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Target Market

Target Market. Who does PepsiCo market Mountain Dew to?. Who first bought Mountain Dew?. It was originally marketed as “zero proof moonshine” Until 1973, it had pictures of hillbillies on the bottles. Who buys it now?. 12-30 year old demographic group Extreme Sports Fans/Athletes

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Target Market

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  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? 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

  6. Product Strategy Plan

  7. 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
  8. Product Line Mountain Dew Diet Mountain Dew Mountain Dew Code Red Mountain Dew Live Wire Mountain Dew Baja Blast Mountain Dew Amp Energy
  9. Packaging 12 Ounce Cans 20 Ounce Bottles 1 Liter Bottles 2 Liter Bottles 12 Ounce Glass Bottles 12 Ounce Aluminum Bottles
  10. 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%
  11. Differentiation Offers a variety flavors More popular More commercials Offered at more places Well known company backs it up

  12. Place/DistributionStrategy

    How does PepsiCo get Mountain Dew to consumers?
  13. 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
  14. What does Pepsi Americas do? Gets Mountain Dew to retailers Builds displays, coolers, and shelves Places vending machines Discusses delivery and placement with retailers
  15. Mountain Dew channels of distribution Who purchases Mountain Dew from Pepsi Americas , to sell to consumers?
  16. 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
  17. C&GConvenience & Gas Stores include: Casey’s, BP, Shell, and Conoco Trucks deliver based on previous sales volumes Merchandiser and P-A work together
  18. 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
  19. 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
  20. Other Channels These include: schools, golf courses, offices, and hospitals Trucks deliver based on previous sales volumes
  21. Advertising National Commercials -Chuck Norris Commercial Website -Graphics -Games-capture the cube -Pro Athlete Profiles and facts -Commercials
  22. Advertising Billboards Magazines Giveaways(X-box, cars, games etc.) Partner with Halo and introduce a limited edition “Game Fuel” flavor
  23. Promotion 12 limited edition bottled designed by various artists www.greenlabelart.com DEWmocracy.com The Next Dew is Up to You Consumers help create a new flavor
  24. Sponsors X Games Dew Action Sports Tour Mountain Dew Vertical Challenge NASCAR
  25. Price Strategy Pepsico Line Ingredients Economy Competition Price over time
  26. Pepsico Line Same price strategy for the entire Pepsico line Pepsi Diet Pepsi Mug Root Beer
  27. 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
  28. 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
  29. 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
  30. Price Over Time 1985 2-liter $0.89 2005 2-liter $1.09 20% increase over 20 years Shows price strategy reacts to economy over time Keeps a high demand
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