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Vault vs Mountain Dew

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While reading my daily news, the following article caught my attention... Coke vs Pepsi in a modern taste test.
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Coke: Buy 1 Rival, Get Our Brand Free
Soft-Drink Giant's Vault Takes on Mtn Dew With Unusually Aggressive Offer
By Natalie Zmuda

Coca-Cola will give away a free sample of its Vault brand to anyone who buys PepsiCo's Mtn Dew. The aggressive "Don't Dew It" promotion aims to get die-hard Dew-ers to try Vault, which after three years on the market isn't just an also-ran to the Pepsi brand; it's an afterthought.

According to Beverage Digest, juggernaut Mtn Dew commands more than an 80% share of the citrus segment, while Vault holds about 4%.

Vault's play might be well-timed. It comes amid a name and design change for Mtn Dew that is proving unpopular with some consumers, who have expressed confusion, saying the new packaging makes the brand look like a knockoff. Those are, to some extent, the same criticisms that last month felled the Tropicana redesign. Peter Arnell, principal of Arnell Group, handled the redesign on both brands, along with redesigns across the PepsiCo portfolio.

Bank on more promos like Vault's
Five reasons why, in this economy, we'll see more pushes like this.
  1. Coupon redemption rates jumped 10% in the fourth quarter; 94% of consumers now say they use coupons.
  2. Enticing cash-strapped consumers with discounts and free products is some marketers' best shot at taking share.
  3. As sales slow, growing share is becoming tougher than stealing it.
  4. Coupons offer value without permanently eroding price points.
  5. There are more options for coupon distribution, including social media and downloadable
    coupons, that appeal to a young audience yet eliminate some of the cost for marketers.

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Do you feel that Vault will really be able to drive sales? - Before you answer this question, I really do mean sales, not trial. Trial is definitely going to go up, but I don't think they will be able to move consumers down the purchase funnel. What MD has been able to do with their brand is incredible, as a matter of fact, the HBR has written an article on them. Their consumer is very well defined, and the brand has been able to keep up to date.

Not too long ago, HEB did the same promotion, for every 12pk of Coke you purchased, you would get a 12pk of the HEB brand... they even had an OOH.

Though I do not drink anything else other than Coke, whenever I drink a soda, it would be really hard to say NO to a free 12pk of free soda... To close this post, and to clear any thoughts, in order to not be put on the predicament of taking another brand (the HEB brand) I opted not to shop and buy the 12pk of Diet Coke.... riiiiiiight

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  1. AnonymousMarch 25, 2009 at 3:23 PM

    Very good post, I have been the victim of these free HEB offerings, but I got it with laundry detergent (liquid), their Bravo brand.

    As a side comment, it's a win win for HEB because on your ticket total it still says 3.99. Its like saying buy an HEB 12 pack for 2.99 and take the Coke one for 1 dollar. Not technically the same, since they would keep a lot more of the 3.99 but still.

    But to the matter at hand, more than trial, I think they are putting all their chips in consideration. So I would have never considered HEB Bravo, but hey it was free, and you know what it wasn't bad at all. Not my favorite, but not as bad as I thought, so one day I find myself with a situation where I have to reconsider buying my brand of choice, could be price, availability, and so I have to choose another...and in my experience as a consumer, you'll go with what you know.

    And sure enough, I only had 4 bucks left to buy detergent, and knowing that HEB Bravo wasn't so bad and that I had already tried it, I bought it.

    It may not be enough to steal share, but it could sprout some sales. Vault has nothing to loose, and with consumers growing more capricious than loyal, consideration or doubt can be a very powerful tactic.

    This is a personal observation not founded in any fact or figure.

    ReplyDelete

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