Mountain Dew: Same Product, Different Customers = Success

The interesting story of how Mountain Dew went from being a niche soft drink to a $7 billion worldwide brand is a result of their extensive grasp of consumer culture, focused marketing, and brand repositioning.

Start – Local Beverage

Tennessee brothers Barney and Ally Hartman created Mountain Dew in the 1940s. Its distinctive recipe was originally developed as a whisky mixer to mellow down the liquor’s robust flavours. The moniker “Mountain Dew” was a play on a local Appalachian slang word for homemade liquor that the Hartmans used.

After purchasing the brand in 1958, the Marion, Virginia-based Tip Corporation improved the recipe and started selling the soda with a citrus flavour. The sales were decent, but they could have been more. Its main reputation was as a local beverage, loved by a dedicated but modest clientele.

Acquisition by PepsiCo: Initial Growth

To diversify its soft drink offerings, PepsiCo bought Mountain Dew in 1964. Despite the company’s best efforts, Mountain Dew’s performance lagged behind those of other prominent soda brands. In a market where giants like Pepsi and Coca-Cola reigned supreme, its citrus flavour and rather unique appeal made it hard to distinguish themselves.

To increase sales, PepsiCo tried several different marketing campaigns throughout the 1970s and 1980s, but to little avail. Mountain Dew continued to have a small customer base and was mostly consumed in certain regions.

Shifting Gears: Reaching Out to a Different Audience

It became abundantly evident in the 1990s that Mountain Dew required a sea shift. Mountain Dew needed a distinctive selling point to survive in the cutthroat soft drink industry. PepsiCo chose to reinvent the brand from the ground up, targeting a younger demographic that would have a stronger emotional connection to the beverage.

Approaching Extreme Sports with a Focus on Youth:

Extreme sports, video games and youth culture were becoming more popular. Teenagers and young adults increasingly sought brands that mirrored their defiant, daring, and nonconformist personalities, and these pursuits were quickly becoming popular. PepsiCo saw that this group would be ideal Mountain Dew consumers.

The advertising for Mountain Dew changed in the 90s to reflect this new image. Skateboarding, snowboarding, and BMX biking became synonymous with the brand. It aired advertising featuring athletes doing dangerous acts and supported events like the X Games. As a catchphrase for the risk-taking, adrenaline-fueled youth culture, “Do the Dew” quickly gained traction.

Linking Gamers

The video gaming sector was also seeing explosive growth at the time, which presented PepsiCo with yet another potential. They saw gamers as a previously untapped demographic, and they knew that the robust, caffeinated Mountain Dew recipe would be perfect for those late-night gaming sessions. Several initiatives were launched by the company, including partnerships with game creators, limited-edition flavours inspired by video games, and sponsorship of gaming competitions.

“Game Fuel” was a limited edition flavour of Mountain Dew introduced in 2004 with the express purpose of appealing to gamers. Mountain Dew’s prominence in the gaming culture was further cemented by the success of Game Fuel. Mountain Dew quickly became the preferred beverage among gamers as the brand’s name became practically interchangeable with the gaming community.

Outcome

An enormous amount of success resulted from Mountain Dew’s repositioning. As the product grew popular among a younger demographic, sales of the brand surged. Mountain Dew connected with culture shifts that struck a chord with youth by linking itself to extreme sports and video games. A cultural icon, the brand was known for its edgy, high-energy look that distinguished it from other sodas.

The key to Mountain Dew’s success was not only good marketing but rather, knowing and catering to the audience’s cultural background. The company took the time to learn about the interests of young people and positioned themselves accordingly. A devoted following was born from this bond, and it is this basis that keeps Mountain Dew afloat today.

Present-Day

Even in the new millennium, Dew continued its path. New flavours, limited edition releases, and partnerships with iconic properties like “Call of Duty” and “Halo” are just a few examples of the ways the company innovates. By sponsoring events and producing material that appeals to its target demographic, it also maintains a robust presence in the gaming and extreme sports industries.

Now worth $7 billion, Mountain Dew is an international icon of rebellion and boundless vitality. The narrative exemplifies the significance of knowing one’s audience, adapting to changing cultural norms, and being flexible when faced with challenges. From a struggling regional beverage to a worldwide powerhouse, Mountain Dew evolved with its fans.