Mountain Dew case analysis
PepsiCo, Inc. is among the most successful consumer products companies in the world, with 1999 revenues of over $20 billion and 116,000 employees. “Do the Dew!” This was a long time tag line for the Mountain Dew brand. In 1995 marketing managers for Mountain Dew realized the tag line had lost consumer interests, understanding this they changed the direction of the creative. Some of PepsiCo’s brand names are 100 years old, but the corporation is relatively young.
PepsiCo’s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of their people. PepsiCo decided that in 2000 Mountain Dew would be featured during the Super Bowl rather than Pepsi. PepsiCo management had learned that selecting the right creative was one of the most critical decisions they made in terms of impact on sales and profits. Mountain Dew had carried PepsiCo’s soft drink revenues during the 1990s as cola brands struggled.
STATEMENT OF THE PROBLEM: The problem that the company appears to be facing is how to keep their current campaign “Do the Dew” working to build on their brand image. Also Mountain Dew had to stay competitive with other caffeinated and sugary energy drinks and non-carbonated drinks.
To sustain the “Do the Dew” campaign
To cater to the threat of non-carbonated soft drinks competitors.
PepsiCo’s became the largest carbonated drink at retail
PepsiCo’s top marketing executives routinely relied upon to help guide branding decisions.
Mountain Dew was becoming less of a niche brand
Mountain Dew’s national media plan focused on a younger audience.
Lack knowledge on the ads presented
ALTERNATIVE COURSES OF ACTION
ACA 1: Additional one month to time frame of viewing the ad in commercials
Consumers will better comprehend
Might be boring
– More competitors
ACA 2: Choosing Cheetah, Dew or Die and Showstopper concepts
More interest is given to rival’s consumers
Might be boring
ACA 1, which is having an additional one month to time frame of viewing the ad in commercials, is highly recommended for it give the viewer a better comprehension of the ad and of what the ad is telling. Also, the consumers will surely remember the ad when it is presented all time in commercials.
Month of February
Sponsorship of fun-run where contestants wears t-shirt with the “Do the Dew” statement Scott Moffitt (Marketing Director, Mountain Dew)
Month of July
Organize a huge party where free mountain dew products are provided exclusively to the following people who attends Scott Moffitt (Marketing Director, Mountain Dew)