Amp Energy Drink Media Plan

54 Pages·2013·5 MB·English

Amp Energy Drink
Media Plan

Amanda Gilpin
Alexandra Morris
Jenny Morris
Laura Pope
Molly Singraber
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Table of Contents

Executive Summary......................................................................................1
Situation Analysis....................................................................................2-14
Amp Background Information ................................................................2-3
Current Look & Feel of Advertising .......................................................4-6
Industry Information: Category Trends.......................................................7
Competitor Information............................................................................8-9
External Information – Trends Influencing the Industry ..........................10
Current Users.............................................................................................11
Geographical Emphasis.............................................................................12
Seasonality and Timing.............................................................................13
Consumers and Consumer Decision Making Process...............................14

SWOT Analysis...........................................................................................15
Primary Research..................................................................................16-19
Target Audience.....................................................................................20-22
Media Plan..............................................................................................23-28
Objectives & Budget ................................................................................23
Scheduling.................................................................................................24
Media Mix: Traditional.............................................................................25
Media Mix: Non-traditional......................................................................26
Rationale....................................................................................................27
Metrics.......................................................................................................28!
Creative Strategy...................................................................................31-33
Reference Page.......................................................................................34-35
Appendices..............................................................................................36-51
Appendix A: Competitors ........................................................................36
Appendix B: CDI/BDI Chart................................................................37-44
Appendix C: Survey Data ...................................................................45-48
Appendix D: Geographic List of Student Group Sponsorships ...............49
Appendix E: Media Flow Chart/GRPs.................................................50-51

1
Executive Summary

In our breakdown of PepsiCo’s Amp Energy drink, we’ve concluded that the company could
use a marketing strategy with an edge. The energy drink industry implements similar strategies-
targeting millennial men with corporate sponsorships. Energy drink companies have traditionally
been supporters of active sport users. Amp’s advertising strategies have successfully proven
themselves to be generic. The strong budget for the 2013 year gives room for flexibility and an
increase in market share. PepsiCo stands strong and holds the brand at a higher level than Monster.
While all the data says men drink energy drinks, we found in our primary research that
women are not uninterested users. In fact, women are looking for a product geared towards them,
especially when they are focusing on their studies. Amp is looking to expand its usage outside of
their traditional audience and this plan targets Asian American Females 18-24. Our research gives
reason to target not only a different racial makeup but also a different gender within that audience.
We propose a media plan that leverages word-of-mouth advertising in sponsorships of college
student organizations and social media platforms. The emphasis Asian American’s place on family,
education, and community also plays into our media plan with our in-language television spots,
yellow-page ads, and plan to give away college scholarships. These various forms of media will
accomplish our marketing and advertising objectives to increase awareness and sales.
The opportunity to recruit a new consumer base will set Amp apart from its competitors
since current energy drink consumers are brand switchers who struggle to foster brand loyalty. In
our creative ads we will relay a message that Amp energy drink is linked with the trusted PepsiCo.
brand; a tradition and a past-time. Amp is ready to gain brand loyal Asian consumers who will
spread the word to their peers about the “Dew” like energy drink.
2
Amp Background Information

Company & Brand

Amp energy drinks have been available to the public since of 2001. The drink was created
by Pepsi Co and paired with Mountain Dew to be successful in the action sports market. It is an
energy drink that has the taste of Mountain Dew gaining it some popularity among loyal Mountain
Dew users. In 2006, Amp helped PepsiCo reach the third highest sales within the energy drink
realm. From 2009, Amps estimated sales have totaled $281,608,000 and their average sales are
$1,347,000 dollars.
Product
Amp is under the category of energy drinks and targets college students, young adults, and
athletes seeking a quick boost of energy throughout their daily tasks. PepsiCo has found that young
adults live a fast pace lifestyle so Amp energy drinks offer four times the caffeine, which enters the
blood stream faster causing a quicker effect. Amp’s research found that the best way to sell their
product was to create a few variations. These three variations are called Focus, Active, and Amp
Boost. By cutting down to three, the company believed that they could reach a versatile group. Amp
Active is targeted for people who needed a boost during their workouts, Amp Focus is targeted for
young adults in the work force, and Amp Boost is targeted for students who need a lift when
studying for exams.
Drinks come in three sizes, 8.4 oz, 16 oz, and 24 oz. The cost of an 8.4 oz can is roughly
around $1.50, which is 0.18 cents per ounce. The flavor is similar to that of Mountain Dew and is
known for being sweet, sugary, and having a pleasant after taste. Amps competitors such as Red
Bull charges $1.89 dollars for their 8.4 oz can and Monster charges $1.50 for their 7.75 oz can.
3
Therefore Amp is giving the lowest price compared to its competitors, which can be a beneficial
tool for campaigning.
Place
Amp is sold in over 200 countries but its main focus is in the United States. It is distributed
in retail stores like gas stations, grocery stores, and vending machines. Purchases can be made also
by typing in their personal zip code into ampenergy.com in order to find the closest location to
purchase the product. Canada and North America are the most popular regions when it comes to
Amp sales.
Promotion
The company spends about $8.6 million in advertising. These dollars are strategically placed
within sponsoring sporting events and athletes as opposed to traditional methods like billboards,
commercials, and print. In the past is has been a successful campaign strategy; however, it is now
time to reach different markets and in order to reach potential new users more modern and
interactive forms of advertising should be used.
4
Current Look & Feel of Advertising
AMP Energy was initially distributed under the Mountain Dew brand, but since 2009, it has
been produced and labeled under its own stand-alone trademark name. Spending 8.6 million dollars
in advertising annually, most of the budget is spent on the sponsorship of various sporting events
and athletes. Since 2008, AMP Energy has sponsored NASCAR driver Dale Earnhardt Jr. In 2009,
AMP Energy released a limited edition Dale Earnhardt Jr. themed energy drink which was a
combination of three flavors: orange, lime and berry. In 2012, Hannah Teter, Olympic women’s
halfpipe champion, joined the Amp energy brand as a promotional figure. Her involvement with the
brand centered around a Amp energy juice drink quilt that will be donated to Teter’s charity,
Hannah’s Gold Foundation. Again in 2010, Amp became the official sponsor of the Word Extreme
Cage fighting competition. Taking their involvement with the World Extreme Cage fighting further,
Amp energy drink sponsored Urijah Faber, bantamweight Ultimate Fighting Champion (UFC).
Their current advertising takes charge in the market by sponsoring these in-your-face sports:
UFC fighting, U.S. Open Snowboarding Championships, and NASCAR racing. These sponsorships
allow Amp energy’s current advertising tactic to be one that is pushing the consumer out the door to
act versus an approach of engaging the consumer to the advertisements themselves. They give the
feel that the consumer needs to rush to get their energy. The Pepsi brand aims to energize the media
as much as the drink would energize a consumer.
5
PRINT

Slogan: “How do you Amp yourself?”
Description: Current ads promote each flavor of the beverage as an action. The example given
shows Hannah Teter performing a snowboard trick with the headline: “Hannah Teter is Relaunch.”
Relaunch represents one flavor of Amp energy.

DIGITAL/TV COMMERCIAL (YouTube):

Slogan: “Amp yourself”
Description: In their commercial media executions, Amp energy uses the slogan “Amp yourself” to
relate to a number of circumstances. These circumstances include, a goalie’s reaction time, jump-
starting a car, and a reality commercial of a day-in-the-life of UFC fighter, Urijah Faber. Each
commercial spot plays on the ability of the individual to “amp themselves” after drinking Amp
energy drink
6
FACEBOOK

Slogan: “Rethink energy”
Description: The current Facebook banner advertisements for Amp energy drink prompt the
consumer to “like” the page and then “rethink” how they view their energy. They also use the site as
an interactive medium by holding contests with their members. The most current advertisement
through a contest asks the consumer to take a picture of themselves with an Amp energy beverage
while sporting a beard or mustache. This is pushing the consumer to action.

SPONSORSHIPS

Description: The current goal of Amp energy drink’s sponsorships is to relate the brand to positive
faces in the sporting world. As mentioned earlier, UFC, snowboarding, and NASCAR are a few of
the target markets that PepsiCo chose to promote the Amp energy drink brand.

THEME: The advertising executions by Amp energy drink all create an overarching theme of
“pushing” advertisements. They see the consumer as an outlet for the energy drink. They want the
consumer to feel motivated to reach for the shelves whether they are relating to the advertisements
or not. The Amp energy drink campaigns are interested in promoting action instead of interaction.
7
Industry Information & Category Trends

The energy drink industry has been on the rise since 2009 where consumers began spending
34% more than the previous years in the category. Energy drinks alone account for 22% of all drink
sales within the United States. Some of the bigger brands are Red Bull and Monster. Pepsi saw the
potential in the category and believed that the power of energy drinks added with the taste of
Mountain Dew would be a successful product. However, they were the latecomers to the industry,
with Red Bull being the first to enter the industry and make a “splash.” The first brand name on the
market is still enjoying market success. It is a definite weakness that Pepsi will have to work hard
for the name of their product to be recognized and associated with quality.
Energy drinks and shots are making a strong appearance. Energy shots went up more than
896 million dollars in sales, taking up 7.63% of the industry according to Chicago-based market
research firm SymphonyIRI Group’s InfoScan numbers from convenience store channel. Major
brands such as 5-hour Energy, Monster, and others posted solid gains.” (Reill, 2012)
Gary Hemphill, a senior vice president at Beverage Marketing Corp.’s information services
division, said the core market for energy shots have been younger males, but that appeal is evolving.
“Energy is a need that spans both sexes and a wide range of ages,” he said. “So the energy-products
consumer has begun to broaden well beyond the original core consumer, and companies have begun
to market their products accordingly.”
Between 2006-2007, American’s spent $744 million on energy beverages accounting for
34% increase in spending over the year’s prior. From 2001-2006, the market grew 516% with over
3.2 billion dollars in sales. The category did extremely well in single unit purchases. 80% of these
sales come from convenience stores and gas stations. There is evidence that women are drinking
energy shots more than men, showing an opportunity for Amp to target females.