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Executive Summary
With the needs of the consumer in mind, and the inventive way of marketing the different energy effects and ingredients, Amp Energy should be prospering instead of enjoying only moderate success. This leads Gem Marketing to believe that there is a problem in getting the message out to consumers, as well as poor execution of Amp’s marketing strategy.
This media plan will give Amp the tools they need to execute a strong advertising campaign, through smart media buys. A flight style media plan was chosen, 2 months on 1 month off for the year. This campaign will focus on measureable mediums that will allow traceable marketing success. If this media plan is chosen, Amp’s message will hit 90% of the target audience at least 7 times within the first month. This will result in higher sales within the first month, and get stronger as the campaign continues. The campaign will be advertised nationally as well as in 28 major metro market areas that make up a majority of heavy energy drink consumers.
In a competitive market like this, you have to spend money to make money. Amp’s SOV is only 10% within the category, and its sales reflect that, at 10.5% of the market share (MRI). Bringing that budget up will allow more opportunity to build positive awareness and brand recognition to the target audience, which will result in higher sales.
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Table of Contents
Executive Summary…………………………………………….………………………..1
Table of Contents………………………………………………………………………….2
Situation Analysis/SWOT……………………………………………………………..3-4
Target Audience……………………………………………………………………………5-6
Media Objectives………………………………………………………………………….7
Media Strategies…………………………………………………………………………..8
Media Mix……………………………..……………………………………………………..9
-Detailed Month/Spot Markets…………………….…………………….10-11
Budget……………………………………………………….…………………………………12
Timing Strategy………………………………………………….…………………………13
Year Flowchart……………………………………………….…………………………….14
Frequency Distribution………………………………………………………………...15
Monthly Media Breakdown………………………………………………………….16-22
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Situation Analysis
Amp energy drink is very popular among 18-24 year olds. 41% of its consumers are in this age group
according to the MRI data. There are 3 different energy effects to choose from, whether you need to focus
for a big day of classes, stay for a double header against the rival school, or if you just need a active . boost
Amp has the different flavors and effects for every energy need. Most of their flavors are under 130 calories, for the calorie cautious person, and there are also 2 options under 15 calories. Amp energy drink is sold nationwide. Though the brand is profiting, Amp, by Pepsico is not
prospering like they should be.
MRI data shows that Amp only has one third the user base as Monster energy which is number 2 in
the energy drink market, as of 2008 (MRI).
Pepsico, also the maker of Gatorade, has both the number 4th and 5th competitive products within
energy drink market. Gatorade Energy comes in 4th place and Amp has the 5th spot as of 2008 (MRI).
Category
Nationally branded energy drinks started in 1995 with the launch of Josta, by Pepsico.
By 2001, the US energy drink market had increased to $8 million in annual sales.
By 2011, sales grew to $4.8 billion.
Energy drinks have been widely popular as a drink mixer, but have shown to be dangerous.
There has been a lot of negative awareness through the media because of the bad effects that they
have on people that don’t use caution, as many don’t.
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Strengths Weaknesses
Opportunities
Threats
Popular brand association with
Pepsico, the parent brand.
o Spending power
41% of amp drinkers are 18-24.
The highest percentage in the
category out of the top
competitors. (MRI)
Each Amp energy flavor focuses
on a different positive energy
effect. They advertise to “choose
your energy.”
o Yellow- Active
o Blue- Focus
o Green, red, purple- Boost
Different athletes endorse their
products. o Amp drinkers tend to be into
sports.
Is not the top of mind
energy drink choice by the
majority of energy drink
consumers. Red Bull is.
Not a wide user base, both
a strength (easy target
audience) but a weakness
because there has to be a
reason older folks aren’t
consuming the product.
10% SOV within the
category and 10.5% of
energy drink sales (using
MRI data to get these
numbers).
Monster spent only $1.3
million in measured media
advertising in 2008. It
would be wise to advertise
in those measurable
mediums to reach the
audience that Monster
may not be reaching.
41% of users are 18-24;
opportunity to continue
taking market share within
this age segment, since
this drink is popular
amongst this segment.
Competition. Primarily Red Bull,
Monster and Rockstar.
Health issues, particularly in
heart patients
o Recent death of a young girl
with a heart problem that got
some media coverage,
negative awareness for the
category.
The popularity of use with
mixers. Very dangerous.
The rise in other energy
products such as: pills, gum, 5
hour energy shots.
Other secondary competitors
such as tea and coffee.
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Target Audience
Primary Target Audience: 18-24 men.
Rationale: This audience segment was chosen because the segment has the highest energy drink
consumption in the market.
They are the heavy energy drink users. According to the MRI data, 18-24 year olds consume over
109% more than the national average.
They are also high brand consumers. According to MRI data, this age group is 225% more likely
than average to consume Amp.
Men are heavy consumers. MRI data shows men drink energy drinks heavily 30% more than
women.
Secondary Target audience: Men age 25-34.
Rationale: This segment was chosen because MRI data shows that this age group is 70% above the
national average of heavy energy drink users. They are also 49% above the national brand consumers.
Not near as many consumers as the 18-24 year old group, but definitely not a group to ignore.
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Meet Jake:
Jake is a 23 year old student at UCLA that works construction
every summer when he is not surfing. He is a bachelor, and is
lucky to live 2 blocks from the ocean with his roommates who
are also students. He and his roommates have the ultimate
bachelor pad, with a 42 inch flat screen for the awesome
gaming experience with an X-Box 360. Jake is very athletic. In
high school he was captain of the football team, and was point
guard in basketball. Jake made the cover of surfing magazine
last month, and the ladies love him.
With all these activities and late night studies, Jake is a very
busy guy that averages only 5 hours of sleep per night. He
lives life to the fullest, and takes advantage of every
opportunity. When he is done with school, Jake plans on
opening his own surf shop and surf instruction school.
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Rationale:
A high frequency was chosen as most important because of the competitive nature of the
market. There are so many brands of energy drinks that some get lost in the mix. High
frequency will deliver more buys than high reach.
Media Objectives
In spot markets, reach at least 85% of the target audience at least 50 times by December, 2013.
Nationally, reach at least 80% of the target audience, at least 35 times by December 2013.
Nationally, the minimum GRP count per quarter should be at least 700, and a minimum of 9
frequencies per quarter to the target audience.
Spot Plan
Spot Plan Reach Freq GRPs %Share Est
$(000)
January 90 7 630 5.2 1797.1
February 90 7 630 4.6 1601.7
March 0 0 0 0 0
April 85 6 510 2.5 859.5
May 90 7 630 4.6 1601.7
June 0 0 0 0 0
July 88 6 528 4 1383
August 85 5.5 467.5 2.4 839.9
September 0 0 0 0 0
October 85 6 510 2.3 781.3
November 85 6 510 2.5 859.5
December 0 0 0 0 0
Spot Media 1245 28.2 9723.8
Spot Contingency 500
Total Spot $$ 10223.8
Total Plan 35000
National Plan
National Plan Reach Freq GRPs %Share Est
$(000)
January 80 5 400 9.1 3125.4
February 85 5 425 9.6 3320.7
March 0 0 0 0 0
April 80 5 400 9.1 3125.4
May 85 5 425 9.6 3320.7
June 0 0 0 0 0
July 78 4.5 351 7.9 2742.5
August 80 4.5 360 8.2 2812.8
September 0 0 0 0 0
October 82 5 410 9.3 3203.5
November 80 5 400 9.1 3125.4
December 0 0 0 0 0
National Media 3171 71.8 24776.2
National Contingency 0
Total National $$ 24776.2
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Media Strategies
After looking through MRI data, which shows which media the target audience consumes, the
following media buys were chosen:
o TV/sports will be used because of the high media usage within the target audience.
o Radio will be the main platform, as there is such a wide reach.
o Magazines are well targeted, so there will be minimum waste, also a good visual
medium for Amp.
o Use internet targeted websites so that, just like with magazines,
we will know who we are reaching, and another great visual.
Rationale:
This campaign will focus on radio in metro areas, as well as nationally, as you can see on
the next 2 pages. What you see in January on page 10 is very similar to the media buys
throughout the entire year with a few minor variations. The ads will be shown in each
medium all 8 months that the ads are being placed.
o TV-Sports. MRI data shows that the target audience watches sports on TV; therefore it is a well-
targeted choice even though they tend to watch less overall TV.
o Radio, targeted to the programs that the target audience listens to.
o Men’s targeted magazines such as Car and Driver, Maxim, Sports Illustrated, and Game Informer, a
well-targeted, low waste medium.
o Internet Targeted Sites and Sponsorships, as with the magazine choices, there is almost no waste.
The sites chosen are those that will reach the target audience. The target audience also tends to
spend a lot of time online, another reason why this is the perfect medium choice for this segment.
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Media Mix
TV (Sports) 26%
National Radio 22%
Magazines 1%
Internet 19%
Spot Radio 32%
68%
32%
National Spot
Rationale:
68% of the budget will go to national advertising
expenditures.
o This is because the product is competitive
nationwide, and it would be a waste of a budget
not to use the largest piece of the budget to gain
awareness on a national level.
32% of the budget will be going to spot market radio
advertisements. There are 28 select cities as shown on
page 11, which have the greatest market potential.
These markets will use spot radio ads, and the reach and
frequency at which they hear about Amp will be greater
than the rest of the nation. These are the most
competitive spots because it is where the most energy
drinks are consumed.
Rationales about the different mediums chosen are on
page 8.
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Sample Month
January Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200
Medium Covg. Unit GRPs CPP CPM Total Cost
Net TV-Sports NATL :30 30 35000 243.58 1050000
Net Radio-Morning Drive NATL :30 60 3783 26.33 226980
Net Radio-Daytime NATL :30 90 3281 22.83 295290
Net Radio-Evening Drive NATL :30 120 2460 17.12 295200
Net Radio-Nightime NATL :30 90 1666 11.59 149940
Magazines-Mens NATL FPG 4C 4 8809 61.31 35236
Internet-Trgtd Sites NATL Banner 20 23650 164.59 473000
Internet-Sponsorship NATL Banner 10 23650 164.59 236500
National Totals 424 6514 45.34 2762146
Spot Radio-Morning Drive SPOT :30 60 7961 110.57 477660
Spot Radio-Daytime SPOT :30 90 9756 135.5 878040
Spot Radio-Evening Drive SPOT :30 60 10326 143.42 619560
Spot Radio-Nighttime SPOT :30 60 1244 17.28 74640
Spot Totals 270 7592 105.45 2049900
Total Plan 559.29125 8604 59.88 4812046
Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations. **MFP CHART
*This is the media report from January. It is a close example to what every month looks
like, with a few different quantities chosen in each section in other months. The flow
chart will also show the media break down in a few pages. The rest of the year’s media
breakdowns start on page 16.
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Market Name Rank %US
St. Louis, MO 21 1.1
Seattle-Tacoma, WA 14 1.58
San Diego, CA 27 0.93
San Antonio, TX 37 0.7
Salt Lake City, UT 35 0.78
Sacramento-Stockton, CA 20 1.23
Portland, OR 23 1.02
Phoenix, AZ 12 1.6
Omaha, NE 75 0.36
Minneapolis-St. Paul, MN 15 1.51
Milwaukee, WI 34 0.79
Miami-Ft. Lauderdale, FL 16 1.36
Las Vegas, NV 43 0.63
Detroit, MI 11 1.7
Atlanta, GA 8 2.04
Houston, TX 10 1.82
Los Angeles, CA 2 5
New York, NY 1 6.54
Philadelphia, PA 4 2.61
San Francisco et al, CA 6 2.14
Washington, DC 9 2.05
Denver, CO 18 1.31
Dallas-Ft. Worth, TX 5 2.16
Columbus, OH 32 0.8
Cleveland, OH 17 1.36
Chicago, IL 3 3.07
Boston, MA 7 2.12
Austin, TX 51 0.56
28 Markets Chosen, covering 48.87% of US households.
Spot Markets
These are some of the
top markets for highest
energy drink
consumption, and they
will be the cities in which
the spot radio
advertisements will run.
12
$3
4,5
00
,00
0
Budget
Rationale:
Though Pepsico was only willing to spend up to $30MM, Gem Marketing believes it
is important to spend $34.5MM to reach the competitive goals.
Currently, the SOV is only 10%, and the sales are only 10.5% in the category. This
shows that you really have to spend money to make money, especially in this
market.
C
Reach Avg Freq GRPS $(000)
Goal Est Goal Est Goal Est Balance Goal Est Balance
January 90 91 7 7.6 630 694 -63 4922.4 4812 110.4
February 90 90.9 7 7 630 635 -4 4922.4 4812.3 110.1
March 0 0 0 0 0 0 0 0 0 0
April 85 88.9 6 6 510 532 -22 3984.8 4125.1 -140.3
May 90 90.8 7 7.4 630 670 -40 4922.4 5100.7 -178.3
June 0 0 0 0 0 0 0 0 0 0
July 88 89.2 6 7.1 528 634 -106 4125.5 4118 7.4
August 85 87 5.5 5.6 468 488 -20 3652.8 3225.5 427.2
September 0 0 0 0 0 0 0 0 0 0
October 85 89.1 6 6.9 510 618 -108 3984.8 4128.8 -143.9
November 85 89.1 6 6.8 510 605 -95 3984.8 4114.8 -130
December 0 0 0 0 0 0 0 0 0 0
Total 4415.5 4876 0 34500 34437.35 62.654
National Contingency $(000): 0
Spot Contingency $(000): 500
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Timing Strategy
0
2
4
6
8
10
12
14
16
Flight Strategy
Rationale:
The flight strategy was chosen because it is
unnecessary and very expensive to pay for
continuous advertising and also
unnecessary.
Advertising during these months will
provide just enough for the consumers
recognize the brand and build positive
awareness.
Every 3rd month we will give the ads a
break, and also it will allow the consumer
time without getting overloaded with Amp
ads.
Then after a month without, the ads will
start up again for 2 months at a time. This
will keep reminding the consumers about
the product, and why they should choose
Amp.
14
Flowchart
15
Frequency Distribution
National Spot Combined
F F+ F F+ F F+
0 17.1 100 37.8 100 9 100
1 14.6 82.9 16.9 62.2 7.3 91
2 13.1 68.3 11.1 45.3 8.6 83.7
3 10.9 55.1 7.9 34.2 8.9 75.1
4 8.9 44.2 5.8 26.3 8.5 66.2
5 7.1 35.3 4.4 20.4 7.9 57.7
6 5.7 28.2 3.4 16 7.1 49.8
7 4.6 22.4 2.6 12.6 6.3 42.7
8 3.6 17.9 2 10 5.5 36.4
9 2.9 14.2 1.6 8 4.8 30.9
10 2.3 11.3 1.2 6.4 4.1 26.1
11 1.8 9 1 5.2 3.5 22
12 1.5 7.2 0.8 4.2 3 18.5
13 1.2 5.7 0.6 3.4 2.5 15.5
14 0.9 4.6 0.5 2.8 2.1 13
15 0.7 3.6 0.4 2.3 1.8 10.9
16 0.6 2.9 0.3 1.9 1.5 9.1
17 0.5 2.3 0.3 1.5 1.3 7.6
18 0.4 1.8 0.2 1.3 1.1 6.3
19 0.3 1.5 0.2 1 0.9 5.3
20 1.2 1.2 0.9 0.9 4.4 4.4
Gross Rating Points 424 270 694
Reach 82.9 62.2 91
Average Frequency 5.1 4.3 7.6
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February
Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200
Medium Covg. Unit GRPs CPP CPM Total Cost
Net TV-Sports NATL :30 20 35000 243.58 700000
Net Radio-Morning Drive NATL :30 120 3783 26.33 453960
Net Radio-Daytime NATL :30 90 3281 22.83 295290
Net Radio-Evening Drive NATL :30 90 2460 17.12 221400
Net Radio-Nightime NATL :30 60 1666 11.59 99960
Magazines-Mens NATL FPG 4C 5 8809 61.31 44045
Internet-Keyword/Search NATL Listing 40 23650 164.59 946000
Internet-Trgtd Sites NATL Banner 20 23650 164.59 473000
National Totals 445 7267 50.57 3233655
Spot Radio-Morning Drive SPOT :30 30 7961 110.57 238830
Spot Radio-Daytime SPOT :30 70 9756 135.5 682920
Spot Radio-Evening Drive SPOT :30 60 10326 143.42 619560
Spot Radio-Nighttime SPOT :30 30 1244 17.28 37320
Spot Totals 190 8309 115.4 1578630
Total Plan 540.204955 8908 62 4812285
Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations.
Monthly Media Breakdowns
17
April
Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200
Medium Covg. Unit GRPs CPP CPM Total Cost
Net TV-Sports NATL :30 30 35000 243.58 1050000
Net Radio-Morning Drive NATL :30 60 3783 26.33 226980
Net Radio-Daytime NATL :30 100 3281 22.83 328100
Net Radio-Evening Drive NATL :30 100 2460 17.12 246000
Net Radio-Nightime NATL :30 90 1666 11.59 149940
Magazines-Mens NATL FPG 4C 3 8809 61.31 26427
Internet-Trgtd Sites NATL Banner 34 23650 164.59 804100
Internet-Sponsorship NATL Banner 15 23650 164.59 354750
National Totals 432 7376 51.33 3186297
Spot Radio-Morning Drive SPOT :30 30 7961 110.57 238830
Spot Radio-Daytime SPOT :30 40 9756 135.5 390240
Spot Radio-Evening Drive SPOT :30 30 10326 143.42 309780
Spot Totals 100 9389 130.4 938850
Total Plan 482.107871 8556 59.55 4125147
Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations.
18
May
Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200
Medium Covg. Unit GRPs CPP CPM Total Cost
Net TV-Sports NATL :30 40 35000 243.58 1400000
Net Radio-Morning Drive NATL :30 60 3783 26.33 226980
Net Radio-Daytime NATL :30 120 3281 22.83 393720
Net Radio-Evening Drive NATL :30 100 2460 17.12 246000
Net Radio-Nightime NATL :30 100 1666 11.59 166600
Magazines-Mens NATL FPG 4C 6 8809 61.31 52854
Internet-Trgtd Sites NATL Banner 34 23650 164.59 804100
Internet-Sponsorship NATL Banner 10 23650 164.59 236500
National Totals 470 7504 52.22 3526754
Spot Radio-Morning Drive SPOT :30 30 7961 110.57 238830
Spot Radio-Daytime SPOT :30 100 9756 135.5 975600
Spot Radio-Evening Drive SPOT :30 30 10326 143.42 309780
Spot Radio-Nighttime SPOT :30 40 1244 17.28 49760
Spot Totals 200 7870 109.3 1573970
Total Plan 570.215742 8945 62.25 5100724
Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations.
19
July
Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200
Medium Covg. Unit GRPs CPP CPM Total Cost
Net TV-Sports NATL :30 35 35000 243.58 1225000
Net Radio-Morning Drive NATL :30 60 3783 26.33 226980
Net Radio-Daytime NATL :30 100 3281 22.83 328100
Net Radio-Evening Drive NATL :30 60 2460 17.12 147600
Net Radio-Nightime NATL :30 100 1666 11.59 166600
Magazines-Mens NATL FPG 4C 5 8809 61.31 44045
Internet-Trgtd Sites NATL Banner 11 23650 164.59 260150
Internet-Sponsorship NATL Banner 3 23650 164.59 70950
National Totals 374 6603 45.95 2469425
Spot Radio-Morning Drive SPOT :30 30 7961 110.57 238830
Spot Radio-Daytime SPOT :30 100 9756 135.5 975600
Spot Radio-Evening Drive SPOT :30 30 10326 143.42 309780
Spot Radio-Nighttime SPOT :30 100 1244 17.28 124400
Spot Totals 260 6341 88.07 1648610
Total Plan 504.280465 8166 56.83 4118035
Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations.
20
August
Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200
Medium Covg. Unit GRPs CPP CPM Total Cost
Net TV-Sports NATL :30 30 35000 243.58 1050000
Net Radio-Morning Drive NATL :30 40 3783 26.33 151320
Net Radio-Daytime NATL :30 100 3281 22.83 328100
Net Radio-Evening Drive NATL :30 60 2460 17.12 147600
Net Radio-Nightime NATL :30 100 1666 11.59 166600
Magazines-Mens NATL FPG 4C 8 8809 61.31 70472
Internet-Trgtd Sites NATL Banner 20 23650 164.59 473000
Internet-Sponsorship NATL Banner 5 23650 164.59 118250
National Totals 363 6902 48.03 2505342
Spot Radio-Daytime SPOT :30 45 9756 135.5 439020
Spot Radio-Evening Drive SPOT :30 20 10326 143.42 206520
Spot Radio-Nighttime SPOT :30 60 1244 17.28 74640
Spot Totals 125 5761 80.02 720180
Total Plan 425.634839 7578 52.74 3225522
Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations.
21
October
Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200
Medium Covg. Unit GRPs CPP CPM Total Cost
Net TV-Sports NATL :30 40 35000 243.58 1400000
Net Radio-Morning Drive NATL :30 60 3783 26.33 226980
Net Radio-Daytime NATL :30 120 3281 22.83 393720
Net Radio-Evening Drive NATL :30 80 2460 17.12 196800
Net Radio-Nightime NATL :30 100 1666 11.59 166600
Magazines-Mens NATL FPG 4C 8 8809 61.31 70472
Internet-Trgtd Sites NATL Banner 15 23650 164.59 354750
Internet-Sponsorship NATL Banner 5 23650 164.59 118250
National Totals 428 6840 47.6 2927572
Spot Radio-Daytime SPOT :30 60 9756 135.5 585360
Spot Radio-Evening Drive SPOT :30 50 10326 143.42 516300
Spot Radio-Nighttime SPOT :30 80 1244 17.28 99520
Spot Totals 190 6322 87.81 1201180
Total Plan 523.204955 7891 54.92 4128752
Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations.
22
November
Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200
Medium Covg. Unit GRPs CPP CPM Total Cost
Net TV-Sports NATL :30 30 35000 243.58 1050000
Net Radio-Morning Drive NATL :30 90 3783 26.33 340470
Net Radio-Daytime NATL :30 120 3281 22.83 393720
Net Radio-Evening Drive NATL :30 60 2460 17.12 147600
Net Radio-Nightime NATL :30 90 1666 11.59 149940
Magazines-Mens NATL FPG 4C 5 8809 61.31 44045
Internet-Trgtd Sites NATL Banner 25 23650 164.59 591250
Internet-Sponsorship NATL Banner 5 23650 164.59 118250
National Totals 425 6671 46.43 2835275
Spot Radio-Daytime SPOT :30 60 9756 135.5 585360
Spot Radio-Evening Drive SPOT :30 60 10326 143.42 619560
Spot Radio-Nighttime SPOT :30 60 1244 17.28 74640
Spot Totals 180 7109 98.73 1279560
Total Plan 515.19417 7987 55.58 4114835
Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations.
