Marketing Plan

 Muhammad shafique
 Farhan Adeel
 Umair Qyum
 Tahir Ashfaq
 Fatama Batool
 Sabahat Naheed
 Rao Khalil
 An
Overview
For
International Market
For
CSD
 E STIMATED WORLDWIDE
S ALES IN B ILLION D OLLARS
US TOP 10 CSD C OMPANIES
C OKE VS P EPSI
 PAKISTANI SOFT DRINK
INDUSTRY

 About 75 million cases a year for Pepsi alone

 The total beverage market is about 120 million

cases of which 65% are Pepsi products

 About 22% are Coca-Cola products

INTRODUCTION
TO
MOUNTAIN DEW
 C HANGED B RAND
P OSITIONING

 Mountain Dew used to be positioned as the

hillbilly soft drink.

 They didn’t change the formula of the drink, they

simply changed its packaging and marketing.

 Now you can’t keep Mountain Dew stocked in

any soft drink machine patronized by kids.
 M OUNTAIN D EW

 Mountain Dew A Product of PEPSI CO

 Mountain Dew has grown a staggering 74.1%

over the last five years.

 Mountain Dew has a 6.3% market share

 Recently become the #4 soft drink in world.

 Mountain Dew is the first non-cola to reach to 1

billion gallon mark in one year.
 M ARKETING P LAN CONTENT

We Have Covered The Following For Our Marketing

Plan

 RETAIL SURVEY

 CONSUMER SURVEY

 SWOT ANLYSIS

 MARKETING MIX

 ACTION PLAN

 MARKETING STRATERGY
 S URVEY F INDINGS

S URVEY F INDINGS

R ETAILER
 F OCUS G ROUP
TOP OF M IND

 When asked what is the first thing that comes to the

mind when we hear the word Mountain Dew What
comes to your mind we got the below answers
 S URVEY F INDINGS

In which business you are in?

0% 0%
17%
Fast food
50% Super Store
Retail Store
33%
Bakery
Metro (or Whole Sale)

Which soft drink brands you sell? (Tick the appropriate)?

4% Coke
4% 11% 15%
PEPSI
7% Mountain Dew
18%
Sprite
15%
7UP
26% Fanta
Miranda
3G
 S URVEY F INDINGS

Do you have refrigeration system available (if “No” then proceed to 9)

Yes
No

Refrigerators for soft drink provided by the company

0%

40%
1
60% 2
3
 S URVEY F INDINGS

Refrigerators for soft drink provided by the company

0%

40% PESI
60% Coke
Other

Soft drink users in term of gender

30%
a. Male
70% b. Female
 S URVEY F INDINGS

Out of thirty (30) days, how many times you face “Out Of Stock” issue?
0% 0% Coke
PEPSI
Mountain Dew ____
50% 50%
Sprite
7UP
Fanta
Miranda ____ ____
0%
0% 3G
0%
0%
Perceptual Map

Coke
5
4.5
Team 4 PEPSI
3.5
3
2.5
2
1.5 Distribution (1-5)
3G 1 Mountain Dew Availability (1-5)
0.5
0 Profit (1-5)
Demand (1-5)
Refrigeration (1-5)

Miranda Sprite

Fanta 7UP
 Survey Findings For
Consumer
 S URVEY F INDINGS

Which drink you preferably choose?

10%
5%
5% Soft Drink
Shakes
80% Fresh Juices
Mineral Water

If you choose soft drink then which soft drink you drink most?

Coke
4%
12% 14% PEPSI
2%
8% Mountain Dew
6%
4% Sprite
50% 7UP
Fanta
Miranda
3G
 S URVEY F INDINGS

Reason of choosing the above drink

10% 4%
4% Taste
Brand Name
24% 58% Company Profile
Color
Ingredients

Alternate brand if your favorite brand is not available?

Coke
PEPSI
24% 20% Mountain Dew
6% 12% Sprite
0% 30% 7UP
4% Fanta
4%
Miranda
3G
 S URVEY F INDINGS

From where you mostly purchase the soft drink

Bakery
0%

30% 40% Local shop

30% c. Super Store/

General Store
d. Metro/
Wholesale

Your age
4% 10%
12% Below 14
14 – 18
30% 44% 19-23
23-35
35 – 50
 S URVEY F INDINGS

Your current title is

2% Housewife
6%
14%
4%
Student

Businessman
18%
52%
Working in a local company below senior
4% management
Working in local company at Senior
management level
Working in multinational company below
senior management
 S URVEY F INDINGS

Your current salary (in Pakistani rupees)

0%
10% None
8%
Below 8,000 PKR
12%
52% 8,001 – 17,000 PKR
18% 17,001 – 33,000 PKR
33,001 – 50,000 PKR
50,001 – 100,000 PKR

How many family members you have

12% 10%

1-3
28% 4-6
50%
7-9
10 and above
 S URVEY F INDINGS

Perceptual Map

Coke
5
Team 4 PEPSI
3
2 Color (1-5)
3G 1 Mountain Dew Taste (1-5)
0 Brand (1-5)
Image (1-5)
Ingredients (1-5) (1-5)
Miranda Sprite

Fanta 7UP
SWOT ANALYSIS
 SWOT

STRENGTH
 Demand of Mountain Dew is more than its competitors.
 Company has a very established name and a good
reputation.
 Mountain market share is increasing with great rate than
its competitors.
 As the target customers of Mountain Dew is young
generation, so Mountain Dew has more brand loyal
customers.
 Mountain Dew spends a lot of budget on its advertising.
 Mountain Dew has a very vast distribution channel and it
is easily available everywhere. The Distribution Channel
used is same for Pepsi
 SWOT

WEAKNESSES
 Mountain Dew does not offer any sort of incentive or
discount to its retailers.
 Mountain Dew target only young customers in their
promotions.
 Crown of the disposable bottle is not good.
 Demand of disposal bottle is declining.
 Mountain Dew tin pack is not available in far off rural
areas.
 Mountain Dew is not considering many potential outlets
like hotels, college canteens etc.
 SWOT

OPPORTUNITIES
 Company may start entering rural areas also.
 The company may also diversify its business in some
other potential business.
 Increased interest of people in musical groups,
cultural shows and sports has provided an
opportunity for Mountain Dew to increase its sales
through them.
 Cola drinks are not good for the health so the
awareness level of the people is in creasing which is a
big threat to the company.
 SWOT

THREATS

 The main competitor of the company is the

Sprite and Sprite 3G.

 At the local level, Mountain Dew has a very

strong competition with different type of cola
and non cola products.

 Sprite has started its advertisements more

effectively to increase their demand and it is a
very strong threat for Mountain Dew.
MARKETING MIX
 P RICING

 250 ml: 12/-Rs

 1.5 Liter: 60/-Rs
 2.25 Liter: 75/-Rs
 PRODUCT OUTFLOW

 Pepsi Cola International has given franchises all over

Pakistan with plants in different parts of Pakistan e.g.

 Pepsi has 12 different units in different areas of Pakistan.

 The cities in which the Pepsi units are: Lahore, Sukkur,
Karachi, Multan, Dera Ghazi Khan, Islamabad, Faisalabad,
Quetta, Hyderabad, Sahiwal, Hattar
 CHANNELS OF
DISTRIBUTION

 Direct Distribution

 Indirect Distribution

 Local Zone

 Outside Zone

 Direct Routs – 45

 Authorized Dealers - 17

 Agencies – 62
 COMPETITION

DIRECT COMPETITION

 The direct competitor of Mountain Dew is Sprite 3G.

THE INDIRECT COMPETITION

 The indirect competition of Mountain Dew consists of all the other CSD’s including the
following:

 Major competitors like Sprite and Coke etc

 Within the company i.e. Pepsi & 7UP etc

 Other brands e.g. Gourmet Cole, Shandy Cola, Double Cole, Mecca Cola etc

 Local products in each country i.e. lemon soda etc

 Laal sharbat Substitutes e.g. Jam-e-Shierien and Rooh Afza.

 Other substitutes like tea and lassi etc

 P RODUCT POSITION

Positioning statement
Existing

“To 16-18 year old males, who embrace excitement, adventure and fun,
Mountain Dew is the great tasting carbonated soft drink that exhilarates
like no other because it is energizing, thirst quenching, and has a one of a
kind citrus flavor”

Proposed
“To young and mature fun loving male and female, active soft-drink
consumers who have little time for sleep, Mountain Dew is the soft
drink that gives you more energy than any other brand because it has
the highest level of caffeine. With Mountain Dew, you can stay fresh
and keep going even when you have not been able to get a good
night’s sleep”
 M OUNTAIN D EW
P OSITIONING S TATEMENT:
 Target group
 Young, active soft-drink consumers with little
time for sleep
 Benefit
 Gives you more energy than rival brands,
because it has more caffeine.

 Resulting goal facilitation

 You can stay alert and keep going even when
you haven’t been able to get a good night’s
sleep.
 P REVIOUS C AMPAIGNS

 MOUNTAIN DEW was able to attract a certain set of

customers to buy the product by associating itself
with young people who are energetic, fun loving and
daring.
 The taglines in the commercials such as "DEW NA KYA
TO PHIR KYA KIA" , "DO THE DEW" and "DUR KAY
AGAY JEET HAI" left a very good impact on this certain
set of consumers.
 People who inhabits these attributes of outgoing, fun
and daring felt itself highly associated with the brand
"MOUNTAIN DEW".
 PRODUCT LIFE CYCLE

 In Pakistan “Mountain Dew” falls in “Growth

Stage” of the Product Life Cycle.

 Mountain Dew is a New Product Category and it

has recently moved into its growth stage.

 It has gained acceptance, the sales have

increased more which has results in the
increasing production process.
 KEY ISSUES
Strengths

 the mother brand is so strong, it helped Mountain Dew a lot in

creating its name in the beverage industry

Weaknesses

 The increasing inflation rate in Pakistan may result in an upcoming

weakness for Mountain Dew.

 Secondly, fragmentation in the beverage industry of Pakistan is

another weakness.

 Thirdly, and most importantly, The ever increasing popularity of

Mountain Dew might be a threat to the parent product and
cannibalization of market share of own products

Opportunities

 People are now fed up of ordinary cola’s and citrus segment like
mountain dew, sprite 3G etc.
 KEY ISSUES
Threats

 The biggest threat for mountain dew is the competition threat from Sprite, “Sprite 3G”
and a little threat from energy drinks like “Red Bull” etc. Before Sprite 3G, Mountain Dew
enjoyed the monopoly in the citrus segment of CSD’s industry. Now, the competition is
very high between the two brands. Secondly, from the Pepsi’s perspective, Mountain Dew
can be a threat for the mother brand.

 Stronger built image by COKE in local market in recent years

 Effective distribution network by competitors

 Change in consumer preferences and taste

 Increased costs/ disruption of supply and shortage of raw materials

 Unfavorable economic conditions due to global financial crises

 High quantity of caffeine may be taken as negative

 Internal hit on the sales of parent brand PEPSI

 Brands like Mecca Cola trying to create an image of an Islamic brand.

 F UTURE O BJECTIVES

We are continuing with the same campaign along

with adding the new potential segment age 12-29
Demographics
 The new target segment would be:
Age Group
 12-29
Gender
 Male and Female
 F UTURE O BJECTIVES
Geographic:

 From a national perspective, Mountain Dew is consumed more in urban areas than rural areas, probably due
to the massive campaign targeted there.

Psychographics

 Activities:
People who are involved in adventurous activities like mountain climbing, car racing, hunting etc are
targeted in its promotional advertisements, as the concept behind “Dew” is something thrilling.

Interests:
People who are interested in recreational activities.

 Opinions:

 People who want to have fun and thrill in their lives are targeted by the Mountain Dew advertisements, as it
inspires the people to try it out, without which life is considered dull and boring.

Behavioral

 Usage rate:

 It is medium probably because of the high level of caffeine it has


P OPULATION P YRAMID FOR
PAKISTAN 2007
 G OALS & O BJECTIVES

CURRENT

 Total annual sale of soft drink in Pakistan 120 million

 Pepsi annual sales in Pakistan 75 million

 Market share of Pepsi 65%

 Market share of Mountain Dew is 22.1% (30% within Company)

 Consumption growth 1.7 % per year

TARGET

 Our sales target for the coming year is to increase sales up to 30 million.

 Achieve at least 38% of the Share within the company.

 Whereas increasing total market share by 2.9% (22.1% to 25%).

 S ELECTING M EDIA

Selecting Media Outlets

 With an objective and a budget in place, the

advertising campaign needs to focus on
developing the message.

 PepsiCo’s main product and major CSD is Pepsi,

hence they are spending additional 25% budget
on Pepsi advertisement, and 75 % of Pepsi’s
advertising budget is being spent on Mountain
Dew advertising
 S ELECTING M EDIA

 Will be able to support Mountain Dew to cover all

these media:
 1. Television
2. Radio
3. Print Publications
4. Internet
5. Direct Mail
6. Sinage
7. Product Placement
8. Mobile Devices
9. Sponsorships
 S ELECTING M EDIA

SUGGESTIONS

 The marketing world is full of surprises. Who could imagine that Coca Cola would be overtaken by Pepsi? If
Coke could be overrun by Pepsi, it would be no wonder that Pepsi might be overtaken by some other
beverage. The need then is to combine quality with ingenuity. Along with that, the reputation of the
company has to be kept robust.

 Today we live in a fast moving world where novelty and newness count a lot. One cannot rest on one’s
laurels. Fresh efforts, newness of approach must remain the cardinal principles of a well orchestrated
marketing strategy and the campaign must be relentless. A continuous bombardment in advertisement
would convince the clients that Pepsi is a part of their lives. In order to live with style, Mountain Dew ought
to be an essential ingredient of one’s life full of adventure and thrill.

 The Mountain Dew is at its growth stage and the sales of the product are growing very rapidly. Company is
doing a lot of promotional activities to let the product grow in the market. It holds a large share of the
market and whenever the sales state still, the company can improve it by different promotional activities.

 Marketers of Mountain dew can try to improve sales by improving one or more marketing mix elements.
They can cut prices to attract new users and competitor’s customers. They can make better distribution
strategies to the areas where still it is not available. They can also launch a better advertising campaign or
use aggressive sales promotion to improve the sales. A lot more work is required on cannibalization as well.
 A CTION P LAN AND
I MPLEMENTATION

First Quarter

 TVC Ads in the first quarter

 Ad shall appear four times a day for 30 sec 4 days a week on Geo TV,
and Other channel which have better options.
 Two times from 8:00 pm – 9:00 pm
 Two times from 10:00 pm – 11:00pm
 Radio Ads
 Ad will be on air four times a day for 10 sec 4 days a week on FM-
Channels (KHI /LHR /ISD)
 Ad will be on air 2 times from 8:30 am – 9:00 am
 Ad will be on air 2 times from 5:30 pm – 6:00 pm
 B UDGET P LAN F OR 1 ST
Q UARTER

o Initial cost Installment plan

 Installment plan to be offers for the initial cost to

be broken up in 10 months installment
 Budget
 127,200,000.-Rs shall be spent on TV Adds for 01
Quarter

 448,000 Rs shall be spent on Radio Adds

 CONCLUSION

 Mountain Dew is a well renowned brand and it

has maintained its position well by understanding
the client psychology, by ensuring quality, by
introducing ingenuity in products, by enlarging its
product base, by keeping economic factors in
view and by intense and jazzy advertisements.

 Whenever and where ever there is a spotlight

event, Mountain Dew must figure in, like the one
day international cricket matches between India
and Pakistan many other such occasions. The key
word for success in the Marketing World is to
“remain in the spotlight” and that is what
Mountain Dew should do more.
Thanks