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
Product Line Mountain Dew Diet Mountain Dew Mountain Dew Code Red Mountain Dew Live Wire Mountain Dew Baja Blast Mountain Dew Amp Energy
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%
Differentiation Offers a variety flavors More popular More commercials Offered at more places Well known company backs it up
Place/Distribution Strategy How does PepsiCo get Mountain Dew to consumers?
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
What does Pepsi Americas do? Gets Mountain Dew to retailers Builds displays, coolers, and shelves Places vending machines Discusses delivery and placement with retailers
Mountain Dew channels of distribution Who purchases Mountain Dew from Pepsi Americas, to sell to consumers?
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
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
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
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
Other Channels These include: schools, golf courses, offices, and hospitals Trucks deliver based on previous sales volumes