AMP Energy Drink Ad Presentation

AMP Energy DrinkAd Exuberance

Nikki FeolaRachel 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

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 Drinks

Source: http://www.pepsico.com

http://www.pepsico.com/

amp Energy DrinkBackground/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 DrinkPhysical 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

• Price per can $1.99 + tax at CVS– $2.79 per can at Dunkin Donuts

INGREDIENTS: Carbonated water, high fructose corn syrup, citric acid, orange juice from concentrate, natural flavors, guarana, sodium benzoate, sodium polyphosphates, maltodextrin, caffeine, gum arabic, erythoric acid, taurine, panax ginseng, calcium disodium edta (to product flavor), potassium benzoate, brominated vegetable oil, yellow 5.

amp Energy DrinkMarketing Communication Opportunity

Strengths Weaknesses•Unique Mountain Dew taste•Four times the needed amount of caffeine •More caffeine than its indirect competitors but less caffeine than direct competitors •Flavor variety – 9 different flavors•Electrolytes, taurine, ginseng included in ingredients

•Product is not easily differentiated•Minimal product exposure•Minimal nutritional benefits in an increasingly health conscious society

Opportunities Threats

•Forecasted sales predict an increase in the next 5 years•New product exposure directed at target market

— Ad spending boosted in past few years— Advertising slots during March Madness

and situational comedies• Increased frequency in target cities•To create brand loyalty and make amp a habitual purchase

•Popular Direct Competitors— Red Bull: 37.78% of the market share — Monster: 28.94% of the market share — RockStar: 10.83% of the market share

•Indirect competitors (coffee, tea, and soda brands)•Global economic conditions

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 DrinkConsumer 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 DrinkConsumer 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 DrinkConsumer 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 Opportunityamp’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 MediaMedia 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 MediaCreative Defense – Pole Wrap

Print Advertisements and Non-traditional MediaCreative Defense – Courtside Rotational Signage, Team Bench Rotational

Signage, Video-Display Board

CommercialMedia 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)

CommercialCreative Defense

Note: The actors in the commercial are not athletes or celebrity athletes endorsing the amp product, but are sport enthusiasts


Split Screen between two men. One is wearing skater clothing and the other is wearing a

basketball jersey. Both are pulling all nighters.


Both men sitting in class next to each other, one has an amp can and the other has coffee.


Split Screen, one of the men takes a sip of amp while the other drinks coffee.


The man who drank amp is alert and happy to have finished his final exam.


The man who drank coffee fell asleep on his exam.


Slogan: “amp up or screw up.”

References• http://watchmojo.com/blogs/images/march-madness-logo.gif• http://1979semifinalist.files.wordpress.com/2009/09/the-office.jpg• http://www.lwvga.org/mission/images/tbs_logo_veryfunny_240_001.jpg• http://www.almightydad.com/wp-content/uploads/2009/07/call-of-duty-

world-at-war.jpg• http://t1.gstatic.com/images?q=tbn:xhtBa7-xN3YOtM:http://

www.czyntech.com/images/madden-nfl-10.jpg&t=1• http://images.logicbuy.com/datastore/userdeals/

634052053757636000Red-Dead-Redemption-ps3.jpg• http://easyskateboardtricks.net/wp-content/uploads/2010/04/

TonyHawk_468x481.jpg• http://unrealitymag.com/wp-content/uploads/2009/11/south-park.jpg• http://baseball.blog.imaginesports.com/images/uploads/

espn_logo_887.jpg

Business

AMP Energy Drink Ad Presentation