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Mtn Dew Final Presentation
1. Presented by:
Jessy K – Art Director
Nicole Blanton – Copywriter
Dennis Demori, Andres Fernandez – Account Planners
2. BULLIED OUT
Energy drinks like Red Bull and
Monster Energy are eroding the
CSD segment in general, and what
MTN DEW has stood for (extreme
sports/activities) in particular. 2
3. SHARE OF
THROAT
Consumption of CSDs & Energy Drinks (2007)
Energy Drinks: 302 million gallons
+24.7%
CSDs: 14,707 million gallons
-2.6%
Source: Beverage Marketing Corporation 3
4. THE CORE ISSUE
Competing only in the extreme genre
is not sustainable for MTN DEW in
the long run. They’ll get clawed to
death and gored into oblivion.
4
5. THE OPPORTUNITY
Go after the 18-24 segment
to steal share from Sprite
and Dr. Pepper, without
alienating the 12-17 crowd
that has driven MTN DEW
sales and who will
eventually grow up to be 18-
24
While MTN DEW is the 4th CSD brand ahead of Sprite and Dr.
Pepper, 5
7. SUPPORT ≠ SPONSORSHIP
The way MTN DEW has done extreme sports is unique in that it became a
SUPPORTER of the emerging athletes early on, giving them a platform to take
their skills to the next level. It goes way beyond slapping a sponsor’s logo on a
billboard.
7
8. A LOYAL & INVOLVED FOLLOWING
Bring back the Dew
Dewmocracy.com
8
They don’t rely on TV to stay informed and don’t consider TV their main source of entertainmentThey’re constantly connected (Web, mobile) and online, and enjoy creating content and consuming/sharing content created by othersThey notice out of home and transit (bus/bus stop, train, taxi –external and inside the cab) advertising a lot, even considering that well-designed outdoor ads improve the urban landscapeThey’re into advertising they can touch, feel and interact with, even manipulate/play with Source: Simmons NCS/NHCS: SPRING 2008 ADULT FULL YEAR (APRIL 07 - JUNE 08) study
Not so extreme anymore…\"I grew up drinking Mountain Dew because it gave me a jolt of energy and they sponsored awesome stuff like the X-Games… I’m not sure what they stand for anymore. They're all about extreme sports/gaming and I'd rather have a Red Bull or Monster Energy to fuel my activities. They've been doing ‘extreme’ for over 10 years—to the point that it's not extreme anymore.\"It’s all about the journey.“MTN DEW is a non-conformist brand that’s all about taking life to the next level. They’re always on the cusp of what’s new and exciting, supporting stuff that is cool as shit, not like all the other phonies that get in the game when it’s safe to do so.”Growing up as a brand, parallel with the consumer.
The Carbonated Soft Drinks (CSDs) category has been steadily declining after peaking in 1999, while energy drinks and flavored/enhanced water have been growing exponentially. Mountain Dew has proven resilient, however, fueled in part by its popularity among the heaviest of CSD drinkers, teens. “Volume for regular Mountain Dew is down about 2 percent in the first half of 2008, compared with a drop of more than 5 percent for all carbonated soft drinks.” (BeverageWorld, August 2008)“Many other brands were now sponsoring the same alternative sports that Mountain Dew had relied upon to boost its image.”Harvard Business School Case Study
Although the growth of the energy drink category has slowed from the astronomical speed it saw between 2000 and 2004, overall US consumption of energy drinks has increased by nearly 600% since 2002 -according to Zenith International- clearly demonstrating that the popularity of energy drinks has undoubtedly continued to resonate with consumers.
Energy drinks hit a real sweet spot on straight energy. They give you a real jolt and the need-state for that versus refreshment is a lot stronger.MTN DEW’s appeal must be broadened in order to bring new followers, without alienating its core fan base.
While MTN DEW is the 4th CSD brand ahead of Sprite and Dr. Pepper, it trails them in the 18-24 segment. Teens 12-17 are driving MTN DEW sales (despite the CSD blues), as they consume more CSDs than adults.“Sprite is the non-cola of choice for 18-24 year-olds (…) Teens are much more frequent consumers of regular soft drinks” (BeverageWorld, April 2008)
MTN DEW has always been about innovation. It got involved with action/extreme sports before Red Bull was even born, and it has always innovated with flavors and formats (like the limited edition “Game Fuel” flavor launched exclusively to support Halo 3 –first ever soft drink for a video game)More recently it has expanded its reach into music (Green Label Sound – emerging artists) and art (Green Label Art limited edition cans)
Support vs. Sponsor (how they did Extreme Sports, X-Games, etc.)
MTN DEW fans are extremely loyal and involved; there are even online petitions to bring back discontinued flavorsThe recent “Dewmocracy” campaign that engaged consumers to create the newest flavor(s) –Voltage– drew a huge following despite the level of involvement required“Mountain Dew targets passionate consumers and counts on them to spread the word. It has an extremely loyal following. In many ways, it has a cross-appeal both to regular soda drinkers and energy drink drinkers.” (BeverageWorld, August 2008)
We’re engaging guys 18 to 24 years-old who embrace excitement, adventure and fun, and who are in the weird transition between their teen years and adult-hood. The “Nutritional Facts” on the back of the label is the last thing they care about. Although they seek acceptance and think friends are more important than family, they like to stand out from the crowd and do unconventional things, always on a never-ending quest to find the next thrill.They’re optimistic about the future.“Fueled by an excitement for change and an eagerness to shape their own destinies, Millennials are gearing up to make 2009 their year.”PepsiCo News Release, December 2008
