market plan mountain dew
TRANSCRIPT
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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
Di/
B2tted
W,te
S/,*0
Pepsi Tropican
a
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
Pe30i&2 I/di, P2du*t
Be+e,8e0 Jui*e0 S32t0
Di/
B2tted
W,te
S/,*0
Pepsi Tropican
a
atorade '%uafina >ays
Miranda Cheetos8up ehar
-lice ?urkureDukes >emonade
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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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