Harvard Case - Mountain Dew: The Most Racist Soft-drink Commercial in History?
"Mountain Dew: The Most Racist Soft-drink Commercial in History?" Harvard business case study is written by Jana Seijts, Paul Bigus. It deals with the challenges in the field of Marketing. The case study is 7 page(s) long and it was first published on : Jul 30, 2013
At Fern Fort University, we recommend a comprehensive strategic response to the Mountain Dew controversy, focusing on immediate damage control, long-term brand repair, and a commitment to diversity and inclusion. This response should include a public apology, a review of internal processes, a shift towards more inclusive marketing, and a commitment to community engagement.
2. Background
This case study examines the fallout from Mountain Dew's 'Livewire' commercial, which featured a caricature of a black man in a racially insensitive context. The commercial sparked widespread outrage, accusations of racism, and calls for a boycott. The case highlights the potential for marketing campaigns to backfire, causing significant damage to brand reputation and consumer trust.
The main protagonists in the case study are Mountain Dew, the soft drink brand, and its parent company, PepsiCo. The case also involves various stakeholders, including consumers, media outlets, and advocacy groups.
3. Analysis of the Case Study
This case study can be analyzed using several frameworks, including:
Marketing & Brand Management:
- Segmentation, Targeting, Positioning (STP): The 'Livewire' commercial failed to consider the diverse demographics of Mountain Dew's target market, leading to a misaligned brand positioning.
- Brand Equity: The controversy significantly eroded Mountain Dew's brand equity, impacting its perceived value and consumer loyalty.
- Integrated Marketing Communications (IMC): The lack of consistency and alignment in Mountain Dew's marketing messages across different channels contributed to the negative perception.
Consumer Behavior:
- Consumer Psychology: The commercial triggered negative emotional responses and perceptions of racial bias among consumers, impacting their purchase decisions.
- Customer Relationship Management (CRM): The lack of proactive communication and engagement with consumers further exacerbated the situation.
Corporate Social Responsibility (CSR):
- Ethical Marketing Practices: The commercial violated ethical marketing principles by perpetuating racial stereotypes and promoting harmful content.
- Sustainability in Marketing: The controversy highlighted the need for brands to prioritize ethical and inclusive practices in their marketing strategies.
SWOT Analysis:
- Strengths: Mountain Dew has a strong brand recognition, a loyal customer base, and a history of innovative marketing campaigns.
- Weaknesses: The company has a history of controversial marketing campaigns and lacks a strong commitment to diversity and inclusion.
- Opportunities: Mountain Dew can leverage this crisis to reposition itself as a brand that values diversity and inclusivity.
- Threats: The controversy could lead to a decline in sales, a loss of consumer trust, and a negative impact on the company's reputation.
4. Recommendations
Immediate Actions:
- Public Apology: Issue a sincere and heartfelt public apology acknowledging the offensive nature of the commercial and expressing regret for the harm caused.
- Remove the Commercial: Immediately remove the 'Livewire' commercial from all platforms and discontinue its use.
- Internal Review: Conduct a thorough internal review of marketing processes and decision-making to identify and address any systemic issues contributing to the controversy.
Long-Term Strategies:
- Diversity and Inclusion Commitment: Develop a comprehensive diversity and inclusion strategy that includes representation in marketing campaigns, hiring practices, and internal policies.
- Inclusive Marketing: Implement a new marketing strategy that reflects the diversity of Mountain Dew's target market and promotes positive and inclusive messaging.
- Community Engagement: Engage with diverse communities through partnerships, sponsorships, and initiatives that demonstrate a commitment to social responsibility.
- Transparency and Accountability: Establish clear communication channels and mechanisms for addressing consumer concerns and ensuring accountability for future marketing decisions.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: Mountain Dew's core competency lies in its ability to create innovative and engaging marketing campaigns. This strategy should be aligned with a mission of inclusivity and social responsibility.
- External Customers and Internal Clients: Addressing the concerns of external customers and internal clients is crucial to restoring trust and rebuilding brand equity.
- Competitors: Competitors are likely to capitalize on Mountain Dew's misstep, so it is essential to differentiate itself through a commitment to ethical and inclusive marketing practices.
- Attractiveness: The proposed strategies are attractive due to their potential to enhance brand image, increase consumer trust, and drive long-term growth.
6. Conclusion
The Mountain Dew controversy highlights the importance of ethical and inclusive marketing practices in today's diverse and interconnected world. By taking responsibility for its actions, embracing diversity, and committing to a more inclusive future, Mountain Dew can rebuild its brand image and regain the trust of its consumers.
7. Discussion
Alternative strategies include:
- Ignoring the controversy: This approach is risky and could lead to further damage to the brand's reputation.
- Issuing a generic apology: This approach lacks sincerity and fails to address the specific concerns raised by consumers.
- Focusing solely on internal changes: This approach may not be sufficient to address the public perception of the brand.
Risks and Key Assumptions:
- Public backlash: There is a risk that consumers may continue to boycott the brand, even after the apology and changes.
- Lack of commitment: There is a risk that Mountain Dew will not fully commit to its diversity and inclusion strategy, leading to further controversies.
- Competitive response: Competitors may capitalize on Mountain Dew's misstep, leading to a loss of market share.
8. Next Steps
- Immediate Action: Issue a public apology and remove the commercial within 24 hours.
- Internal Review: Complete the internal review within 30 days and implement recommendations.
- Diversity and Inclusion Strategy: Develop and implement a comprehensive diversity and inclusion strategy within 60 days.
- Community Engagement: Begin engaging with diverse communities within 90 days.
- Monitor and Evaluate: Regularly monitor consumer sentiment and feedback, and adjust strategies as needed.
By taking these steps, Mountain Dew can begin to repair the damage caused by the 'Livewire' commercial and position itself as a brand that values diversity and inclusion.
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Case Description
PepsiCo faces criticism after releasing a series of online advertisements for Mountain Dew that featured an angry Mountain Dew-drinking goat, a battered white woman on crutches and the goat in a police lineup of all black men. Critics are offended by the advertisement's portrayal of violence toward women and racial stereotypes. As the public outcry spreads, Mountain Dew's senior brand manager needs to devise a course of action or risk damage to one of its billion-dollar brands.
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