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Autumn Mentch
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Case Study - Dewmocracy
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Introduction:
The year 2008 was a big year for the PepsiCo, Mountain Dew marketing team. The
company had just launched a new flavor of the 70-year-old soft drink and the company had just
completed the first Dewmocracy campaign that resulted in the new flavor. Due to the success
that came from Dewmocracy 1, the company launched Dewmocracy 2 in 2009 that finished in
2010. PepsiCo marketing team knew they were looking at a risky project that could either benefit
the company or crash and burn. The marketing team had to use new strategies to gain voters,
testers, and customers through a Lead Generation process.
Lead Generation Process:
The first step of the lead generation process that PepsiCo dealt with was lead capturing.
This stage involves capturing visitors from the website through emails, events, and ‘sign up’
options. Companies use this process to gain the attention of potential customers and update
through email services on new products and services. Dewmocracy 2 began with Mountain Dew
representatives driving around the United States and offering tasting events. The tasting events
were open to the public and only requested that they vote for their favorite flavor and “liked” the
Dewmocracy Facebook page. The company used the tasting event to allow customers to taste
new flavors and to keep up with what was next in the marketing campaign by following along on
social media. The sampling events were successful for the company resulting in 1,100 new
Facebook fans, and the seven potential flavors were narrowed down to three. Along with the free
tasting events, the company worked to gain potential customers by offering free home-tasting
kits if they submitted a 12-second view explaining why they deserved the kit. During the seven
stage Dewmocracy campaign, the company engaged with customers through social media and
offered multiple free events and tastings to show customers that the company was dedicated to
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getting the opinion straight from the customer. Dewmocracy not only received info from fan’s
social media platforms, but they also received their emails to send promotions, coupons, and
event details to potential customers. PepsiCo had social media platforms for Mountain Dew, but
also made individual platforms for the Dewmocracy campaign. The Dewmocracy campaign had
its own YouTube, Facebook, and Twitter pages. The social platforms were used to follow up with
the potential buyers and to continue to offer opportunities to participate in the Dewmocracy
campaigns.
The company utilized the lead magnet process by informing consumers about the next
event that would be offered to the public along with certain events that were for winners of
contests only. Dewmocracy began the process with seven flavors and with each event and contest
the number of flavors was dwindling down. They gave consumers the chance to try the flavors,
explain why they do or do not like them, and then vote to keep the ones they wanted.
Dewmocracy was ensuring consumers knew this was focused on their opinion of the future
flavor. During the process of deciding the color of the potential drinks, Dewmocracy allowed
users who followed their Facebook page to vote. Along with voting, to ensure consumers and
voters stay interested, PepsiCo helped plan a live paintball event on Facebook Live for
Dewmocracy. When a voter chose which color, they wanted the drink to be, a live robotic
paintball gun would shoot at a target with that color name. This event was successful with having
over 100,000 votes and 62% of those being during the paintball live stream. The company
wanted to ensure the consumers would come back to vote for the color after all the previous
events and voting had been over, and the paintball event did just that.
Dewmocracy utilized lead page conversion by running multiple advertisement campaigns
through their social media platforms that would take them to the Dewmocracy landing page. The
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website and landing page consisted of what Dewmocracy was, what events were coming up, how
to vote for the next decision, and media content of previous winners. The landing page was
Mountain Dew green and yellow colors to ensure customers recognized what Dewmocracy was
and with what it was associated. While Dewmocracy focused on their website and landing page
to ensure it included pertinent information, their social media platforms played the biggest role in
gaining followers, consumers, and voters. According to Dewmocracy through Mountain Dew,
their Twitter platform was able to be customized to include a background image that showed a
Mountain Dew can whited out with a question mark on stating “vote on the name for flavor
#509” when it was time for followers to vote on the name of the new flavor. For each step in the
process the company would edit the background to show what was being voted for next.
Dewmocracy focused on colors and pictures that looked familiar to consumers on their website
to draw the attention of the already Mountain Dew fans. According to PepsiCo, when the
winners for each event were selected the company posted them on the social media platforms
and Dewmocracy website along with a short statement from the winners. This tactic was used to
show other consumers and followers what it could be like if they participated and won an event.
Dewmocracy used lead scoring positions to draw customers and potential followers into
the rally by offering free tasting events, products, and prizes if they followed the event and social
media platforms. When prospects visited the Dewmocracy website a window would pop up
asking viewers to enter their email to follow along with the events according to PR News Wire.
By giving an email address, followers would be emailed regularly about special promotions and
events that only subscribers would know about or would hear about first before the public. The
goal of their lead scoring positions was to rally friends, family, and DEW supporters together by
posting pictures and videos, voting online, and engaging with other prospects to spread the word
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about Dewmocracy. When subscribers would vote for their favorite flavor, it would give them
the option to share that they voted with friends to be entered into other Dewmocracy contests
according to Mountain Dew’s website. Dewmocracy was looking for their loyal supporters to
submit their information to give them first chances at events and promotions but also to have
them help spread the word about the new flavor.
SWOT Analysis
PepsiCo and Mountain Dew took several approaches at gaining new followers and
consumers during the Dewmocracy Campaign. The company used popular social media
platforms to spread the word about the campaign and to continue to engage with customers and
followers. Dewmocracy used free promotional events such as the taste testing trucks, DEW labs
for taste testing, and the live paintball event to give followers a fun approach at helping decide
the next flavor. Dewmocracy made it easy for followers to vote via social media by clicking an
option on a poll or by tweeting about what name and or flavor they liked. By the end of the
program, the company gained over 700,000 new followers and had a successful campaign ending
in a new flavor and name. Although the campaign was successful, there were some weak points
Dewmocracy ran into or could have potentially run into. The Dewmocracy marketing campaign
ran for 12 months, while the average marketing campaign length according to Pocket Shop is 45
days to two months long. The length of the marketing campaign with all the events and voting
involved could have lost interest of many followers. While working the Dewmocracy campaign,
PepsiCo and Dewmocracy had the opportunity to gain more than 700,000 followers if they had
engaged more with their following. The company did engage here and there during the in-person
events, but if they had been involved in the social media engagements, they could have gained
more followers. According to Buffer, 71% of followers expect a company to engage with them
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via social media and expect a response to a comment and or message. Dewmocracy did not face
many threats during their marketing campaign only because they are owned by one of the biggest
beverage brands.
ROI Calculation:
Every marketing campaign and investment should have an estimated return on
investment or an ROI. According to Pro Sales Connection, the ROI is necessary to be able to
properly frame the expectations with the marketing budget holder as well as the sales
department. To calculate the ROI a company must know the Total Marketing Costs (TMC),
Number of Leads (L), Lead to Opportunity Rate (LO%), Sales Close Rate (C%), Average Gross
Profit Margin (GP%), and the Average Client Revenue (ACR). For this marketing campaign the
number of leads is twelve multiplied by the Lead to Opportunity Rate (25%) equaling three
qualified opportunities. There are three opportunities multiplied by Sales Close Rate (33%)
equaling one new lenient. The average client revenue is $24,000 multiplied by the average gross
profit margin which is 35% totaling $8,400 in gross profit. The ROI or return on investment is
found by taking the gross profit of $8.400 and subtracting the total marketing cost of $8,000,
making the ROI 5%. The process can be written out like ((12 x 25%)33%)((24K x 35%)-8K)/8K
= 5%.
In conclusion, Dewmocracy had a successful marketing campaign despite the fear of it
not working out or not being financially pleasing. The company used many marketing tactics
through events, social media, free tastings, and advertisement campaigns to ensure they reached
enough following and in return had an increase in their followers, and customers. The result of
the campaign was successful and solved the problem of deciding which flavor would be next
along with its name, color, and design.
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References:
Dewmocracy. Mountain Dew Wiki. (n.d.). Retrieved March 21, 2022, from
https://mountaindew.fandom.com/wiki/DEWmocracy
Eckstein, M. (2022, February 2). Social Media engagement: Why it matters and how to do it
well. Buffer Library. Retrieved March 21, 2022, from https://buffer.com/library/social-
media-engagement/
Edify. (n.d.). Retrieved March 21, 2022, from https://edify.stukent.com/app/publication/943ecfff-
6550-47b2-b8a6-a30f9b3115fe/48b253d8-4cca-4068-b22b-07b1130c6007?
courseCode=CC-593C28
PepsiCo. (2018, June 30). The mountain dew dewmocracy 2 campaign empowers brand
Loyalists nationwide to create and launch the next new dew. The Mountain Dew
DEWmocracy 2 Campaign Empowers Brand Loyalists Nationwide to Create and Launch
the Next New DEW. Retrieved March 21, 2022, from https://www.prnewswire.com/news-
releases/the-mountain-dew-dewmocracy-2-campaign-empowers-brand-loyalists-
nationwide-to-create-and-launch-the-next-new-dew-91589284.html
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