The Mountain Dew’s demand is remarkable and the reason behind its successful launch is its differentiation propertiesfrom other soft drinks. It has been calculated that Mountain Dew has captured 47 Million of market share. BACKGROUND History The “Do the Dew” tagline appeared in 1993 along with the dew people. Mountain Dew was born way back in 1940 in the mountainous Tennessee region in US. The name MOUNTAIN DEW was first trademark by two brothers Barney and Ally Hartman. Hartman’s Mountain Dew was a lemon – lime drink used as a mixer with whiskey Dew’s appeal went national when Pepsi – Cola bought the franchise in 1964. Pepsi purchased Mountain Dew from the TIP Corporation in 1964. Launch In the year 1994 mountain dew was first launched in Pakistan by Pepsi Cola Company. It was introduced as there was a flavor gap in the Pakistani market. But due to lack of communication and promotional tools, customer awareness was not created and the bottle was the same as 7up bottle with the label changed. So customer thought as if it was same as of 7up only the name is changed. In short they didn’t see any differentiation in the product. Due to this reason, mountain dew failed, as it was not a proper launch but only a concept testing. Also Pepsi cola international did not gave up a financial support for R&D. Re - Launch Mountain Dew was re-launched with a big bang on 1st February 2004 with a new redefined product and image differentiation with improved taste. “Dew na kiya tu phir kya jiya!!” The launch was based on two factors: o o Trial and Error Method Awareness 1 Usually it is consumed by people who live in cities or urban areas. 7-up. Energile.Tang . Economical Environment It is available at a very reasonable price so anybody who wants to buy can have it. In addition. Competitors Analysis Direct Competition Sprite. Such surveys have identified readiness issues and. It doesn’t come in any income bracket. potential risk to us. Makka Cola.ENVIRONMENTAL ANALYSIS Product’s Microenvironment We have identified critical suppliers. Pakola. Coffee and Tea 2 . where necessary. Ammrat Cola. Squashes (Mitchell’s. and other third parties and have surveyed their Year 2000 remediation programs. There is no gender discrimination among the users it can be male or females. independent Consultants have completed a survey of the state of readiness of our significant bottling franchisees. Bubble Up Indirect Competition Pepsi. customers. Natural Environment It is available in canes which are not harmful for the environment and can easily be disposed. Shezan etc). Team. Demographic Environment Mountain dew is mostly used by teen age population of Pakistan. All tetra pack juices. financial institutions. therefore. Coke. We have completed on-site meetings with many of the third parties identified as presenting the greatest impact if not compliant. will be finalized in the first half of 2003 and tested where feasible in the second half of 2005. Risk assessments and contingency plans. SEGMENTATION AND TARGET MARKET Segmenting Demographics Age & Gender: Mainly Young people from 12 to 18 yrs age.880. These people are unconventional and carry a thought of changing the world around them.Quice. Outgoing. MARKET SHARE AND MARKET SIZE Market Share Population of Pakistan = 140000000 Teenagers = 60% = 8400000 People belonging to upper middle & upper class who are able to afford = 3.e. Fun loving mainly strivers and achievers. Jam-e-Shereen. Life style: Party type. happening. full of life. Region: Urban & sub urban Social Class: A&B Class Psychographics Personality: Thrill loving. 3 . enthusiastic.880.000 5% of population has no access i. Lassi. Rooh Afzah. potential and access to the product. Units consumed per month = 15 3192000 * 15 = 47.000 3192000 people have interest.Traditional Competition Fresh Juices.000 Hence the calculated Market share is 47. 40% = 3360000 – 168000 = 3. social.000 Therefore.000. 168.360. dreaming success.192. traditional drinks like Milk. 2005). Market Segmentation: Group of individuals who possess similar needs and choices represent a segment of market (David Jobber. Cold drinks are very popular among this age group and became a part of lifestyle. Mountain dew has segmented itself mainly on the basis of demography and lifestyle in a niche market of adventurer and extreme sports. In this niche market most of the consumers are youth (Product Differentiation and Mergers in the Carbonated Soft Drink Industry. The key features of this marketAge: Mountain dew is targeting the consumer of age 12-28 means youth or teenagers. 2005). In the term of life stage this age group falls in youth or teenage who lives with their parents and are depends on their parents 4 .POSITIONING Old Positioning Just another addition in the carbonated drink Comparatively light flavor Less caffeine Older image Not targeted demographically or psycho graphically Used 7-Up bottle with MD logo New Positioning Value added Comparatively very strong flavor Highest caffeine than any other beverage drink Young image Targeted for those who seek adventure in their lives New beer bottle like shape The new brand image gives away a picture of young energetic and trendy teenager who can take on any dare. This brand positioning has made many young teenagers around the globe to get them associated with the Mountain Dew. 20 and 45 Rs. and extreme sports lover and most of the people falls in this category are young (Arens. Positioning: Positioning of brand or product is choice of a company to target the market where it can compete and take advantage over competitor (David Jobber. This is a niche market of adventurer. Extreme Sports. 2004). To target this age group Mountain Dew is making its availability easily to consumer in different volumes (Holt. fun loving. adventure and fun. Lifestyles: They are targeting lifestyles of their consumer and it is reflected in their advertisements. Segmentation Table: Age Life Stage Who Lifestyles Positioning 16-25 Youth and Teenage Students and Young Executive Adventurer. 2009). They are daring. 2008) Company’s positioning statement itself defining dew’s strategy that this drink will target and made impact among the persons who are adventurer. Positioning statement of Mountain Dew by PepsiCo is: “To 16-18 year old males. It is targeting the consumer’s tendency of fearlessness. who embrace excitement. for different volumes. thirst quenching. daring. confident and energetic (Peter & Olson. The chief and main consumers of mountain dew are the youth who are ready to take on excitement. 2006). 2005). 2006). excited and daring. 10. Income Level: It is not concentrating on income levels because their target consumer can easily purchase the product as it is charging the standard price that is 6. and has a one of a kind citrus flavour” (Shimp. Also it is positioning itself by promoting itself as a high energy and citrus flavour drink (Watts. funny. It is also not important because all the other major soft drinks also have the same price of their variants (mall. 15. 2005). Generally customers of youth group are not concerned about price.economically. Targeting: Mountain Dew is targeting customers which are generally college students and young executives. extreme sporting and adventure. Daring Energy and Exhilaration drink 5 . Mountain Dew is the great tasting carbonated soft drink that exhilarates like no other because it is energizing. Its name Mountain Dew Differentiation Product Differentiation The color Highest amount of caffeine as compared to other drinks Beer bottle like shape Image differentiation They portray an image of a drink that would make you adventurous. thrilling and daring. Unconventional bear bottle like shape. 6 . It energizes you to go out and do something new and exciting in life. These two line extensions are been carried forward abroad n in near future there is no plan to launch these two brands here. Mountain Dew LiveWire will be broadly targeted to teens and young adults. Though they have seen market potential in some areas of Pakistan. with plans to expand into two-liter plastic bottles and 12-packs of 12-ounce aluminum cans. Line Extension Mountain dew doesn’t have any Brand Extension as yet and they do not intend to do it in future In Pakistan Line Extension of MD has not introduced as yet but internationally it has done line extension by offering: Live Wire Mountain Dew Combining the unique citrus taste of Mountain Dew with a bold orange flavor. Mountain Dew LiveWire initially will be available in 20-ounce plastic bottles.STRATEGIES AND LIFE CYCLE Unique selling proposition (USP) Yellow carbonated lime drink. Code Red Mountain Dew Code red Mountain dew has enormously captured the market abroad because of its unique color and taste. “Do the Dew” a very catchy slogan. It uses Competitive Price strategy. Unique beer bottle shape. The product revenue and profits can be plotted as a function of the life-cycle 7 . and decline. Regular bottle: (250ml) Rs/=9 Non refundable bottle: (250ml) Rs/=12 Tin Can : (300ml) Rs/= 20 Litre bottle: Rs/= 27 Promotion Life cycle A new product progresses through a sequence of stages from introduction to growth.Marketing Mix Product Features and Attributes: New Lime-Lemon Taste. This sequence is known as the product life cycle and is associated with changes in the marketing situation. maturity. thus impacting the marketing strategy and the marketing mix. yellow color with caffeine and vitamin & electrolytes Place / Distribution Pricing Strategies Due to Price Regulatory Body of Pakistan it is made compulsory for all beverage companies to follow certain restricted prices. setting a high price to skim maximum revenues so that company can make view but more profitable sales. people are aware of it and has attached certain value to it and is increasing its market share. It is different and innovative Distribution Channel Pepsi Cola uses 70% of its own distribution and 30% out sourcing through its agents.Mountain Dew lands itself in Growth stage. Dew is now available. At this stage the customers will be the early adopters that follow the fads. Dew is promising innovation. the firm seeks to build brand preference and increase Market share. Sales will be average. thus if it fails to full fill its promise. Promotional Channels Advertising Electronic Media Print Media Sales Promotion Initially they used Price off strategy that is tin can of Rs. At this stage the company will do Market Skimming Pricing as the firm enjoys increasing demand with little competition i. 8 . then Dew might starts its journey towards the decline. Such kind of direct marketing has not been dared by others. or the innovation is not according to people wants.e. it will have to have a product differentiation strategy to retain market share. When Dew will reach its maturity stage. In the growth stage. Product quality is maintained and additional features and support services may be added. The company starts direct marketing at this stage and Promotion is aimed at a broader audience.10 Direct Marketing Free sample is being offered by mountain dew’s roller skate boys wearing a complete kit standing on the signals.20 was sold at Rs. They would like to do line extension of mountain dew and are looking forward to introduce new colors and variants of dew. Brand Image Mountain dew has created an image which differentiates its product. Funky. Fast & Active Hip – Hop. exciting thrill loving people. Brand Association Young. Adventurous Full of Confidence High Spirit and Zestful Loves Extreme Sports Brand Persona The brand persona of Mountain Dew is of a personality which: Young Active Outdoor Extremely Sporty Trend Setters Thrilling Brand Contract Thirst Quenching 9 . service and organization from other brands.BRAND POSITIONING BRAND VISION In the following 5-7 years mountain dew wants to increase its market share and grow as a lifelong brand. Brand contract is fulfilled Quantitative Assessment Mountain Dew is in its initial stages initial phase. dreaming success. which are currently in use throughout the world.o o lime/lemon o o Its refreshing. Selectively broaden the family of beverage brands to drive profitable growth.There is brand awareness . The marketing strategy for the year 2002 is as follows. Major brands of coca cola • Coke --Sprite --Fanta -. Serve customers with creativity and consistency to generate growth across all channels. thrill. the marketing team considers the culture of the country. Vitamins.Diet coke ---Coke classic The strategy for the future of the company is very straightforward. Grow system profitability and capability together with our bottling partners. full of life. enthusiasm. energizes and gets rid of tiredness and fatigue in a person It is truly a lime drink and carries all the vitamins and relative qualities which are found in Refreshing drink in an affordable Beliefs and Values Thrill loving. Coca Cola PRODUCTS: There are different brands of the Coca Cola Company. • • • • • Accelerate carbonated soft-drink growth. adventurous Benefits Freshness. led by Coca-Cola. power Dealers View BRAND EVALUATION Qualitative Assessment . While launching its product.Brand Identity is there . This company not only deals in the carbonated drinks but also other drinks. 10 . Direct investments to highest potential areas across markets. and its growing in beverage industry. There are so many people who take this drink daily and those people who take weekly and those who take less often are always there as well. Gujranwala. When we bring refreshment. The CCBPL plants are in Karachi.) 49 years of refreshment in Pakistan Coca-Cola introduced in Pakistan 1953 Fanta introduced in Pakistan Sprite was introduced Diet Coke & Fanta Lemon 1965 1972 2001 PROMISE OF COKE The basic proposition of our business is simple. joy and fun to our stakeholders. Pepsi’s Products Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up. The Coca-Cola System in Pakistan has invested over $130 million (U. solid and timeless. Hyderabad. During the last two years.• Drive efficiency and cost-effectiveness everywhere. value. particularly Coca-Cola. Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. Demographic Forces Age: The potential customers of Coke and Pepsi would be of age groupof 14-30 years. So. are in Rawalpindi and Peshawar. Multan and Lahore.S. The Coca-Cola System in Pakistan serves 70. Fanta and Sprite are the brands in Pakistan. 11 .800 people. The remaining two plants. the young generation is the target market of Coke because they want to represent Coke with the youth and energy but they also consider about the old people they take then as a co-target market. TARGET MARKET Coke’s commercials basically based on young generations. Sialkot. independently owned. Coke and Pepsi target customers fromthe middle class to the upper class MAJOR SEGMENTS Major segments are basically those people who take this drink daily and those areas where the demands is higher then the other areas.000 customers/retail outlets. then we successfully nurture and protect our brands. COCA COLA PAKISTAN The Coca-Cola Company began operating in Pakistan in 1953. their basic segments are those people who take this drink regularly. The Coca-Cola System in Pakistan operates through eight bottlers. Faisalabad. Rahimyar Khan.Income: As for the income levels. The Coca-Cola System in Pakistan employs 1. four of which are majorityowned by Coca-Cola Beverages Pakistan Limited (CCBPL). So. and how they relax and recharge. and we never forget it. In other words. they don’t care before drinking that whether it is “Pepsi” or “coke”. Sprite. They have maximum number of coolers and freezers in the market. a woman in Italy taking a tea break. but also to contribute to communities around the world through our commitments to education. They believe on “WHAT COLD THEY SOLD” Consumer’s availability in brands is basically works like: Push availability Pull consumer’s demand. Coke strives to be a good neighbor. if not then they immediately change or repair it. Fanta. Consumers basically drink what they get. tea are the competitors. MAJOR CUSTOMERS NEED First of all the majority don’t care that what they are going to have. They provide this infrastructure free of cost just to provide child coke to their customer. They don’t actually differentiate between these two brands in order to their tastes.Competitors Coke’s major competitor is “PEPSI” and there is no hesitation to say this because every one knows that and all the other cold drinks and water. a child in Peru asking for a juice drink. which they want to be purchase. where they live. how they work and play. Whether you're a student in the United States enjoying a refreshing Coca-Cola. MARKETING STRATEGY Our local marketing strategy enables Coke to listen to all the voices around the world asking for beverages that span the entire spectrum of tastes and occasions. and diversity. 12 . We are determined not only to make great drinks. coffee. Their salesman and mechanics regularly visit all the shops where coke has its infrastructure to check that either it is in proper condition or not. or a couple in Korea buying bottled water after a run together. wellness. What people want in a beverage is a reflection of who they are. For this reason Coca-Cola have provided their coolers and freezers in the market. health. consistently shaping our business decisions to improve the quality of life in the communities in which we do business. Diet Coke. we're there for you. MARKET POSITIONING Product Range The total range of Coca Cola company in Pakistan includes: • • • • Coke. It's a special thing to have billions of friends around the world. which are following.And company offers their products in different bottle sizes these includes: • • • • • SSRB LRB NRB PET 1. Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. conducted by the international firm Pakistani people like little bit sweeter cola drink. SALES PROMOTION ACTIVITIES Coca-Cola Cricket Coca-Cola Concerts Coca-Cola Party in a Park Coca-Cola Shopping Festival Coca-Cola GO-RED Coca-Cola Basant Festival Coca-Cola Pet Promotion Coca-Cola Food Mela Coca-Cola Ramzan Campaign Coca-Cola Wonder of the World Promotion Coca-Cola & Nokia Diet Coke Fanta & Sprite Launched Coca Cola TV Mazza Coca-Cola & Mc Donald’s RECOMMENDATIONS After completing our project we have concluded some recommendation for the coca cola company.5 CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1.5 pets 12 bottles in a pack for disposable bottle 24 cans in one pack.5 litter plastic bottle) (tin pack 330 ml) Packing Coca cola products are available in different packing • • • • 24 regular bottle shell 6 bottle pack for 1. 13 . According to the survey. So for this coca cola company should produce their product according to the local demand. ingredients and style. Initially made in China under ‘Saudi Snack Food’ but now from 14th august. It was initially made in China under ‘Saudi Snack Food’ but now from 14th august. Kurkure capture a huge market in a very limited time due to its mouth watering taste and aggressive marketing. Snacks are of two types extruded & potato chips. Marketing team should try to increase the availability of Coke in rural areas. Customer in this region consider low price but still want for high quality. Now young generation has a trend to drink coke 2 regular bottles at same time. “ Product Introduction” Named after the Hindi word for "crunchy".413 Sunder Estate Rewind Road Lahore. Kurkure is positioning itself on the basis of unique tastes. 14 . In the case of Kurkure the consumer buying behavior is frequent purchase as Kurkure is easily available at a very low price at almost every general or retail stores in the country. Kurkure is a Cheeto-like snack made and marketed by Frito Lay's. company is producing a high quality product at a very low price. so providing more satisfaction to them company should introduce ½ liter disposable bottle. Like every other multinational company. before introducing the ‘Kurkure Company conduct different surveys to get consumer interest about features. design and quality level. consumer buy or purchase for their personal use or consumption. Kurkure comes in 3 different flavors. When considering the unique tastes. Flavor. 2006. Introduction of Kurkure in Pakistan Although Kurkure is the product of Frito-Lays but it was introduced in Pakistan. It’s totally fulfilling the need of the people. They should also focus the old people. user manual but they are offering benefits to the retailers in the form of more profit. It is one of the most popular snack food products in Pakistan today. 2006 it is produced by Pepsi. Kurkure is the convenience good at the consumer level so they are not offering any after sale service. Kurkure is unique in Quality. Quality As far as the quality is concerned. Kurkure is the extruded snack item. Introduced in Pakistan by PepsiCo International on 1st September. taste and quantity. flavors. Kurkure is the consumer product because it basically use at the consumer end. “Product Assessment” Kurkure lies in the extruded item which comes under FMCG Products (fast moving consumer goods). Kurkure is offering “fast-mirchi” product to the customers. 2006 it is produced by PepsiCo International at plot no. anywhere Servings: With Chaat With tea With Raita With drinks Occasions: Parties and celebrations Pricing Kurkure is standing in market as a low price chilli snacks.Style & Design Style and design matter a lot on the outcome and response of the product. Masala Magic 2. Kurkure’s Flavor. Its promotional campaigns urge consumers to use it on. ‘Kurkure’ as the product (inside the pack and out side wrapper) has much attractive and catchy colors style and design which attracts the customers alot. The real taste is in the crispness of the product. Kurkure has adding more and more flavors to attract the consumers and retaining same taste. Flavors Initially Kurkure was introduced in the market with only 2 flavors but later on company added 1 more flavor in the family of Kurkure. consumer can use Kurkure as plain or with different styles & recipes. Daily basis: At lunch Dinner Anytime. All flavors of the Kurkure are mouth watering and tempting. Podeena Masti Usage Kurkure is also positioning itself on the basis of its usage. Price Range: • Small Rs 5/• Medium Rs 10/• Large Rs 20/- Packaging 15 . It is affordable by the consumers of every income level and price deliver value to customer. 1. Red chilli Jhatka 3. Kurkure has 3 different flavors in the market so the each flavor has its own unique packaging color combination according to its taste. flavors and retaining the quality standards. which is a natural phenomenon. Product Life Cycle Kurkure is launched only few months (1st September 2006) back in Pakistan and growing day by day. cities. Kurkure is trying to expand its wings to cover towns. Geographic Segment: Concerning geographical factor. Kurkure comes in the air tight packing & packing material of Kurkure is of high quality so that product will remain fresh and its taste keeps secure up to more than four months.Kurkure is available in the market in 3 different packing. With the time being this brand is so familiar so its capture the mind of every person as a unique. making it available to everybody. quality. ‘Kurkure’ is an international brand of PepsiCo Int. By introducing new tastes. “Consumer Assessment” Marketing Segmentation 1. However they are delivered in container packing from production plant to shopkeepers or retailers. which carries 48 packs. and they are controlling the production itself in India. No secondary packing is using. Kurkure is available to the consumer only in primary packing. although in Pakistan Riaz bottlers are the dealer of Pepsi but for ‘Kurkure’ company itself made a plant and produce them by their own to serve their customers. When they came Pakistan. villages. Currently Kurkure lies in the Growth stage where the profit ratio is not very high but the growth rate is very high but by the time pass consumer may be become exhaust from this product. and the product will at stake on the point of maturity. Kurkure is available in three different sizes • • • 19 gm 38 gm 75 gm Branding Kurkure lies in the manufacture brand because they are producing their product by its own. and tasty extruded with Kurkure’s Brand. The product Kurkure is specially 16 . Basic color combinations are in green and red colors which all are eye catching. it will snatch consumers of other brands and pull them towards itself by leaving other competitors far behind and get advantage over them. Kurkure will focus on several variables such as age. Kurkure is standing in market as a low price chilli snacks. gender and income level. Distribution 17 . Marketing Mix 1. male or female. flavors. Age: Kurkure will focus heavily on children and young people. 2. Price Price also plays a vital role in the buying decision of any product because the price of a product will create a perception about the quality of the product. Company is touching customers through: • TV advertisements • Posters • Retailer promotions 4. Psychographic Segment: Considering psychographic factors. When considering the unique tastes. Promotion Kurkure is making big investments in promotional campaigns. and personal values that best match with the product usage and distinctive from competitors. standardized taste and variety of flavors. Income level: Kurkure pack is easily affordable and company is trying to give more for less making it best value of money. Gender: Kurkure is a generalized product for any sex. Demographic Segment: Concerning demographical environment. Kurkure impacts positively on individual customer satisfaction. Kurkure is offering “fast-mirchi” product to the customers 2. using top models & celebrities from the media. 3. 3. Making an image of style. Kurkure will heavily focus on customer’s life style. tastes.designed for the Gulf & South Asian region specially India & Pakistan considering the taste & style of the traditional foods & flavors. ingredients and style. Product Kurkure is positioning itself on the basis of unique tastes. race. Pricing 18 . family life cycle or gender and has a target market in every social class. Kurkure is focusing heavily in children and young segment. company will capture this huge segment. flavors and retaining the quality standards. But they are also targeting families. it will occupy a huge number of customers. Kurkure is not concerned with any religion. Main concerned segment is youth who have experienced high product consumption level. Since the right product at the right place is the real effectiveness of the company as well as product. “Marketing Strategy” Market Orientation Becoming market oriented. In precise target market. Trade Promotions By delivering valued trade promotions to wholesalers and retailers. occupation. Gaining Competitive Edge By introducing new tastes. This will allow Kurkure to stay in market effectively and people will order more quantity due to its increased demand by customers.Placement of a product is also very important while buying the product like Kurkure. Keeping in mind about the preferences and needs of customers regarding tastes and flavors. as they understand this influence factor in this region. Target Market The target market of Kurkure is generalized including children. it will snatch consumers of other brands and pull them towards itself by leaving other competitors far behind and get advantage over them. Kurkure will focus on snacks’ customers. young and old people. Kurkure is standing in market as a low price chilli snacks. • • 19 . But a company cannot follow a single strategy straightly. Kurkure is offering three different prices for different packaging.The company is following the Cost-Based Pricing. • • • Small Rs 5/Medium Rs 10/Large Rs 20/- Suggestions” Here are some recommendations & suggestions which may open the new horizons of the growth and progress of the company. • • The company can occupy a huge number of customers by keeping in mind about the preferences and needs of customers regarding tastes and flavors. villages. flavors and retaining the quality standards can attract consumers of other brands and pull them towards itself by leaving other competitors far behind and get advantage over them. cities. making it available to everybody. This will allow Kurkure to stay in market effectively and people will order more quantity due to its increased demand by customers The company should try to expand its wings to cover towns. By delivering valued trade promotions to wholesalers and retailers. By introducing new tastes. It is affordable and price is delivering value to customer. company can capture this huge segment.