Mountain Dews Marketing Strategy And Plan Marketing Essay

This report clarifies the merchandise strategy utilized by Mountain Dew and the merchandise classification it comes in. The pricing target and strategy used by Hill Dew. Two perceptual maps compare Pile Dew with its challengers. Promotional strategy utilized by Pile Dew and the mediums utilized by it for the same have been described. The features of each medium have also been given. There's a recommendation section that gives alternative strategy strategies for all these factors.

The report ends with a finish section and some recommendations.

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Executive Summary

The goal of this record is to identify and understand the many strategies utilized by PepsiCo for basic Mountain Dew. It is expected to do alter or alter these strategies and produce better strategies in market combination. The info about the product, company etc already are listed in public domain.

First the survey gives a brief introduction about the business and than about the product i. e Hill Dew. It also instructs about the delivery of the merchandise and its key elements. The segmentation of target market and expected target market have also been captured.

The product strategy section points out the merchandise strategy implemented, product levels and product classification for Hill Dew. It also explains the various components of promotional strategy. In addition, it covers advantages of these promotional elements.

The costs strategy section clarifies the pricing targets followed by PepsiCo for Pile Dew and the used to meet its goal. Two perceptual maps compare Hill Dew with its competitors. 4P's on the market blend section suggest alternative strategies for achieving greater results in terms of sales and increased customer bottom part.

Finally, some tips and bottom line section after the market combine section summarise the statement.

Table of Content


This survey is aimed to recognize various strategies employed by PepsiCo to market Pile Dew. It explains different strategy subject matter such as price, product, promotion to comprehend what tools and techniques are used by PepsiCo and their advantages. It also suggests choice techniques under market blend section that can give better result for these subject matter.


This statement has been authorised by <> for the intended purpose of understanding Hill Dew's marketing strategies.


This is not an extensive article on Pile Dew's strategy. That is an attempt to emphasize at high level what all is being done to advertise Mountain Dew.

Scope of the report

The scope of this survey is to clarify the product, target market, product strategy, pricing strategy, and campaign strategy used by Mountain Dew. It also recommends substitute strategies that can improve the overall marketing plan's results.


Company Background

In 1925 William H. (Invoice) started buying Tip Corp. of America. He launched lemon flavored carbonated drink before Pepsi Cola in 1940. Later Pepsi was included with its lemon flavored drink. Invoice made changes to the formula and reintroduced it in market in 1961. The amount of containers sold were in thousands and thousands. In 1964 Hill Dew was attained by Pepsi Cola and became its second favorite brand. In 1965 Pepsi Cola merged with Frito-Lay, Inc to become PepsiCo. In 1985 it became the major beverage industry. In 1990 it signed trade arrangement with Soviet Union and its profits come to 1Billion $ tag. In 1995 PepsiCo goes online. In 2005 Pile Dew sponsored ESPN Games. In 2010 2010 PepsiCo pieces Nanchang herb in China. Also, they are known for Tropicana product and good quality products.

Product Description

Mountain Dew is a carbonated soda with no alcohol and gets the following key ingredient- carbonated drinking water, fructose, orange drink, added flavours, level of caffeine and yellow 5.

It comes in various flavours, variations and colours.

It comes in different sized bottles to squeeze in customer's budget. Including the various plastic size containers are 250mL, 500mL, 1L, 1. 25L, 2L etc (Holt 2004, p. 63).

It can be an exhilarating drink.

It competes with products like Sprite, Canada Dry extra.

It has higher amount of caffeine containing drinks as compared to other carbonated drinks of this category.

It has high sugars amount as compared to its rivals.

High caffeine and sugar make it an excellent sport drink for excitement loving people.

Target Market

Mountain is something intended for a niche market. This group has grown liking of adrenaline pumping adventure sports and that is where this product is given most presence (Peter & Olson 2005, p. 192).

Market Segmentation: Hill Dew divides the market in 2 main sections
1. Demographic

Mountain Dew focuses on youth and teens in the age band of 16 to 25. This portion is young and also have liking of daring and challenging sports activities. That makes it the best customer section for Mountain Dew as that's the particular brand image of Pile Dew is. Besides this segment prefers carbonated drinks for the vitality dose they provide.

2. Psychographic

By nature almost all of the young ones like adventure sports and that is what Pile Dew promotes. That is why it is so well-liked by this generation. To compliment it Hill Dew is associated with an array of daring and adventure athletics. For young adults that increases the appeal of the product. In almost all of these games and events, children see Mountain Dew branding and it leaves brand image impact on their psyche. They have a tendency to relate the brand with bravery, soul, and courage.

Market Segmentation Category & Variables

Segmentation Category

Segmentation Variables

Demographic age




People who love extreme sporting

Psychographic liking for Excitement sports

liking for Experience sports

People who appreciate with bravery, heart, and courage.

Target Market: Mountain Dew main marketplace is young ones and teenagers. In this particular group they concentrate on sections which like escapades' sports. Mountain Dew over the years has formed a brandname image for itself. This image is associated with challenging and daring sports activities. It uses this image to appeal to youngsters and teens. It strong existence during championships and occasions of these sports provides it more visibility and reach to it marketplace. This marketplace is not limited to youth who take part in these activities but also those who desire to participate. It appeals to this section via inspirational promotional campaigns. All in all, it suits a very specific marketplace.

Product Strategy

Product Strategy: The essential strategy of Pepsi co. for Hill Dew is continuous improvement and customization. Pile dew is better because of this of extensive R&D and it is customized as per market or customers expectation. For example, one of the key ingredients in Mountain Dew is caffeine containing drinks. After customizing the method of basic Pile Dew they removed level of caffeine and thus formed the improved formula of diet Pile dew. They even customise the product remember the region where they are selling the product. For example, in Canada sucrose is employed as sweetener in mountain dew where in US fructose corn syrup is utilized as sweetener.

Another important product strategy that they follow is they enhance the existing formula, produce new improved or custom-made version and release it in market for short spans of 8-10 weeks. Predicated on customer's response and feedback, they continue/discontinue the mass development of this new method. Hence whole production set up isn't needed until the trial is prosperous. This saves a lot of money and helps in building enthusiasm in market about the merchandise.

It follows improvement and customization strategy because

It realizes that the clients expectation vary from region to region

People's lifestyle and flavor differ from time to time.

A lot of other soft drinks can be found and superior software is need of hour.

Carbonated flavoured gentle drink

Product Levels: The three product levels of Hill Dew are

Designer packaging, captivating labelling, use by time, packaging night out, location, nutritional information, Ingredients


Serving size, bar code, toll free quantity, contact details, health warnings, container disposal guidelines


Augmented productProduct classification: iPhone5 qualifies as speciality product because

It has unique brand identification

Mountain Dew's product level classification is that of convenience good as it is easily available and has very strong branding.

Packaging and Labelling: Mountain Dew is stuffed in nice inexperienced, convenient to carry bottles. Packaging is so very important to this brand that the business brings limited model designer bottles which are incredibly popular. It has an air limited lid that helps to retain carbonated effect. The bottles come in various sizes like 500mL, 1Litre, 1. 25L, 2L containers etc so that it can easily fit into various budget sizes. The labelling on the bottles mentions about its ingredients, Mountain Dew custom logo and other statutory details.

Promotion Strategy

Mountain Dew can be an important product for Pepsi Co. They spend a lot of money on its campaign. Its advertising strategy is powered by the image of the product. It is highly associated with experience and adrenaline pumping athletics. Its brand ambassadors are people from various daring sports such as sporting car motorists, skaters, hill bikers. Pepsi runs on the various promotion channels to market this system. The various components of promotional strategies are direct marketing, sales promotion, advertisements, public relations etc (Arens 2006, p. 198).

Direct Marketing

Internet is the most visible medium used for promoting it. There are lot of advertisings, competitions on internet to make product awareness and increase customer platform because of this product. It uses Facebook and Tweets to connect to its aim for customer base. Its website runs a bunch of video games and issues to prize its customers. Many freebies such as clothing accessories, product plans, and video games etc receive by Pile dew via various tournaments to promote the brand. The main advantage of this process is the fact since most of their concentrate on customers are young and they continue to be online for almost all of enough time it is simple to reach them.


Broadcast Marketing: There are many advertisements shown on tv set that contain extreme stunts and fearless actions. These are typically created to focus on the mark market of young adventurers. The main element advantage of this medium is to attain wider customer basic easily.

Public Relations

Public relationships are taken very seriously by Hill Dew. They get excited about a series of social initiatives which are helping in improving the brand awareness and acceptance. Some of them are

Sponsorship: It sponsors lots of programs like Living on the Border and Survivors Series and sports activities personnel. As the product targets teenagers, this sponsorship matches their image and helps to form brand image as brand for fearless, daring and enthusiastic people.

Special Events: It organizes special happenings like highway shows, mountain traveling and bike rushing etc. This can help them increase brand presence, influence potential clients, promote services and get responses on existing products.

Pricing Strategy

Pricing strategy of a product is identified by Market segmentation, competitor's pricing and positioning of the product. Analysing consumer behaviour is important factor in deciding the bottom price of a product and consumers have certain behaviour on buying something on the basis of its price (Kotler, Keller, Koshy, & Jha, 2009). The many steps in costing strategy and what Hill Dew does in each area is

Establish a goal for costs: Pile Dew's goal is to increase its market talk about and the as to make it through against its competitors.

Estimate Demand and other costs: Mountain Dew understands that their marketplace is devoted to the brand. A very important thing to do is to preserve this and create new demand. That's why they continue taking new flavours while retaining popular products. It also considers all the costs, such as procuring, production, packaging etc, involved in making the ultimate product to be able to decide upon a basic price.

Set the essential pricing strategy for deciding the purchase price: The charges objective of Mountain Dew is Sales focused. In order to achieve this it requires to capture maximum market share. Hence it uses competitive prices to attain the expected market size. It continues its prices in close closeness of sprite which is its main competition.

In the highly competitive soft drinks market the key is to really have the widest market share. Hill dew is also vying because of this. Their pricing target is sales oriented plus they maintain competitive prices strategy to keep ahead of the competition. Besides its marketplace is either youngsters or teenagers plus they don't have big money to invest. So Hill dew keeps costs at low profit percentage as compared to competition.

Mountain Dew Price vs. Quality Map

Above perceptual map depicts a comparison of Pile Dew using its primary opponents on the scales of price and quality. The Pile Dew's in comparison to its competition is broadly sold and has maximum commitment which is a reputed brand. Its closest competition Sprite is from Coca Cola group. Though Sprite is more expensive its quality proposition isn't higher than Hill Dew. Besides it also does not have many variants like Pile Dew. Canada Dry out (Ginger ale) a product of Dr Pepper group. It is sold at a price way higher than its competition and is also not as accessible. Quality wise its composition is better than Mountain dew or Sprite but it doesn't enjoy that type of brand loyalty.

Mountain Dew Price/Feature Map

In the aforementioned map Mountain Dew is weighed against its rivals on the price-attribute basis. The feature is caffeine content present. Hill Dew is cheapest and has maximum caffeine content. Closely linked is Yello Mello. It is a close rival of Mountain Dew in a few physical areas. Per 12 oz. Pile Dew has 54 mg levels of caffeine while Yello Mello has 53 mg. Canada Dry ginger ale has least levels of caffeine in these three. Per 12 oz. It offers only 9 mg of computer.

Recommendations for Strategies

Mountain Dew is not a product for public. It caters a very market. The tips for alternative techniques in strategies have been made with respect to the mark market.

Recommendations for Product

As the product targets young technology it will come up with stylish packaging, form and design of containers. Since most of the adventure sports activities that the company endorse happen in natural environment, so it might be worthy of to help make the product composition more natural. This will further increase its charm to activities people.

Recommendations for Pricing

The pricing goal of Pile dew is to increase sales and increase its markets share it even competes with intra company offerings e. g. 7 UP. But in doing this, it is already selling hill dew at a cost equal to or less than its rivals price. One approach it can take to further make the prices attractive is to follow the product bundling approach. This way it can sell more units while reducing the production costs. It can also offer discounts on special occasions to promote sales.

Recommendations for Place

Pepsi Bottling Group (PBG) handles all the syndication of Pepsi co. in US. This can be applied on various countries to increase circulation. Besides there could be number of alternative party distribution programs (Producer-Distributor-Retailer-Consumer (P-D-R-C)) so that product can reach rural areas and therefore increase customer basic.

Recommendations for Promotion

Till now Pile Dew is using various promotional advertisings highlighting adventures acts, back thrilling stunts etc. This is good for the target market it focuses on and shouldn't dither from this path. The product marketing team can retain stars who work in regions of action, adventure to promote it further. In this manner their lover following will also take interest in the product. Besides some inspirational advertisements can be made, using this product, to invigorate adventure spirit in people. This can help people relate with it better.


Mountain Dew is something meant for a niche market. It targets youth and teenagers and the product is promoted to them using excursion activities as a medium. This adds to the appeal of the product. The merchandise strategy accompanied by Pepsi is constant improvement and customization. It depends on customer feedback to reinvent the merchandise. The merchandise is listed very competitively to gain market share. It is advertised using internet, pr, and electronic media as most of its focus on customers use these mediums. To conclude, Mountain Dew is present in an exceedingly competitive market where margins are thin and to make it through you must have some speciality and a dedicated customer basic.


Following are some advice for Mountain Dew

It might be better to make the composition of Mountain Dew more natural.

Product bundling will help in reducing production costs and sales price.

Third party syndication channels will help reach wider geographical area.

Inspirational advertising to stimulate experience spirit of individuals will help it connect to the people in a much better way.

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