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Target Market Who does PepsiCo market Mountain Dew to?

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Presentation on theme: "Target Market Who does PepsiCo market Mountain Dew to?"— Presentation transcript:

1 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? 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

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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 2 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

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23 Advertising National Commercials -Chuck Norris CommercialChuck 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

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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 liter – $ liter – $ % increase over 20 years Shows price strategy reacts to economy over time – Keeps a high demand


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