PepsiCo should launch its Mountain Dew brand in the UK market. The UK offers an attractive hybrid market of growing energy drinks and carbonated soft drinks, especially among 15-34 year olds. Mountain Dew has strong brand awareness and could capture market share from both categories by leveraging PepsiCo's existing UK assets, relationships with vendors and suppliers, and promotional ties. This hybrid branding strategy would generate revenue for PepsiCo in a cost-effective manner.

1. Relaunching Mountain Dew
in the U.K.
Caitlin Joshua, Tom Licitra, Brea
MacIsaac, Tony Weaver, Sijie Xia

2. PepsiCo should launch the Mountain
Dew brand in the U.K.
• Hybrid branding strategy makes U.K.
Will
generate market attractive
revenue
• Mountain Dew can capture market
share
Will
be cost
• PepsiCo can leverage existing assets
effective
• PepsiCo can leverage existing
relationships
2

3. PepsiCo should launch the Mountain
Dew brand in the U.K.
• Hybrid branding strategy makes U.K.
Will
generate market attractive
revenue
• Mountain Dew can capture market
share
Will
be cost
• PepsiCo can leverage existing assets
effective
• PepsiCo can leverage existing
relationships
3

4. Hybrid branding strategy makes U.K.
market attractive
• Both U.K. energy drink and carbonated soft drink
(CSD) markets are growing
• U.K. offers attractive growth in target market of 15-
34 year-olds
4

5. U.K. energy drink and carbonated soft
drink (CSD) markets are growing
16
13.7
14
12 11.4
Energy drink market has grown
10
8
6
4
2
366% Since 1996
0
2005 2010
2005 2010
5

6. U.K. offers attractive growth in target
market of 15-34 year-olds
18.74
15.87
15
10
5
0
2007 2012
2007 2012
6

7. PepsiCo should launch the Mountain
Dew brand in the U.K.
• Hybrid branding strategy makes U.K.
Will
generate market attractive
revenue
• Mountain Dew can capture market
share
Will
be cost
• PepsiCo can leverage existing assets
effective
• PepsiCo can leverage existing
relationships
7

8. Mountain Dew can capture hybrid
market share
• Mountain Dew has strong brand awareness
• Consumers show high probability of purchase of
Mountain Dew
• PepsiCo can compete with existing competitors for
share
• Cannibalization of existing Pepsi products will not
occur
8

9. Mountain Dew has strong brand
awareness
24%
Brand Aware
Brand Unaware
76%
9

10. Consumers show high probability of
purchase of Mountain Dew
24% Brand Aware,
Would Buy
Brand Aware,
57% Wouldn't Buy
19% Brand Unaware
10

11. Mountain Dew can compete with
existing CSD competitors for share
50%
Carbonated soft drinks’ brand U.K. market share
40%
30%
20%
10%
0%
11

12. PepsiCo can compete with existing
energy drink competitors for share
50% Energy drinks’ brand U.K. market share
40%
30%
20%
10%
0%
Red Bull Lucozade Own Brand/Other
With only two large competitors, there is room for competition
12

13. Cannibalization of existing Pepsi
products will not occur
Lemon Lime Caffeine
Pepsi ✓
7Up ✓
Mountain Dew ✓ ✓
13

14. PepsiCo should launch the Mountain
Dew brand in the U.K.
• Hybrid branding strategy makes U.K.
Will
generate market attractive
revenue
• Mountain Dew can capture market
share
Will
be cost
• PepsiCo can leverage existing assets
effective
• PepsiCo can leverage existing
relationships
14

15. PepsiCo can leverage existing assets
• U.K. has largest operations of PepsiCo’s international
division
• U.K. has $2.1B of PepsiCo’s long lived assets
15

16. PepsiCo should launch the Mountain
Dew brand in the U.K.
• Hybrid branding strategy makes U.K.
Will
generate market attractive
revenue
• Mountain Dew can capture market
share
Will
be cost
• PepsiCo can leverage existing assets
effective
• PepsiCo can leverage existing
relationships
16

17. PepsiCo can leverage existing
relationships
• PepsiCo can leverage its existing promotional ties
• PepsiCo can leverage is existing vendor relationships
• PepsiCo can leverage its existing supplier
relationships
17

18. PepsiCo can leverage its existing
promotional ties
• Retail consolidation increases importance of
relationships with major vendors
• Opportunities exist to renegotiate contracts annually
18

19. PepsiCo can leverage its existing
vendor relationships
• PepsiCo spent $2.9B on promotions in 2007
• Strong relationship with global marketing company
OmniCom
• U.S. Mountain Dew strategy targets youth segment
and can easily be leveraged in U.K.
19

20. PepsiCo can leverage its existing
supplier relationships
• Collaboration is essential to the success of PepsiCo’s
supply chain
• Resources are available from a limited number of
suppliers with which Pepsi has strong relationships
• Greater economies of scale can be gained through
higher quantity orders
20