SUBMITTED TO: SIR MUHAMMAD AHMED

BUTT

Subject: Brand Management

A New Morning
For Mountain Dew
Case Study Analysis

TABLE OF
CONTENT
Submitted By: Muhammad Arslan Malik

ACKNOWLEDGEMENT.........................................................................................2

INTRODUCTION OF THE CASE...........................................................................2

HISTORY OF THE CASE........................................................................................3

SWOT ANALYSIS...................................................................................................4

MARKETING OBJECTIVES...................................................................................6

BRAND STRATEGY OBJECTIVES.......................................................................7

SEGMENTING STRATEGY……………………………………………………...8

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BUILDING BRAND STRATEGY.........................................................................10

CUSTOMER BASED BRAND EQUUITY MODEL……………………………11

MARKETING MIX (4'Ps)………………………………………………………..15

POISITIONING STRATEGY.................................................................................16

POINTS OF PARITY (POP)…………………………………………………...…17

POINTS OF DIFFERENCE (POD)………………………………………………17

RECOMMENDATION TO THE MANAGEMENT..............................................18

ATTACHMENT…………………………………………………………………..19

ACKNOWLEGEMENT:
In the name of Allah, most Gracious, most Compassionate. I would like to thank
Allah, the most merciful and beneficent, who give us the opportunity, and blessed
us with the ability to read, right and understand the knowledge of this world which
is a blessing.
I want to thank Mr. Kevin Lane Keller, author of the book who provides us a
chance to read this case study. Mr. I especially want to thank Sir Muhammad
Ahmed Butt, our course instructor, from the very first day with all his heart and
soul, along with his unique teaching style, he taught us to understand this difficult
track and how to firmly grasp the concepts. His enthusiasm and guidance has
proven invaluable to our research.

INTRODUCTION OF THE CASE:

Mountain Dew is a soft drink manufactured by Pepsi Co. but which remains its
own brand. The formula was created by Bill Jones and was marked in USA in
1940s.It falls in the citrus segment of carbonated soft drink. Mountain Dew enjoys
the status of the only citrus carbonated soft drink in the beverage market. The total
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market share of the citrus is 14% out of which 95% is held my Mountain Dew and
the rest 5% by others... However, the flavors "Livewire" and "Code Red" still use
the previous design as of September 2010.
As of 2007, Mountain Dew was the fourth best-selling carbonated soft drink in the
United States, behind only Coca-Cola Classic, Pepsi Cola and Diet Coke.
Mountain Dew like its mother company Pepsi, seeks the image by focusing on
individuals and also introversive people. Mountain Dew targets teenagers those
who are ready to embrace excitement, adventure, fun, energy and enthusiasm. The
appearance of the bottle of mountain dew is eye catching with bright yellow green
color and semi opaque.
I am the key executive of the company and I was asked to make the SWOT
analysis, strategic brand objectives and branding strategy. I have planned Mountain
Dew branding strategy associated with its associated line extensions. I have
applied consumer based brand equity (CBBE) model, four steps of strong brand
building that comes under it,4P's and point of difference. At the end, I have given
some important recommendations in order to improve the weaknesses faced by the
company and also preparing for the threats to be faced in the future.

HISTORY OF THE CASE:

Mountain Dew was launched in 1969 by PepsiCo. Since then, the drink has
outgrown its provincial roots. After unsuccessful attempt of targeting urban
teenagers, the company switched its focus to outdoors action scenes in ads. In
1980's Mountain dew become fastest growing major soft drink in America and it
posted double-digit annual volume increases. Its market share rise from 2.7 percent
in 1980 to 7.2 percent in 2000.
Mountain Dew updated its image by using extreme sports. They featured athletes
participating in extreme sports by consuming Mountain Dew products
accompanied by the tag line “Do the Dew”. But now the ads are more adventures
and thrilling. To reach the urban demographic, Mountain Dew also developed a
series of print, radio, and television ads featuring hip-hop superstar endorser Busta
Rhymes.
Mountain Dew balances its high profile nationally televised campaigns with
grassroots marketing efforts, such as action -sports athletes and events like ESPN
and X-Games, offering samples from the its branded Dew Hummer Trucks and

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subway cars and staging promotions at local stake parks. Mountain Dew again
proved its power of its marketing program in 2000 when it introduced Mountain
Dew Code Red, its first line extension since Diet Mountain Dew debuted in 1988.
But this launch was an unqualified success.
Following the success, however, the Mountain Dew franchise suffered as
consumption of soft drink declined because consumers migrated towards water and
juices. To reconnect with its core teen audience, Mountain Dew increased its
grassroots activities by sponsoring the Mix Tape street basketball tour and the Dew
Action Sports Tour. They also launched another brand, energy drink called MDX
aimed at video game players. These moves combine to reverse a four year slide,
growing sales volume 1.5 percent in 2004 and enabling Mountain Dew to remain
the number 4 carbonated beverage in America in terms of sales through 2006.

SWOT ANALYSIS:

Strengths:
 Mountain Dew is carrying strong brand.
 Company maintaining healthy relationship in upstream.
 Collective bargaining agent CBR, behavior is more professional.
 International component portray reasonable and friendly environment.
 Mountain Dew is finally sound.
 Production policies, procedures, systems are reasonably consistent recent
industry and out standards.
 The primary and key strength of mountain dew is that it is the brand of one
of the strongest and globally recognized company that is Pepsi.

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 This reorganization helps mountain dew a lot in increasing its name in the
beverage industry.

Weaknesses:
 Customers have become savvy.
 Reasonably says customers are less incline towards mountain dew brands.
 Fragmentation in the beverage industry is also another weakness.
 Mountain Dew is facing extreme competition both from direct or indirect
competitors.
 The strategic directions including vision, mission at corporate objectives
needs improvements.
 Marketing management is a reasonably suffering from miss-management.
 HRM needs improvement in the functional areas.
 Mountain Dew’s frame can hurt the credibility of the brand Pepsi.

Opportunity:
 USA economy is plagued by recession however, economies still managing.
 Mountain Dew is reasonably fit to take care of social shift.
 Mountain Dew is adhering to articles of law.
 Mountain Dew is adequately equipped with requisite technology.
 One of the best opportunities is that the people are now fed of all those old
beverages, so now they are moving their interest towards the new beverages
like mountain dew.

Threats:

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 The biggest threat for mountain dew is from its competitors like spirit 3G
and other energy drinks like red bull etc.
 Mountain Dew can also be a threat for its own mother brand.
 The industries experiencing social shift and society are seeking out value in
their dealings.
 The industry is subject is vigorous are subject to some sort of instability.
 Overall the industry is also feeling the impact of technology.

MARKETING OBJECTIVES:
The marketing objectives of the mountain Dew are as follows:
 Mountain Dew overall objective is to increase the value of their shareholders
investments.
 They main objectives are to focus on financial and management resources
and on their core business.
 They usually lose focus, which may not be segmented enough. The other can
be to address the customer’s stages separately.
 Goals or targets that must be achieved by the marketing department in order
to achieve overall corporate objectives.
 Objectives must be definable and quantifiable so that there is an achievable
target at which to aim.

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 This can be done through sales growth, cost controls and wise investment of
resources.
 They believe that their success depends upon offering quality and value to
their consumers and customers and also providing the fair return to their
investors while adhering to the highest standards of integrity.
 They should be defined in such a way that actual performance can be
compared with the objectives.
 Relate the brand with the social environment.
 Maintain balance in all the brands and product of the company.
 Built effective advertisement in which targeting the selected market segment
for communicating the brand.
 Point of difference of the brand should be that much effective that it properly
established the unique selling proposition (USP) and sustainable competitive
advantage (SCA).

BRAND STRATEGY OBJECTIVES:

In today's low-growth, hypercompetitive economic environment, companies are
increasingly trying to blend their business strategy and line marketing activities to
generate incremental top-line growth out of existing businesses. Mountain Dew is
one of the leading beverage brands; still it faces direct and indirect competition.
Some are low-priced as well. Therefore, they need to be proactive in understanding
the market and customer’s needs and formulate branding strategies to deal with the
changing trends of economic, technological, political-legal, socio-cultural and
competitive environment.
The brand should be comprised of the company personality, image, core
competencies and characteristics. The impressions that one make as well as the
words people will use to describe your company to others, are the basic framework
of your brand.

 To have more influence on the market,

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 Motive customers and clients to purchase from us,

 If done correctly the company will look at as a leader not followers.

Objectives:

 Being recognized by receiving a specific award.

 Picking up a certain number of choice projects
 Gaining a specific number of new clients in the next year
 Positioning our company as an industry leader in the next few months.
 Proper positioning of the Mountain Dew.
 To make the consumers to differentiate with the competitors product.
 Build customer trust on the brand by communicating with the consumers
through positive images and aware them about the brand through those
images and relate the images with the consumer’s daily life.
 Customers are first priority provide them the right information. Company
must have to build that they are in the market for serving the customers and
the company should built the brand by keeping consumers interest in mind.
 Restore the brand equity.
 Rebuild the brand equity through CBBE model.
 To achieve the more market share then 1.5 % that was in 2004.
 Use strategic tools and technique to build the brand.
SEGMENTING STRATEGY:

Market can be segmented on the basis of variables used for segmentation;

 Behavioral segmentation.
 Demographic segmentation.
 Psychographic segmentation.
 Geographical differences.

Behavior Segmentation:

Behavioral segmentation is based on the customer's needs and subsequent reaction

to those needs or toward the purchase of intended products and/or services. This
study is conducted on all variables that are closely related to the product itself, like
loyalty to a particular brand, cost effectiveness in terms of benefits and usage. The
strength of Mountain Dew’s strategy is to target their audience on the basis of
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behavior. Since, their actual target market is the teenagers hence they target daring,
excited, adventurous, fun-loving, confident, energetic, enthusiastic and aggressive
behaviors. All these mentioned behaviors are part of the teenager’s life; therefore,
the same message is also being delivered through their ads.

Demographic Segmentation:

Demographic segmentation is done according to the potential customers. While

marketing a product many variables like age, gender, education, income, size
of the family, occupation, socioeconomic status, culture and religion, language and
nationality are taken into account. Mountain Dew is targeting the people within the
age range of 16-18, mostly the teenagers. Hence, they are not concerned about
their income level, because their target audience can easily buy the product as they
are charging the standard price, country-wide. Secondly, the usage of carbonated
soft drink has now become a lifestyle of people in Pakistan, which again becomes
an opportunity for Mountain Dew.

Psychographic Segmentation:

Psychographic segmenting is done according to the lifestyles and values of

customers, and how they translate into consumption or purchases of products of
services is what psychographic segmentation is all about. Segmenting people
according to their lifestyles and values, and how they translate into consumption or
purchases of Mountain Dew is what psychographic segmentation is all about. How
one's interest, opinions, values, attitude and the activities they perform, all affects
how and why a group of people would lean towards Mountain Dew more than
others.

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Geographic Segmentation:

Geographical segmentation is done by dividing people (markets) into different

geographical locations. The country, state, or neighborhood, the king of gentry,
climate, and size of a place segmented into size of its age wise population, etc. all
play a role in devising market strategies. This helps the producer and the marketers
to understand what will sell and what won't, for example, a market for winter wear
would definitely not work in warm regions.

BULDING BRAND STRATEGY:

Building a brand with loyal customers is indeed a tough task. There are four
defining characteristics that allow companies to actively involve customers in
creating communities around their brands. Each is essential in building brand
strategies. Branding strategy is the building of the brand in a unique way to
position the brand that consumers will easily get the reason to buy it. It includes
every step of the marketing or we can say it is a plan for doing or building a brand.
Mountain Dew brand is very much popular among the youth and to make its
customers loyal Mountain Dew should do the brand extension. As I am hired by
management of Mountain dew, now I will give them an idea to launch a new brand
that is “Booster”, a flavored juice accompanied with the tag line “It will boost your
emotions”.

1. Create a strong brand myth:

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Brands in today’s world are not mere inanimate ‘things’ but thriving entities
with identities and personalities that allow customers to express themselves
through its consumption.

2. Create a need for collaboration among consumers:

For a community to be actively adopted, customers must feel a need to
connect with each other in the context of the brand’s consumption.

3. Identify with a specific segment:

Members of the Samsung brand community are part of the community
because of their need to be identified as part of the global ‘cool’ segment that
is in tune with the latest in technology and fashion.

4. Create identifiable brand elements:

As with any community, brand communities must be able to offer its members
unique identifiable community elements in terms of terminologies, icons,
symbols and spokespersons.

5. Create a unique culture:

One of the fundamental reasons for the growing popularity of brand
communities is that they offer companies real time feedback about the brand.
Further, brand communities allow companies to co-create value with
customers on a continuous basis.

CUSTOMER BASE BRAND EQUITY MODEL:

It is the differential effect that brand knowledge has on consumer response to the
marketing of that brand. The three key ingredients come under this model:
 Differential effect.
 Brand knowledge.
 Consumer response to marketing.
Brand equity must be build for creating the difference among your product and
consumer’s response and this can be done by communicating about the brand to
the consumers and creating awareness among the consumers about the brand.
To made “Booster” strong brand among the product category or in the brand
extension first awareness should be created among the consumers about “Booster”

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and a positive brand image of “Booster” should be built. And where as brand
awareness will be crated by increasing the familiarity of “Booster” through
repeated exposure and packaging and brand image of “Booster” can be created
through marketing programs like sponsoring events and sort events. And make
strong favorable and unique association of “Booster” in consumers mind.
The Four Steps of Brand Building:
The four steps of brand building that consumers want are as follows:
 Brand identity.
 Brand meaning.
 Brand responses.
 Brand relationships.
After the launch, it has become very important to create awareness among
Mountain Dew consumers about the Booster and the target consumers and to tell
the consumer about its performance of the new as well as the previous line
extensions and getting their responses after change in order to build strong
relationship with Mountain Dew consumers in order to increase market share and
brand equity.

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BRAND BUILDING BLOCKS:

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Brand Salience:

 Brand Salience means increase the awareness of the brand in the minds of
the consumers. Mountain Dew has to define a product category structure by
which consumers know that the brand is satisfying the needs. Increasing
awareness about the “Booster” in the minds of the consumers will help to
increase the sales volume.
 By Using Brand salience we will try to deepen, broaden and increase the
awareness of the brand and as “Booster” is a new brand so it is necessary to
create awareness among consumers. So the brand awareness made consumer
learn about the packaging of the product and the attributes and benefits of
the product “Booster“ and makes them to recall and recognize the brand
under different conditions.
Brand Performance:

 Consumers view performance in terms of Reliability means the consistency

of performance over time. The performance of the “Booster” depends upon
the taste means trusting, caring and having the customer’s interest in mind. It
describes how well the product or service meets consumers' more functional
needs.
 This product is specially made for the fun loving people in order to bring
back consumers to the brand. It is very important to communicate about the
performance of brand with the consumers and giving them complete
guarantee that they can gain trust the reliability, durability and serviceability
of “Booster”.
Brand Imagery:

 It depends on the extrinsic properties of the product or service, including the

ways in which the brand attempts to meet customer’s psychological or social
needs. The next step is to emphasize on the image of Mountain Dew that
was diminished because of the social shift by the consumers towards water
and juices.
 My purpose is to again create the image that was sensed by the consumers
before the shift and has to make them psychological and socially satisfied by
informing them usage situations and enhancing the personality of “Booster”
through extensive advertising and sales force.

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Brand Judgments:

The Brand Judgments tells about the consumer’s opinion about the “Booster” with
the comparison of competitor’s product and this can be get through brand quality,
brand credibility, brand consideration, brand superiority. It tells about Customer
personal experience and evaluation about the brand “Booster”.
 Brand quality: brand has a good quality it satisfies consumer demand.
 Brand credibility: “Booster” has come up with new flavors by keeping in
view consumer interest. And this creates likability of purchasing “Booster”.
 Brand consideration: getting so much attached to it consumer will go to
recommend “Booster” to others.
Brand Feelings:
 These are customer’s emotional responses and reactions to the brand. After
the last consumption, consumer’s feelings towards the Mountain Dew had
become changed due to social shift and questions on the beverage producers
resulted in the loss of consumption and loyalty diminished rapidly. Here
transformational advertising would be the best approach to make the
consumers feel that they had attachment with the brand.

Brand Resonance:
 Booster created greater loyalty through deeper attitudinal attachment
through marketing programs to the customer.
 Sense of Community can make greater difference in a way that different
consumers use the Booster and the fellow users or customers create an
attitudinal attachment with a brand.

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Marketing Mix (4P'S):

1. Product:
 Proper research should be conducted in order to come up with a proper
product for customers.
 Quality should be original.
 Taste of the juice should be a reflection of the fresh fruits.
2. Pricing:
 Value pricing strategy should be used.
 Better than competitors pricing strategy.
 Price of the brand will be found by consumers appropriate and reasonable.
3. Placing:
 Adopt direct channels.
 Selling through salespersons.
4. Promotion:
 Extensive advertising through both radio and television to make the
consumers aware about the new brand.
 Internet promotion through websites and online ads.
 Billboards promotion.
 Distinguish the products from competitors.

POSITIONING STRATEGY:

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The positioning strategy is the heart of the brand strategy. Positioning statement
typically identify the set of associations (benefits, quality, user imagery) that the
brand should own, the support for claiming these associations, and perhaps the
tone or personality by which the brand should speak to its prospects about these
concepts. Positioning is an aspect of an offering strategy that identifies its key
benefits in relation to competitive offerings. The term positioning can be used in
two distinct contexts:

1) Desired Positioning: Which will reflects the company‘s positioning goal

with respect to particular offering.
2) Actual Positioning: This reflects customer’s perception of the offering.

The positioning strategy is the heart of the brand strategy. Positioning statement
typically identify the set of associations (benefits, quality, user imagery) that the
brand should own, the support for claiming these associations, and perhaps the
tone or personality by which the brand should speak to its prospects about these
concepts. Positioning statements are the arguments for the brand relative to the
other brands in the category and are based on abstracted associations. The
positioning strategy identifies three main aspects:

1) Target customers.
2) Frame of reference
3) The primary reason of buying the offering.
Depending on the frame of reference two types of positioning strategy can be
distinguish:

1) Non comparative,
2) Comparative.

Once the competitive frame of reference for positioning has been fixed by defining
the customer target market and nature of competition, marketers can define the
appropriate points-of-difference and points-of- parity associations.

POINTS OF PARITY (POP):

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POP are the associations that are not necessarily unique to the brand but may in
fact be shared with other brands. These types of associations come in two basic
forms:

1) Category,
2) Competitive.
Category:

Points of Parity are associations of consumers who view as essential to be a

legitimate and credible offering within a certain product or service category. They
represent necessary but not necessarily sufficient conditions for brand choice.
Consumers might not consider a travel agency truly a travel agency unless it is able
to make air and hotel reservations, provide advice about leisure packages, and offer
various ticket payment and delivery options. Category points-of-parity may change
over time due to technological advances, legal developments and by consumer
trends.

Competitive:

Points-of-parity are associations designed to negate competitors. Point-of-

difference is as strong for a brand as for competitors and the brand are able to
establish another association as strong, favorable and unique as part of its point-of-
difference, then the brand should be in a superior competitive position. In other
words, if a brand can break even in those areas where the competitors are trying to
find an advantage and can achieve advantages in other cases, the brand should be
in a strong and perhaps unbeatable competitive position.

POINTS OF DIFFERENCE (POD):

Points of difference (POD) are attributes or benefits consumers strongly associate
with a brand, positively evaluate, and believe that they could not find to the same
extent with a competitive brand. Strong, favorable, and unique brand associations
that make up points of differences may be based on virtually any type of attribute
or benefits. Creating strong, favorable, and unique associations as points-of-
difference is a great challenge, but essential in terms of competitive brand
positioning.

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RECOMMENDATION TO THE MANAGEMENT:

 Mountain Dew is in a better cause because one can get a sugar rush off
its awesome rock on people.
 The best part of mountain dew is the customer’s do not have to worry
about their weights because as much as they have it the calories will
remain the same.
 I should also focus on all age group segments, as I have only focused on
teenagers.
 It might be possible that our company would not be able to perform
well in the market because of decline stage but we will also work on
that as well.
 The values and the strategic mission of the company should be very
clearly conveyed to everyone and emphasis on the youth and sporty
persons should be communicated.
 Immediate steps should be taken so that the loyal consumers would not
have any reasons for switching the brand.
 They should come up with awareness programs to educate the
consumers about the new brand that they produced to tackle this social
shift.
 Company should improve its marketing activities and try to attract more
and more customer through delivering superior value.
 Company should make use of the necessary technology and try to
enhance it as well in order to face the direct competition and indirect
competition as well.
 Company should conduct a survey as well to find out the interests of its
customers, their needs and wants as well.

Attachment:
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 Strategic Brand Management (Third Edition) By Kevin Lane Keller

 www.wikipedia.com
 www.google.com
 www.mountaindew.com

CBBE MODEL

BOOSTER (JUICE): “It Will Boost Your Emotions”

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PRODUCTS:

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