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Mountain Dew

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Page 1: Mountain Dew

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 ldquoCheetah Bhi Peeta Hairdquo

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 $ 656 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 468 within

the non alcoholic drink industry In 2004 the total market value of soft drink

was 3072 $ billion and expected to grow 3671 $ 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 164 Thums Up is at number 1 sprite with 156 at 2nd position

followed by Pepsi at 13 according to AC Nielsen data In India Coca-Cola

is leader market share of 578 followed by Pepsi with 356 In the

portfolio of PepsiCo Pepsi is the only one brand with market share of 131

but its rival coca cola has four brands that have more than 10 market share

in India Those are ThumsUp 1645 Sprite 122 Limca 109 and Fanta

10

SWOT Analysis

In this part we are going to analyses the strength weakness threats and opportunity of the PepsiCo STRENGTH

1PepsiCo has good brand name reputation and broader product line in

international market

2With the revenue of more than 390 $ million PepsiCo is global leader in

convenient snacks ()

3International brand innovative capabilities strong distribution network

4Pepsi 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

6Strong advertising campaign and marketing policy for promoting brands 7 Global presence Sponsorship Focus on most important customer trend -ldquosatisfactionrdquo

WEAKNESS 1 Pepsi is far away from main competitor Coca-cola in international market

2More 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 2Offer and increase new healthy food and beverage because people are moving towards healthy food

3The 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

2People are moving towards healthy food

Mountain Dew

1048708 Traditional competition-Prices of Coke brands-Market share-Promotional actions of competition-Limca Sprite Fanta aoVariations

1048708 Suppliers-Price and availability ofingredients on world market-Quality speed safetyTraceability flexibility ofSupply chain-Quality speed safetyCoke local brands

1048708 Buyersconsumers-Consumer taste fashion quality of perception imageIs it ldquocoolrdquo or Is it ldquohotrdquoCombined purchase power of shops bars supermarkets

1048708 New entrants-New ldquolook-a-likerdquo Manufacturers (foreignGlobal competition)

1048708 Substitute products-Fashionable new drinks RedBull 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 demandAutomation 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 procedureMarketing 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 $66billion and $83billion in the world market Pepsi and Mountain dew have both established themselves as market

Generic Strategy for Mountain Dew

  • Mountain Dew -Darr Ke Aage Jeet Hai
    • Brand History
    • Brand Advantage
      • Did You Know
Page 2: Mountain Dew

The total size of food industry in India is almost $ 656 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 468 within

the non alcoholic drink industry In 2004 the total market value of soft drink

was 3072 $ billion and expected to grow 3671 $ 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 164 Thums Up is at number 1 sprite with 156 at 2nd position

followed by Pepsi at 13 according to AC Nielsen data In India Coca-Cola

is leader market share of 578 followed by Pepsi with 356 In the

portfolio of PepsiCo Pepsi is the only one brand with market share of 131

but its rival coca cola has four brands that have more than 10 market share

in India Those are ThumsUp 1645 Sprite 122 Limca 109 and Fanta

10

SWOT Analysis

In this part we are going to analyses the strength weakness threats and opportunity of the PepsiCo STRENGTH

1PepsiCo has good brand name reputation and broader product line in

international market

2With the revenue of more than 390 $ million PepsiCo is global leader in

convenient snacks ()

3International brand innovative capabilities strong distribution network

4Pepsi 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

6Strong advertising campaign and marketing policy for promoting brands 7 Global presence Sponsorship Focus on most important customer trend -ldquosatisfactionrdquo

WEAKNESS 1 Pepsi is far away from main competitor Coca-cola in international market

2More 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 2Offer and increase new healthy food and beverage because people are moving towards healthy food

3The 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

2People are moving towards healthy food

Mountain Dew

1048708 Traditional competition-Prices of Coke brands-Market share-Promotional actions of competition-Limca Sprite Fanta aoVariations

1048708 Suppliers-Price and availability ofingredients on world market-Quality speed safetyTraceability flexibility ofSupply chain-Quality speed safetyCoke local brands

1048708 Buyersconsumers-Consumer taste fashion quality of perception imageIs it ldquocoolrdquo or Is it ldquohotrdquoCombined purchase power of shops bars supermarkets

1048708 New entrants-New ldquolook-a-likerdquo Manufacturers (foreignGlobal competition)

1048708 Substitute products-Fashionable new drinks RedBull 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 demandAutomation 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 procedureMarketing 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 $66billion and $83billion in the world market Pepsi and Mountain dew have both established themselves as market

Generic Strategy for Mountain Dew

  • Mountain Dew -Darr Ke Aage Jeet Hai
    • Brand History
    • Brand Advantage
      • Did You Know
Page 3: Mountain Dew

SWOT Analysis

In this part we are going to analyses the strength weakness threats and opportunity of the PepsiCo STRENGTH

1PepsiCo has good brand name reputation and broader product line in

international market

2With the revenue of more than 390 $ million PepsiCo is global leader in

convenient snacks ()

3International brand innovative capabilities strong distribution network

4Pepsi 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

6Strong advertising campaign and marketing policy for promoting brands 7 Global presence Sponsorship Focus on most important customer trend -ldquosatisfactionrdquo

WEAKNESS 1 Pepsi is far away from main competitor Coca-cola in international market

2More 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 2Offer and increase new healthy food and beverage because people are moving towards healthy food

3The 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

2People are moving towards healthy food

Mountain Dew

1048708 Traditional competition-Prices of Coke brands-Market share-Promotional actions of competition-Limca Sprite Fanta aoVariations

1048708 Suppliers-Price and availability ofingredients on world market-Quality speed safetyTraceability flexibility ofSupply chain-Quality speed safetyCoke local brands

1048708 Buyersconsumers-Consumer taste fashion quality of perception imageIs it ldquocoolrdquo or Is it ldquohotrdquoCombined purchase power of shops bars supermarkets

1048708 New entrants-New ldquolook-a-likerdquo Manufacturers (foreignGlobal competition)

1048708 Substitute products-Fashionable new drinks RedBull 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 demandAutomation 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 procedureMarketing 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 $66billion and $83billion in the world market Pepsi and Mountain dew have both established themselves as market

Generic Strategy for Mountain Dew

  • Mountain Dew -Darr Ke Aage Jeet Hai
    • Brand History
    • Brand Advantage
      • Did You Know
Page 4: Mountain Dew

3The 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

2People are moving towards healthy food

Mountain Dew

1048708 Traditional competition-Prices of Coke brands-Market share-Promotional actions of competition-Limca Sprite Fanta aoVariations

1048708 Suppliers-Price and availability ofingredients on world market-Quality speed safetyTraceability flexibility ofSupply chain-Quality speed safetyCoke local brands

1048708 Buyersconsumers-Consumer taste fashion quality of perception imageIs it ldquocoolrdquo or Is it ldquohotrdquoCombined purchase power of shops bars supermarkets

1048708 New entrants-New ldquolook-a-likerdquo Manufacturers (foreignGlobal competition)

1048708 Substitute products-Fashionable new drinks RedBull 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 demandAutomation 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 procedureMarketing 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 $66billion and $83billion in the world market Pepsi and Mountain dew have both established themselves as market

Generic Strategy for Mountain Dew

  • Mountain Dew -Darr Ke Aage Jeet Hai
    • Brand History
    • Brand Advantage
      • Did You Know
Page 5: Mountain Dew

Mountain Dew

1048708 Traditional competition-Prices of Coke brands-Market share-Promotional actions of competition-Limca Sprite Fanta aoVariations

1048708 Suppliers-Price and availability ofingredients on world market-Quality speed safetyTraceability flexibility ofSupply chain-Quality speed safetyCoke local brands

1048708 Buyersconsumers-Consumer taste fashion quality of perception imageIs it ldquocoolrdquo or Is it ldquohotrdquoCombined purchase power of shops bars supermarkets

1048708 New entrants-New ldquolook-a-likerdquo Manufacturers (foreignGlobal competition)

1048708 Substitute products-Fashionable new drinks RedBull 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 demandAutomation 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 procedureMarketing 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 $66billion and $83billion in the world market Pepsi and Mountain dew have both established themselves as market

Generic Strategy for Mountain Dew

  • Mountain Dew -Darr Ke Aage Jeet Hai
    • Brand History
    • Brand Advantage
      • Did You Know
Page 6: Mountain Dew

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 demandAutomation 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 procedureMarketing 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 $66billion and $83billion in the world market Pepsi and Mountain dew have both established themselves as market

Generic Strategy for Mountain Dew

  • Mountain Dew -Darr Ke Aage Jeet Hai
    • Brand History
    • Brand Advantage
      • Did You Know
Page 7: Mountain Dew

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 procedureMarketing 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 $66billion and $83billion in the world market Pepsi and Mountain dew have both established themselves as market

Generic Strategy for Mountain Dew

  • Mountain Dew -Darr Ke Aage Jeet Hai
    • Brand History
    • Brand Advantage
      • Did You Know
Page 8: Mountain Dew

Generic Strategy for Mountain Dew

  • Mountain Dew -Darr Ke Aage Jeet Hai
    • Brand History
    • Brand Advantage
      • Did You Know