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Mountain Dew

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Submitted By krithika29
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CASE OVERVIEW

PepsiCo was widely considered to be one of the most sophisticated and aggressive marketing companies in the world. In North America, the company had three divisions, each with category-leading brands. Pepsi and Mountain Dew were the number two and three soft drinks. Frito-Lay dominated the salty-snack category with Ruffles, Lay's, Doritos, and Cheetos. And the company had recently acquired Tropicana, the leading juice brand. In 2000, PepsiCo had acquired the SoBe line of teas and "functional" drinks from South Beach Beverages, which it operated as a stand-alone subsidiary

Mountain Dew had carried PepsiCo's soft drink revenues during the 1990s as cola brands struggled. But now the Do the Dew campaign( the famous "Do the Dew" campaign that had catapulted Mountain Dew to the number three position in its category) was entering its eighth year, a long stretch by any consumer goods baseline. Many other brands were now sponsoring the same alternative sports that Mountain Dew had relied upon to boost its image. Teens were also gravitating to new activities and new music that Dew's competitors had successfully exploited in their branding activities. Figuring out how to keep the campaign working hard to maintain the brand's relevance with its target consumers had become a chief preoccupation of senior management at both PepsiCo and BBDO. At the same time, key competitors were raising their ad budgets as competition in both the Carbonated Soft Drink (CSD) and non-carbonated drinks categories was heating up, sending Dew sales below targets. Choosing the right ads to maximize the impact of Mountain Dew's relatively small media budget was a make-or-break decision.

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