Executive Summary:
This report is approximately the Mountain Dew, which was launched in Pakistan in 1994 by Pepsi Cola Inc. It had been launched with no prior research of the marketplace. It is something of Pepsi Cola Inc. Originally it was a private brand, that was later purchased by Pepsi Cola Inc. On this short report first I'll explore the reason why of its failure in Pakistan, and i quickly will suggest a marketing intend to re-launch.
Mountain Dew worldwide usually target sports oriented and adventure seeking people but due to pattern of surviving in Pakistan differs so I am going to position it as a refreshing drink with a unique energizing and citrus taste. It rivals include 7 UP (another product of Pepsi which is holding 52 % of share) and Sprite ( a product of Coca Cola holding 38% of market share)in different ways. Threat for re-launching Mountain Dew is the fact that it could affect the sale of 7 UP which is another product of Pepsi Cola Inc. The area which I select to re-launch Mountain Dew is Karachi which is one of the major cities of Pakistan.
Company
PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500, American multinational corporation headquartered in purchase, NY, with interests in manufacturing and marketing a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and cereal-based snacks, and other food stuffs. Besides the Pepsi brands, the company owns the brands Quaker Oats, Gatorade, Frito Lay, Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7UP (outside the USA). [1]
Mission
Our mission is to be the world's premier consumer Products Company centered on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we shoot for honesty, fairness and integrity. [2]
Product
Mountain Dew, currently stylized predominantly as Mtn Dew, is a soda distributed by PepsiCo, but remains its brand. The formula was made and first marketed in Marion, VA, Knoxville and Johnson City, Tennessee, USA through the 1940s, then in Fayetteville, NEW YORK by Barney and Ally Hartman. By 1964, it was being distributed across USA. The formula still used today was made by Bill (William) Jones.
As of 2007, Mountain Dew was the 4th top selling carbonated soda in the United States, behind Coca-Cola Classic, Pepsi-Cola, and Diet Coke. Mountain Dew's Diet version ranked 9th in sales.
On October 15, 2008, Mountain Dew's official logo was redesigned to "Mtn Dew", because of this of an PepsiCo re-branding of its core products.
Currently in the united kingdom, a fresh drink called 'Mountain Dew Energy' has been introduced in to the energy drink market. Mountain Dew once was marketed in the UK in 1995, with a TV spot having the strap line "Wild color, smooth taste. " It had been unsuccessful, and the sale of Mountain Dew in the united kingdom was discontinued (aside from imports) by 1997. [3]
Mountain Dew in Pakistan (Situation Analysis):
Mountain Dew was launched in Pakistan in 1994 by Pepsi Cola Inc. but didn't capture the marketplace due to numerous reasons.
Reasons of Failure
Timing:
It was launched by the end of July, but summer months in most area of the Pakistan starts from March and ends on September. Therefore the timing to launch the product is bad.
Packaging:
It was introduced in glass bottles which were employed by 7 UP. Same look, same color, only the brand was changed.
Distribution:
Timing to launch Mountain Dew also influences the delivery and distribution system. Distributors didn't take huge level of the drink.
Fragmented Launching:
The launch was fragmented. Instead of launching it in one city and covered more area they launch it in five cities (Islamabad, Karachi, Lahore, Gujranwala, Faisalabad) covering only one or two location. That was not good.
Awareness:
Pepsi Cola Inc. did not advertise properly in media to make consumer aware of the product.
Market Situation:
In Pakistan consumption of carbonated drinks in high. Therefore the market is very attractive for new entrants. The sales are remarkably high during summer and cultural occasions like Eid, Ramadan, Birthday parties etc. Majority population in Pakistan is from middle and lower class. Thus high prices of non-essential goods aren't acceptable. So company must be careful in setting or increasing prices.
Competitive Situation:
The major rivals for Mountain Dew will be 7 UP, Teem and Sprite
These competitors are charging same prices Rs. 15 for disposable 250 ml bottle and Rs. 10 for regular 250 ml bottle.
Teem has very little advertisement while 7 UP and Sprite are supported by Television advertisements, billboards etc.
MARKETING PLAN
I will re-launch it. I am assigning this product a separate business unit supported by required finance and facilities in the city of Karachi. Population of Karachi is estimated at 18 million. It is the best place for launching any product. People of Karachi tend to be risk taker and consider being a trendsetter for all of those other country. Mountain Dew manufacturing plan will be located at SITE Industrial Area because of option of resources like labor, electricity & most important water which plays an important role in manufacturing of carbonated drinks.
Market Targeting Strategy
A large group has been identified within the soft drink with similar wants for Mountain Dew and market segmentation will be done based on geographic, demographics and psychographics of the clients.
Positioning:
Mountain Dew will be positioned as Refreshing and Energizing soda.
Product Line:
Mountain Dew will be launched in different packaging after getting success in a market.
Price:
Its price will be identical to of its competitors.
Distribution Outlets:
Two channels will be utilized for distribution Direct channel (sale promotion officers). . . Indirect channel (retail outlets). Mountain Dew will be provided to 10500 of these outlets. Company will generate 75% of sale from these outlets.
Sales Force:
50 sales promotional officer will be hired who are responsible for the direct selling to institutions i. e. marriage halls, hotels, offices, universities.
Sale Promotion:
Discount will be offered to retailers and distributors. Individuals are offered with buy one get one free offers.
Advertising:
Initially company must spent huge amount on advertising to produce awareness. Commercials on entertainment channels and Fm radio will be on aired 30 times every day for at least a month. Company will also advertise through news papers, billboards, banners.
Marketing Research:
Keeping because of objective to meet customers successfully and effectively, marketing team will keep in touch with customers to recognize their buying preferences, taste etc.
Mountain Dew is trying to receive the image of refreshing soft drink with original taste. Sales team, shopkeepers at retail outlets will be friendly and supportive with customers in forwarding their suggestions and complaints to the business. Objective is to delight customers once it is achieved it'll create emotional bond with the brand.
Customer Satisfaction Survey:
Mountain Dew must conduct surveys after every 90 days for the first year of launching in order to identify customer's satisfaction and dissatisfaction level and implement those changes suggested by surveys.
Delivering Customer Value and Satisfaction
After identifying the client value and satisfaction factors another important things is to effectively deliver those values. Here is suggested value chain system for Mountain Dew.
Primary Activities
Inbound Logistic and Operations:
Mountain Dew will be made using advance technology and processing facility located at SITE Industrial Area, Karachi. Team of potential and experienced individual will be hired to aid its operations.
Outbound Logistic:
Delivery of Mountain Dew in Karachi will be through Distributors. Distributors will be divided according to regions like East, West, North and South. If there are places beyond distributors access, Mountain Dew will use its delivery vans.
Marketing:
Different medias will be utilized for promotions and making consumers alert to the merchandise unique features.
Support Activities:
Supporting pursuits like procurement, human resource, accounting etc. will be carried out by separate departments established for these purposes.
Scanning Marketing Environment
Now we will analyze macro environment, the demographic, economic, technological, political-legal and social cultural, for the re-launch of Mountain Dew.
Demographic Environment
The first of the macro environmental force is population. The business is considering the scale, density and growth rate of population of Karachi.
Karachi Population Growth:
Karachi's population involves 18 million people and population growing at the pace of 5% per annum. Population can be divided into five different aged groups: school-age children, teenagers, adults aged 25 to 40, middle aged adults age 40 to 65 and age 65 and above. Company must target decision makers that are young adults.
Economic Environment
Purchasing power determines the economic environment of an country. Purchasing power is determined by income, prices, savings etc. The income level of people in Karachi is very low, trends of savings is not there. Economy would depend on foreign debts. Majority of individuals in Karachi are salaried or daily wages labor. Average family income is round about Rs. 6000 or less.
Technological Environment
I don't consider technology as important factor for Mountain Dew.
Political Legal Environment
Political and legal environment impacts marketing decisions. Pakistan is politically unstable. It gives negative indicator to foreign investors. So company has to seek some kind of assurance for the duty of regulating business from some agencies.
Social cultural
Pakistan has a mix culture. People are following inherited tradition, traditional norms and values. Because of high poverty people cannot afford very cost. Many families in Pakistan live under one roof, so purchasing patterns of individuals are highly influenced by the advices and advice of other family. Mountain Dew has been re-launched in Karachi, which is the largest city of Pakistan in terms of population, size and area. Here soft drinks are utilized through out year due to warm weather. The People of Karachi are believed trendsetters of the country.
Competition
Mountain Dew has recognized its competitors as 7 UP, Sprite, Teem that are substitute for each other with a very little difference in taste and filling while Mountain Dew falls in this category with unique taste and packaging. Mountain Dew must face tough competition from Sprite (make of Coca-Cola Company) and 7 UP (make of Pepsi) both constitute 92% the marketplace share.
Competitors Profile
Coca Cola Inc
The Coca-Cola Company began its procedure in Pakistan in 1953.
Its brands include Coca-Cola, Fanta, Sprite. It includes approximately 70000 retail outlets in its distribution list. The Coca-Cola Company sponsors the Basant Festival in Lahore, a festival that marks the start of spring and attracts tourist from all over the world. It also sponsor music concerts through out the united states for teenagers and underprivileged children. The Coca-Cola company is the selected supplier for Pakistan Railway, serving soft drinks in stations, platform and on trains.
7 UP
Pepsi Cola Inc. launched 7 UP in Pakistan in 1969. It is consider as the marketplace leader in the white drinks category. Pepsi Cola introduced 7 UP in Pakistan in 1969. Today 7 UP is definitely the market leader in the white drinks category. 7 UP is financially strong and more developed brand.
Competitive Strategy for Mountain Dew
Mountain Dew is not used to the soda market of Pakistan as it was failed in the last experience due to not having good online marketing strategy. After analysis I recommend following strategy moves for Mountain Dew to be able to contend with 7 UP and Sprite.
Product Proliferation
Now it will be provided in variety of sizes (see table 1. 1) in order to improve the consumption and making price conscious consumer buy the product as they'll purchase it according with their specific need.
Product Innovation
Mountain Dew itself can be an innovative product on the market of Pakistan because than it unique citrus taste and energizing attributes.
Distribution Innovation
Mountain Dew will not only rely on distributors but it'll develop its own distribution channel to be able to access the marketplace from all the dimensions.
Market Segmentation
A large group has been identified within the soft drink with similar wants for Mountain Dew and market segmentation will be done based on geographic, demographics and psychographics of the clients.
Geographic
At start it will be launched in Karachi city only then it will be introduced in the others of Sindh, Punjab, NWFP and Baluchistan.
Developing an Advertising Program
Advertisement is a cost effective way to circulate messages, whether, build brand preference or even to educate people.
Advertising Objective
Convince the marketplace of the brand superiority.
Type of Advertising
As Mountain Dew reaches its initial stage, we will use informative advertising, making people aware of the merchandise, its quality and benefits of using the product.
Advertisement Budget
Mountain Dew is at the beginning of product life cycle, as individuals are not aware of computer, thus large investment will be needed for advertisement.
Advertising Message
"Forget past as its gone, look new and choice new which is
Mountain Dew. "
Selecting Media
For Mountain Dew advertisement we will chose media that is cost effective and covering large numbers of audience. Since it is customer-oriented company, its goal is to serve maximum number of customers.
Electronic Media
Electronic media will be used to promote Mountain Dew i. e. TV. Its commercials will be on aired on PTV (Pakistan's national Channel) and entertainment channels like ARY Digital, Hum TV and GEO Entertainment.
Print Media
Apart from electronic media company will advertise in newspapers like The News, Dawn and Magazines like Akhbar-e-Jehan.
Billboards
Billboards will be place on all major regions of the cities like Delton's, SITE, Korangi Bridge, FTC etc.
Sales Promotion:
Sale promotion tools we will use for Mountain Dew are as under:
Free Trials
Free trails will be offered for the first week to 2000 consumer who visited shops.
Prizes / Contest
For the first two month company will attach coupon to each bottle, after filling it customer will return this coupon to retailer who then forward to company, through lucky draw on weekly basis consumer will be awarded prizes like motorbike, bicycle, mobile etc.
Critical Reflection on Learning Outcomes
Mountain was initially launched in 1994. It tried to get the image of activating and energetic soda with a unique citrus taste, providing customer with a highest product value. Customer had wide selection of choices in selecting product quantity. Mountain Dew offered the same price as its opponents were offering i. e. Rs. 10 for regular bottle but with additional level of 50 ml. the reason it failed to capture the market was market plan.
Following were the challenge with there marketing plan:
1. Company introduced the product at the end of July, but summer season in Pakistan starts from march and ends on September, so the timing to introduce the merchandise had not been good.
2. It had been introduced in glass bottles which were utilized by 7 UP. Same look, same color, only the brand was changed
3. The launch was fragmented. Instead of launching it in a single city and covered more area they launch it in five cities (Islamabad, Karachi, Lahore, Gujranwala, Faisalabad) covering just a few location. That had not been good.
4. Pepsi Cola Inc. didn't advertise properly in media to make consumer aware of the merchandise.
Why Organization Need Marketing Plan
It is an essential document for both large corporate marketing departments and for startup companies. The Marketing Plan is generally undertaken for just one of the next reasons:
Needed within the yearly planning process within the marketing functional area.
Needed for a specialized strategy to introduce something new, such as new product planning, entering new markets, or trying a fresh technique to fix an existing problem.
Is a component in a overall business plan, like a home based business proposal to the financial community?
When writing the business plan, the Marketing Plan section explains how you're going to get your customers to purchase your products and/or services. The marketing plan, then, will include sections detailing your:
Products and/or Services and your Unique Selling Proposition
Pricing Strategy
Sales/Distribution Plan
Advertising and Promotions Plan
The easiest way to develop your marketing plan is to work through each one of these sections, referring to the marketplace research you completed when you were writing the prior sections of the business enterprise plan.
