Mountain Dew -Darr Ke Aage Jeet Hai
Brand History
The main formula of Mountain Dew was invented in Virginia, named and
first marketed in Johnson City, Tennessee and Knoxville, Tennessee in
1948.
In India, Mountain Dew set the soft drink category ablaze in 2003 with
their iconic launch campaign “Cheetah Bhi Peeta Hai”.
Brand Advantage
It is a soft drink that exhilarated like no other because of its daring, high-
energy, active, extreme citrus taste. Challenge, a can do attitude,
adventure and exhilaration is deeply entrenched in its brand DNA and the
brand has always celebrated the bold and adventurous spirit of the youth.
This exhilaration and excitement of Mountain Dew has always been
reflected in the high-adrenaline advertising of the brand that connected it
to outdoor adventure.
Did You Know?
"Darr Ke Aage Jeet Hai"
In 2007, the brand was re-launched with a completely new, punchier
formulation with communication that aimed at forging a strong emotional
connect with our audience. Thus came about the "Darr Ke Aage Jeet Hai"
campaign, which acknowledged that fear was a very real and relevant
aspect of the adventurous world and Mountain Dew, as a brand wanted to
encourage all youth in their moment of fear, to believe in themselves and
just go for it because beyond fear, lies victory.
Industry Analysis
Non alchoholic market can be divided into soft drink and fruit juice.
Some common soft drinks are flavoured water, sweet tea, iced tea, squash,
fruit punch and lemonade. Noncarbonated and carbonated is further part of
soft drink. Carbonated drinks are cola, oranges, lemon while non carbonated
drink mango drinks.
The total size of food industry in India is almost $ 65.6 billion and soft
drinks (juices and
carbonated beverage) contain $ 1 billion. Indian soft drink market
consumption in a year is 284 million crates. Soft drink market is highly
seasonal; consumption in during off-season is 15 million crates and in peak
season is around 25 million crates per month. In urban area consumption of
soft drinks is 75% of whole market. Indian soft drink market is dominated
by MNC companies Coca-Cola and PepsiCo().
The consumption of Soft drink in India has a share of 46.8% within
the non alcoholic drink industry. In 2004 the total market value of soft drink
was 307.2 $ billion and expected to grow 367.1 $ billion in 2009.
Competitor Analysis
PepsiCo has a good market share in India but facing tough
competition from Coca-Cola Company. Products of Coca Cola Company
such as sprite, Coca Cola, Limca and ThumsUp are the competitor of
PepsiCo in soft drink market(). The most important drawback of its
competitor is their promotion and advertisement. Coca-Cola has less number
of brand ambassadors as compare to PepsiCo(). In India with the market
share of 16.4% Thums Up is at number 1, sprite with 15.6% at 2nd position
followed by Pepsi at 13% according to AC Nielsen data. In India Coca-Cola
is leader market share of 57.8% followed by Pepsi with 35.6%. In the
portfolio of PepsiCo Pepsi is the only one brand with market share of 13.1%
but its rival coca cola has four brands that have more than 10% market share
in India. Those are ThumsUp 16.45, Sprite 12.2%, Limca 10.9% and Fanta
10%.
SWOT Analysis
In this part we are going to analyses the strength, weakness, threats and
opportunity of the
PepsiCo.
STRENGTH
1.PepsiCo has good brand name, reputation and broader product line in
international market.
2.With the revenue of more than 390 $ million PepsiCo is global leader in
convenient snacks ()
3.International brand, innovative capabilities, strong distribution network.
4.Pepsi is market leader in making of snacks, sports drink and bottled water.
5. One of major strength of PepsiCo that it has developed into a large, strong
organization because
of its good franchise system.
6.Strong advertising campaign and marketing policy for promoting brands.
7. Global presence, Sponsorship, Focus on most important customer trend
-“satisfaction”.
WEAKNESS
1. Pepsi is far away from main competitor Coca-cola in international market
2.More than 50 percent of sales come from snacks (Frito-lay), it is a big
threat if snacks market
comedown.
OPPORTUNITIES
1. Food is must for everyone so it can be expand internationally.
2.Offer and increase new healthy food and beverage because people are
moving towards healthy
food.
3.The fastest growing part of industry is noncarbonated drinks.
THREATS
1. Strong competitor in the market like coca-cola, Cadbury Schweppes, Craft
food and small bottle
firms.
2.People are moving towards healthy food.
Mountain Dew
�Traditional competition:
-Prices of Coke brands
-Market share
-Promotional actions of competition
-Limca, Sprite, Fanta a.o
Variations
� Suppliers:
-Price and availability of
ingredients on world market
-Quality, speed, safety,
Traceability, flexibility of
Supply chain
-Quality speed safety
Coke, local brands
� Buyers/consumers:
-Consumer taste, fashion, quality of perception, image:
Is it “cool”? or: Is it “hot”?
Combined purchase power of shops, bars, supermarkets
� New entrants:
-New “look-a-like”
Manufacturers (foreign;
Global competition)
� Substitute products:
-Fashionable new drinks, Red
Bull, coffee, Belgian beer
Value Chain Of Mountain Dew And Pepsi
Inbound logistics for the Pepsi and Mountain dew consisted of largely the
same operations. Both brands purchase their own ingredients through use of
future contracts (to avoid market volatility) and produce their concentrate
from their own facilities. Once this is done, these brands send their
concentrate out to bottlers upon approval of contract for bottling company.
Once the bottling company receives the shipment of concentration, it is
diluted to the correct concentration by adding the correct amount of
carbonated water, and sugar, and bottled for sale. This is done for two
reasons. One reason is so that Pepsi and Mountain dew can maintain their
exact mix of ingredients as a well-kept secret, and not let the bottling brands
know what exactly goes into their product. This affects the image of the
product, and preserves it as something of higher value, and actually applies a
sense of prestige to the Pepsi and Mountain dew products that are kept such
excellent secrets.
Pepsi and Dew operate by sending concentrate to bottlers, who then take the
necessary actions, and ship out their products to consumers and vendors.
One huge trend by both Pepsi and dew was to begin to contract from less
and less bottling company. This is largely due to a decrease in shipping
prices, and a better ability for bottlers to meet the concentrate producers
demand.
Automation in technology in cash registers allows Pepsi, Dew, and the
bottling companies who bottle and ship the contents of each bottle to know
exactly how much of their product the merchant is carrying. This allows for
a quick delivery of more products for the merchant to sell in a nice and
timely procedure.
Marketing and Sales for Pepsi and Dew are huge. These brands spend
upwards of $200USD each to advertise specifically on their "Pepsi," and
"Mountain dew" products. Pepsi and Mountain dew sold $6.6billion, and
$8.3billion in the world market.
Pepsi and Mountain dew have both established themselves as market
Generic Strategy for Mountain Dew:
