Paper Topic:

Marketing

Brand loyalty is very critical to build the equity of any given brand The lifetime value of loyalty of the consumers for the brand can be enormous and will contribute greatly to the bottom line of the company owning the brand . For example a loyal General Motors customer could be worth 2 , 76 ,000 over his or her lifetime (Farrel , 1999

I feel a great loyalty for the soft drink brand Mountain Dew . PepsiCo launched it in the year 1969 targeting consumers in the countryside Since then the company has formulated and implemented

a number of strategies over the years to maintain and extend the equity of this brand even amongst the urban consumers . In the early 1980s the company successfully implemented advertising strategies with a focus on outdoor action scenes to target urban teenage drinkers for the brand . As a result of this Mountain Dew was the fastest growing major soft drink in America till the 1990s

In the year 1988 the company introduced a line extension Diet Mountain Dew to target calorie conscious consumers to the brand . PepsiCo was able to increase the customer loyalty as a result of which its market share rose from 2 .7 to 7 .2 in the 1990s . It further updated its outdoor image by using extreme sports such as skydiving , skateboarding and snowboarding . The advertisements featured athletes participating in extreme sports while consuming Mountain Dew accompanied by the tag line Do the Dew . To attract the loyalty of urban consumers who do not watch action sports , Mountain Dew developed a series of print , radio and television advertisements featuring hip-hop superstar Busta Rhymes

The company has also used sales promotion strategies like sponsoring action-sports athletes and events like ESPN X - Games and staging sales promotion activities at local skate parks . To build customer loyalty the company also offered samples from its branded Dew Hummer trucks and subway cars

As a next promotion strategy it formulated and implemented a beeper promotion in which more than 50 ,000 teenagers bought reduced price pagers with proof of purchase and received weekly discounts and prize offerings from Mountain Dew . The massive advertising campaign at the national level accompanied by innovative promotion campaigns at the local level helped the brand to develop `mass intimacy ' resulting in huge customer loyalty for the brand

In the year 2000 Mountain Dew further extended its product line by successfully launching Mountain Dew Code Red , which was a bright red cherry flavored drink . This new product was developed and launched in ten months as compared to two years it usually took PepsiCo to develop and launch a new product into the market . The company used radio outdoor advertising , sampling and in-store merchandising . It sent free samples to 4000 select consumers and was also heavily sampled at sporting events like NCAA Final Four and ESPNs 2001 winter X Games Another innovative strategy used for the brand was that the company developed a special website for the brand that featured an interactive game called Mission...

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