Вы находитесь на странице: 1из 28




Situation Analysis 3


Brand Challenge 15

Alternative 1 15

Alternative 2 16

Creative Brief 18

Big Idea 21

IMC Strategies 21




When North Carolina Pharmacist

Caleb Bradham created Pepsi Cola in the
1890’s, it was unlikely he could have
foreseen the brand’s future success. Years
later, through the ups and downs of the
early 20th century, Pepsi-Cola grew to
become one of the U.S.’s most popular
soft drinks. In 1965, Pepsi-Cola continued
to grow by merging with Frito-Lay and
becoming PepsiCo Incorporated: a dominant force in both the snack and beverage
industries. Today, the brand that started in a pharmacy has become a company with over
19,000 employees and $510 million in sales.i
PepsiCo Inc’s ambitious attitude towards tapping new markets is reflected in their
mission: “To be the world’s premier consumer products company focused on convenient
foods and beverages. We seek to produce healthy financial rewards to investors as we
provide opportunities for growth and enrichment to our employees, our business partners
and the communities in which we operate. And in everything we do, we strive for
honesty, fairness and integrity.”ii
Eager to be a part of a booming energy drink market, PepsiCo launched Amp in
2001. Alongside the already successful Mountain Dew, the two drinks created a spot for
themselves in the action sports market.iii Amp has since expanded its reach and in 2006
helped PepsiCo climb to third in energy drink sales.iv

In an effort to move up from the 5th top-selling energy drink, PepsiCo has
‘amped’ up their 2008 media spending. Aside from introducing several new flavors,
“PepsiCo spent $8.6 million for Amp during Q1, nearly the same amount spent for the
brand in all of 2007 according to Nielsen Monitor-Plus. Amp beat out other major
energy drink brands in the first quarter with a 28.7% sales growth.”v
Pepsi Co Inc’s future rests on the shoulders of CEO Indra K. Nooyi. Nooyi has
been CEO of PepsiCo Inc. since October 2006 and has been working with the company
for over a decade. Ms. Nooyi started in 1994 as Senior Vice President of Strategic
Planning and has worked her way up to the top of the corporation. Her familiarity with
the product and her history in corporate strategy and planning makes her a critical part of
Pepsi and Amp’s success.


Pepsi introduced Amp in November 2001 as an addition to the Mountain Dew

brand product line after its success with Code Red.vi The pre-established recognition of
Mountain Dew gave Amp a huge advantage over its competitors. The citrus flavor of
Mountain Dew carried over into the Amp product to reinforce the energizing boost that
consumers are looking for in an energy
drink. Essential to the energy drink category
is the tall, slim can in which Amp is
housed.vii The can holds 8.4 ounces and
features a pull tab for easy opening.viii

SoBe Adrenaline
Nutrition Information for the 3 Energy Drink

AMP Energy

brands distributed by PepsiCo.

No Fear
Calories 110 130 130
Total Fat (g) 0 0 0
Sodium (mg) 65 115 95
Total Carbs (g) 29 36 34
Sugars (g) 29 33 33
Protein (g) 0 1 0
Vitamin A %DV 0 0 0
Vitamin C %DV 0 100 100
Calcium %DV 0 0 0
Iron %DV 0 0 0
Niacin %DV 10 - -
Vitamin B6 %DV 10 100 240
Folate %DV 0 10 30
Vitamin B12 %DV 10 100 100
Pantothenic Acid %DV 10 - -
Zinc %DV 0 10 -
Selenium (mg) 0 10 -

Multipacks of Amp come in environmentally-friendly packaging from the

Zumbiel Packaging company with Z-view. The Z-view feature is actually a cutout in the
paperboard packaging used for multipacks that allows consumers to see the actual
product inside the packaging. This feature reduces the amount of paperboard used for
multipack packaging by 10%. ix The packaging for SoBe Adrenaline Rush, another
energy drink also produced by PepsiCo, looks very similar to the design and construction
of Amp’s packaging but they are two very different products.

Some of Amp’s key ingredients that provide that extra boost of energy are
ginseng, taurine and guarana. It also contains B-vitamins along with simple and complex

carbohydrates to keep the consumer going and energized. The biggest boost of energy
comes from the 75mg of caffeine in the 8.4-oz. can compared to the 37mg contained in 8
ounces of Mountain Dew. Riboflavin, the B vitamin contained in Amp, adds an extra
twist that truly differentiates the product from others in the energy drink category. When
Amp is placed in black light, riboflavin actually makes the drink glow, which spurred
rumors that the drink glows in the dark. Other materials on the can also glow under black
Amp Energy offers five additional flavor varieties for those looking for an energy
drink with a twist. Amp Energy Elevate has a mixed berry flavor in a blue can that comes
with L-Theanine that sharpens the mind and maintains focus. Amp Energy Overdrive
comes in a red can and offers yerba mate with an intense cherry flavor. In the orange can,
Amp Energy ReLaunch contains electrolytes and B vitamins that re-energize with an
orange citrus flavor. Amp Energy Traction comes in a purple can and is charged with a
combination of maltodextrin and D-ribose with a grape flavor to maintain focus for the
long haul.x
PepsiCo spent $8.6 million on advertising for Amp in the first quarter of this year
(2008), an amount almost equivalent to the advertising expenditure for the entire year of
2007. Advertising during the Super Bowl in 2008 accounted for most of this drastic
increase in advertising expense, and it paid off with a 28.7% growth in sales for the first
A new promotion running during the prime beverage season from May through
July is the Dale Earnhardt, Jr. Collector Series that features four specially-designed 12-
oz. can varieties, of which Wal-Mart will sell in 8-packs for $8.88, tying in the number of
Jr.’s car, 88, with the price. Amp is the new sponsor for Dale Earnhardt, Jr. and the Amp
Energy 500 Nascar race that will be held Talladega on October 5.xii


In the highly competitive environment of energy drinks, different brands are

going through great lengths in order to acquire additional market shares as well as
differentiate themselves from the abundant competition. With well over 150 + energy
drinks crowding the shelves brands are always coming up with new flavors, line
extensions, and edgy marketing campaigns in order to stay ahead of the competition.xiii
Based on the original flavor formula of Mountain Dew, Amp Energy Drink,
which competes in the non carbonated soft drink category, is PepsiCo’s first real entry
into the energy drink market, which is the fastest-growing category in soft drinks and
accounts for 22 percent of drink salesxiv. Pepsi hopes the established Mountain Dew brand
name will help give Amp Energy a good market share by providing the consumer with a
product in which they are already familiar.
Red Bull, which accounts for 35% of the market, is currently the major direct
competition to all energy drinks, followed closely by Hansen’s Monster Energy which
accounts for 28% of the market, according to Morningstar Incxv. Since Red Bull created
the energy drink market in the 1990’s it has continued to be an innovator in image
marketing and now spends upwards of $20 million dollars annually on marketing its
Initially Red Bull spent the majority of its
marketing dollars attempting to court the younger
demographic by having a noticeable presence and
product giveaways at events, concerts, extreme sports,
and other functions that appealed to the 18-24

As Red Bull grew, they began sponsoring a variety of sports including Formula One
racing, NASCAR, Motocross, an air race, and even the Red Bull Flugtag, where people
compete to build the best “human powered flying machine”.
Figure 2 Image taken by, Scoop Independent new, [Retrieved from web 7/17/08] Available at:
Figure 1 Image taken by, Henrik Sendelbach 23 July 2005, Red Bull took sponsorship to the
[Retrieved from web 7/17/08] Available at:
mmons.wikimedia.org/wiki/Image:Red_Bull_car.jpg next level with its recent purchase of a
Major League Soccer team, The New
York Red Bulls, which was the first
acquisition of its kind in the US soccer
market. Keeping up with the “do it first
trend” Red Bull just announced that it
will make its 16.9 oz can a permanent
offer along with the 4-packs of 12 oz
cans already being distributed.
Amp Energy is now considered a
“mega-brand” by Pepsi and they plan to spend accordingly in order to make Amp Energy
the drink of the masses. Pepsi hopes the 25 million dollar deal with NASCAR driver Dale
Earnhardt Jr. as well as the “Amp Yourself” advertising campaigns, combined with
sponsorships of a variety of extreme sports will help make Amp the choice of goal-
oriented males 18-34.
The second major direct competitor of Amp Energy is Hansen’s Monster Energy,
followed by Coca-Cola’s Rockstar and Full Throttle. Monster Energy is now being
distributed by Anheuser-Busch and has seen good market penetration due to its wide
product variety and highly targeted non-traditional marketing techniques. Along with its
8-packs of 16oz cans Monster also launched a Frappuccino-type drink available in 16-
ounce cans. The three flavors: Big Black, Mean Bean, and Loca Mocha, will be marketed
to the mid 20’s early 30’s coffee drinkers in an attempt to convert them from their usual
hot caffeine drinks.

Coca-Colas RockStar energy as well as FullThrottle currently account for more
market share then Amp, with 11.4% and 6.9% respectively, both brands continue to
target the 18-24 demo through edgy media campaigns and sponsorships of extreme
sporting events. Rockstar has sponsored several Mixed Marshal Arts (MMA) events in
both the UFC and EliteXC fighting leagues with hopes of courting the fans of this
increasingly popular sport.

The majority of energy drinks are aimed at the youth market and associated with
fast paced high energy
life styles and extreme
sports of all kinds. The
names of the different
brands are meant to
convey power and
attitude such as Amp,
Rockstar, Full Throttle,
Red Bull, Adrenaline
Rush and even Pimp
Juice. Energy drinks
Figure 3 [Image Retrieved from web sell for at least 2 dollars per can, which is far more expensive then
7/17/08] Available at: www.total-
mma.com/.../ the categories indirect competition which includes soft drinks,
coffee, teas, and even caffeine enhanced waters.

The biggest difference between other categories is that energy drinks are
purchased for a noticeable increase in energy and not necessarily for refreshment. The
indirect competition such as soft drinks and coffees rely mostly on their taste and
refreshing nature to appeal to the consumer, where as in the energy drink market
customers may not even like the taste of the product but still buy and drink it as long as
they get the desired energy boost.

The energy drink market enjoyed tremendous growth since its inception in 1997.
In particular, the category experienced a tremendous surge in growth from 2001- 2006.
the market grew by 516% with over 3.2 billion dollars in sales in 2006. Future growth
estimates show that this rate will slow considerably in the next 5 years with only an
additional 62% growth by 2011.xvii
During this five year period, 2001-2006, the markets growth could primarily be
attributed to the increasing amount of distribution channels such as supermarkets and gas
stations. In addition, the category thrived on single
unit purchases (80% of energy drink sales come
from convenience stores), which was positive in
terms of growth. Unit sales prices for the average
energy drink are much higher than other non-
alcoholic beverages. However, recent trends in
purchasing behavior have shifted away from single
units to value size containers, which has hurt the
overall market.
MRI data shows that the western census regions of the country show more
prevalent usage of energy drinks; they are 19% more likely to consume energy drinks.xviii
Another in depth independent study verified this data showing that the western regions
occupied $243.0 million or 21.57% of the market in 2007.xix Other important regions
include the Mid-Atlantic with 194.9 million and the South East with 184..2 million. The
total U.S market for Energy Drinks was around 1,126.5 million dollars in 2007.
Men are significantly more likely to use energy drinks. Primarily, the market is
driven by 18-24 year old males. Brand positioning in the past has been obviously slanted
toward young adult males with brands like Pimpjuice, Full Throttle Blue Demon,
Daredevil, Rockstar, and Rip It. Advertising and promotion campaigns have also
followed suit, often featuring extreme sports and other activities featuring plenty of

action and adventurous lifestyles. Age demographics are key to understanding target
segmentation. 18-24 year olds comprise over a quarter of the market. Another key age
segment whose potential has yet to be fully realized is teens age 12-17. This
demographic has also jumped to nearly a quarter of the market. Interestingly, the two
segments that have experienced the most growth in the last 5 years are adults age 24-34
and teens age 12-17. Mintel reports that these demographics are taking up energy drinks
as opposed to coffee for early morning pick-me-ups. Teens are also prone to use energy
drinks in social situations and some brands have positioned their drinks in this way – the
party goers beverage of choice and an aid to more “enhanced” life experiences.
MRI data also show that, among heavy users, African American and
White/Hispanic have shown to be more likely to drink energy drinks. This was also
verified in Simmons Spring 2006 survey NCS as reported by Mintel.


Consumers of energy drinks can be greatly distinguished by age. A third (34%) of

respondents aged 18-24 are likely to consume energy drinks---exhibiting the highest
incidence among respondents of all age groups. In 2006, an estimated 9.9 million adults
aged 18-24 were likely to drink energy drinksxx

What originally started as a boost targeted

towards action sports enthusiasts and ‘extreme’
athletes; energy drinks have become the popular
ailment for midday drowsiness and lack of focus
(Some 63% of respondents who have drunk an
energy drink in the last three months are likely to
drink energy drinks in the afternoon) (Site 1). Now,
with a dominant portion of sales in convenience
stores, energy drink consumption spans across many markets and covers almost all
geographic areas.

Today’s 18-24 year-old consumer usually lives life at a very fast pace. Typically
motivated by achievement, these consumers have a busy, goal directed lifestyle. Image is
important to them. They favor established, prestige products and services and are
interested in time-saving devices given their
hectic schedules.xxi
Aside from the most defining segment
(age) of energy drink users, race has become a
distinguishable characteristic of product usage.
“Hispanics (27%) and blacks (21%) are
significantly more likely to drink energy drinks
when compared to whites (12%) and Asians
(16%).” And while one in two Hispanics teens
are likely to drink energy drinks (Site 3), they have little presence in Amp’s sales. One
the other hand, whites account for over 70% of Amp’s sales (blacks 16.3%, Asians
Sometimes the consumer is looking for more than just a boost when deciding their
energy drink purchase. “Nearly one in three respondents who have drunk energy drinks in
the past three months report flavor as the most prized ingredients in energy drinks. Most
energy drinks contain herbs such as guarana, which provide these drinks an exotic taste
not available in the other types of non-alcoholic beverages.”xxiii This is good considering
the selection of flavors Amp has available.


To much extent, the energy drink industry has gone on

unregulated since it came into a mass production in 1997.
However, recent research attention toward the health risks of these
caffeine-laden beverages may pose potential problems with future
industry growth. Currently, the FDA limits the caffeine content in
soda beverages to 65 mg for every 12-ounce can; energy drinks
such as Cocaine have as much as 280 mg of caffeine in their 8.4
contains.xxiv If research findings show that such concentrated levels
of caffeine pose significant health risks, the energy drink industry might be braced for a
falling out among key consumer demographics. At the least, the Industry may be
required to put caffeine warning labels on these products; currently only four companies
provide warnings on the packages.xxv
Other research findings have been focused on the advertised health benefits made
by some energy drink brands. In these cases, brands have claimed to have medicinal
properties with the supplements they offer. The FDA and other health research
organizations are currently scrutinizing these claims, and some early findings have
already shown that nutritional value is relatively low among the market leaders.
Another trend in the industry has to do with its rapid growth. The amount of product
proliferation in the past 6 years could be steering energy drink companies toward a price
war situation. With so many products, all offering very similar benefits, many brands will
have difficulty differentiating themselves from the rest of the pack— thus leaving price
as the only viable differentiation strategy.
Other controversial trends deal with energy drink usage. A common practice with
the club and bar scene in many large cities is to mix energy drinks with alcoholic
beverages. In 2006, a study was conducted among 26 Brazilian men. The study found
that, though the energy drink mixer did propel the men into a heightened state inebriation,
the drinks significantly limited the perception of inebriation — due to the masking of the
alcohols depressants. xxvi
Considering these factors, government regulation looks to be in the immediate
future for much of the energy drink Industry as the health implications of consuming high
amounts of caffeine come into view.

Strengths Opportunities
• Large financial support from parent
company Pepsi Co. • Energy drink industry has grown
• Key endorsers for target markets (Dale substantially since 2001
Earnhardt, Jr. and other action athletes) • Emerging teenage segment
• Ranked in the top 5 brands of energy • Expansion within channels of
drinks distribution
• Increasing brand awareness • Cultural shifts toward active lifestyles
• Strong appeal in 2 key demographics for create an increased need for
energy drinks (12-17 and 18-24) caffeinated products
• High levels of sales increases in 2008 first • Predominant single-unit sales results in
quarter a high profit margin due to smaller
• Product growth and extensive product line container sizes
• Creative advertising

Weaknesses Threats

• Brand identity get confused with the many • Overall limitations of the economy conditions
other brands Pepsi Co. owns resulting in less expenditures on luxury goods
• Limited broadcast advertising • Decreasing numbers of convenience stores which
have provided 80% of total sales
• Shifting trend toward family size containers and
multi-unit packs limiting profit margin
• Growing concern about the effects of caffeine
• Proliferation of products and competition which
can drive prices down
• Though usage rate among teens is growing, the
population of teenagers is declining


Amps challenge is to distinguish itself as separate beverage rather than an
extension of its sibling company, Mountain Dew, and parent company, PepsiCo.
Improving consumer’s perception and altering Amp’s overall brand image via innovative
advertising techniques and unique product offerings will help Amp tackle the challenge
of becoming a diverse and separate energy drink suitable for the masses.

Since Amp’s 2001 debut, our initial target market has continued to age. Now
entering the workforce, these consumers are looking for a more sophisticated energy
drink and won’t necessarily respond to the same high energy, low involvement ads. In an
effort to create a more down-to-earth and socially conscious energy drink, Amp will
employ a combination of cause related marketing, outdoor advertising that is both fun
and unexpected and finally traditional television and print advertising to alter our brand
image. Campaigns surrounding metropolitan clean-ups and public building renovations
will appeal to concerned consumers and potentially create a bond between Amp and its
drinkers. Contests focused on cleaning up designated areas in shortened time periods
would capture the high-energy philanthropy that Amp embodies.

• To Increase awareness of new brand image by 30% within the first 4 months of
the campaign
• To increase positive attitudes toward brand by 35% withing the first 3 months of
the campaign.

Our target market is comprised of young adult males 18-34 who have just entered
the workforce and live active, on-the-go lifestyles. Many people within this target market
have recently become young professionals who are career oriented and well educated.
They use energy drinks to counter midday drowsiness.
Our target market will respond best to simple, low involvement messages that play up
artfulness and aesthetics while maintaining elements of humor and wit.
These consumers would be most exposed to media surfing the web and during their daily

For young adults age 18-34 who have just recently entered the workforce and
need to energize their on-the-go lifestyles. Amp energy drink meets this need with a
refreshing taste that is easy to drink and is packed with supplements, B-vitamins and 75
mg of caffeine to keep the drinker focused. Infused in every drink, is the B-vitamin
riboflavin, which provides a healthier and more energized experience. Amp is youthful,
sophisticated, and fast paced

Amp’s well-established edgy image that it has created in the consumer’s mind
provides a perfect foundation that can be built upon to make Amp more of a recognized
and familiar brand. Drastic increases in promotions of the brand through more aggressive
advertising and public relations activities targeted toward the existing target market will
reinforce the image and brand position that have already been introduced. Increasing
sponsorships of sporting events, especially extreme sports, by saturating the events with
the Amp logo and products will provide more exposure and create a greater awareness of
the brand. All activities geared toward promoting the brand will focus on exposing the
target market to the product or its logo using unconventional methods, especially in
college towns and spring break hotspots, by means of guerilla or grassroots types of

• To Increase sales by 20 % within the first 5 months of the campaign
• To Increase awareness and trial by 30% within the first 5 months of the campaign


Our target market is comprised of college age males 18-24 who live carefree
active lifestyles and enjoy sports. These consumers will frequently attend sporting events
or watch them on T.V. with their group of friends. There main source of media is
television. They use energy drinks as supplements to daily activity, and will often
consume more than one a day. Our consumers will often engage in social events centered
around sports such as tailgating or home parties. The greatest opportunity to reach them
with advertising will be during an important game as well as continued exposure on sport
channels such as ESPN.
Our consumers will appreciate simple, low involvement messages that heavily use
humor and sex appeal. They also may respond to blunt and edgy messages with a large
“cool” factor.
Media that our consumer s will frequently use are ESPN.com, ESPN and ESPN 2
T.V. stations, Facebook.com, Spike TV, Networks stations during important sporting
events, The Versus Channel, The Speed Channel, BET, MTV, MTV2. ESPN magazine.

For white males 18-24 who need to have a drink that keeps them energized so
they can have a good time. Amp energy drink offers these individuals a wide variety of a
smooth, drinkable flavors that bring taste to the forefront of the drinking experience.
Also, Amp offers a blend of supplements, B-vitamins and 75 mg of caffeine to keep the
drinker going. Amp energy is fun, exciting and action-packed.

We believe Alternative A will be the best strategy for Amp to employ to achieve
its desired separation and distinction from parent company PepsiCo and sibling company
Mountain Dew. This strategy would also be best suited for increasing brand awareness
and brand equity by way of innovative cause marketing and strategic partnerships with
not-for-profit organizations such as Habitat for Humanity. By sponsoring positive
community enhancement programs, Amp Energy will further distinguish itself as a
unique beverage and will be more likely to break through the intense clutter associated
with the energy drink market. Alternative A would also allow us to position Amp in a
more sophisticated light in order to retain our aging target market as they enter the
business world and work force.
Although this strategy will be best for increasing brand awareness and brand
equity over the long run, sales may remain static in the short term. In order to counter this
we may also have to implement a series of sales promotions and product give-a-ways to
help spike sales and increase product trial.


The new campaign strategy will help differentiate Amp as its own brand of
energy drinks, separate from Mountain Dew and its parent company Pepsi. To
accomplish this, the new strategy involves revamping the entire concept of the brand and
starting fresh with an entirely new image that will set Amp apart from all other energy
drink brands in the market.
Advertising and promoting Amp provides the best method of educating
consumers about the new campaign and how the brand has changed for the better. Being
the fifth top-selling energy drink brand, Amp has lots of competition, but also has room
for improvement. Red Bull leads the pack with its 35% market share, followed closely by

Monster Energy holding 28%. In addition, two Coca-Cola energy drinks, Rockstar and
Full Throttle, along with Red Bull, targets the 18-24 year old demographic which
interferes with the 18-34 year old market that Amp appeals to.
The energy drink market grew significantly from 2001 through 2006, but with
several dozen new competitors who have entered the market, growth has slowed
considerably. Other causes for this decline in the growth rate include an increase in the
number of distribution channels and the new consumer trend of shifting away from single
unit purchases and toward value size containers.
Once consumers are convinced to try the product, the powerful boost of energy
and kick of different flavors will help it sell itself. For this reason, the formula for the
drink will remain the same. Everything else including the logo, packaging, advertising
and promotional activities will change or intensify.
The goal is to make consumers feel like Amp Energy is the energy drink of the
masses, that it is the energy drink of young, successful business people who are
motivated to make a difference and do something that matters. The advertising and
promotional activities gear toward giving Amp a socially conscious image, providing a
sense of sophistication that allows the brand to gracefully age along with its consumers
who previously fell within the 18-24 year old demographic and are now in the 18-34 year
old demographic.
The new brand image will encompass the lifestyle of a male, 18-34 year old
consumer who is not only socially conscious, but also environmentally conscious,
involved in the community, self-improvement oriented, and motivated to help others and
make a difference.
Consumers view energy drinks as the solution to midday drowsiness and as a
source of exotic and intense flavors that cannot be found in other types of non-alcoholic
beverages. Amp meets both of these criteria with a boost of energy provided by caffeine,
along with other ingredients, and its bold flavors.
The one true concept that people should take away from Amp’s advertising is
that this is an independent brand of energy drink unlike any other that demonstrates how
a little motivation can go a long way and make a big difference when it really matters.
Amp can provide that bit of motivation, and the advertising can show the results of

putting in that extra effort. This should be done with an upbeat, outgoing, positive and
sophisticated tone with a clever humorous twist and a nuance of sex appeal.
Most of the advertising efforts will be focused on young professionals in large
metropolitan areas. Advertising will be done primarily on television and outdoors, but
also in magazines and newspapers. A series of promotional events that promote the
social consciousness as a new priority for amp will be employed. These events could
possibly center on the phrase “Revamp yourself. Revamp your world” and “Revamp it.”
The Revamp Your World campaign will be a nationwide contest among different
cities and will involve each participating group “revamping” a specific area of their city
that they feel is currently in despair. The winner will receive a new community center.
The “Revamp it” campaign will be an ongoing microcosm of the larger “Revamp Your
World” campaign in which participants will be encouraged to do small things for the
public interest.
A sweepstakes will be held via a new website, www.revamp.com, and the winners
will receive free amp for one year. Participants will post videos or pictures of their
community service, and, not one, but multiple winners will be chosen. All IMC efforts
will center on the idea that as the consumer becomes energized by Amp energy drink,
he/she will revamp the surrounding environment and his/herself.
Such a radical change to the image of a brand requires a hefty budget. Sufficient
funds would be needed to redesign the Amp logo and packaging for all Amp products
and replace existing products and merchandise. Other expenses to be considered in the
budget include contest rewards and prizes and increased advertising costs to create new
ads for various media for the new campaign.
The transition from the previous image of Amp to the new campaign must be
clear and evident. The focus of the advertising must be on socially conscious nature of
Amp and the importance and effects of change. Every aspect of this new campaign must
not be comparable to that of any other brand, especially Mountain Dew and other
PepsiCo products.
Copy development research will measure the effectiveness of these campaign
strategy by comparing the responses from focus groups prior to and after the initiation of
the new campaign. The campaign will have proved to be a success when responses from

focus groups conducted after the start of the campaign reveal understanding of the new
campaign and all the concepts that need to be portrayed through the main message. Also,
copy testing questionnaires will measure how much and the level of recall of the message
consumers retain after they are exposed to the advertising.

The phrase “REVAMP IT” speaks to the heart of our new brand image. We want
to be an energy drink company that inspires people to help their communities all while
maintaining the enthusiasm, action-seeking, fervor that people have come to expect with
our brand. We feel the juxtaposition of enthusiastic energy and philanthropy will not
only appeal to our target market, but also get those that are not necessarily regular energy
drink users to support our brand. The low involvement nature of this tagline matches
perfectly with the typical schema pattern of our target — especially when paired with
philanthropic imagery.


Sales Promotion
Amp will partner with Habitat for Humanity and Sony to sponsor a nationwide
competition that will be held among cities called “Revamp Your World.” This
competition will involve the cities accomplishing various community service projects or
community building tasks of their choice. Entries will be graded on the following
criteria: community improvement, resourcefulness, environmental considerations, style
and teamwork. Each city will be required to submit a documentation video outlining the
problem area of the city, the process it took to “revamp” that area, and the end result.
Detailed guidelines will provide limitations for every entry on the amount of money they
can spend on their community project, the minimum scope the project must reach within

the community and the amount of people that can participate. A city may submit more
than one area if there are individual groups that are interested in participating. The city
that does the best job will win an “amped community center” within the area they have
completed the community service projects. This community center will not be ordinary
in any way; it will be amped. It will feature free Amp energy drinks for a year, an IMAX
theater, an indoor/outdoor skate park, state-of-the-art computer labs, media centers with
55-inch LCD television screens, Playstation3 game consoles provided by Sony, a roller
skating rink, a water park complete with water slides, a study center complete with a
library, and finally, managers to help facilitate staff hiring and operations for the first two
years. The center will be gated and equipped with a state-of-the-art security system to
keep the property and those inside safe.
In addition to “Revamp Your World,” there will be a “Revamp It” public relations
campaign that will reinforce Amp’s outdoor advertising. “Revamp it” will entail doing
miniature versions of “Revamp Your world.” Activities may range from cleaning a public
bathroom, helping a homeless person, or even donating time to a special education
facility. Multiple entries will be chosen as winners; each winner will receive free Amp
energy drinks for a year. Those participating will enter the contest by posting pictures and
detailed accounts of projects they have completed for the public interest to
www.revamp.com. This website will serve as a construct for participants to post videos
about their clean-ups and make suggestions about other possible clean-up sites, as well as
share common experiences which will ultimately create a community within our target
To get the word our about this contest, Amp will use traditional press releases and
traditional advertising which will explain the contest in detail. Also, revamp.com will
serve as promotion, specifically for the revamp campaigns. In addition, a series of
localized outdoor advertising will be employed to generate awareness about the “Revamp
it” campaign.

Public Relations

Amp will send press releases to major news sources. The press release will fully
explaining the “Revamp Yourself - Revamp Your World” and “Revamp it” contests. The
mainstream media will have extra incentive to broadcast these releases because an energy
drink company has never sponsored a community service event before. Also, as Amp’s
unusual out-of-home advertising accumulates, publicity for the ad campaign will most
likely increase as these ads may get exposure from local media outlets. We will provide
video and pictures of these out-of-home ads with the press release.
As for interactive public relations, Revamp.com will be constructed to promote all
of the “Ravamp” campaign, including: detailed information about both contests, forums
for those participating in “Revamp it,” featured winners,

Amp’s advertising will employ a variety of media vehicles to best raise awareness
of our changing brand image and the Revamp campaigns. First, localized outdoor
advertising will target areas within large cities that have remained dirty or unkept. These
outdoor advertisements will be unique since they will feature possible applications for the
“Revamp It” contest. For example, one urinal in a dirty men’s bathroom might be
spotless while the others are still dirty, and on or near the clean toilet, the Amp logo and
the phrase “Revamp it” will appear. These types of outdoor advertisements will not only
inspire participation in the revamp contests, but also reinforce the brand image as well.
Another source of reinforcement of the brand image will come from television
ads. These ads could feature someone who looks like the target market (a young white
male in a business suit) drinking an Amp energy drink. He then, in a state of excitement
and enthusiasm, begins participating in community service activities. For example, in
one ad, he might be sitting on a city bench that is very dirty, and after finishing his Amp,
he proceeds to clean the bench spotless, slapping on a “Revamp it” sticker when he is
finished. To further reinforce the entire ad campaign, the outdoor and television
advertising will match each other. For example, the same bench the man cleans in the TV

ad will be featured as an outdoor advertisement as well. In this way, consumers will
literally and physically be pulled into the campaign because they will see the bench in
real life — complete with the sticker and the Amp logo.
This pairing of outdoor and TV advertising will not only help generate awareness
on a localized level, but it will also gain national awareness as it proliferates through
word of mouth. The goal through this grassroots type of promotion is that the message
not only be stamped in the minds of the consumer but within the culture itself.

Direct Marketing
Amp will use mail in advertisements to our target consumers, young professionals
age 24-34 who have recently entered the work force, with an attached coupon to help
these consumers try our product — many of them may be trying it for the first time. The
increased revenue from the trial purchases will help fund the expensive “Revamp”
campaign and help ease our transition into a new brand image.
In addition to the traditional mail out, Amp will also do a test market for a new
innovative form of direct marketing — viral marketing. Through a blast e-mail, we will
inform those registered with revamp.com that they can send out a phone message to a
friend. This phone message will be directly from Amp and inform the friend that he/she
has been recruited to be apart of the Revamp movement. This tactic could be very useful
in increasing awareness among our target consumers — especially if the friends
contacted are similar to our registered users.


Sales data

• Internal sales data provided by Amp and PepsiCo

• Data from Mintel and other reporting agencies

Attitude data

• Conduct market research- Gather more psychographic

information about our target market so we can better define

• Test the “Revamp it”message by hosting focus groups panels

• Do a test market in a Large City such as New York or Chicago for out-of-home
advertising — specifically looking for awareness increase and publicity.
• Do a FCG to understand about how consumers would react to a cause marketing
campaign from an energy drink company.

PepsiCo (2008), History, [Retrieved from the web on: 07/13/08] Available at:
HYPERLINK "http://www.pepsico.com/PEP_Company/History/index.cfm#"
PepsiCo (2008), Overview, [Retrieved from the web on: 07/13/08] Available at:
HYPERLINK "http://www.pepsico.com/PEP_company/overview/index.cfm"

Mountain Dew (2008), History, [Retrieved from the web on: 07/14/08] Available at:
HYPERLINK "http://www.mountaindew.com/#/aboutdew/history.php"
Mintel (2007), Energy Drinks, Executive Summary, [Retrieved from Mintel database: 07/15/08]
PepsiCo (2008), History, [Retrieved from the web on: 07/13/08] Available at:
HYPERLINK "http://www.pepsico.com/PEP_Company/History/index.cfm#"
“Amp,” Beverage Aisle, 11 (3), 31. [Retrieved from the web on: 7/15/08]

“A winning hand: A gangbuster year leaves PepsiCo holding all the right cards,” Beverage Industry,
93 (1), 35. [Retrieved from the web on: 7/15/08]
“Amp Energy Drink MANUFACTURER: Independent Products CATEGORY:217- Isotonic,
Energy Producing Beverages,” Product Alert, 31 (22). [Retrieved from the web on: 7/15/08]
“Packaging with a plus: more retailers and suppliers are adding a green element to their beverage
packaging,” Beverage World, 127 (3), 76. [Retrieved from the web on: 7/15/08]

Pepsi (2008), Product Information, [Retrieved from the web on: 7/15/08] Available at:
Mintel Oxygen (2008), PepsiCo profits from AMP, LifeWater ads, Brand Week [Retrieved from the
web on: 7/15/08]

Hein, Kenneth (2008), “PepsiCo positions Amp as Everyman’s Drink,” AdWeek.com, January 21,
2008 [Retrieved from the web on: 7/15/08]

FactExpert (2005), In the Beginning...RedBull,[Retrieved from web on 7/17/08] Available at:


Mintel (2007), Energy Drinks — US, [ Retrieved from Mintel online database: 07/17/08 ]
Morningstar Inc. (2008), Hansen Natural Corporation [Retrieved from web 7/18/08]
Mintel (2007), Red Bull, the billion-dollar brand, [Retrieved from Mintel’s database: 07/17/08]

Mintel (2007), Energy Drinks — US, [ Retrieved from Mintel online database: 07/11/08 ]
MRI (2007) Fall 2007 Product Beverages [ Retrieved from MRI online database: 07/11/08 }

Parker M., Phillip, The 2007 – 2012 Outlook for Energy Drinks in the United States [ Retrieved from
Web on: 04/27/04 ] Available at:
Mintel, Energy Drinks (2007), Executive Summary, [Retrieved from Mintel’s database: 07/17/08] "
Kerin, Hartley, Berkowitz, and Rudelius (2006), Marketing 8th Edition, New York: McGraw-Hill

Mintel (2007), Energy Drinks, Consumers: When, Where, and How, [Retrieved from Mintel’s
database: 07/17/08]
MRI (Fall 2007), Energy Drinks Drank in Last 6 Months Amp, [Retrieved from MRI database:

Foreman, Judy (2007) "Are energy drinks Bad for you", Boston Globe [Retrieved from Lexus Nexus
online data base 07/18/08]
Mason, Michael (2006) "The Energy-Drink Buzz is Unmistakable. The Health Impact is Unknown"
[Retrieved from web on 07/18/08 at:http://www.nytimes.com/2006/12/12/health/12cons.html?
Mason, Michael (2006) "The Energy-Drink Buzz is Unmistakable. The Health Impact is
Unknown" [Retrieved from web on 07/18/08