Mountain Dew

Topics: Soft drink, Caffeine, Coca-Cola Pages: 6 (2128 words) Published: February 16, 2011
Corporate background
Mountain Dew has been through many changes since it was introduced in 1942. It started out as a yellow-green drink in a green bottle that had a rush of citrus flavor and more sugar and caffeine than any other soft drink. During the introduction of Mountain Dew it was well known throughout the Eastern seaboard. At this time the objectives was to gain market share. Mountain Dew became popular because of the stock car racing circuit known as NASCAR. During the 1960s Mountain Dew’s objective was too continued with its heritage from where it originated and began having characters such as Willie to promote the brand. By the 1970s the Mountain Dew brand was assigned BBDO, and the objective for the ad agency was to reach into the suburbs and cities of major metropolitan areas. The 1980s Mountain Dew objective was to reach suburban teenagers with a new campaign called “Country Cool.” During the 1990s into the 2000s the corporate objective was to build a campaign around athletic stunts. During these decades of changes Mountain Dew has stood by their strategy creating a strong brand image and “associating Mt. Dew with exhilarating intensity of life’s most exciting, fun adventure.”

The organization that Mountain Dew is affiliated with would be the carbonated soft drink category. The problem that the company appears to be facing is how to keep their current campaign “Do the Dew” working to build on their brand image. Also Mountain Dew had to stay competitive with other caffeinated and sugary energy drinks and noncarbonated drinks. There are many key players in this case such as Scott Moffitt (Marketing Director, Mountain Dew) and Gary Rodkin (CEO, Pepsi Cola North America). The overall objective itself involving the key players would be to choose three new ad concepts out of ten. Two of these advertisements would be run during the Super bowl, but all three would be run through out 2000. Considering that Mountain Dew is a well branded soft drink the objective that the company is taking is achievable. The strengths of Mountain Dew is that the brand keeps up with the different cultural trends that each decade creates. Also being able to specifically target your brand to your current market gives Mountain Dew another competitive advantage. The weakness that Mountain Dew is facing is how to expand their market to new users while keeping their current consumers happy. Also keeping their current campaign that is in its eighth year going strong and keeping a good brand image. Competitive Analysis

Looking at the Carbonated Soft Drink category it can be looked at as a very competitive market. The competitive environment within the industry itself can be overwhelming. PepsiCo as a company has many different brands alone that make each brand competitive and competing for market share is a big goal for the company as a whole. The threat of new substitute products is higher than ever. Consumers have many different options that they are not limited to just carbonated soft drinks, they have the option of drinking noncarbonated drinks. Also the energy sports drinks are becoming bigger every year and trying to keep up with the innovation of the new market becomes harder for Mountain Dew. The entry level of carbonated drinks is high. There are many drinks categories in the market and are becoming more popular every year. The customer has more affect on the company than they realize. With the options of buying different drinks it becomes harder for the consumer to establish brand loyalty. The suppliers do not play a big role in this industry. A lot of these drink manufacturers distribute their own products. The only threat they face is the competition for shelf space.

The external environment clearly gives us a better understanding of this market. Mountain Dew’s strategy has been to gain market share and to create a brand image that makes it seem that Mountain Dew is for you. With the constant...
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