DEFINITION OF FAILURE:

The Dictionary of Business and Management defines failure as,

“a lack of success in doing something”.
[The Dictionary of Business and Management 1992].

Mubarak Abdessalam argues that “Failure has never been an objective in itself, though it sometimes
imposes itself on people at the end of a project. It has never been welcome. It is subject to reject, refute,
unfriendliness. In a word it is a pest. What do you think, however of a person who works hard to be a
"successful" failure? Nonsense! It is not easy to long for failure unless you know quite well what it is all
about. Logically, it is awkward and strange that a person has failure for an aim in life.”
[ABDESSALAM 2001].

Tim Berry stated that“ Product and brand failures occur on an ongoing basis to varying degrees within most
product-based organizations. This is the negative aspect of the development and marketing process. In most
cases, this “failure rate” syndrome ends up being a numbers game. There must be some ratio of successful
products to each one that ends up being a failure. When this does not happen, the organization is likely to
fail, or at least experience financial difficulties that prohibit it from meeting profitability objectives. The
primary goal is to learn from product and brand failures so that future product development, design,
strategy and implementation will be more successful.”

[BERRY 2000].

The book “Qualities can replace defects” written by Ardelean Gheorghe Cornel, writes about the failure is,

1. Failures should never discourage us.

2. Indecision is the cause of many failures.
3. Long term thinking prevents many failures.
4. Impatience is often the cause of many failures.
5. To the proud ones, pride can lead them very often to many failures.
6. Not caring can lead to many failures.
7. Failures are also a result of our negative thinking.

[CORNEL 2010].

Reasons Why New Products Fail

Following are the reasons:
1.Marketers assess the marketing climate inadequately.
2.The wrong group is targeted.
3.A weak positioning strategy is used.
4.A less-than-optimal "configuration" of product or service attributes and benefits is selected.
5.A questionable pricing strategy is implemented.
6.The advertising campaign generates an insufficient level of new product/new service awareness.
7.Cannibalization depresses corporate profits.
8.Over-optimism about the marketing plan leads to a forecast that cannot be sustained in the real world.
9.The marketing plan for the new product or service is not well implemented in the real world.
10.The marketer believes that the new product and its marketing plan has died and cannot be revived,
when, in fact there is the potential for resurrection.
[www.copernicusmarketing.com]

The article “ NEW MORNING FOR MOUNTAIN DEW” in Strategic Brand Management book written by
Kevin Lane Keller tells about the Mountain Dew that “This branding brief is all about the first launch of
mountain dew in 1969 in US. Pepsi company marketed Mountain Dew with logo that “YAHOO
MOUNTAIN DEW” when it was unsuccessful in its first attempt in early 1980 it changed it strategies and
came with a new slogan “do the dew” by focusing on out doors action scene in its ads. Since then it has
been capturing the market share and most recently it had introduced Mountain Dew Code Red its first line
extension and still focusing on improving further.”
[KELLER 2002]

Interview
According to KARIM.A.KHAN(Regional Sales Manager of PEPSI.CO) following are the reasons that lead
the Mountain Dew to fail and the new strategies that adopted for Relaunching of Mountain Dew:

Mountain Dew Pakistan:

Karim.A.Khan argued that “Mountain Dew was launched in Pakistan under the eyes of Pepsi Cola
Pakistan in August 1994, but failed to capture the market due to many reasons. Now Pepsi Cola Pakistan
has decided to relaunch the product and assign it a separate business unit supported by the needed finance
and facilities in the major industrial and metropolitan city of Pakistan Karachi. As Karachi is the biggest
city with highest population acquiring 16 % of the total population. Karachi being a potential market for
launching any product and Karachi also hold the image of acquiring and consuming goods in initial basis,
People are more risk taking and called to be a Trendsetter for rest of the Pakistan. Mountain Dew
manufacturing plant will be situated in SITE Industrial area due to availability of labor, electricity and most
important water as water plays an important role in manufacturing of soft drinks.”

Reasons of Failure Of Mountain Dew:

Karim.A.Khan stated that “Mountain Dew a soft drink with a unique taste was introduced in Pakistan in
1994, and then vanished in the next 3 to 4 months of the screen, as it got the most disastrous response that
could have been thought of. Therefore, the product (Mountain Dew) not only failed to capture some market
but also couldn’t even make a place to stay for a longer period.
Hence, there being some reasons that got the Mountain Dew a decline before it could have made a name in
the Pakistan market.
Timing of launch
Packaging
Distribution
Glass bottlers
Fragmented
LaunchingAwareness
Mountain was launched in 1994, but in late July – August. Hence, this brought a decline in the drink as it
was launched in off-peak season.
Drinks are mainly utilized in the summers and the peak time is between March – June.
They had made the strategy of just pushing the product out in the market (just do it was their managers
quote) without thinking that this is not the right time to launch the product out in the market.
When Mountain Dew was launched at that time, it was never ever before that the soft drink (Mountain
Dew) was launched in glass bottles. As, all round the world it was mainly sold in cans.
The major reason of failure was that it jus introduced Mountain Dew out in the market in the bottles that
were used by 7-up. Same look, only the brand name was changed.
Mountain Dew after Coke has the largest number of share. Hence, it stands at number two in the
international sector.
But in Pakistan as it was launched in the off-season, this brought a bad impact on the delivery, distribution.
As, the distributors bought only three crates instead of five that had to be purchased initially.
As, Mountain Dew was new in the market; therefore the bottlers did not consider it a profitable deal and
they used a glass, which was being used for other drinks, which lowered the image of the drink. Pepsi Cola
later import the glass for Mountain Dew, by the time the glass reached in Pakistan that was end of Jun, the
drink season was towards its end. Those glass were provided to small bottlers and they manufactured the
frame and all the necessities for the bottle to manufacture and delivered the bottle to Pepsi in late August,
and Mountain Dew came with its original bottle assigned by Pepsi Cola Inc USA was in end of August,
which was the down of the season.
The launch of Mountain Dew was fragmented. Mountain was launched in Karachi, Lahore, Islamabad,
Gujranwala and Faisalabad, but the weakest part in launching was, it was launched in a very few areas like
in Karachi it was available in Agha’s and Time Medico in Lahore it was available in Defense and Liberty.
Instead of launching it in one city covering vast areas they launched it in different cities with one or two
location, which was not a good a practice according to the correspondent.
Every product either its new or old to the market needs support from the media, Pepsi overestimated these
consideration and launched the product with making consumer aware of the products.
Pepsi Cola: Did No Advertising on any media, banners, billboards or any other supporting media to make
consumer aware of the product.
Did not do Promotions in person, point of sales displays, no free drinks for trial etc.
It did not communicate with the retailers and consumers and did not consider the word of mouth promotion
as well. (Lack of Communication)”

New Strategies Adopted for Relaunching of

Mountain Dew
Karim.A.Khan argued that “Market Oriented Strategic Planning is the managerial process of developing
and maintaining a viable fit between organization’s objectives, skills and resources and its changing market
opportunities. The aim of strategic planning is to shape the company’s businesses and products so that they
yield target profits and growth.
Mountain Dew will be operating in soft drink industry of Pakistan with a unique taste and features. Soft
drink industry is growing industry with aggressive competitors fighting for the market shares of their cola
brands.
Mountain dew will provide and develop unique citrus taste senses in the consumer with high activating and
energizing property.
Company has its own manufacturing plant and will be outsourcing bottling from a local supplier under the
licensed agreement. It has its own network of distribution like vans; trucks etc that deliver the mountain
dew to all towns and cities plus it will also acquire local distributors on commission basis. Mountain Dew
products reach to final consumers through retail stores and sales promotion officer. Company uses multi-
channel distribution, which I listed below.
Strategic Mission,To make people aware of the product to consumption level and make them adjusted to
the changed flavor and getting them out of the cola dilemma.
AS people of Pakistan is not aware of the Mountain Dew and its taste, only 0.02% of the market is aware of
the name of Mountain but never tried it, so initially our target will be to launch a product in environment
where colas are on its peak and have captured consumers mind totally and diversify them towards the
mountain dew
The following are the market objectives of Mountain Dew
:•Expand consumer awareness of Mountain Dew from 0.02% to 25% over the planning period by spending
9 percent of the turnover on the promotional budget.
•Aim for average price of Rs.15 and create price uniformity.
•To achieve sales of Rs.25 million by December 2004.
•To achieve the break even by October 2004.
In Pakistan a large number of populations of children, adults are consuming soft drink so the market is very
attractive. There is sales tax associated with the sales of a unit of product.
The sales of soft drink are remarkably high on the summer and cultural occasion like Ramadan, Eid,
Birthday parties and picnics etc.
The per capita incomes of the people in Pakistan are also low. The affordability of the high price and
especially on the commodities that are not necessities are not acceptable by people within a certain income
bracket.
That’s why the company has to be careful in increasing their prices for the product.
Mountain dew is charged at Rs20 for disposable and Rs15 for regular bottle to the final consumer.
Company has a trade margin of 6.84 %. Company to retailer trade margin is 4 percent. The objective of the
Company is to achieve revenue of 25 million RS by December 2004.”

Market Targeting Strategy:

Karim.A.Khan listed the folowwing market targeting strategies,
Target Market and segmenting strategy :
Mountain dew has identified large group within the soft drink with similar wants, geographical location and
buying attitudes and has segmented the market on the basis of geographic, demographics and
Psychographics of the consumers.

Positioning:
Mountain dew is positioned as “Refreshing, Unique and Energizing soft drink at a very reasonable price
with new convenient packaging”.

Product Line:
Mountain Dew will be launched in Different Packaging after getting a success in a market.

Price:
Mountain’s Dew price is same as of its competitors.

Distribution Outlets:
To increase the distribution of mountain dew in the remaining 4000 untapped retail outlets.

Sales Force:
Currently operational with 10 sales promotional officer who are responsible for the direct sales to
institutions, marriage halls, caters, offices, schools and teashops.

Sale Promotion:
Sales promotion will take form through giving consumers and retailers and distributors by offering them
benefits. For retailers and Distributors sales discount and to consumer by offering them free drink on
purchase of every two drinks.

Advertising:
Mountain Dew uses the advertising initially for consumer awareness of the product and its benefits.
Heavily spending on advertisements to get the vacancy in the market and in consumers mind. It will also
use billboards, banners, and posters.

Research & Development:

Mountain Dew team will constantly keep in touch with consumer for their taste preferences and their
changing nature and requirements. It will keep itself updated with the changing nature of the business and
new developments and constantly upgrading the developments keeping in view the cost and benefits
acquired from those developments.

Marketing Research:
We at mountain dew have the motto to satisfy the customer and consumers efficiently and effectively, in
order to achieve this motto mountain dew’s marketing team will constantly keep in touch with consumers
to iden6tify their buying preferences and their changing taste and benefits sought by the product.
Total Customer Cost:
The monetary cost of the mountain dew is Rs. 15 which is going rate price but increased quantity of 50 ml
and will be widely available around the city in around 11,000 retail shops.

Satisfaction:
Satisfaction: is the person’s feeling of pleasure or disappointment resulting from comparing a product
perceived performance in relation to their expectations? Mountain dew’s motive is to delight the customers.
If customers are delighted with quality, taste, quantity, availability and perceived performance, it will
create emotional bond with the brand not just rationale preferences resulting in brand loyalty.
The value deliver system of mountain dew includes communication channels, experiences consumers will
have on the way to obtaining the product. In order to keep the track of the customers satisfaction or
dissatisfaction mountain dew will adopt certain ways, which are as under:Complaint & suggestion

Systems:
Mountain Dew will provide store customer suggestions and customer complaint form which will be
delivered directly to Mountain Dew, which will give Mountain dew opportunity to learn about customers
and their preferences.
Customer Satisfaction Survey:
Mountain Dew will conduct surveys quarterly to or yearly in order to identify the customer’s satisfaction
and dissatisfaction level.
After gathering the information and data about the customer satisfaction and dissatisfaction, Mountain Dew
will implement those changes, which is being suggested by consumer to satisfy them efficiently and in cost
effective way.

Delivering Customer Value and Satisfaction:

Karim.A.Khan argued that “The most important thing after identified the customer value and satisfaction
factors is to effectively deliver those values. Mountain Dew has developed a value chain as a tool for
identifying ways to create more customer value.
The value chain has nine strategically relevant activities, which can be further categorized as 5 primary and
4 support activities.
Primary Activities represent the sequence of bringing materials into business (inbound logistic), converting
them into final products (operations), shipping out or distributing final products (outbound logistic),
marketing and servicing them.
Inbound Logistic And Operations,Mountain Dew will be manufactured under the modern and
technologically advance processing facility situated at SITE Industrial Area, Karachi and has a team of
potential and experienced individuals to support its operations.
Outbound Logistic:
Mountain is delivered to outlets in Karachi through Distributors and company owned distribution network
through delivery vans and trucks.
Mountain dew is using different medias to promote its product and making consumer aware of the unique
features of the Mountain Dew.
Supporting activities like procurement, technology development, and human resource development and
firm’s infrastructure will be carried out by separate departments established for these purpose.
Following are the Departments, which deal with all these activities:Human Resource DepartmentMarketing
DepartmentIT DepartmentTotal Quality Management DepartmentLaboratory Testing DepartmentValue
Delivery NetworkMountain Dew is supported by the suppliers of chemicals and other raw materials like
citric acid citrus, bottle etc to manufacture Mountain Dew under the controlled quality and prompt
deliveries.
Mountain Dew has divided its network of delivery under different distributors according to the areas.
Distributors are divided according to regions like North South, East and West, Mountain Dew has captured
all strong distributors like IBL Ltd to distribute its product and if there are places where distributors can not
reach or doesn’t reach, Mountain Dew will be supplied to those areas in their own Delivery Vans.
Attracting Customers,Mountain Dew is constantly trying to capture and acquire markets to make its
product successful in the market place. To capture the markets Mountain Dew will advertise on TV,
Billboards Point of Sales Displays, Banners Poster, Cable Network, Magazines major News papers etc to
reach the consumers and making aware of the product.
Mountain Dew has established a sales promotion tem which will be responsible to promote mountain dew
in assigned localities.”

Analyzing Environments:

Karim.A.Khan argued that “Marketing Environment is very important for any business (of any
sort),anywhere in the world to analyze the global macro environmental forces, the demographic, economic,
natural, technological, political-legal and social cultural, therefore to determine that do the people of the
country where it is operating have the ability to purchase (purchasing power).
MD management has analyzed all these macro environmental forces, as to identify, anticipate and plan for
the re-launch of Mountain Dew.
Demographic Environment,The first of the macro environmental force that MD examines is population
because people make up markets and the company is interested in the size, density and growth rate of
population of the city.
As, Mountain Dew is only being re-launched in Karachi, there for we have to analyze the age and
household patterns of the city.
Population varies from their age mix. Population of Karachi can be subdivided into five different age
groups: school-age children, teenagers, young adults age 25 to 40, middle-aged adults age 40 to 65, and age
65 and up.
The ‘traditional house hold’ consists of a husband, wife, and children living with parents and grandparents
(in some case husband wife and children) five to six people averagely in a household.
The company is searching for ways to attract the decision makers (aging 25 to 40) to purchase the newly
launched drink.
Economic Environment ,Purchasing power of the population determines the economic environment of a
country. The available purchasing power in an economy depends on current income, prices, savings, debts,
credit availability and very importantly the spending power.
The income level of people in Karachi is very low, trend of saving is not there, credit availability is very
low and the overall economy is depending on foreign debts (loans). In other words, there is no trend of
discretionary income as not much amount of income is left after the income (disposable) utilized on
necessities (food and health, clothing and shelter).
Pakistan basically a subsistence economic country, hence vast majority of the people are engaged in the
agricultural sector. People in Karachi are usually salaried or self-employed in different fields. The average
family income of people in Karachi specially is around Rs. 3000 or even less.
Natural Environment,The deterioration and descent of the natural environment is a major concern for the
company.
As, there is scarce presence of the natural resources.
Shortage of raw materials, the increased cost of energy, increased government intervention, increased
pollution levels, threat and fear of terrorism, nuclear power and arm race in the region are the major threats
faced by Pakistan.
The earth’s raw materials consist of the infinite, the finite renewable, and the finite nonrenewable
resources.
Infinite resources, such as air and water, pose no immediate problem, although some groups see a long run
danger. Finite resources such as forest and food, oil and increasing inflation in the country has to be
considered, in order to re-launch Mountain Dew successfully in the market.
Pricing strategies would be developed for the drink keeping into consideration these factors.
We are looking for ways to protect the environment and trying to eliminate and get rid of the discharge of
waste material (such as plastics, non biogradable bottles, chemicals, nuclear wastes etc) from the factories,
as to prevent the quality of the natural environment. The overall pollution level in Karachi is rising at an
alarming rate.
Technological Environment,New technological advancement can be a source of creative destruction. We
have monitored the changing technological trends in the society but we don’t consider it an important
factor in the production of cola drink.
Political Legal Environment,Marketing decisions are strongly affected by developments in the political and
legal environment.Pakistan has a very unstable political scenario due the instability of the government,
which disturbs the momentum of the companies and gives negative signals to the foreign investors. Hence,
the general outlook of the government towards business practices and ethical issues is uncooperative.
Pepsi has been having problems in decision-making, as decisions are strongly affected by the development
in the political and legal environment, which consists of law enforcement agencies, government, and media
that poses restrictions and hurdles in the operations of companies. Therefore, Pepsi for itself has contracted
with some agencies over sea for the responsibility of regulating business, as they do not want to have any
sort of negative impact on Mountain Dew, because its being re-launched.
 Nature Of High Performance Businesses:
Karim.A.Khan stated that:Mountain Dew has identified the nature and characteristics of high performance
businesses which are as under:
Stakeholders.
Processes.
Resources.
Organization.

Today businesses are increasingly recognized that unless they nourish stakeholder, customers, employees,
suppliers, distributor and the business may never earn sufficient profits for the stockholders.
Mountain Dew aim to deliver satisfaction for its stakeholders that is:Delight its customers.
Perform well for its employee.
Deliver a maximum satisfaction to its suppliers.
Mountain Dew operates with a philosophy of creating high level of employee satisfaction, which will lead
to higher efforts resulting in higher quality products and services, which creates higher customer
satisfaction, which will give more repeat business, which will give higher growth and profits, which gives
high satisfaction of stockholders, resulting to more investments.
Mountain Dew will accomplish its satisfaction goal by linking and managing work processes. Mountain
Dew is focusing on the needs to manage core business processes such as:
Reengineering the Work Flow.
Building Cross Functional Teams.
New Product Development.
Customer Attraction and Retention.
Order Fulfillment.
Mountain Dew is a new product to the market, which will be distributed to 11,000 outlets through out
Karachi through Distributors and own Distribution Channels. Mountain Dew will build strategies to keep
customer attracted to the product and fulfill the requirements of the distributors to make their work more
efficiently in cost effective way.
To operate the resource Mountain Dew need labor, power, raw material, machineries information, energy
etc.
Mountain dew is equipped with modern machineries and technologies to carry out the work process. ISO
9002 also certifies Mountain DewThe company is a source of competitive advantage in that it makes a
significant contribution to perceived customers benefits, it has a potential breadth of applications to a wide
variety of markets like juices.
Mountain Dew consists of structures, policies and corporate culture, all of which can become dysfunctional
in a rapidly changing business environment.”

The Buying Decision Process:

According to Karim.A.Khan “A person’s perception and awareness can be observed when he/she comes to
purchase a certain product but it is difficult to find out that who makes the decision as what to buy, why
and when to buy. Women are the main purchasers of household items in Pakistan and specially Karachi.
The chief of the house makes the decisions for the purchases of household eatables, foods and meals; hence
the housewives and mothers make the decisions.
Company is focusing on the chief of the house who can play a very vital role in purchasing and increasing
the sale of Mountain Dew.
Following are the roles people might play in a buying decision:
Initiator, Any person from household can be an initiator who can suggest the purchase of Mountain Dew.
Influencer, Media advertising, bill boards, friends, family members can be good influencers or advisors for
the purchase.
Decider, The final decision for the purchase of food items is of the chief in-charge of the house.
Buyer, The buyer of Mountain Dew can be either man or woman.
User, The users of Mountain Dew will be all the family members of all age groups.
Buying Behavior, The consumer decision-making varies with what type of buying decision he/she has
made.
Habitual Buying Behavior, Many consumers buy drinks or any other item under habitual buying behavior
just to fulfill the basic need and thirst. They have low involvement and only buy drinks, which they are
fond off. As, Cola drinker will continue with cola and lemon lime drinkers will continue with it, until they
are attracted to make a change of taste.
Variety Seeking Buying Behavior, The people go for different variety of brands, and can easily get
attracted and change switch over from one to another if that item attracts them more then they had been
having.”

Competitive Strategy Of Mountain Dew:

Karim.A.Khan stated that “Mountain Dew is a new to the soft drink market of Pakistan as it was failed in
the previous experience due to not choosing specific marketing strategies. After analyzing the market we at
mountain dew has found out that as 7 Up is Market leader and Sprite is growing in terms of sales and
competing hard to capture the market and acquire the consumers of competitors Mountain Dew will
position it self as an Market Challenger for 7 Up and Sprite and will follow the strategies for the Market
Challenger.
Mountain dew will adopt guerilla warfare market attacking strategy, waging small, intermittent attacks to
harass demoralized the opponent and eventually try to secure permanent foothold over the market.
Mountain Dew will choose to attack small, isolated, weakly defended markets rather than major strong
holds markets.
Mountain Dew will be available in variety of sizes in order to increase the consumption of the consumer
and providing the variety in sizes make price conscious consumer buy the product as they will purchase it
according to their specific need, some consumer might prefer one of the packed size. (300ml, 350 ml,
750ml, 1.0 Litre and 1.5 Lts1.750 Litre), other than that mountain dew will be launching Diet Mountain
Dew Caffeine Free Mountain Dew and Mountain Dew Code Red after getting the success in the market
place, which will provide more choices of the product to consumer with different sizes available.
Mountain Dew itself is an innovative product in the market of Pakistan because of it unique citrus taste and
activating attributes.
Mountain Dew does not only distribute its product through distributors but it will maintain its own
distribution channel in order to get access to the market from all the dimensions.
Mountain dew has identified large group within the soft drink market with similar wants, geographical
location and buying attitudes and has segmented the market on the basis of geographic, demographics and
psychographics of the consumers.
Mountain dew has divided the market into different geographical locations such as Sindh, Punjab, initially
it will be launching in Karachi city only after making aware of the product and its usage will be launching
throughout Sindh and Punjab.
Mountain dew is divided into groups on the basis of income, social class and age group.
Consumers in the market have diffused preference. The following are the preferences of consumers:
Energize drink
For quenching thrust
As a Refreshing drink.
More quantity than all the other soft drinks available in the market.
Available in 300ml, 350 ml, 750ml, 1.0 Litre, 1.5 Litre and 1.750 Litre.”

Branding Challenges:
Karim.A.Khan listed the following branding challenges:
Brand Sponsor decision:
Mountain Dew is a manufacturer brand of Pepsi Cola Inc as all the soft drinks are made under the umbrella
of Pepsi Cola like Miranda, Teem.

Brand Name Decision:

As per strategies Pepsi Cola uses Individual Brand Name for its entire product, Mountain dew as per its old
owners name has not been changed.

Brand Strategy Decision:

Mountain is using Line Extension strategy for its product, as in the future it will be introducing, Diet
Mountain Dew, Caffeine Free Mountain Dew, Diet Caffeine Mountain Dew.

Price Quality :
Karim.A.Khan argued that”Mountain dew is offered at an ongoing price as compared to competitors with
no superior quality. Mountain dew is following high value strategy.Mountain dew has considered the
factors in setting its pricing policy
Mountain dew has an objective to get maximum market share because the management believe that a
higher sales volume will lead to lower unit costs and higher long run profits.
In the economic sense, demand and price are inversely related: the higher the price, the lower the demand.
However, if too high a price is charged, the level of demand may fall.
The buyers are fully aware of the soft drinks and they are very price sensitive, to keep the consumers
awareness in mind we are providing the unique product in taste in the same category of white soft drink at
ongoing prices.
Mountain dews offer is superior, we can charge more as compare to our competitors but the consumers are
more prices sensitive and they are not risk takers if the price is charged too high they will prefer other drink
instead of mountain dew. In order togain the market share and convince consumer to try our product we at
mountain dew will be charging the same price of our competitors.”

Selecting a Pricing Method:

According to Karim.A.Khan “Mountain Dew bases its prices largely on competitors, that is the firm
charging the same price as of its competitors. In Pakistan all the soft drink industry leaders follow either its
new or old product. If price is charged lower than competitors the product is perceived to be low in quality
as well and if the prices are charged more than competitors consumer hesitate to try and adopt the product
launched in the market, this is what happened with Mountain Dew in its last experience it was charging
premium price for it but failed to receive the consumer response so in order to relaunch it we will be
charging Going Rate Pricing which is Rs.10 but we will be giving them more of the quantity in the same
price.
Mountain Dew will practice the price discount and allowances strategies for its product in order to increase
its sales and getting the payments on time to reinvest in inventories or other operation and this will benefits
customers to further sell it on, going rate pricing which will maximize their profits and can offer other
channels more profits to sell our products, which will increase the consumption of the products from
distributors and retailers and increased point of sales promotion to sell mountain dew more because they
will be getting more profits in it.
With price discounts and allowances company will also offer Promotional Pricing maximize sales.”

Developing & Managing An Advertising

Program:
Karim.A.Khan said”Advertisement is any paid form of non-personnel presentation and promotion of ideas,
goods or services by an identifier sponsor.
Advertisement is a cost effective way to disseminate messages, whether, build brand preference or to
educate people. Organization handles their advertisements in different ways, Mountain Dew will use
outside agency to help create advertising campaign. And to select and purchase media. Mountain Dew has
a two advertising agencies to work with.
R-Lintus Advertising agency.
Gravity Advertising Agency.
The advertising objectives must flow from prior decisions on target market, market positioning, and
marketing mix. Advertising objectives can be classified according to whether the company aims is to
inform, persuade, or remind. Advertising objective for the Mountain Dew is to convince the market of the
brand superiority.
In the initial stages of the Mountain Dew we will use informative advertising, making consumer aware of
the product its quality and benefits of using the product. For this purpose Television Media will be used to
inform the consumers about the existence of the product.
Once the consumers are aware of the product and they have recognized the product and benefit Mountain
Dew will continue using media with Comparative Advertising which will differentiate between our
Mountain Dew and other competitors.
At the maturity stage of Mountain dew, Management will give only reminder advertising to its customers
that Mountain Dew exists in the market place. In the maturity stage Mountain Dew will reduce the
frequency of its ads in television and in radio and will shortlist the billboards and advertise only at rush and
potential areas.
Mountain Dew is in its introductory stage of Product Life Cycle, as the consumers are not aware of the
product it will require large investment for advertisements.
High market share brands require less advertising to maintain market share. Usually it is perceived that
higher the advertising frequency higher would be the consumer’s reaction and higher the sales. Mountain
Dew will be advertised heavily by using print media, televisions, billboard, metro buses etc to attract a
large market to build market share.
In its initial stage in the market, Mountain Dew will use repetitive advertising to persuade consumers and to
build awareness. Mountain Dew advertisement will run three times in a day for 5 days a week in first four
months of the re launch.
Mountain dew is a brand in a commodity class require heavy advertising to establish a differential image
among its competitorsChoosing The Advertising MessageMessage GenerationThe product benefit message
should be decided as part of developing the product concept. As Mountain Dew is positioning itself as a
unique taste it will give the rational message to its customers, which will appeal them to buy it.
Chodo Kal Ki Bateein, Kal Ki Baat Purani, Dekho Naya Zamana, Karo Naye Pasand
The message impact depends not only upon what is said but also on how it is said. For executing the
message there are different cohesive styles, tone, words and format.
Mountain Dew will use Slice of life them in its ad.Two guys sitting in a well-decorated office environment,
One of them trying to fix typewriter, as he needs to type something and fax it and this guy is chatting with
another guys and complaining him about the typewriter and the guy who is on the other table is sitting with
laptop playing with a mouse with one hand and sipping Mountain Dew with another hand, and telling the
guy with a typewriter pointing towards typewrite Chodo Kal Ki Bateein Kal Ki Baat Purani and after this
sentence pointing towards his Laptop and saying Dekho Aaj Ka Zamana and then showing the Mountain
Dew to other guy and say with a smile Karo Naye Pasand.
The executed tone of the ad will be positive and inkling to Mountain Dew.
The memorable and attention-getting words will be used in the advertising of Mountain Dew Chodo Kal Ki
Bateein Kal Ki Baat Purani Dekho Naya Zamana, Karo Naye Pasand so that the consumers could
remember the ad.
TV advertisements will use attractive Dark Yellow color combinations (The Packaging color Of Mountain
Dew) with appealing models. Print ads will be using with a logo of Mountain Dew and Its bottle with a
plain background.
Selecting MediaThe media planner must know the capacity of the major type of media types to deliver the
message in a way, which is cost effective, dominant, and frequent, within each chosen media type.
As Mountain Dew is a customer-oriented company, its aim is to serve maximum number of customers. For
advertising its products it has chosen advertising media that are cost effective, covering large number of
audience. Medias on which Mountain Dew is relying are as under:Electronic MediaMountain dew will use
electronic media like Television and Cable. On television it will give advertisement on Indus Vision PTV
and ARY Digital. For cable it will contact different area operators who will advertise Mountain Dew at
certain time and after certain time intervals.
The print media used will be Newspapers like Jung, The News, Dawn, and Magazines like Akhbar-e-Jehan,
Mag, News Week, Herald, and Khwateen Digest etc.
BillboardsMountain Dew has decided to advertise on several billboards at various locations covering the
whole city.
Mountain Dew advertisement will be broadcasted on television in February between Prime Times and
between News Breaks. It will also give its advertisements on Air in sports events like Cricket and Hockey.
Mountain Dew has decided to circulate its advertisements in all the major newspaper magazines around the
Nation.
Mountain Dew will place billboards on all the major areas of the cities like Schon Circle, Sea view,
Delton’s, Metropole, Tower, SITE, Korangi Bridge, FTC, Karsaz,Time Medico, Nipa Chowrangi, Nagan
Chowrangi, Numaish, Shaheed-Millat, Hasan Square, Airport, Malir, Landhi., Bhadurabad, Tariq road.
Sales promotion consists of a diverse collection of incentives tools, mostly short term, designed to stimulate
quicker or greater purchase of particular products by consumer or the trade.
Mountain Dew has a sales force consist of qualified and trained personnel who will help organization in
boost up sales and convince the consumer and traders to try the product and explain them the benefits
derived from the product.
By looking at the consumers Preferences Mountain has planned tools for the consumer to try the product
and get the reward on every purchase tolls, which will be used, are given below:
Mountain Dew will offer free trail of soft drinks for the first week to first 200 consumers who visited the
retail shop.
In the first month of launching Mountain Dew, we will attach sales slip to it, these slip will be submitted to
the retailers and after getting enough coupons it will be submitted to the company and through lucky draw
on weekly basis, people who tried mountain dew will be rewarded with price such as ( Car, Motorbike,
Washing Machine, Juicer) and the person who got the reward will telecasted on Television.”

Distribution Situation:
Karim.A.Khan argued that “Company is using 2 channels for distribution of Mountain Dew
• Retail outlets (Indirect Channel)
• Sales promotion officers (Direct Channel)
There are 14,000 retail outlets in Karachi, which provide every day consumable items to the consumers.
Mountain Dew is distributed to 10,500 of these outlets. 75% percent of the mountain dew’s sales would be
through indirect channels.
Mountain Dew is being distributed to institutions like government institutes, offices, teashops, caters,
schools, colleges, universities, net cafes airport, and marriage halls. Company has a sales team of 50
members for the direct sales promotion for the initial sales, which will be reduced once getting hold of the
market. This channel will constitute 25% percent of the total soft drink’s sales.
Marketing channels are set of interdependent organization involved in the process of making a product
available for use or consumption.
Distribution plays a vital role in a success of a company, with the growing population and growing number
of new localities, it is not possible to serve the market completely. Mountain Dew has its own distribution
channels as well as they have contracted different distributors according to localities. Mountain Dew has
acquired five distributors through out Karachi to make its product available for consumption.
Distributors are divided in North, East, South, West and District, Malir, which is the other quarter of
Karachi.
Channel Function and FlowMarketing channels performs the work of moving goods from producer to
consumers. It overcomes the time, place and possession gaps that separate goods and services from those
who need and want them. Mountain Dew motive to acquire distributors due to several reasons, the will
perform several function which are as under:
They gather information about potential and current customers, competitors and other forces in the
marketing environment.
They develop and disseminate persuasive communications to stimulate purchasing.
They acquire funds to finance inventories at different level in the marketing channel.
Mountain Dew will be using its own distribution force and will assign distributors according to districts. It
is using Intensive Distribution strategy to ma make its product available everywhere in the city. Reason
for Mountain using its own distribution channel is to reach those isolated area where distributors can not
reach or does not think of market potentiality e.g, Korangi Industrial Area, Orangi Town etc.”

[KHAN 2010,www.pepsi.com].

Reference List:

Textbook:
Ardelean Gheorghe Cornel 2010 Qualities can replace defects, USA

Kevin Lane Keller 2002 Strategic Brand Management, Prentice Hall

Website:
http://www.geocities.com/abdessalami2001/

http://www.copernicusmarketing.com/univers/reasons_for_product_failure.shtml

http://articles.mplans.com/product-and-brand-failures-a-marketing-perspective/

http://www.pepsi.com/

Dictionaries:
The Dictionary of Business and Management Wiley; 3 edition (November 12, 1992)

Personal Communication:
KARIM.A.KHAN ,pers. comm. 26 Nov 2010 interview by Regional Sales Manager