AMP Energy Drink Ad Exuberance Nikki Feola Rachel Huffman Jaime Hutkin December 6, 2010
Executive Summary• With our new media plan, our goal is to distinguish amp from its direct competitors (Red Bull, Monster, RockStar) through increased brand awareness by 10 percentage points (to 24%) in one year and a revised slogan: “amp up or screw up.”• Increase amp’s market share and take Monster’s position as the number two brand in the field
PepsiCo Inc. General Information• Philosophies – Care for customers, consumers, and the world at large – Sell products with pride and confidence – Speak truthfully – Balance short term and long term risks and benefits – Embrace diversity and inclusion – Respect others and succeed together• Diverse customer base sells products in over 200 countries – Operating margin is 5% larger than that of its competitors• Leader in U.S. liquid refreshment beverage category (has a market share of 25%)Source: http://www.pepsico.com
PepsiCo Incorporated: One of the leading global snack and beverage companies• Incorporated in Delaware in 1919• Reincorporated in North Carolina in 1986• Major brands owned by PepsiCo: – Gatorade – Propel – Mountain Dew – Pepsi – amp Energy DrinksSource: http://www.pepsico.com
amp Energy Drink Background/General Information• Originated in the United States – Produced, sold, and distributed primarily in the U.S.• Successful due to its association with Mountain Dew – However, it is not considered one of PepsiCo’s 18 brands that have top sales• Market share of energy drinks improved approximately 1% from 2007 to 2009• Slogan: “amp Up”• Does not do a lot of traditional advertising but sponsors athletes/sporting events
amp Energy Drink Physical Attributes and Features• Caffeine per 8 ounce serving: 71 milligrams – Red Bull’s 8.2 ounce drink contains 80 milligrams – Jolt’s 12 ounce drink contains 71 milligrams• Tin can keeps beverage cooler longer• One can holds 16 ounces 2 servings in 1• Distributed in retail stores – Can type in personal area code on the ampenergy.com under the stores tab to find nearest vendor INGREDIENTS: Carbonated water, high fructose corn syrup, citric• Price per can $1.99 + tax at CVS acid, orange juice from concentrate, natural flavors, guarana, sodium benzoate, sodium polyphosphates, maltodextrin, – $2.79 per can at Dunkin Donuts caffeine, gum arabic, erythoric acid, taurine, panax ginseng, calcium disodium edta (to product flavor), potassium benzoate, brominated vegetable oil, yellow 5.
amp Energy Drink Marketing Communication Opportunity Strengths Weaknesses•Unique Mountain Dew taste •Product is not easily differentiated•Four times the needed amount of caffeine •Minimal product exposure•More caffeine than its indirect competitors but •Minimal nutritional benefits in an increasinglyless caffeine than direct competitors health conscious society•Flavor variety – 9 different flavors•Electrolytes, taurine, ginseng included iningredients Opportunities Threats•Forecasted sales predict an increase in the •Popular Direct Competitorsnext 5 years —Red Bull: 37.78% of the market share•New product exposure directed at target —Monster: 28.94% of the market sharemarket —RockStar: 10.83% of the market share —Ad spending boosted in past few years •Indirect competitors (coffee, tea, and soda —Advertising slots during March brands) Madness and situational comedies •Global economic conditions• Increased frequency in target cities•To create brand loyalty and make amp ahabitual purchase
Target AudienceOur primary target audience is men 18-24 with some college education. They are frequent video-gamers who enjoy attending college basketball games. The sport they most commonly participate in is skateboarding. Politically speaking, they are apathetic. Their musical preference is alternative and mostly enjoy prime time situation comedy shows.
amp Energy Drink Consumer Analysis: Prominent Demographics/Location• Gender: men • Index: 137• Age: 18-24 – Index: 325• Education: some college – Index: 132• Employment Status: employed part time – Index: 136• Marital Status: single – Index: 208
amp Energy Drink Consumer Analysis: Prominent Psychographics• Home ownership status: rents home – Index: 141• Most common beverage consumed: Energy drinks – Index: 616• Sports participated in: skateboarding – Index: 462• Sporting events attended: college basketball games – Index: 205• Political Outlook: usually think of self as middle-of-the- road – Index: 125
amp Energy Drink Consumer Analysis: Prominent Media Habits• Television program types: prime time situation comedies – Index: 167• Magazine type: video games/PC and console – Index: 351• Internet usage: connected to Internet with mobile device in the past 30 days – Index: 158
Capitalizing on Opportunity amp’s unique selling proposition is its image’s connection with Mountain Dew soda. amp Energy Drink has the opportunity to improve the promotion element of its marketing strategy by utilizing the interests and attitudes of its target audience.• The target audience will respond to amp’s presence in their everyday lives. – Exposure of amp at college basketball games, and possibly skateboarding events, will link to the emotional benefits of the product.• With increasing sales in the energy drink market— forecasted until 2015—amp has the opportunity to increase sales and gain more control of the market share.
Marketing Communication ObjectivesCommunication Objectives:• We propose to create more awareness of amp through exposure on a more target audience- oriented level• Once attention is drawn to the product, amp will become their energy drink preference.• We plan on communicating our brand by increasing frequency through specific vehicles to motivate our target audience to take action and purchase amp. The message we want to communicate is that if you don’t “amp up,” you’ll “screw up.”
Print Advertisements and Non-traditional Media Media Plan• Increase frequency through exposure at venues hosting March Madness games• Media: print advertisements and non- traditional media• Vehicles: pole wraps, courtside rotational signage, team bench rotational signage, video- display board
Print Advertisements and Non-traditional Media Creative Defense – Pole Wrap
Print Advertisements and Non-traditional Media Creative Defense – Courtside Rotational Signage, Team Bench Rotational Signage, Video-Display Board
Commercial Media Plan• Expand reach to increase the target audience’s opportunity to see the ads and increase overall awareness of the amp image• Fear-appeal and social anxiety advertisements• Our target audience (men 18-24) is prone to watching situational comedies and college basketball games• Medium: TV• Vehicles: ESPN, TBS, FOX, Comedy Central, NBC (stations that distribute situational comedies/sports events)• Air during March Madness (target audience watches college basketball) – Frequency will be increased from March 1 (two weeks before the opening round game) to April 15 (approximate end to the tournament)• More money allocated to the following cities: – Greensboro, Chapel Hill, East Lansing, Lexington, Lawrence, Knoxville, Houston, Boston (cities that are home to some of the country’s top-rated college basketball teams)
Commercial Creative DefenseNote: The actors in the commercial are not athletes orcelebrity athletes endorsing the amp product, but are sportenthusiasts
Commercial Creative DefenseSplit Screen between two men. One is wearing skater clothing and the other is wearing abasketball jersey. Both are pulling all nighters.
Commercial Creative DefenseBoth men sitting in class next to each other, one has an amp can and the other has coffee.
Commercial Creative DefenseSplit Screen, one of the men takes a sip of amp while the other drinks coffee.
Commercial Creative DefenseThe man who drank amp is alert and happy to have finished his final exam.
Commercial Creative DefenseThe man who drank coffee fell asleep on his exam.
CommercialCreative Defense Slogan: “amp up or screw up.”