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from 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. Hartmans Mountain Dew was a lemon lime drink used as a mixer with whiskey Dews 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 didnt 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
ENVIRONMENTAL ANALYSIS
Products Microenvironment
We have identified critical suppliers, customers, financial institutions, and other third parties and have surveyed their Year 2000 remediation programs. We have completed on-site meetings with many of the third parties identified as presenting the greatest impact if not compliant. Risk assessments and contingency plans, where necessary, will be finalized in the first half of 2003 and tested where feasible in the second half of 2005. In addition, independent Consultants have completed a survey of the state of readiness of our significant bottling franchisees. Such surveys have identified readiness issues and, therefore, potential risk to us. Demographic Environment Mountain dew is mostly used by teen age population of Pakistan. There is no gender discrimination among the users it can be male or females. Usually it is consumed by people who live in cities or urban areas. Economical Environment It is available at a very reasonable price so anybody who wants to buy can have it. It doesnt come in any income bracket. Natural Environment It is available in canes which are not harmful for the environment and can easily be disposed.
Competitors Analysis
Direct Competition
Sprite, 7-up, Team, Bubble Up
Indirect Competition Pepsi, Coke, Pakola, Makka Cola, Ammrat Cola, Squashes (Mitchells, Shezan etc), All tetra pack juices,Tang , Energile, Coffee and Tea
Traditional Competition Fresh Juices, traditional drinks like Milk, Lassi, Rooh Afzah, Jam-e-Shereen,Quice.
40% =
3360000 168000 = 3,192,000 3192000 people have interest, potential and access to the product.
success,
Life style: Party
type, social, Outgoing, Fun loving mainly strivers and achievers. These
people are unconventional and carry a thought of changing the world around them.
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.
Market Segmentation:
Group of individuals who possess similar needs and choices represent a segment of market (David Jobber, 2005). 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, 2005). The key features of this marketAge: Mountain dew is targeting the consumer of age 12-28 means youth or teenagers. Cold drinks are very popular among this age group and became a part of lifestyle. 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
economically. To target this age group Mountain Dew is making its availability easily to consumer in different volumes (Holt, 2004). Lifestyles: They are targeting lifestyles of their consumer and it is reflected in their advertisements. The chief and main consumers of mountain dew are the youth who are ready to take on excitement, extreme sporting and adventure. They are daring, fun loving, confident and energetic (Peter & Olson, 2005). It is targeting the consumers tendency of fearlessness. 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, 10, 15, 20 and 45 Rs. for different volumes. It is also not important because all the other major soft drinks also have the same price of their variants (mall, 2009). Targeting: Mountain Dew is targeting customers which are generally college students and young executives. Generally customers of youth group are not concerned about price. This is a niche market of adventurer, daring, and extreme sports lover and most of the people falls in this category are young (Arens, 2006). 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, 2005). Positioning statement of Mountain Dew by PepsiCo is: To 16-18 year old males, who embrace excitement, adventure and fun, Mountain Dew is the great tasting carbonated soft drink that exhilarates like no other because it is energizing, thirst quenching, and has a one of a kind citrus flavour (Shimp, 2008) Companys positioning statement itself defining dews strategy that this drink will target and made impact among the persons who are adventurer, funny, excited and daring. Also it is positioning itself by promoting itself as a high energy and citrus flavour drink (Watts, 2006). Segmentation Table: Age Life Stage Who Lifestyles Positioning 16-25 Youth and Teenage Students and Young Executive Adventurer, Extreme Sports, Daring Energy and Exhilaration drink
They portray an image of a drink that would make you adventurous, thrilling and daring. It energizes you to go out and do something new and exciting in life. Do the Dew a very catchy slogan. Line Extension Mountain dew doesnt 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, with plans to expand into two-liter plastic bottles and 12-packs of 12-ounce aluminum cans. Mountain Dew LiveWire will be broadly targeted to teens and young adults. Code Red Mountain Dew Code red Mountain dew has enormously captured the market abroad because of its unique color and taste. These two line extensions are been carried forward abroad n in near future there is no plan to launch these two brands here. Though they have seen market potential in some areas of Pakistan.
Marketing Mix
Product
Features and Attributes: New Lime-Lemon Taste, Unique beer bottle shape, 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. It uses Competitive Price strategy.
Regular bottle: (250ml) Rs/=9 Non refundable bottle: (250ml) Rs/=12 Tin Can : (300ml) Rs/= 20 Litre bottle: Rs/= 27
Mountain Dew lands itself in Growth stage. In the growth stage, the firm seeks to build brand preference and increase Market share. Product quality is maintained and additional features and support services may be added. Dew is now available, people are aware of it and has attached certain value to it and is increasing its market share. At this stage the company will do Market Skimming Pricing as the firm enjoys increasing demand with little competition i.e. setting a high price to skim maximum revenues so that company can make view but more profitable sales. The company starts direct marketing at this stage and Promotion is aimed at a broader audience. At this stage the customers will be the early adopters that follow the fads. Sales will be average. When Dew will reach its maturity stage, it will have to have a product differentiation strategy to retain market share. Dew is promising innovation, thus if it fails to full fill its promise, or the innovation is not according to people wants, then Dew might starts its journey towards the decline.
Promotional Channels
Advertising
Electronic Media Print Media
Sales Promotion
Initially they used Price off strategy that is tin can of Rs.20 was sold at Rs.10
Direct Marketing
Free sample is being offered by mountain dews roller skate boys wearing a complete kit standing on the signals. Such kind of direct marketing has not been dared by others. It is different and innovative
Distribution Channel
Pepsi Cola uses 70% of its own distribution and 30% out sourcing through its agents.
BRAND POSITIONING
BRAND VISION
In the following 5-7 years mountain dew wants to increase its market share and grow as a lifelong brand. 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, service and organization from other brands. Brand Association Young, exciting thrill loving people. Fast & Active Hip Hop, Funky, 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
o o lime/lemon o o
Its refreshing, 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
Benefits
Freshness, Vitamins, thrill, power
Dealers View
BRAND EVALUATION
Qualitative Assessment
- There is brand awareness - Brand Identity is there - Brand contract is fulfilled
Quantitative Assessment
Mountain Dew is in its initial stages initial phase, and its growing in beverage industry.
Pepsis Products Pepsi Teem Mirinda Pepsi Max Pepsi Lemon Pepsi Blue Mountain Dew 7up.
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, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business.
TARGET MARKET
Cokes commercials basically based on young generations, So, 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. Demographic Forces Age: The potential customers of Coke and Pepsi would be of age groupof 14-30 years.Income: As for the income levels, 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. 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. So, their basic segments are those people who take this drink regularly.
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Competitors
Cokes 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, coffee, tea are the competitors.
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. What people want in a beverage is a reflection of who they are, where they live, how they work and play, and how they relax and recharge. Whether you're a student in the United States enjoying a refreshing Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a couple in Korea buying bottled water after a run together, we're there for you. We are determined not only to make great drinks, but also to contribute to communities around the world through our commitments to education, health, wellness, and diversity. Coke strives to be a good neighbor, consistently shaping our business decisions to improve the quality of life in the communities in which we do business. It's a special thing to have billions of friends around the world, and we never forget it. MARKET POSITIONING
Product Range
The total range of Coca Cola company in Pakistan includes: Coke. Sprite. Fanta. Diet Coke.
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And company offers their products in different bottle sizes these includes: SSRB LRB NRB PET 1.5 CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1.5 litter plastic bottle) (tin pack 330 ml)
Packing
Coca cola products are available in different packing 24 regular bottle shell 6 bottle pack for 1.5 pets 12 bottles in a pack for disposable bottle 24 cans in one pack.
RECOMMENDATIONS
After completing our project we have concluded some recommendation for the coca cola company, which are following. Coca Cola Company should try to emphasis more on providing their infrastructure in the market to facilitate their customers. According to the survey, conducted by the international firm Pakistani people like little bit sweeter cola drink. So for this coca cola company should produce their product according to the local demand.
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Marketing team should try to increase the availability of Coke in rural areas. They should also focus the old people. Now young generation has a trend to drink coke 2 regular bottles at same time, so providing more satisfaction to them company should introduce liter disposable bottle.
Product Introduction
Named after the Hindi word for "crunchy", Kurkure is a Cheeto-like snack made and marketed by Frito Lay's. It is one of the most popular snack food products in Pakistan today. Kurkure comes in 3 different flavors. Snacks are of two types extruded & potato chips, Kurkure is the extruded snack item. Introduced in Pakistan by PepsiCo International on 1st September, 2006. Initially made in China under Saudi Snack Food but now from 14th august, 2006 it is produced by PepsiCo International at plot no.413 Sunder Estate Rewind Road Lahore. Introduction of Kurkure in Pakistan Although Kurkure is the product of Frito-Lays but it was introduced in Pakistan. It was initially made in China under Saudi Snack Food but now from 14th august, 2006 it is produced by Pepsi. Kurkure capture a huge market in a very limited time due to its mouth watering taste and aggressive marketing.
Product Assessment
Kurkure lies in the extruded item which comes under FMCG Products (fast moving consumer goods). Like every other multinational company, before introducing the Kurkure Company conduct different surveys to get consumer interest about features, design and quality level. Kurkure is the convenience good at the consumer level so they are not offering any after sale service, user manual but they are offering benefits to the retailers in the form of more profit. Kurkure is unique in Quality, Flavor, taste and quantity. Its totally fulfilling the need of the people. Kurkure is the consumer product because it basically use at the consumer end, consumer buy or purchase for their personal use or consumption. 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.
Quality
As far as the quality is concerned, company is producing a high quality product at a very low price. Customer in this region consider low price but still want for high quality. Kurkure is positioning itself on the basis of unique tastes, flavors, ingredients and style. When considering the unique tastes, Kurkure is offering fast-mirchi product to the customers.
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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. All flavors of the Kurkure are mouth watering and tempting. The real taste is in the crispness of the product, consumer can use Kurkure as plain or with different styles & recipes. Kurkure has adding more and more flavors to attract the consumers and retaining same taste.
Kurkures Flavor.
Usage
Kurkure is also positioning itself on the basis of its usage. Its promotional campaigns urge consumers to use it on. Daily basis: At lunch Dinner Anytime, 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. It is affordable by the consumers of every income level and price deliver value to customer.
Price Range: Small Rs 5/ Medium Rs 10/ Large Rs 20/-
Packaging
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Kurkure is available in the market in 3 different packing. 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 has 3 different flavors in the market so the each flavor has its own unique packaging color combination according to its taste. Basic color combinations are in green and red colors which all are eye catching. Kurkure is available to the consumer only in primary packing. No secondary packing is using. However they are delivered in container packing from production plant to shopkeepers or retailers, which carries 48 packs.
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. Kurkure is an international brand of PepsiCo Int. and they are controlling the production itself in India. When they came Pakistan, 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. With the time being this brand is so familiar so its capture the mind of every person as a unique, quality, and tasty extruded with Kurkures Brand.
designed for the Gulf & South Asian region specially India & Pakistan considering the taste & style of the traditional foods & flavors.
2. Demographic Segment:
Concerning demographical environment, Kurkure will focus on several variables such as age, gender and income level. Age: Kurkure will focus heavily on children and young people. Gender: Kurkure is a generalized product for any sex, male or female. Income level: Kurkure pack is easily affordable and company is trying to give more for less making it best value of money.
3. Psychographic Segment:
Considering psychographic factors, Kurkure will heavily focus on customers life style, tastes, and personal values that best match with the product usage and distinctive from competitors. Making an image of style, standardized taste and variety of flavors, Kurkure impacts positively on individual customer satisfaction.
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. Kurkure is standing in market as a low price chilli snacks.
3.
Promotion
Kurkure is making big investments in promotional campaigns, using top models & celebrities from the media. Company is touching customers through: TV advertisements Posters Retailer promotions
4.
Distribution
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Placement of a product is also very important while buying the product like Kurkure. 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, Kurkure will focus on snacks customers. Keeping in mind about the preferences and needs of customers regarding tastes and flavors, it will occupy a huge number of customers.
Trade Promotions
By delivering valued trade promotions to wholesalers and retailers, company will capture this huge segment. This will allow Kurkure to stay in market effectively and people will order more quantity due to its increased demand by customers.
Target Market
The target market of Kurkure is generalized including children, young and old people. In precise target market, Kurkure is focusing heavily in children and young segment. Kurkure is not concerned with any religion, race, occupation, family life cycle or gender and has a target market in every social class. Main concerned segment is youth who have experienced high product consumption level. But they are also targeting families, as they understand this influence factor in this region.
Pricing
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The company is following the Cost-Based Pricing. But a company cannot follow a single strategy straightly. Kurkure is standing in market as a low price chilli snacks. It is affordable and price is delivering value to customer. Kurkure is offering three different prices for different packaging. 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, By introducing new tastes, 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. By delivering valued trade promotions to wholesalers and retailers, company can capture this huge segment. 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, villages, cities; making it available to everybody.
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