1. Who does PepsiCo market Mountain Dew to?
Target Market
Who does PepsiCo market
Mountain Dew to?

2. Who first bought Mountain Dew?
It was originally marketed as “zero proof moonshine”
Until 1973, it had pictures of hillbillies on the bottles

3. Who buys it now? 12-30 year old demographic group
Extreme Sports Fans/Athletes
Outdoor activists
Video Game Culture

4. Why would one need MD? Physiological needs- Need for drink
Social needs- Need for status
Personal needs- Fun and relaxation

5. What influences one to drink MD?
Extreme Sports Athletes
Video Gamers
Celebrities

7. Product Strategy Plan

8. Features/Benefits Fourth Best Selling Soft Drink in the United States
2.7 Billion Dollar Industry
By far the biggest contributor to Pepsico's gains in recent years.
10 percent of Pepsico's worldwide carbonated-beverage volume
Bright yellow green soft drink
Caffeinated
Sweet Limon Lime Flavor
Citrus Flavored
Has Orange Juice for a tangy but smooth taste
Energy Booster- 55 mg per 12 ounce per can

9. Product Line Mountain Dew Diet Mountain Dew Mountain Dew Code Red
Mountain Dew Live Wire
Mountain Dew Baja Blast
Mountain Dew Amp Energy

10. Packaging 12 Ounce Cans 20 Ounce Bottles 1 Liter Bottles
12 Ounce Glass Bottles
12 Ounce Aluminum Bottles

11. Competitive Situation
Mountain Dew- Holds about 85% of the heavy citrus market
Mello Yellow- Holds a distant second at 11%
Sundrop- Only about 3%
Royal Crown Cola’s Kick- Only at 1%

12. Differentiation Offers a variety flavors More popular More commercials
Offered at more places
Well known company backs it up

13. Place/Distribution Strategy
How does PepsiCo get Mountain Dew to consumers?

14. Bottling Plant to Distributor
When inventory gets low at PepsiAmericas, in Sedalia, electronically orders more Mountain Dew
P-A receives about 85% of it’s products from a Kansas City bottling plant
P-A receives the other 15% from a St. Louis bottler

15. What does Pepsi Americas do?
Gets Mountain Dew to retailers
Builds displays, coolers, and shelves
Places vending machines
Discusses delivery and placement with retailers

16. Mountain Dew channels of distribution
Who purchases Mountain Dew from Pepsi Americas , to sell to consumers?

17. Mass Merchandisers and Supermarkets
Largest purchasers of Mountain Dew
Stores include: Wal-mart, Sam’s Club, Target, and K-mart
Merchandiser and P-A work together
P-A’s account mgr. will visit store 3-4 times per week
Deliveries occur about 4 times a week

18. C&G Convenience & Gas Stores include: Casey’s, BP, Shell, and Conoco
Trucks deliver based on previous sales volumes
Merchandiser and P-A work together

19. Food Service
Stores include: Rib Crib, Applebee’s, Taco Bell, and Arby’s
Trucks deliver based on previous sales volumes
P-A and store mgr. discuss selection

20. Full service Vending Machines
Placed in public places or in/near businesses
Business gets check at the end of each quarter
P-A maintains, stocks, and collects money from vending machines
Highest Gross Margin of all channels

21. Other Channels
These include: schools, golf courses, offices, and hospitals
Trucks deliver based on previous sales volumes

23. Advertising National Commercials -Chuck Norris Commercial Website
-Graphics
-Games-capture the cube
-Pro Athlete Profiles and facts
-Commercials

24. Advertising Billboards Magazines Giveaways(X-box, cars, games etc.)
Partner with Halo and introduce a limited edition “Game Fuel” flavor

26. Promotion
12 limited edition bottled designed by various artists
DEWmocracy.com
The Next Dew is Up to You
Consumers help create a new flavor

27. Sponsors X Games Dew Action Sports Tour
Mountain Dew Vertical Challenge
NASCAR

28. Price Strategy Pepsico Line Ingredients Economy Competition
Price over time

29. Pepsico Line Same price strategy for the entire Pepsico line Pepsi
Diet Pepsi
Mug Root Beer

30. Ingredients Demand of sugar
If price of sugar increase then price of Mountain Dew will increase
Has to be able to adjust to the price inflations of ingredients used

31. Economy Have to be able to adjust to the economy Gas Prices
Gas prices increase
Cost of distribution increases
Therefore cost of product will increase

32. Competition Close competitor
Mellow Yellow, Coke Brand
Have to be able to compete with Coke brand
Keep prices at a low cost
Have a high demand

33. Price Over Time 1985 2-liter 2005 2-liter 20% increase over 20 years
$0.89
liter
$1.09
20% increase over 20 years
Shows price strategy reacts to economy over time
Keeps a high demand