AUGUST 5, 2014
PROFESSOR CARBERRY – MKTG 300
BRAND ANALYSIS PROJECT
I. REVIEW OF SUB-CATEGORY
A soft drink is a beverage that contains water or carbonated water, a sweetener (sugar, high-fructose corn syrup, or a sugar substitute), as well as a flavoring agent. Sometimes, soft drinks may contain caffeine, too.
Carbonated soft drinks are the largest players in the beverage category. Within the carbonated soft drink sub-category, the leading three companies—Coca-Cola, PepsiCo and Dr Pepper Snapple Group—make up 90.6% market share for the year ending February 2014. In the United States from 2004 to 2013, the Coca-Cola Company was the leading soft drink ...view middle of the document...
In fact, over a third of beverage executives surveyed by KPMG said they felt product innovation would be there largest revenue driver. Advertising Age study titled "100 Leading National Advertisers" reviewing data from 300 of the largest national advertisers based on their 2012 measured media spending. Ranked #3 after Coke and Pepsi on the basis of it US sales volume, Mountain Dew spends only 44 million dollars on ads. Coke and Pepsi spend over 240 million dollars on ads. These carbonated soft drinks brands often seek out the best media for advertising, because they want to be associated with a particular lifestyle’s audience.
Brand and price are the most important traits to consumers purchasing at retail. National brands are lowering prices and offering price promotions to tap into that attribute and keep the consumers interested in the product and buying. The less important attribute are the in-store promotions and size of packaging.
The market for all beverages is continuing to fragment more and more into different cub-categories and brand extensions growing. With the help of the changes and innovations in this era’s communication, brands are competing for consumers’ attention in social media. Knowing that many of beverage purchase decisions are impulse buys, marketers for these brands want to do more than engaging the consumers at the point of purchase. Marketers are now working to increase their connections with consumers before their purchase. A report examined how brands are using social media and mobile phones to strengthen the connection of the consumer to brand from not just being aware of the brand, but to transform to be loyal consumer to that brand and not detour from the path to buy that brand. Social media outlets, including Facebook, Twitter, Pinterest, etc, and mobile/online engagement are the top two trends that have the most significant impact on the consumer.
However, with the total US sales estimated to decline again in 2014 to $41.1 billion, and even more dramatic decreases forecast to continue through 2019, the solutions national brands have attempted cannot continue to keep revenue high.
II. BRAND ANALYSIS
A. TARGET AND MARKET SEGMENTATION STRATEGY
Initially a drink with strong following with rural middle-aged people, it target demographic today is radically different. Today, the drink is mainly marketed to people in the 12-30 year old demographic group, creating a connection to outdoor activities like extreme sports and to the video game culture. Of “clear” soft drinks (or non-cola flavored), Mountain Dew and Sprite, a Coca-Cola brand, are most popular with younger consumers, whereas 7-Up, Dr. Pepper Snapple Group’s brand, is preferred by older respondents. The strength of its popularity is as well largely in the white suburbs of the Plains states and the Southeast.
According to SimmonsOneView Spring 2011 of survey of US Adults, the regions where Mountain Dew was mostly drank with an index number above...