12/7/2011
AMP ENERGY
AMP ENERGY MEDIA PLAN
Abby Anderson – Bailey Hart – Justin Flatt | Joyce Hailey
Table of Contents
Executive Summary
3
Competitive Analysis
5
Target Audience
6
SWOT Analysis
7
Objectives
8
Strategy
10
Geography
11
Budget and Scheduling
12
Media Mix
13
Flowchart of Scheduling
18
Executive Summary Since 2001, the US energy drink market has rapidly increased in sales, as much as 50% annually. Energy drink sales have increased from $8 million to $4.8 billion in sales from 2001 to 2011. PepsiCo joined the energy drink market with their release of Amp. It wasn’t until 2007 that they decided to start spending money advertising Amp. In 2008, Amp spent $18 million in advertising, an increase of 100%, but was still blown away by companies such as Red Bull who spent $51.3 million in advertisements. Monster and Rockstar energy drinks follow Red Bull in market sales, but each only spent roughly $1 million in advertising in 2008. With Amp falling behind the number two leader in energy drinks, Monster, the goal is for Amp energy to increase its brand awareness 10% in the next year, giving it a cumulative market awareness of 24%. In the years to follow, Amp will continue implementing advertising to surpass Monster in brand awareness and sales. Amp will implement new and creative media to obtain these results while sufficiently utilizing the $22,000,000 budget. Both National and Spot markets will be tapped, allowing Amp to employ the mediums into the target market segment successfully.
Amp’s media schedule will consist of a variety of media as well as different reach and frequency levels. Each month will have different reach and frequency goals based on the time of year the month represents as well as the events that will take place during these months. Amp will key advertising in on spot markets during these peak times of the media mix schedule. Amp’s spot markets were chosen based on CDI scores. The markets with the highest potential of sales and awareness were picked to represent our spot markets. With the increasing popularity of energy drink usage, there is little doubt that this market can flourish and be another successful branch for PepsiCo, increasing sales, revenue, and brand image. With this media plan and research, Amp will achieve its goals and objectives.
Competitive Analysis Amp is steadily holding the third spot for energy drink sales, following Monster. Monster boasts 39% brand awareness, following the market leader, Red Bull, with an awareness of 60-70%. Monster strays away from mass media spending and focuses their budget on measured media, event sponsorships, and aggressive retail distribution strategies. Monster could credit a large amount of its success to entering the market before Amp, when the market was much less crowded. Monster also contributes their success to maintain two thirds more users than Amp. Though Amp and Monster are similar in size, contents, and purpose, they also find uniformity in becoming the drink of choice for the target market. Today the goal is to become the “in drink� for teenagers and young adults craving a boost of energy provided in the multi-colored large cans.
Target Audience
Gender: Male
Age: 18-34
Income: $29,000-$49,000/$50,000$79,000
Marital Status: Single or Married
Education: Some college
Geographic Distribution: Continental US states- Concentrate Spot media to Pacific Southwest Region
Lifestyle Characteristics: o Interest in Sports o Enjoy comedy and having fun
o Younger adults avid in video gaming o Tend to enjoy more upscale activities (Rock climbing, mountain racing, cycling) o Political views are middle of the road or liberal o All races and nationalities
SWOT Analysis
STRENGTHS Large Financial Support from parent company, PepsiCo History of product growth Brand recognition and awareness Solid endorsements (Dale Earnhardt) Extensive product line Strong demographic target Utilization of new and creative media and advertising
OPPORTUNITIES Strong market potential for energy drinks Growing teenage consumption Expanding distribution Increasing demand for caffeinated drinks Segmented markets with high consumer use Market potential to target health conscious consumers with new “natural” drinks
WEAKNESSES Shadowed by Monster and Red Bull Precision demographic targeting needed Limited recognition due to other products(PepsiCo as a generality) Lack of marketing for new releases Limited advertising being broadcasted Not targeting minorities One-sided towards males, not females Still considered new to market
THREATS PepsiCo could discontinue Amp division Red Bull and Monster constantly one-upping the market FDA and government creating stricter rules for energy drinks Increasing number of health conscious, antienergy drink markets Consumers not spending money on luxury items Abuse of energy drinks with alcohol could lead to ban
Marketing Objectives
Increase Brand awareness by 10% (to 24%)
Surpass second seat (Monster) in market sales
Implement new media for advertising
Present Amp as reliable energy boosting product
Use creative marketing to make Amp new “in drink” for teens and young adults
Switch brand preference away from Red Bull and Monster
Media Objectives Month January February March April May June July August September October November December
Reach 50 50 60 65 65 65 65 65 50 50 50 50
Frequency 2 2 3 3 3 3 3 3 2 2 2 2
Advertising Objectives
Use media to communicate promotions of Amp
Maintain and grow awareness by continually reaching target market
Use TV, Spot Radio, Events, and Promotions to increase market share potential
Utilize spot markets with high consumer use to launch audience base
Strategy
Implement new and creative media in TV advertising to grow brand awareness
Increase Reach and Frequency by implementing schedule that continually increases awareness until targeted months where marketing increases for Spring and Summer months
Increase frequency of Spot Radio advertising in targeted markets
Utilize events and sponsorship opportunities to increase awareness and sales such as Nascar, rodeos, and concerts
Increase internet advertising, (sponsorships, keywords, targeted sites), straying away from traditional “physical” advertising
Use Dale Earnhardt Jr. as endorser for game sweepstakes as well as Chad Mendes
Increase traffic to Facebook page by making entries be posted via Facebook photos and comments
Geography Amp will focus on 15 spot markets with the best CDI (Category Development Index) to increase the awareness and sales of Amp. The spot markets included are:
Los Angeles, CA
Miami-Ft. Lauderdale, FL
El Paso et al, TX-NM
Las Vegas, NV
Fresno-Visalia, CA
New York, NY
Chicago, IL
Houston, TX
Laredo, TX
San Diego, CA
Milwaukee, WI
Salt Lake City, UT
Bakersfield, CA
Lafayette, IN
Providence et al, RI-MA
Budget and Scheduling Amp will break up the year in advertising by peak months of business and demand. January and February are stagnant months in the energy market, but can still be used for a small portion of advertising. March through August is considered the Spring/Summer mix where the majority of Amp’s sales take place. This can be credited towards several different aspects; parties where energy drinks are consumed with or without alcohol, vacations, events at acquaintances’ homes, or sports that take place during these months. September though December is another portion of the year where advertising is still necessary to gain and maintain awareness, but will be tapered off from major advertising that takes places in the previous months.
Campaign Budget
Media
$15,755,800
Events Promotions
$4,500,000 $10,000
Total
$20,265,800
Budget Distribution The following chart represents how Amp’s budget will be allocated for the year’s campaign. As the chart shows, the majority of Amp’s $22,000,000 budget will go towards media while the remainder will be split up between events and promotions.
Media Mix Amp will use traditional media that has proven its reliability over time but will also implement new media to target the desired demographic. Amp’s traditional media will consist of:
Spot Radio Radio ads will be placed in spot markets 14 days leading up to a “No Bull” event.
15 spots during events (spread over 14 days leading up to event)
150 Units Spot- Evening Drive/ 240 Units Spot
o = $1,603,500
TV Television will increase our reach among primary and secondary target audiences. Because of the high cost of ad placements, some months will have less placements then others. We will place ads in the following vehicles: Professional Bull Riding (PBR): The PBR is a series of rodeo bull riding competitions shown on NBC during months that professional sports are not as active. The Late Show with David Letterman: Our target audience stays up late and enjoys a good laugh. David Letterman has a huge following and will reach our primary and secondary audience.
College Football on CBS: On Saturdays for five months, a large number of our target audience will be watching college football. CBS caries the South Eastern Conference (SEC) football games, which is known to always have some of the top teams in the country.
13 spots over 12 months Net TV- Sports Spots 5 spots/month-4 months Net TV- Late Nights/ Late News Spots 10 spots/month- 12 months Net Cable- Daytime 10 spots/month- 5 months Net Cable- L Fringe 10 spots/month- 12 months Spot TV- Early Fridge/News 210 spots over 12 months Spot TV- Late Fridge/ News o 12 Months = $6,039,000/Year
Internet Amp males are very connected online and use the Internet for entertainment and news purposes. The websites in which ads will be placed include: ESPN.com: Our target audience visits ESPN.com on a regular basis checking scores, fantasy player updates and sports news. Facebook/Twitter: We will use social media to reach spot markets for events and place ads directed towards individuals who have sports interests listed on their profiles. Facebook will also be used to compete in the Amp promotions.
Internet Sponsorships- 12 spots- $2,838,000 o Google Ads o Facebook Ads o Yahoo o Bing Internet-Targeted Sites- 24 spots- $1,773,800 o Facebook o ESPN o Twitter Internet- Keyword/Search- 12 spots- $2,838,000 o Google Ad Words
Magazine This media ensures segmentation potential, thereby ensuring that it is limited to the target audience. The vehicle chosen is the monthly magazines Snowboarder and ESPN because majority of the readers are interested in active sports, thus reaching our target audience.
FP4C Snowboarder- 5 spots FP4C ESPN – 5 spots o = $663,500/Year
Targeted Spot Markets:
Los Angeles, CA
Miami-Ft. Lauderdale, FL
El Paso, TX Fresno, CA Chicago, IL Laredo, TX Milwaukee, WI
Bakersfield, CA Providence, RI
Las Vegas, NV New York, NY Houston, TX San Diego, CA Salt Lake City, UT
Lafayette, IN
Events/Sponsorships
Amp Energy 500-Nascar = $1,250,000 The No Bull Tour- Amp Rodeo and Concert Circuit benefiting National Association of Sports and Physical Education:
The No Bull Tour will feature a two-day rodeo with a concert on the closing night by Amp sponsored artists. The tour will benefit the National Association of Sports and Physical Education, which will increase our Earned media. The tour name “No Bull” refers to supporting that physical education is a much-needed part of education and also plays on Amp’s competitor Red Bull. o o o o o o o o o o
Salt Lake City, UT- March 9-10, 2012 Los Angeles, CA- March 15-17,2012 San Diego, CA- March 23-25, 2012 Fresno, CA- April 12-14, 2012 Las Vegas, NV- May 25-26, 2012 Houston, TX- June 13-14, 2012 El Paso, TX - July 31-August 1, 2012 Laredo, TX- August 10-11, 2012 Milwaukee, WI- August 24-25, 2012 Miami, Fl- September, 14-15, 2012 ~$300,000 * (10 Spot Markets) = $3,000,000
Music: The concerts will feature Amp sponsored artists to promote up-and-coming entertainers. $50,000/concert pays for the bands and costs associated with putting on a concert o Amp Featured Artists: The 87 Stick Up Kids, Oneal McKnight, Public School, Daedelus, Steve Aoki, Kevin Leong, She Wants Revenge, Sneaker Steve Patino, Rony Alwin ~$25,000 * (10 Concerts) = $250,0000
Promotions Amp promotions will be centered around social media growth. Each promotional contest has a different version of a photo contest including; Amp apparel contest, funny/outrageous contest and Amp’ed entourage contest.
“Amp’ed from Head to Toe” o Meet Dale Earnhardt, Jr. and Pit Crew during a race o Submit photo dressed in Amp Apparel via Facebook o Flown to the race on October 14, 2012
“Amp Made me Do It” o Snowboard with the Mitrani Brothers (Luke and Jack) o Submit a funny/outrageous picture of you and your Amp can o Flown to Vail, Colorado to snowboard on December 6, 2012
“Amp’ed Entourage” o Be part of Chad Mende’s fight entourage o Submit photo of your entourage getting Amped up (actual Amp Energy must be used-none of that other bull) o Flown to Florida to participate in Fight Time 8 (February 17, 2012) All photos are submitted through Amp’s Facebook page Promos are spaced out over the course of a year, one about every 3 months, especially targeted around events Amp sponsors or holds. o $10,000 for promotional expenses
Scheduling See flowchart on following page