip hop star “BUSTA RHUMES” in its marketing campaign

In 2000, mountain dew comes up with an extension in product line with “Dew Code Red” which was cherry flavor drink and had unqualified success in initial stage. Mountain dew also launched a loyalty program “Dew You” to attract and keep its audience loyal.

Later in 2005, Mountain Dew launched a highly caffeinated drink named MDX. Before launching it, they called for several games for “Beta Test”.

Through this move sales volume grew to 1.5% in 2004 and in 2006, mountain dew was the “4th ranked among carbonated beverages in America” in terms on sales.

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SWOT ANALYSIS

STRENGTH:

Mountain dew is carrying strong brand. Companies maintain healthy relationship in upstream. Collective bargaining agent (CBR) behavior is more profession. International component portrait reasonable and friendly environment. Mountain dew is financially sound Production policies/procedure/systems are reasonable consistence with industry

spelled out standards.

WEAKNESSES:

Customers have become savvy. Reasonably saying customers are less inclined towards mountain dew brand. Mountain dew is facing extreme competition both from direct and indirect competitors. The strategic directions including vision/mission/ and corporate objectives needs

improvements. Marketing management is reasonably suffering from miss management. HRM needs improvements in the functional area.

OPPORTUNITY:

USA economy is packed by recession however, economies still manageable. Mountain dew is reasonably fit to take care for social shifts. Mountain dew is adhering to the convenient/ articles of laws. Mountain dew is adequately equipped with receipt technology.

THREATS:

The industries experiencing social shifts and society are seeking out value in there. The industry is subject to regress laws pass by the government from time to time. USA political/government pare subject to some sort of instability. Overall the industry is also feeling the impact of technology.

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Marketing Objective

Creating awareness of goodness of exercise for health. Enhance the Brand Equity of MD-ULTRA over time. Get the market share approximately 30%. To return at the sale sales level of MD-ULTRA in three months instead of six months.

Brand Strategy Objectives

The branding strategy in this case is to make awareness about the newly launched product name “MD-ULTRA”. It is about how uniquely we position a product or company to make it the most compelling and appealing to its prospective customers? This should precede all other marketing, including naming, as everything should flow from the brand strategy. It is basically a plan of action for accomplishing the objectives. As I have defined the objectives previously, so now I have to plan the branding strategy according to those objectives. Since PepsiCo has never come up with the idea of energy drink or something like “MD-ULTRA”. Therefore, in order to gain the share of mind and share of heart, the brand needs to be unique with others with the help of certain strategies and branding model.

Brand Image:

As PepsiCo and Mountain dew has never come up with anything like “MD-ULTRA”, so we have to focus on those market which is highly involved in consuming energy. Sports like Rugby, American Football etc. Our market is also for those who work heavy work out.

Brand Association:

Brand associations are those pleasant images which customer associates with the current consuming brand. This could either be a celebrity, smell, color any image etc… In case of our case our primary associations will be Mr. Olympia, (Dorian Yates), Michael Jordan, Muhammad Ali.

Our secondary associations will be high profile models, silver bottles and red caffeinated beverages.

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http://www.neubertweb.com/definitions.html#P


Segmentation Strategy

As previously when Mountain Dew was launched in 1969 its target market was urban teenagers. And now in 2007 when a new an extension has arrive with a name “MD-ULTRA” we have chosen psychographics segmentations.

Our targeted consumers will be above 20 males and specially high profile body builders.

Target market:

Segmentation: divide the market into distinct group of homogeneous customer who have similar needs, behavior and who require similar marketing mixes.

Nature of competition :

In energy drink sector there is moderate type of competition. Red Bull a competitor enters a market with low price attracting the consumers.

Point of difference: “MD-ULTRA” provide unique selling proposition (USP). It increase stamina and gives extra boost energy and provide high quality and performance.

Positioning Strategy

Focusing particularly on the body builders and those sports athletes which really make the maximum use of their muscles, MD-ULTRA would not need to customize the market much. Because, whoever they serve, they would have the same formulation for the beverages.

The filtration and the segmentation criteria are not going to be really hard to be measured. But, the positioning would take time.

MD-ULTRA would have to position the brand in the minds of the consumers in order to gain their maximum trust. The company will have to build the trust that it will enjoy for years.

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MARKETING MIX (4P'S)

PRODUCT STRATEGIES:

Accurately paying attention on customer’s perceived quality and value of the product. Focusing on MD-ULTRA intangibles as well. Conduct loyalty programs and after marketing. PRICING STRATEGIES:

Adopt value pricing. Price of the brand will be found by consumers appropriate and reasonable. Do not charge premium at the high level.

CHANNEL STRATEGIES:

Adopt direct channels. Selling through stores or malls. Selling through electronic means.

PROMOTIONAL STRATEGIES:

Extensive advertising through both radio and television to make the consumers aware about the MD-ULTRA.

Sales promotion to increase the market share and for speedy awareness. Internet promotion through websites and online ads. Billboards promotion. High quality posters in Gyms and health clubs

Brand Management


BUILDING BRAND STRATEGY

CBBE MODEL

This model will help PepsiCo to incorporate theoretical advances and managerial practices in understanding and influencing consumer behavior.

1. Salience :

MD-ULTRA is an energetic product which gives extra energy and confident. PepsiCo should make consumer to recognize the MD-ULTRA brand when it is presented to them, and they should think of MD-ULTRA brand when ever considering maximum boost of energy. Thus consumer must think of it when ever certain set of need arises.

2. Performance :

Primary ingredient: is a carbonated drink and energizer protein. Secondary ingredient: is that it increases stamina. Reliability: is that it quickly gives energy and increase stamina, consumer trust it Service effectiveness: it satisfies the need and requirement of consumers. Style and design: MD-ULTRA comes in triple-sealed tamper proof package. Price: PepsiCo price MD-ULTRA at $ 2.5 higher than competitor.

3. Imagery :

How MD-ULTRA will meet the customer psychological or social need through User profile: divide its user in psychographic factor and demographic factor. Purchase and usage situation: consumer can buy MD-ULTRA without

prescription, for increase stamina.

4. Brand judgment :

Customer personal experience and evaluation of MD-ULTRA brand. Brand quality: MD-ULTRA brand has a good quality it satisfies consumer and

increase stamina without any side effects. Brand credibility: MD-ULTRA has come up with triple sealed tamper proof

packaging by keeping in view consumer interest. And this creates likability of purchasing MD-ULTRA.

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Brand consideration: getting so much attached to it consumer will go to recommend MD-ULTRA to others.

5. Feeling :

Security: it provides a feeling of security can be buying without a prescription.

6. Brand resonance :

Loyalty: consumer will prefer to buy it in any condition because they prefer it over other energizer drinks.

Attachment: MD-ULTRA satisfied all their need in an effective manner so consumer has a sense of attachment to it.

RECOMMANDATION TO THE MANAGEMENT

Make sure the channel distribution system is safe and effective. After the launch of product I would be offering a couponing scheme for the free trial of

the product. I would make people aware beforehand that tamper resistant packaging will be shortly

available in market within the period of two months. I would offer reward to apprehend the culprit of tampering and the compensation

money to the affected consumer individuals. I would recommend PepsiCo to do relationship marketing, accompanies with mass

customization, after marketing and loyalty programs.

Brand Management

a new morning for mountain dew

Documents

mountain dew

branding strategy

brand management

urban teenagers

increase stamina

target market

ultra brand

market share