Main problems:

• How to keep the "Do the Dew" campaign working hard to build the brand given that extreme
sports were becoming overexposed • How to respond to the growing threat of non-CSDs,
especially Gatorade and the new highlycaffeinated and sugary energy drinks like Red Bul

 Competition to attract teens and young adults was especially fierce. At this age, CSD consumers
were notoriously fickle and fashion-minded in their beverage choices, routinely switching
favorites. However, entering the adult years, consumers tended to become much more brand
loyal
 These dynamics led to a difficult branding challenge: brand communications had to both present
a powerful message to a youth audience to assure future sales, while at the same time appealing
to the current franchise who were often much older.
 CSDs were a promotion intensive category. In most grocery stores, Coke and Pepsi controlled a
great deal of shelf space and displays. They had so much clout that their bottlers were able to
choose how to stock the shelves and what to display.
 . Impulse purchase displays had become an important source of incremental volume. A
substantial and increasing share of volume came from convenience stores, where most
purchases were of single servings purchased for immediate consumption
 The major brands ran seasonal promotions, such as "under the cap" games in which every tenth
bottle had a free bottle give-away written under the cap. More junior brand managers spent
considerable time developing and implementing these promotions.
 Industry rumors were circulating that Coca-Cola, Anheuser-Busch, PepsiCo, and Cadbury-
Schweppes were working aggressively to develop functional drinks to tap into this growing
segment.
 Coke: Over many decades, Coca-Cola had become "America's drink" (and later the preferred
drink in many countries around the world) through advertising that conveyed that Coke served
as a social elixir. Coke promoted the idea that the drink brought people together in friendship
around ideas that people in the nation cared about
 Pepsi: "The Pepsi Generation" ad campaign, in which the brand harnessed the ideas and
passions of the 1960s counterculture. More recently, Pepsi used celebrities—particularly
musicians such as Michael Jackson, Madonna, Faith Hill, Ricky Martin, and Mary J. Blige—to
convey the idea that Pepsi was an expression of youth attitudes
 Redbull: to keep the energy flowing all night, the dancers demanded energizing drinks. In
particular, an enterprising Austrian company marketed Red Bull, a drink that was once an Asian
hangover cure, as a rave stimulant. Either straight or mixed with vodka, Red Bull became the
rave drink of choice. Raves diffused rather late to the United States, but proved to be most
popular in the major metropolitan areas.
 7-UP was successful in the 1970s branding against the colas as the "uncola" in ads that used a
charismatic Jamaican actor to describe the purity and naturalness of 7-UP in a tropical setting.
Similarly, the sweet cherry-cola concoction Dr. Pepper challenged the audience to "be a Pepper"
with well-received dance numbers that encouraged consumers to do their own thing rather than
follow the masses in drinking cola.
 Weakness: PepsiCo spent substantially less as a percentage of sales than its competitors.
Instead, the company relied on exceptional creative to make the advertising work harder for less
cost. PepsiCo viewed the creative development process as a key organizational competency, a
strategic weapon that was central to their financial success (See Exhibit 2)
 New Strategy: The spots featured daredevil maneuvers of sports like windsurfing, rollerblading,
motocross cycling, and paragliding. The closelyframed shots, which put the viewer in the middle
of the action, also suggested excitement and energy. The spots were set to aggressive rock music
rather than studio jingles.
 Diet Mountain Dew performed very well on product tests versus other diet drinks in the
category because the heavy citrus flavor did a better job of masking the undesirable taste of the
artificial sweetener.
 Done That, features a hair-raising shot of a guy jumping off the edge of a cliff to take a free-fall
toward the narrow canyon's river bottom, set to throbbing grunge music. This was the first ad to
feature the "Dew Dudes"—four young guys who are witnessing the daredevil stunts presented in
the ad and commenting on them. Done That became a huge hit, capturing the country's
imagination. The ad was widely parodied and the phrase "been there, done that" entered the
vernacular.
 By 1998, PepsiCo managers worried that the advertising was becoming too predictable. In
particular, they were concerned that the use of alternative sports was becoming less impactful
due to oversaturation
 Mountain Dew also had much lower penetration of the total population than its major
competitors. But its consumers were the most loyal in the category. Mountain Dew had the
highest "gatekeeping" rating of all CSDs—it was the drink that mothers tried the hardest to keep
out of the stomachs of their children. Periodically, the PepsiCo research department fielded a
major study to assess the "health" of the brand, and to direct any finetuning
 Opportunity: In 1999, Mountain Dew became the third largest carbonated soft drink at retail,
overtaking Diet Coke. However, part of this success in gaining share had to do with the sustained
weakness of Pepsi and Coke. In 1999, the problems that the colas were facing seemed to be
spreading to Mountain Dew, Sprite, and Dr. Pepper. All of the leading CSDs began to show real
weakness as alternative non-carbonated drinks began to attract a great deal of trial, especially
amongst teens.
 STP: Mountain Dew's national media plan focused on a younger audience. Typical buys would
include MTV, The Simpsons, and ESPN during alternative sports broadcasts. However, with its
long run of sales increases in the 1990s, Mountain Dew was becoming less of a niche brand.
Partly in recognition of this expanding customer base and partly to celebrate within the
company Dew's arrival as the third most popular CSD, top management decided to feature
Mountain Dew rather than Pepsi during the Super Bowl.
 Bill Bruce finished presenting his last storyboard and scanned the room to lock eyes with the
PepsiCo executives who would be deciding the fate of his ideas. Scott Moffitt didn't return the
gaze. Instead he looked anxiously at his superiors, knowing that the spotlight would next focus
on him. This was his chance to prove himself not only to PepsiCo senior management, but also to
BBDO. BBDO's senior managers had become influential advisors, whom PepsiCo's top marketing
executives routinely relied upon to help guide branding decisions. With six years of experience
under his belt, this was Moffitt's chance to earn their respect as a contributing member to these
critical discussions. Moffitt was eager to make a strong impression with nuanced and well-
reasoned evaluations. Following long-standing protocol in packaged goods companies, the junior
manager at the table gets the first crack at evaluating the creative. Moffitt cleared his throat,
complimented Bruce on the high quality of the new work he had presented, and began his
evaluation.