AMP Energy Media Flight Plan

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  • 1. Media Plan hailey.heishman jessica.bisinger amber.windell maria.wolfe 1
  • 2. Table of contentsPlan Summary 3The Problem 4Situation Analysis 5Target Audience 7Market Information 8Creative Plan: Past & Future 9SWOT Analysis 11Media Objectives 13Media Strategies 14Year at a Glance 15References 16 2
  • 3. Plan SummaryA MP Energy currently faces a number of problems we plan to address and outline solutions to in this media plan. AMP’s advertising budget is past years has been very small compared to those leading the Along with all energy drink brands, AMP faces the problem of the growth of healthy industry. They also do not market to everyone, have limited advertising efforts and do not use a lot oftraditional advertising.lifestyles. Many consumers have become increasingly concerned with the potential healthrisks associated with heavy consumption due to a rise in reports of consumers experienc-ing adverse reactions such as heart attacks. To help fix the problems AMP is facing we havecreated a number of objectives and strategies. We will utilize a variety of media vehicles toincrease exposure and overall coverage. Ourmain focus of this media plan is to increase brandawareness. For tradi- tional media we will usetelevision, radio, maga- zine, and outdoor adver-tising. We will advertise throughout the year butwill increase advertising during “busy” monthsfor college students during midterms andfinals. For non-tradition- al media we will have anAMP tour bus that trav- els to different collegecampuses handing out samples of our productsand interacting with students, we will supplycollege bookstores with samples and coupons to include with book purchases, and will wealso advertise in gas stations by placing stickers on the floor near our product. 3
  • 4. A The Problem MP energy is currently the 4th most popular energy drink brand in the U.S. behind Red Bull, Monster Energy and Rockstar. We feel one the major problems with AMP Energyis that they do not use a lot of traditional advertising and therefore are not first in the con-sumer’s mind when they’re thinking energy drink. The leading competitors in this marketall utilize some type of traditional advertising in media, such as television, radio, press orthe Internet. AMP has primarily focused on sponsorships of sporting events and athletes,which is a good strategy but is not enough. AMP also gets confused with the many otherbrands that PepsiCo. owns, which damages their brand identity. Thus far, AMP’s advertis-ing budget has been blown away from the budget’s of leading competitors, which makesthem less known than those leading the industry. AMP does not market their product to-wards everyone, they only market towards males, and they have limited advertising effortsin regards to broadcast advertising. Another problem that AMP faces, along with all energy drink brands, is the growth in health-conscious minds. Con- cerns have been raised over the safety of energy drinks and potential health risks associated with heavy consumption. There is a growing concern about the effects of caffeine and with the increasing number of reports stating consumers have had adverse reactions including heart attacks, many are starting to turn away from energy drinks. AMP needs raise public awareness that their product has fewer milligrams of caffeine and sodium than its competitors including Red Bull and Monster. AMP also contains Vitamin B, electrolytes, and L-Thiamine. AMP faces problems when it comes to increasing their prof- its. Over the years the number of convenience stores have de- clined, which in the past has pro-vided 80 percent of their total sales. There is a growing trendtoward family size containers and multi-unit packs, whichAMP does not offer. Teenagers are gradually increasing theirenergy drink consumption but the population of teenagers isdeclining. We feel that by redefining the target audience, visuallyseparating AMP from PepsiCo, implementing new creativeand media strategies, and emphasizing AMP’s different nutri-tional values we can overcome all of the problems AMP Ener-gy is currently facing. 4
  • 5. A Situation Analysis mp Energy was launched in 2001 and is currently the 4th most popular energy drink brand in the Unit-ed States. AMP Energy was initially distributed under theMountain Dew brand name. Since 2009, it has been pro-duced and labeled under its own stand-alone name, AMP.The beverage is available in both 16-ounce and 24-ouncecans, and is sold in the United States along with Canada.Their slogan is “amp up” but they do not do a lot of tradi-tional advertising but they sponsor a lot of sporting eventsand athletes. Regarding the physical attributes and features, AMPhas 71 milligrams of caffeine per 8 ounce serving, which isless than Red Bull’s. The tin can keeps the beverage coolerfor a longer period of time and holds 2 servings in 1. AMPis distributed in retail stores; you can even find the nearestvendor on their website. AMP has 9 different flavors of their energy drink,which appeals to a wide audience, and it includes Vitamin B,electrolytes, and L-Thiamine. AMP has less sodium than itscompetitors including Red Bull and Monster. AMP has a dis-tinct Mountain Dew taste, which differentiates itself from itscompetitors along with having different nutritional values. The consumption of energy drinks is increasing. It isclaimed that energy drinks can offer and increased energyboost because of its ingredients along with improving mood,enhancing physical endurance, increasing reaction time andreducing mental fatigue. Concerns have been raised overtheir safety and the potential health risks associated withheavy consumption has gone unaddressed. Public concernhas been raised regarding the lack of information that is pro-vided on labels as well as the high caffeine concentrationsthat are present in some. Reports have stated that peoplehave had adverse reactions after they consumed MonsterEnergy, which comes in 24 oz cans and contained 240 mil-ligrams of caffeine, which is seven times the amount in a 12oz soft drink. An article from Forbes, also stated that a 14year old girl in Maryland died of a heart attack from caffeinetoxicity after consuming 2 cans of Monster Energy drink,the company was then sued by her parents. The FDA is now 5
  • 6. Situation Analysisinvestigating the deaths of four others that may be linked to this brand. Red Bull, Monster Energy, and Rockstar are the top three brands in the energydrink market. We believe that these three brands are our top competitors. Red Bull hasa three-pillar system consisting of media advertising, sports and event sponsoring andsampling. Red Bull utilizes television, radio, press and the internet. They sponsor athleticevents such as free climbing and motorsports along with events such as the Red Bull Mu-sic Academy. They also sample their product to consumers across the country. MonsterEnergy tries to reach out to the male audience by using female models at events and intheir ads. They also get athlete sponsors to give the illusion that by consuming their prod-uct you can gain those same skills. Monster Energy utilizes the tactic of free promotionalgiveaways through contests and free samples at different events. Rockstar sponsors a lotof music artists such as Disturbed and As I Lay Dying. They travel to college campuses andhand out their product along with other promotional items. They are the biggest spon-sor of MMA and UFC. Rockstar also has an exclusive partnership with JetBlue airlines andtherefore are the only energy drink offered onboard. Their ads are displayed on the flightchannel and on screens during takeoff and landing. 6
  • 7. T Target Audience he optimal target audience for AMP energy drink is male and females ages 18-24 with an index number of 212. These people have graduated high school (104). Most ofthese people also attended college (123). They have a job description of Natural resourc-es, construction, and maintenance (161) with a household income of $40,000-50,000/year. The majority of the target audience will be from the western states (115). They havenever been married (169) or may be engaged (170). They may have children less than 12months old (146). The target audience tends to live at the same address for less than oneyear (154). The average value of their homes is less than $50,000. The vast majority ofthe target audience is racially black (122), Asian (123), or other classifications (125). Thisaudience heavily reads magazines (131) and reads newspapers occasionally (118). Theyare heavy listeners of the radio (115). These home owners subscribe to digital cable (103).They also watch video-on-demand (129). The top channels they watch are Adult Swim(202), Fuel (268), Fuse (201), MTV Tr3’s (219). They are generally more drawn toward aprofessional football event aired on television (133). The target audience prefers to readthe following magazines: Bicycling (156), Bassmaster (155), Cosmopolitan (153), CycleWorld (204), Ducks unlimited (173), ESPN (160), 4 wheel & off-road (227), four wheeler(205), game informer (204), hot rod (171), official xbox magazine (217), pc gamer (237),ski magazine (203), Super Chevy (208) and Maxim (201). They read general editorials,News and entertainment weeklies, and metro puck carrier newspapers. The target au-dience listened to the radio from 7 am-midnight (138) and midnight -6am (126) duringthe week and from midnight-6am on the weekends. The frequent their Gmail (133) andYahoo (123) accounts the most online. The top websites that they visit are mtv.com (196),AOL.SportingNews.com (206), and WWE.com (203). With our ad campaign for AMP en-ergy drinks we will place ads in these specific magazines, on the television programs theywatch and also air radio ads at optimal times of exposure 7
  • 8. Rmarket information ed Bull is the leading energy drink in terms of brand awareness (Schmidtke, 2012). Red Bull’s brand awareness ranks around 60-70 percent among teens to adults. Mon-ster ranks second in brand awareness with a 39 percent awareness rating among the sameaudience. Amp Energy Drinks ranks 14 percent among teens through adults (Schmidtke,2012). Amp is fifth in the market share of the top energy drinks in the United States mar-ket. Red Bull’s market share is nearly 14 times as much as Amp, which shows that is itsmain competitor (Schmidtke, 2012). 8
  • 9. I Creative plan Past & future n the past, AMP energy has targeted its’ ads toward males, ages 18-24. We will continue to market toward this demo- graphic, yet we want to also market more towards women as well. There are many more women these days drinking ener- gy supplements. In the past, AMP has marketed with snowboarders, racecar drivers, etc. We will still market with these sports and these people; however we want to also focus our main target in the college demographic area. More and more students are us- ing energy drinks, especially during the weeks of and before finals. They are staying up late having to do their work and therefore, are consuming more caffeine than in others times of the year. The tone for the old campaign seemed to focus on young men, as well as sportsenthusiasts. The new tone for amp will be hip, active and upbeat. Our image will includepopular sports figures, as well as women to target our new area of the target market. Themessage this will give is that AMP is a great way to gain energy with a great taste. Thereare many options when it comes to deciding which flavor of AMP you should buy, includinglow calorie and sugar free options, which we will target towards women. We have decidedon targeting these types of drinks towards women because of all people, women seem tobe those most focused on keeping their figure. We will also be coming out with new fla-vors of AMP to market towards women, such as pink lemonade, zero calorie drinks, andothers which will have a fruitier flavor, as well as flavors with extra vitamins. However, notall the campaigns featuring our sugar free product will be targeted towards women tryingto “maintain a figure.” We have also decided that we want to target this product towardsthose men who like to work out a lot and stay healthy. They would be interested in know-ing if there is a certain low calorie or sugar free drink that can help them gain some extraenergy. We also feel we need to do a little renovation on their website. It is lacking in what Ifeel is AMP worthy. The first thing you see when you log on is their symbol, which is good.However, the next thing you see is a white and blue screen, not at all fitting with the AMPcolors. The original AMP was green, and therefore, the homepage of the website should begreen as well. There are other places on the site that can change colors, such as when youclick on a different flavor of AMP, but not the homepage. Also, their contacts page, this alsoneeds a little vamping up in that it if you click on anything to try and find stuff out aboutAMP, it takes you directly to the PepsiCo page. This needs to be changed to where if youclick on something about AMP, it will give you information only about AMP, and then if youwould like to know more about PepsiCo, you would click another tab and a new browserwould open and there you can research everything dealing with PepsiCo products. 9
  • 10. Creative planA lot of our nontraditional media will be going towards market our product with collegeage students, as well as our campaign we will be running with convenient stores. For col-lege bookstores, when a student purchases his or her books, they will get a free sample ofAMP energy drink, as well as a few coupons of either buy one get one free, or buy two gettwo free. This is an attempt to try and increase our sales in the college demographic area. We will also have our AMP crew that will go out to colleges. Our crew will include young,attractive and fun women (to gain male attention) and men (to gain female attention).These AMP crews will be at colleges for one full week, promoting AMP, giving samples, andplaying music on the different terraces (the most crowded as well) during different weeksat different schools. When there, the AMP crew’s aim is to promote the AMP name in col-lege age men and women, and in doing so, we hope to increase profit in our target areas ofthe country. For our campaign with convenient stores, we will be having peel and place stickersfor each store to place directly in front of the energy drink cooler. The sticker will look asif someone has dropped a can of AMP, and it has spilled on the ground, therefore attractinga guest’s attention and they look up and see AMP within an arm’s reach. 10
  • 11. Swot analysis• Amp has a large financial support from their parent company Pepsi Co. Some major brands owned by StrengthsPepsi Co are: Gatorade, Propel, Mountain Dew, and Pepsi. All of these products are very successfull.• Being ranked in the top 5 brands of energy drinks is a big strength for Amp. This means that it is one ofthe top energy drinks in the consumers’ minds.• The pre-established recognition of Mountain Dew. The citrus flavor of Mountain Dew carries over intothe amp product to reinforce the energizing boost that customers are looking for in an energy drink.• One of the cheapest energy drinks allows for customers to get “Amp Up” while still staying in an afford-able price range.• High levels of sales increases in 2008 first quarter means that Amp Energy sales are on the rise and willmost likely do so in the coming years.• Amp also has 2 sugar free options: an amp energy gum and an orange flavored amp energy juice in theirbrand portfolio• Uses social media in the right ways by having sufficient amounts of social media sites such as Facebookand Twitter. Each of these platforms is easy to find on the website, which allows customers to visit thesocial media sites with ease. They sites are updated on a daily basis with pictures, news and informationon Amp Energy drinks.• Cultural shifts toward active life styles create an increased need for caffeinated products means custom-ers want to be on the move more. This allows for Amp to target those who have active life styles.• The first major weakness is its lack of differentiation. Other energy drink brands promote their brands Weaknessesthrough sports sponsorships and provide two servings in one can. Amp is differentiated only by its Moun-tain Dew taste and its consumer incentives.• Limited broadcast advertising hinders amp from reaching the large potential market that they have.• Amp tends to only markets towards males. This brings amp down because it is only focusing are onesegment of the potentially large target market they have.• Decreasing numbers of convenience stores which have provided 80% of total sales hurts where ampdrinks can be sold.• Growing concern about the effects of caffeine is a major weakness for this drink because it means cus-tomers are looking for healthier drink options.• Though usage rate among teens is growing, the population of teenagers is declining. This means thatalthough more teens are beginning to purchase amp drinks they number of teens is declining which willhave an impact on this segment of the target market. 11
  • 12. Swot analysis• Make the amp name identical with entire categories as opposed to only individual spokespeople. This Opportunitieswill allow people to identify with its parent company, Pepsi Co.• Chance to establish a niche positioning in an overcrowded market. Since there are many energy drinksAmp has the opportunity to make it different.• Sporting events and night clubs are a great way for amp to promote its drinks and reach a large range ofpeople in a specific space/time.• Use more online tactics to appeal to the target market. This may include having online games or videosthat help promote the item and keep customers entertained and informed about the product.• Create a “healthier” type of drink allows for amp to target the specific market that is very health con-scious. This market is growing fast so amp has the opportunity to reach the health aware customers.• Include a larger variety of drinks: diet, juices, shooter options, etc. If amp can expand its product line itwill have a better chance at reaching people outside of its target market.• Red Bull and Monster are the main competitors. Red Bull “It Gives You Wings”- is the most popular ener- Threatsgy drink in the world based on the market share. It also has a sleek design which displays its positioningas a quick and efficient way to gain energy. Also the market share for Red Bull is 37.78% while Amp isonly 6.91%.• Shifting trend toward family size containers and multi-unit packs limiting profit margin.• Poor economic conditions mean that people are less likely to have the extra spending money for energydrinks which will ultimately hurt amp energy sales.• Overall health concerns, including sugar content is offensive to more health conscious customers. 12
  • 13. Media ObjectivesT he media vehicles that have been chosen for this campaign will be used to reach the target marketof men and women, ages 18-24 with an average house-hold income of $45,000. These people stay currentwith entertainment and news through various inter-net and media platforms. These adults are busy andopt for an extra energy boost from an energy drinkoften. Because this market consists of young adultsthey will have some dispensable income to spend onenergy drinks. This target audience will be exposedto the campaign through a variety of vehicles in orderto increase exposure and overall coverage. The mainfocus of this campaign is to increase brand awarenessof AMP’s new image. The goal is to increase energydrinks among men and woman, ages 18-24. This cam-paign will last from January 2013 through December2013. There will be a strong emphasis in increasedadvertising in April May and June and then again inOctober, November, and December. These are optimaltimes for college students because it is mid-term andfinals time at every campus. The media objectives forApril, June, and July is to achieve a minimum of 80%reach amongst the target audience in the spot cam-paign with an average frequency of 18 over the courseof each month. During the optimal months of October,November, and December the objective is to achieve aminimum of 90% reach amongst the target audiencewith an average frequency of 22 each month. We willalso be reaching our objectives through social mediato gain higher reach and frequency for our campaign.Television will be the main vehicle used to spread theword for the new campaign along with radio, maga-zines, and non-traditional media. Overall, the objectiveis to achieve these goals within the allotted $25,000,000for the entire campaign. 13
  • 14. Media Strategies I n order to accomplish the goals and objectives of this plan it will be necessary to use media ve- hicles that will allow for optimal reach and frequency in the target areas. While some areas willbe allotted a larger amount of the budget it will all be divided for optimal success. The budget of$25,000,000 will be divided throughout television, radio, outdoor, magazine, and non-tradition-al media. The traditional media will take $16,126,300 in order to be successful, while the other$8,873,700 will go to non-traditional media. $2,032,119 of the budget is dedicated to televisionthroughout the entire year. Throughout the other vehicles the budget will be divided as follows;Radio will use $912,594, outdoor advertising will use $2,657,942, and our non-traditional budgetvaries depending on the event and the local area of placement, but non-traditional media has atotal of $8,873,700 for the entire year. 14
  • 15. Year at a glance 15
  • 16. referencesSchmidtke, S. (2012). Media Plan Amp Energy Drink. Retrieved from http://free-doc lib.com/book/media-plan-amp-energy-drink-sloan-schmidtke- journalism.pdf.Media Flight Plan Simulatorhttp://www.energyfiend.com/the-15-top-energy-drink-brandshttp://www.cbsnews.com/8301-204_162-57537545/monster-energy-drink-maker-sued-for-14-year-olds-death/http://www.livestrong.com/article/90456-amp-energy-drink-nutritional/http://quitehealthy.com/nutrition-facts/amp-energy/SD3312.html 16