Business Case Study-Intern

Abstract:
PepsiCo, Inc. is an American multinational food, snack, and beverage corporation

headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the
manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other
products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-
Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of
food and beverage brands, the largest of which included an acquisition of Tropicana Products in
1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to its portfolio.
History:
PepsiCo Incorporated (PepsiCo) was founded in 1965, through a merger of two companies:
Pepsi-Cola (whose beverage line included Pepsi-Cola, Diet Pepsi and Mountain Dew.
when Pepsi-Cola packaging was modernized by introducing a red, white
and blue color scheme. During the same year, Mountain Dew changed its slogan from “Ya-
Hoo!
Mountain Dew. It’ll tickle your innards” to “Get That Barefoot Feelin’ Drinkin’ Mountain Dew.”
“DO THE DEW” is the recent slogan of mountain dew.
Once a nickname for moonshine liquor, Mountain Dew had come a long way as a soft-drink
brand since
the 1940s, when Ally and Barney Hartman created it as a lemony soda and spirits mixer.13
Under the
ownership of PepsiCo, the brand had since been expanded to offer a range of products and
flavors to a
target market of increasingly diverse young consumers aged 18 to 24.
But nowadays mountain dew is facing downfall. The sales are decreasing constantly. And the
U.S market share is also decreasing accordingly. But the core problem of this downfall is poor
marketing and demotivating concept.
In 2013, Mountain Dew partnered with African-American rapper Tyler, the Creator, leader of the
hip-hop
collective Odd Future, to launch a new series of online commercials with the tag line “Dew It.”
The three-part series was developed by Tyler and featured him as the voice of the main
character, an angry Mountain Dew–drinking goat named Felicia. Dr. Boyce Watkins, a finance
professor at Syracuse University criticized Mountain Dew’s portrayal of racial stereotypes and
violence toward women, stating, “Of course, in the world of Mountain Dew, every single suspect
is black. Not just regular black people, but the kinds of ratchet negroes you might find in the
middle of any hip-hop minstrel show” further adding, “Mountain Dew has set a new low for
corporate racism. Their decision to lean on well-known racial stereotypes is beyond disgusting.
This doesn’t even include the fact that the company has put black men on par with animals.”28
Watkins’s article continued to criticize the decision making of Mountain Dew executives and
their oversight by partnering with Tyler, citing his status as an artist and the controversial lyrics
of his songs, which portrayed violence toward women. Before ending the article, Dr. Watkins
provided a thought-provoking closing statement: Perhaps after seeing the real impact created
through the glorification of violence and thuggery, Mountain Dew will then realize that the mass
death and incarceration of young men and women is NOT supposed to be a punch line.”
The problems what mountain dew is facing right now are:

• Poor advertisement
• Violence
• Racism
• Not sporty
• Not available
The symptoms of these problems are:
• Reduction of sales
• Less market shares
• Many people don’t recognize it
• Not frequently found in stores
The solution to every market problem is market segmentation. By improving the strategy
analyzing the result for example:
a) Keeping content powerful and unique:
To create powerful and vibrant content focus on quality and not quantity. Some of the
technics are:
• Investing time and resources into extensive beverage research.
• Using the experience of colleagues and employees in order to make the product
resonating with the audience.
• Thinking out of the box and coming out with the new idea.
• Focusing on the maximization of impact of the older recepies.
b) Having sufficient resources:

To organize resources to execute on a content strategy, marketers must learn how to
prioritize and maintain focus. Instead of experimenting with multiple techniques,
marketers need to choose one that will work for their campaign and focus on it.
c) Keeping product engaged:
Even after producing a vibrant piece of content, it doesn’t guarantee to hit the top marks
of the market. Marketers need to ensure that they create content that will not only keep
the target audience hooked but also engage a new audience that is not directly
connected to the brand like:
• Creating a distinctive and authentic taste.

• Captivating consumers interest by various vibrant ideas.
• Introducing diversified flavor and taste.
d) Identifying Consumers Pain Points:
In order to create a profile buyer persona, marketers need to identify the challenges and
problems their prospect struggle with on daily basis. Discovering pain points by asking
direct question conducting surveys and interviews, following social media.
e) Growing Competition:
Striving towards nothing else but excellence is the key point of this. Focusing on the
quality and not quantity, it’s always better to invest extensive time and energy into in-
depth reserch and create one unique piece of recipe that will trigger many social shares
across media channels than focusing efforts on creating multiple pieces that don’t have
any true value while marketers cannot predict all the hurdles they will face executing a
campaign. One thing is certain-
Content marketing is one of the most effective ways to grow business.
Strategy:
In order to increase share and sales of mountain dew there are some strategies we can
follow:
a) Improve marketing sector:
• We can invest more money in advertisements
• We can create motivational and educative advertisements
• We can make advertisements that connect with people and their emotions
• We can do promotional videos by the celebrities
• We can sponsor some events or social activities
• We can produce different quantity with low prices and distribute them.
b) Focus on availability:
There are not many products of mountain dew in every country or its region. And there are
many country countries like Bangladesh don’t have 1 litre mountain dew in every area. Its
hardly found. So, we can focus on supply and distribution network and focus on the
product’s availability.
c) Creating attraction:
We can add more flavors in mountain dew product and launch them so that people like
youngsters get attracted. We can form a unique shape for mountain dew so that it differs
from other products and is catchy so that people want to buy it. We can include
characters on the paper wrapping the bottle with different characters as anime characters
or action movie scenes and launch them. Like in Asian countries we can launch mountain
dew with anime pictures on the paper on it. We can also include a puzzle on it and
declare there is a prize for first 100 correct answer givers. And the prize can be mobile
recharge.
d) Creating healthy product:
We have to focus on the ingredients and resources so that the drink remains healthy and
people get attracted to it and feel safe to drink it. The standard quality must be maintained
throughout the world.
e) Changes that can be applied:

By surveying and considering consumers feedbacks there are certain changes which
should be made:
• We can change the color of the drink
• The amount of lemon fragrance should be increased
• Bottle color can be changed
• The fizz can be increased as it is one of the things that makes it unique
f) Campaign:
• We can do beach bike races and have some stalls there which will do our
promotion as well as some selling
• In many countries people play inside a plastic ball above water. We can make a
balloon shaped mountain dew bottle and have the logo on it so that people can see
from far away
• We can make a page share in social medias and also, we can do internet ads.
Social Responsibility:
As it is an international brand, we have some responsibilities for every society. So, for the
first two or three months we can focus on the promotions. Then in developing countries we
can do a campaign like if u buy 30tk amount of mountain dew from there 1tk will go to old
age homes. Which serves as a social responsibility then after two months we can do
another campaign like money will go to the schools of special children and so on. Then at
the same time we should focus on the quality of our products so that we gain customer
and not loose any. We should also change advertisements and promotional videos time to
time according to the theme of our campaign and slogan so that it reaches people
emotion.
Conclusion:
If we can implement the strategies and work accordingly the sales and shares should
increase respectively year by year.
Assumed share increase is given below:
2023 2022 2021 2020 2019
market
share 7.23% 7.00% 6.89% 7% 6.60%
market share
7.30%
7.20%
7.10%
7.00%
6.90%
6.80%
6.70%
6.60%
6.50%
6.40%
6.30%
6.20%
2023 2022 2021 2020 2019

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Abstract:

PepsiCo, Inc. is an American multinational food, snack, and beverage corporation

The problems what mountain dew is facing right now are:

The symptoms of these problems are:

b) Having sufficient resources:

• Creating a distinctive and authentic taste.

e) Changes that can be applied:

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