Pepsi uses different brand names for its soda products (i.e. Diet Dr. Pepper and Mountain Dew). What is the brand development strategy Pepsi uses?

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BlackTom AI · Accepted Answer

The question asks about the brand development strategy Pepsi uses when it markets different brand names for its soda products, such as Diet Dr. Pepper and Mountain Dew.
Option 1: Line extension. This would involve expanding an existing brand name to a new product within the same category (e.g., adding a new flavor under the same Mountain Dew brand). In this case, the strategy is not about extending a single brand but about marketing distinct brands, so line extension is not correct.
Option 2: Multibrands. This is the approach where a company markets multiple brands within the same product category, each with its own identity (e.g., Diet Dr. Pepper, Mountain Dew, and other sodas) to capture different customer segments and preferences. This aligns with Pepsi using different brand names rather than a single brand for all products.
Option 3: Brand extension. This would mean taking an existing brand name and applying it to a new product category or line outside its current scope (e.g., using Mountain Dew imagery on a snack product). Since the focus here is on separate brand names within the same category, brand extension doesn’t fit.
Option 4: New brands. Creating entirely new brands for each product could describe multibrands in practice, but the standard distinction is that multibrands refers to managing multiple recognized brands within the same category, not merely creating new brands in a broad sense. This makes it less precise than the term multibrands itself.
Overall, the reasoning points toward multibrands as the correct concept, since Pepsi intentionally markets distinct soda brands under separate names rather than relying on a single brand across all products.

MKTG1021.07|.08|.09 Fall 2025 Marketing Principles [Wang] MKTG1021-Final Exam- Requires Respondus LockDown Browser

Pepsi uses different brand names for its soda products (i.e. Diet Dr. Pepper and Mountain Dew). What is the brand development strategy Pepsi uses?

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