Aug 13,2010 Case Analysis Mountain Dew: Selecting new Creative 1. Introduction:- Product/Brand under study – Mountain Dew is a Carbonated Soft Drink Invented by Hartman Beverage Company in 1940. Its Bright yellow – Green in color and has more sugar, Citrus flavor, and Less Carbonation as compared to the other soft drinks available in the market. It was taken over by PepsiCo in 1964 and now stands 3rd in the soft drinks category. 5 C’s:- Company – PepsiCo is one of the biggest Soft drink Company in the world.
They manufacture carbonated and non-carbonated Soft drinks along with salty, sweet and cereal based snacks.
Besides Pepsi, the company, Mountain Dew brand as well. Competitors – The retail carbonated soft drinks market has two giants Coke and Pepsi, which compete fiercely with each other to get market share. Currently Coke is the market leader. In its own category the product is facing 3 major competitors:- * Cadbury Schweppes’ Dr. Pepper – cherry –flavored * Coca-Cola’s Sprite – lime flavored carbonated water * Coca-Cola’s 7-UP – lime flavored carbonated water Customers – The customer base of Mountain Dew is mostly rural town and farms, Working class towns and downscale rural people below the age of 34 years.
The company particularly targets the teenagers through its advertisement campaign which connects dew with attributes like Irreverent, Daring, and Fun etc. Apart from these customers Dew has been able to do well in suburban places as well. Context – The Do the Dew campaign which has been the main reason behind the success of Mountain Dew brand is entering into eighth Year. There is a growing threat from Non-Carbonated Soft drinks and also the company feels that they have oversaturated the extreme sports part in their campaign.
The market Share of Pepsi is decreasing in all Categories except Dew , and so the company management feels that it’s the time to change the advertisement strategy in order to express Mountain Dew’s distinctive features. Collaborators-PepsiCo’s advertising partner BBDO ,New York. 2. Problem Statement- Develop right advertisements to maximize the impact of Mountain Dew’s relatively small media budget to figure out as how to keep the Mountain Dew campaign working hard to maintain the brands relevance to acquire new customers and retain the existing consumers. Features of Mountain Dew It had more sugar and more caffeine but less carbonation, so that it could be drunk quickly. * Targeted the young male crowd who were interested in extreme adrenaline pumping extreme sports. * In 1999, Mountain Dew was the third largest CSD at retail, overtaking Diet Coke. * Mountain Dew consumers were loyal to the brand. * According to PepsiCo’s key performance indicators (KPIs), there was an increase in the number of people who considered that Mountain Dew tasted better than other CSDs, those who considered that Mountain Dew was for someone like them and those who considered that Mountain Dew drinkers were ‘cool’. The ‘Do the Dew’ campaign constantly featured the Dew Dudes in all their advertisements till 1997. * There was tremendous market opportunity since the cola brands were fast fading whereas the flavored brands’ consumption was rising. Competitor brands in flavored drinks category Problems faced by Mountain Dew * Mountain Dew was entering its 8th year with the same alternative sports based advertising which was now being exploited by other brands. * Key competitors were raising their advertisement budgets whereas Mountain Dew relied on the creative aspect of their advertisements to maximize their sales and profits. Emergence of non-carbonated substitutes like Gatorade, bottled water, Snapple and Arizona, Red Bull and SoBe was a concern for Mountain Dew. * Increased concern about health among consumers led to decrease in consumption of carbonated drinks. * Industry rumours that Coca-Cola, Annheuser-Busch and Cadbury Schweppes working aggressively to develop functional drinks. * Growing cynicism among the youth against big corporations and over-hyped products. * In 1999, Carbonated Soft Drinks sales suffered as a result of customer’s sticker shock to a category-wide 5% retail price increase. In the 1990s, Mountain Dew used musicians and celebrities in its advertisements but struggled to impact the consumers. * By 1998, PepsiCo managers were worried that the advertisements were becoming too predictable and also that the use of alternative sports was becoming less impactful due to oversaturation. * Mountain Dew had the highest ‘gate-keeping’ ratings of all carbonated soft drinks. It was the drink that mothers tried the hardest to keep out of the stomachs of their children. * PepsiCo managers had yet to find a research method that was accurate enough to rely upon to provide definitive judgments on ad effectiveness.
Mountain Dew had much lower market penetration of the total population Evaluation of alternatives – To end the monotonus advertising campaign the company is evaluating the following advertisements in order to find start a new marketing campaign that will appeal the consumers. Folloeing are the pros and Cons of each Advertiesement. Dew or Die Plot: Dew Dudes powered by the spilt can of Mountain Dew save the world from evil villain who is threatening to blow the planet. In between they perform daredevil maneuvers down a mountain and get side-tracked in a ski lodge with some girls.
Psychographic Imagery: Pros: 1. Fit up the image of adventurous, wild, daring, courageous, free spirited, and youthful. 2. Express daring personality of Dew users. 3. Appeals young audience Cons: 1. Doesn’t speak about the quenching and taste benefits of Mountain Dew. Mock Opera Plot: Dew Dudes do the parody of Queen‘s song Bohemian Rhapsody. The ads show the alternative sport action in which the athletes just misses the cans of Dew they shoot by. Psychographic Imagery: Pros: 1. Fit up with the sport connection of Dew 2. Humorous parody since the lyrics and album cover has been changed. . Fit with the ongoing Super Bowl events that is going to happen. 4. Generate universal appeal. Cons: 1. Daring part which is main factor in Dew’s ads is not highlighted. 2. Queen’s fans may find it offensive. 3. Not age specific ads. Labour of Love Plot:It is an advertisement that features the birth of a dew drinker. The doctor in the delivery room calls out code green and returns to catch the baby with a baseball mitt. The advertisement is indeed out of box idea. Psychographic Imagery: Pros: 1. The child is rebellious by birth. 2.
The use of baseball mitt shows the athleticism in the advertisement. 3. It has a wildness associated with it as the baby shoots out like a canon. 4. It will appeal the 21-40 group for the family angle attached to it. Cons: 1. It lacks adventure, wildness, excitement. 2. Baseball is a predominantly white game and won’t have the pan racial appeal. 3. It will fall short in appealing the teenagers as they can’t associate them with theme. Cheetah Plot:One of the dew dudes chases down a cheetah in an African plain in a mountain bike just because the cheetah stole the dew can.
Psychographic Imagery: Pros: 1. The cheetah and the bike chase is adventurous, wild, daring, courageous, youthful and athletic. 2. It doesn’t have racial discrimination attached to it 3. It will appeal the teenagers as well as the 21 to 40 age group. Cons: 1. The cheetah and the African jungle might have a racial sting attached to it which might have displeased the white population. 2. The ad won’t have appealed the people outside the teenage group and loyal drinkers of mountain dew of the age group of 21 to 40. Showstopper
Plot: The advertisement shows an improvisation on a typical Buzby Berkeley musical from 1930s to now include skateboarders as performers while the Dew dudes are directors i. e. Buzby Berkeley himself. Psychographic Imagery Pros: 1. The advert is a throwback to the old style of movie making and music mixed with adventure sports as the art being showcased. 2. Tries to tap the popularity of “retro” among the youth to gain attention 3. The skateboarder angle maintains the sporty angle of the positioning 4. Garish/loud advertisement can garner attention. Cons: 1.
Aims to benefit more from user interest in the theme than from its own strong points. Balance should come out in the final advert. Sales forecast and Media budget allocation * Sales for Mountain Dew for 2000 = (sales in 1999) * (1+CAGR) = (705) * ( 1+ ((705-300)/300*100)/9)) = $810. 75mn * Market share for Mountain Dew in 2000 = (market share in 1999) * (1+CAGR) = (7. 1) * (1+((7. 1 – 3. 9)/3. 9 * 100/9)) = 7. 746% * Market Share for Sprite in 2000 = 7. 4% * Market Share for Dr. Pepper in 2000 = 6. 54% * Advertising spending for Mountain Dew = $55. 9mn
Cite this Mountain Dew History and Impact
Mountain Dew History and Impact. (2018, Aug 05). Retrieved from https://graduateway.com/mountain-dew-history-and-impact/