AMPEnergy

MediaPlanningCaseStudy

PaigePorter,AndrewSiegel
andLauraSilverman

TableofContents

ExecutiveSummary.................................................................................................................................................... 2
SituationAnalysis ....................................................................................................................................................... 3
CompetitiveConsiderations........................................................................................................................................................... 4
CompetitiveAdvertisingExpenditureAnalysis....................................................................................................................... 5
ShareofVoice ..................................................................................................................................................................................................................... 5
MediaExpenditures.......................................................................................................................................................................................................... 6
MediaMixAnalysis ........................................................................................................................................................................................................... 6

SWOTAnalysis .................................................................................................................................................................................... 9

MarketingandCommunicationDirection....................................................................................................... 10
MediaObjectives ...................................................................................................................................................... 12
MediaStrategy:DevelopmentoftheMediaPlanfor20112012............................................................. 14
NontraditionalMediaStrategy ....................................................................................................................................................18

OverallEvaluationoftheCommunicationPlan............................................................................................. 21
References.................................................................................................................................................................. 22
AppendixA:CreativeBrief.................................................................................................................................... 23
AppendixB:MRIAnalysisforTargetMarket ................................................................................................. 25
AppendixC:SRDSLifestyleAnalystData ......................................................................................................... 28
AppendixD:BudgetSummary............................................................................................................................. 29
AppendixE:SpotMarkets ..................................................................................................................................... 30
AppendixF:Flowchart ........................................................................................................................................... 31

ExecutiveSummary

AMPEnergyisownedbyPepsiCoandwasoriginallyintroducedin2001.OriginallyintendedasaproductofMountainDew,

AMPEnergyhasnowbranchedoffandbecomethenumberfourproductinsalesintheenergydrinkcategory(Kenneth).TheAMP
Energylinehasdiversifiedintoawideoptionofdrinksincludingchoicessuchassugarfreeandagreenteaflavor;additionally,
AMPEnergynowoffersjuiceandgumproducts.Asagrowingcompetitorintheenergydrinkmarket,AMPEnergyhasastrong
voicetoincreaseitsshare.

OurmediastrategyforAMPEnergyexplainsandsupportshowweplantomeetourobjectivesofknockingoffthenumber

twobrand,Monster,andincreasingourbrandawarenessinourtargetmarketby10%.ThemediaplanwillnotonlyincreaseAMP
Energysshareofvoice,butitwillalsoincreasethebrandstotalawareness.Ourbudgetof$24milliondollarswillbediffusedinto
anationalandspotcampaignoverthefiscalyearof2012.Mostofthebudgetwillfiltertowardsanationalcampaign,butwewill
additionallyfocusonsevenmainspotmarkets:Chicago,IL,Fresno,CA,NewYork,NY,ElPaso,TX,LasVegas,NV,LosAngeles,CA,
andMiami,FL.Wewillimplementtraditionalmediawithinthesemarkets,butwewillalsosetaside$3,000,000fromtheoriginal
budgettoachievesomenontraditionalmediagoals,suchastheconstructionofAMPEnergysponsoredskateparksandasocial
mediacampaign.

Wehavecarefullythoughtaboutourmediaobjectives.Thetargetmarketforthiscampaignincludesmalesandfemalesages

1834withanHHIofabout$10,000andabove.Wewillimplementapulsingmediaschedulethatrunsduringthesummermonths
ofJuneandJulyandduringtheendoftermmonthsofDecemberandMay.Ourcampaignwillswitchmediafocusdependingonthe
month.Duringtheschoolyear,wewillfocusheavilyononlineadvertising,takingadvantageoftheincreaseininternettraffic.
Duringthesummermonths,wewillfocusheavilyonatelevisioncampaign,workingwiththewatchingpatternsofourtarget
audience.Wewillalsospreadourbudgetoverradio,newspaper,andselectednontraditionalmediainspotmarkets.Duringour
summermonths,wehaveasetreachof78andfrequencyof3.3inourspotmarkets,andwehaveasetreachof70andfrequency
of2.7inournationalcampaign.Duringourfinalsmonths,wehaveasetreachof76andfrequencyof3.1inourspotmarkets,and
wehaveasetreachof63andfrequencyof2.5inournationalcampaign.Throughastrongcampaignandprecisemediachoices,
ourobjectiveswillbemet.

SituationAnalysis
Price:
AMPEnergycomesinmanydifferentvarietiesandsizes.TheoriginalAMPEnergy8.4ouncecancosts$1.49,whilea16ouncecan
costs$2.29.ConsumerscanbuyAMPinavaluepackof4cans,totaling64fluidouncesat$6.49.Thesepricesvaryfromstoretostore.

Promotion:
AMPEnergyhasamajorpresenceintheworldofNASCAR.TheirmajorformofadvertisingisfocusedonNASCARsponsorships.
AMPEnergyhassponsoredNASCARdriverDaleEarnahrdtJuniorsince2007(Tanner).Inrelationtothissponsorship,AMPcreateda
Dalethemedenergydrinkwhichincludedacombinationofthreeflavors:orange,limeandberry(Tanner).AMPhasalsosponsoredthe
TalladegaSuperSpeedwayRaceformanyyears.In2008and2009theracewastitletheAMPEnergy500.AMPwasalsoasponsorofthe
27thannualU.S.SnowboardingChampionshipin2009withpartnerBurtonSnowboardsinVermont.AMPcontinuestosponsora
snowboardteamthatincludesathletesMasonAguirre,KeirDillon,KevinPearce,JackMitrani,LukeMitraniandScottyLago.InOctober
2010,AMPEnergyJuiceproducedashortfilmaboutTalladegaSuperspeedwaytitledTheLegendofHallowdegawhichstarredDavid
ArquetteandincludedappearancesbyDaleEarnhardtJr.andDarrellWaltrip(SnowboardMagazine).In2009AMPEnergysponsoreda
promotionwhichinvolvedgraphicdesigners,musiciansandartistscreatingcustomAMPEnergybrandedrefrigeratorsthatwereplaced
indesigners'homesandretailstores.AMPEnergysponsoredtheWorldExtremeCagefighting(WEC)seriesin2010.Additionally,it
sponsorsUFCathletesUrijahFaber,ChadMendesandJosephBenavidez.AMPusessportingeventsasanadvertisingoutlettoreachtheir
targetaudience.TheiraffiliationswithsportsaidinaugmentingtheimageofAMPEnergyasahighpowereddrinkofchoiceofextreme
athletes.

ProductandPlace:
TheAMPEnergybrandwasfoundin2001asadivisionofPepsiCo.ItwasinitiallydistributedundertheMountainDewsoftdrink
brand.In2009,AMPEnergyestablisheditsowntrademarknameandhassincebeendistributedsolelyunderitsownname.AMPEnergy
issoldintheUnitedStatesandCanada,andin2009,itwasthefourthenergydrinkbrandintheUnitedStatesintermsofoverallretail
sales.

Originally,AMPEnergywasdistributedasaflavorextensionofMountainDew.Theoriginalflavorcontainstaurine,Bvitamins,
guarana,ginsengandmaltodextrin.Theservingof8.4fluidouncesofAMPEnergycontains74milligramsofcaffeine.Asof2010,theAMP
EnergybrandhasvastlyexpandeditsflavorsandvarietiestoincludeAMPEnergy(Original),SugarFree,Overdrive,Relaunch,Elevate,
Traction,GreenTea,Lightning,andSugarFreeLightning.In2010AMPEnergyalsointroducedalineofjuicescalledAMPEnergyJuices.
TheyaremadewithBvitamins,taurine,ginsengandguarana.Thesejuicesareproducedintwoflavors:OrangeandMixedBerry,andthey
arepackagedin12ouncebottles.AMPEnergygumwasintroducedatthesametime,anditismadefromablendofBvitamins,taurine
andcaffeine.

CompetitiveConsiderations
AttitudesTowardsEnergyDrinks

AccordingtoMintelsJuly2010EnergyDrinksandShotsReport,flavorvarietyisthemostimportantconsiderationamong

energydrinksdrinkersinpurchasingenergybeverages.Youngadults,aged1834areputoffbytheunavailabilityoftheirfavorite
flavors.Becauseofthisconsideration,leadingbrandRedBullhasseenconsumersmovingtootherbrands.AMPEnergysvarietyof
flavorscanhelpfosterbrandloyalty.

Anotherconsiderationamongenergydrinkusersistheamountofcaffeineinaserving.Consumersofenergydrinksusually

lookforahighamountofcaffeineperounce.Mostconsumersaged1834listthattheprimaryreasonforusingenergydrinksisto
getanenergyboost.Thissametargetismorelikelythantheaveragepersontouseenergydrinkstostayawakesotheycanstudy
and/orpartylonger.AMPEnergyfallsbehinditscompetitorsinitscaffeineratio.Itonlycontains8.9milligramsofcaffeineper
ounce.5HourEnergycontains69milligramsofcaffeineperounce,andRockstarandMonsterbothcontain10milligramsof
caffeineperounce.

AudienceAwareness

ConsumersawareofAMPEnergysaytheproducttastesgoodandiseffective.But,theseconsumersonlymakeup14%ofAMP

Energystargetaudience.Theother86%ofthetargetdoesnothaveAMPEnergybrandawareness.Thisnumberisfarbehindother

energydrinkssuchasRedBull,whoseawarenessreachesintothe70thpercentile.Anincreaseinadvertisingexpenditureinthe
appropriatemediawillhelpincreaseAMPEnergysaudienceawareness.

CompetitiveAdvertisingExpenditureAnalysis
EnergyDrinksfor2009

ShareofVoice(seeFigure1andChart1):
Currently,AMPEnergyholdsa10.04%shareofvoicewithinitsproductcategory.Althoughnotnegligible,AMPEnergys
advertisingexpendituresbarelystanduptotheexpendituresofotherbrandssuchasRedBulland5HourEnergy.Thesebrandseasily
takeoverthemajorityoftheproductcategory.
Figure1

EnergyDrinkCategorySOV
Percentage
Other
12.37
13%

Percentage
Monster

0.76
1%

Percentage
AMP
10.04
10%

Percentage

MediaExpenditures(seeChart2):
5HourEnergy

Percentage
FullThrottle
0.19
0%

31.15
31%

Percentage
RedBull
45.17
45%

Percentage
Rockstar
0.32
0%

EnergyDrink

Spending
($000)

Percentage
Share(%)

FullThrottle

356

0.19

Monster

1407.4

0.77

AMP

18335.8

10.04

Rockstar

580.6

0.32

RedBull

82517.9

45.17

5HourEnergy

56911.2

31.15

Other

22,576.3

12.36

Total

182699.8

100%

AMPhasboostedadspendingsignificantlyoverthepastfewyears.In2009,thebrandspent$9.9milliononadvertisingandzero
dollarsbeforethat.By2011,thebrandincreaseditsspendingto$18.3milliondollars.Thoughanincreasedbudgetwillnotcomparewith
RedBulls$82.5million,AMPsspendingwillfaroutshineMonsters2010spendingofonly$1.4million.

In2009,themajorityofadvertisingdollarswerespentincableandnetworkTV,totaling$127,246,700.RedBullspentmostinthis

medium,followedby5HourEnergyandAMP.

MediaMixAnalysis(seeChart3):

ThemajorityofAMPsadvertisingbudgetin2009wasspentinNetworkTV(61.2%),followedbyCableTV(33.0%),withspending

inothermediaalmostnegligible.Thecategoryleader,RedBull,spent34.4%inCableTVand32.2%inNetworkTV.
Chart1:ShareofVoice(2009)
Share of Voice Big Six (%)

PRODUCT

Natl
BCable Hispanic Hispanic Local Local
Natl
Spot Network Network
SLN Spot
US
YEAR to-B TV
Newspapers Outdoor TV TV
Syndication Internet Total
Mags
Newsp Mags Radio Magazines Newsp Radio Radio
TV

AMP

2009 12.3

6.8

33.8

100

28.9

1.6

0.1

MONSTER

2009 20.5

0.1

1.2

RED BULL

1.8

32.1

100

100

92.1

62

68.5

94.6

ROCKSTAR 2009

7.3

4.2

0.9

3.8

0.1

14.9

0.4

FULL
THROTTLE 2009

0.5

100

4.1

0.1

0.2

0.2

5-HOUR
ENERGY
DRINK

2009 65.5

61

100

0.5

38

TOTALS

100

100

100

100

100

100

100

100

100

100

100

100

100 100 100

100

1.2

0 13.2

95.8 100 47.5

100

19.2 11.5
1.5

0.8

64.2 51.6

0 35.6
100

100

Chart2:CompetitiveSpending(2009)
Competitive Spending ($000s)

PRODUC YEA
T
R

Loc Loca
Natl
Hispan Hispan al
l
Natl Spot Networ
Mag Radi Magazin News Radi
Networ Newspape Outdo
ic
ic
k
Mags Newsp
s
o
es
p
o
Radio
k TV
rs
or

SLN
TV

Spot
TV

Syndicati
on

US
Intern
et

Grand
Total

2.3

0.0

58.0

0.0

153.6

18335.8

0.0

0.0

0.0

661.5

0.0

12.2

1315.7

26535.
0

258.9

3060.8

6369.
4

2384.
5

13714.9

513.8

82517.9

0.0

351.0

10.4

0.0

0.0

4.4

0.0

119.4

580.6

0.0

0.0

0.0

0.0

130.9

0.0

1.2

0.0

1.3

356.0

0.0

0.0

460.0

182.7

0.0

0.0

0.0

1907.
4

0.0

0.0

56911.2

217.9

573.
7

460.0

38758.
5

273.7

3194.0

13714.9

800.3

160017
.2

Bto-B

Cable
TV

AMP

2009 72.7

6055.7

0.0

0.0

0.0

0.0

196.6

0.0

573.
7

0.0

11218.
8

4.4

MONSTE
R

2009

121.
4

49.6

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

471.0

10.4

28410.
6

7.2

5.1

0.0

886.
4

360.9

0.0

0.0

0.0

2009

0.0

0.0

0.0

0.0

0.0

71.0

24.4

0.0

0.0

FULL
THROTTL
E
2009

0.0

0.0

0.0

0.0

0.0

4.7

0.0

217.9

388.
8

53972.
3

0.0

0.0

0.0

0.0

0.0

593. 88488.
3
2

7.2

5.1

0.0

962.
1

581.9

RED
BULL
ROCKST
AR

CHASER
5-HOUR
ENERGY
DRINK

TOTALS

2009

6369. 5017.
4
0


Chart3:MediaMixAnalysis(2009)
Media Mix Big Six (%)

Bto-B

Cab
le
TV

His
pa
nic
Ma
gs

Hisp
anic
New
sp

Lo
cal
Ma
gs

Loca
l
Radi
o

Maga
zines

Natl
Ne
wsp

Nat
l
Sp
ot
Ra
dio

Netw
ork
Radi
o

Netw
ork
TV

Newsp
apers

Outd
oor

SL
N
TV

Spot
TV

Synd
icati
on

US
Inter
net

Grand
Total

PRODUCT

YEA
R

AMP

2009

4.0

33.0

0.0

0.0

0.0

0.0

1.1

0.0

3.1

0.0

61.2

0.1

0.1

0.
0

0.3

0.0

0.8

100.0

MONSTER

2009

121.
4

3.8

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

35.8

0.0

0.0

0.
0

50.3

0.0

0.9

100.0

0.1

34.4

0.1

0.1

0.0

1.1

0.4

0.0

0.0

0.0

32.2

0.3

3.7

7.
7

2.9

16.6

0.6

100.0

RED BULL

ROCKSTAR

2009

0.0

0.0

0.0

0.0

0.0

12.2

4.2

0.0

0.0

0.0

60.5

1.8

0.0

0.
0

0.8

0.0

20.6

100.0

FULL
THROTTLE

2009

0.0

0.0

0.0

0.0

0.0

1.3

0.0

61.2

0.0

0.0

0.0

0.0

36.8

0.
0

0.3

0.0

0.4

100.0

CHASER 5HOUR ENERGY

DRINK

2009

0.7

95.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.8

0.3

0.0

0.0

0.
0

3.4

0.0

0.0

100.0


SWOTAnalysis

Strengths:

NameAMPEnergyclearlyidentifiespurpose/use

Consumersareautomaticallyawarethattheproductisatypeof
energybeverage

Stemsfromawellknownbrand(PepsiCo)andproduct

(MountainDew)
Backgroundaddstocredentialsoftheproduct
StrongtiestoNASCAR
NASCARsaudienceisverysimilartoAMPEnergystarget
audience
Diversityofproducts:energyjuice,energygum
Generalapprovaloftasteofthedrink

Opportunities:

Weaknesses:
Potentialpsychologicaladdiction
o Mayleadtonegativeresponsefromtargetaudience
Causesheadachesandwithdrawalsymptoms
Potentialtosimulateintoxication
o Mayleadtonegativeresponsefromtargetaudience

Threats:

Someotherbrandspromotethemixtureofalcoholwiththeir

energydrinks
o AMPEnergy,notasupporterofthisidea,attractsalarge
audienceofpeopleagainstalcoholabuse
Monster(amaincompetitor)advertisersthroughsponsorship

o Opensopportunityformainstreammedia
o PepsiCosincreasetoa$24millionbudgetallowsroom
forimplementationofmultiplemedia
Mostbrandsdonotofferjuiceandgum:
AMPEnergyhasanadvantageasoneoftheonlycompetitorsin
thiscategory

Manysimilarproductsinenergydrinkmarket
o AMPEnergyisalatecomertothemarket
o Otherbrandsarealreadymoreestablishedandhave
strongerbrandawareness
Establishedbrandalreadyhavestrongadvertising
campaignsrunningandapouringalotofmoneyintothem
o RedBullcurrentlyrunsa$51.3millioncampaign
o AMPEnergyisworkingwithhalfofRedBulls
budget

MarketingandCommunicationDirection
MarketingObjective:

AMPEnergywantstodistinguishitselffromtheeverincreasingfieldofenergydrinks,stealsharefromitscompetitors,and

knockoffthenumbertwobrand,Monster.
AdvertisingObjective:

AMPEnergysmarketingobjectiveistoincreasebrandawarenessamong1834yearoldsby10percentagepoints(from14%

to24%)inthefiscalyearof2012.
BudgetRecommendation:
Initially,weweregiven$24millionwithwhichtoruna12monthcampaign,beginninginJuly2011.Ofthis$24million,weset
aside$1.5milliondollarsforourspotcontingency,and$1.5millionforournationalcontingency.Wealsosetaside$3millionfor
nontraditionalmedia.Thisleftus$18millionfortraditionalmedia,anaverageof$4.5millionforeachmonthinourpulsingschedule.
CreativeBrief:
SeeAppendixA.
TargetMarket:
Demographics
Consumersofenergydrinksareaged1834.TheyhaveanaverageHHIof$25,000andabove(eitherastheirownincomeorasa
dependentoftheirparents).Thetargetisprimarilywhite.TheyaremostlyspreadoutovertheUnitedStates,butthereisaslightly
strongermarketintheMidwest.Mostofthetargethaseitherneverbeenmarriedoriscurrentlyengagedandwithoutchildren.

Psychographics
Ourtargetmarketiscomprisedofcollegestudentsandyoungprofessionals.Theseconsumersoftenattendorwatchextreme
sportsevents,suchasskateboardingandBMX.Thetargetconsumeslargequantitiesofmedia;theyspendalotoftimewatching
television,usingtheinternet,andplayingofteninteractivevideogames.Theyuseenergydrinksinplaceofadditionalsleeptoreinvigorate
themselves,relievethemiddaydrowsiness,andboostlevelsofconcentrationlateintothenight.

10


EducationandProfession

Thetargetisinavarietyoflevelsintheirlives.Somedrinkersarefulltimecollegestudents.Othersareyoungprofessionals,

workingthingssuchasconstructionormidleveldeskjobs.Manymembersofthetargetaudienceserveinthemilitary.

**SeeAppendixBformoreinformation

11

MediaObjectives
Geography:

WewillreachAMPEnergysprioritymarketsthroughanationalandspotcampaign.Inadditiontoournationalmediapurchases,
wewillfocusonsevenspotmarketswithhighproductcategoryperformance.Basedondatareports,wehavefoundthatAMPEnergyhas
amostlynationalcapability,butsomeareashaveaslightlyhigherpotentialforgrowthinthetargetmarket.
**SeeAppendixCforSRDSLifestyleAnalystData

Continuity(scheduling):
ThegoalistoincreaseAMPEnergysbrandawarenessby10percentagepointsinthefiscalyearof2012.Toachievethisgoal
throughscheduling,wewillfocusonapulsingcampaign.Ourcampaignwillbesplitintotwosegments:summermonths(June,July,
August)andendoftermmonths(DecemberandMay).Ournontraditionalmediawillmostlyrunthroughouttheentireyear.Wewillstart
stronginthesummermonthstogrowawarenessofAMPEnergysname,andthenwewillcontinuetoremindourtargetofAMPEnergy
throughouttherestofthefiscalyear.

TargetMarket:
Toconcentratemessagedeliverytowardsunmarriedmenandwomenfromages1834withmidtohighHHI,above$25,000.The
targetisinterestedinsports(mostlyextremeonessuchasdirtbiking)andvideogames.TheywatchalargeamountofTVwithavariety
oftastesinprogramming,fromrealityTVtogamingnetworks.Theyarefrequentinternetusers,especiallysportssitesandsocial
networking.Theyhaveawiderangeofoccupations,fromsalesandofficetoconstructionandmaintenancetofulltimestudents.The
targetmarketisprimarilyCaucasian,butthereisalsoanoticeableHispanicandAfricanAmericansegment.
Budget:
Toeffectivelyreachourtargetmarket,increasebrandawarenessby10percent,andpotentiallysurpassMonsterasthenumber
twobrandbystealingsharesfromthecompetitors,whileefficientlyusingthe$24millionprovidedinourbudgetduringthemonthsof
JulyJuneinthefiscalyearof2012.

12

**SeeAppendixDformoreinformation

ReachandFrequencyTradeoff:
Tohaveanaveragereachof77.1andfrequencyof3.2inourproposedtargetmarket.Wedecidedthisobjectivebasedonthe
Ostrowmodelsformulaforpredictingeffectivefrequencyandourpotentialbudgetof$24million.ForJune,JulyandAugust,wehavea
setreachof78.3andfrequencyof3.3.ForDecemberandMay,wehaveasetreachof75.8andfrequencyof3.1.

CreativeConstraints:
TorevamptheAMPEnergybrandwithafreshcampaignthatwillattractalotofbuzzfromthetargetaudience.Brand
name.Brandlogo.

SpecialMarketingDifficulties

Createanoverallnationalcampaignwithafewselectedspotmarketswhilestillreachingourtargetmarketwithout

outspendingourbudgetof$24million.

13

MediaStrategy:DevelopmentofMediaPlanfor20112012

TheAMPEnergyMediaPlanfor20112012willbecomposedofanationalandspotcampaign,featuringpulsedmediabuys

throughouttheyear.Themonthsofheavymediaspendingaredividedintotwocycles,basedontheconsumerbehaviorofthetarget
audience.Traditionalmediawillbepulsedthroughoutthemediaschedule,whilenontraditionalmediawillstaycontinuous.Themajority
ofthebudgetwillbeallottedfortraditionalmediabuys,whileasmalleramountwillbereservedfornontraditionalmediastrategies.
Geography:
Asateam,wedecidedthemosteffectivewaytoreachourtargetmarket(menandwomenfromtheagesof1834whoaresingleor
engagedwithnochildren,earningahouseholdincomeof$25,000plus/year,)whileusingourallottedbudgetof$24millionefficiently,is
tolaunchanationalandspotmediaplanforAMPEnergy.Wechosetoincludesevenmarketcitieswithhighcategorydevelopment
indicesprovidedbySRDSLifestyleAnalystData,placinganemphasisonapproximately17.37%ofU.S.households:

Chicago,IL

Fresno,CA

NewYork,NY

ElPaso,TX

LasVegas,NV

LosAngeles,CA

Miami,FL

Whilelocalizedadscreateamoreresonatereach,nationaladvertisementshaveasimilarlikelihoodtoreachthetargetaudienceata
lowercostperunit.Themixtureofnationalandspotadvertising,placedinavarietyofmediavehicles,workstosuccessfullyreachour
targetaudienceatthelowestcost.
**SeeAppendixEformoreinformation
Scheduling:
Giventwelvemonthstoallocateourbudget,beginninginJuly2011,andtakingintoaccountAMPEnergysdesiretoincreasebrand
awareness,wemadeanexecutivedecisiontospendourbudgetonmediabuysforthemonthsofJune,July,December,andMay.During
theendoftermmonths,manyconsumersinourtargetmarketarebusywithexamsandotherstrenuousactivitiesthatrequirelatenights

14

ofhighenergy.Duringoursummermonths,manyconsumersinourtargetmarketwishtotakeadvantageoftheirvacationsandspend
latenightimmersedinmedia.Ourmediaplanisdividedintotwocycles,adjustedaccordingtoourtargetmarketsactivities:

Cycle1:July,AugustandJune(Reach78.3%,AverageFrequency3.3)

Cycle2:MayandDecember(Reach75.8%,AverageFrequency3.1)

MediaRecommended:
TheAMPEnergytargetmarketconsumesalotofmedia.Theywillbestrespondtobluntandedgymessageswithalargecool
factor,simplemessageswithlargeattractions.Ourconsumersaredrawntogaming,sports,andsocialmedia.Asampleofmediatheyuse
includesESPN.com,ESPNandESPN2TVstations,Facebook.com,SpikeTV,networksstationsduringimportantsportingevents,G4,MTV,
andESPNmagazine.
**SeeAppendixFformoreInformation.
Television(27.2%)
Televisionadvertisementsprovidethetargetmarketwithanengagingaudioandvisualexperience.Mostofourconsumersenjoy
watchingextremelivesports,realityshows,comedy,andprogramsrelatingtovideogames.Fornetworktelevision,wewillplace
commercialsinthelatenightandsportsdayparts.Consumerswilleitherseethecommercialswhilewatchingagameorenjoyinglate
nighttelevision,suchasacomedytalkshoworrealitytelevision.Wewillspreadourcommercialsoverthebigfour:ABC,NBC,Fox,and
CBS.

Forourspotcampaign,AMPEnergycanconveyitsmessageonaneighborhoodlevel(alocalizedmessage)tothe90%ofUS

householdsthatsubscribetocable.Wewillplacetelevisionspotsoncableandlatefringe/newsdayparts.Membersofourtargetmarket
spendtheirlatenightsafterschoolandworktunedintochannelssuchasG4,AdultSwim,ComedyCentral,ESPN,ESPN2,Spike,UFC,MTV,
MTV2andVH1.

WeconcentratedourpurchaseoftelevisionduringCycle1(June,July,August))withlightplacementsinCycle2(Mayand

December).ManymembersofourtargetmarketarenotgatheredaroundtelevisionsinMayandDecember,asexamsandtravelconsume
themajorityoftheirtime.

15

Cycle1distributed55GRPseachmonthinNetworkTVSports,costing$1,113,100/monthCycle2distributed30GRPsin

DecemberandMay,costing$607,200/month

Cycle1distributed55GRPseachmonthinNetworkCableLateFringe,costing$290,600/month.Cycle2distributed35GRPseach

month,costing$184,900/month.

Cycle1distributed35GRPseachmonthinSpotTVLateFringe/News,costing$95,200/month.NopurchasesweremadeinSpot

TVLateFringe/NewsduringCycle2.

Cycle2distributed35GRPseachmonthinSpotCable,costing$224,700/month.

Magazines(15.7%)
Membersofourtargetaudienceusemagazinestosupplementtheirknowledgeofvideogames,sports,andentertainment.Since
consumersactivelyseekinformationfrommagazines,themediumservesasaneffectiveplatformforAMPEnergyadvertising.Magazines,
suchas4Wheel&OffRoad,Blender,CarandDriver,Details,ESPNtheMagazine,GameInformer,OfficialXboxMagazine,PCGamer,Maxim,
andTruckin,aregoodoutletstoreachmembersofourtargetmarket.
Cycle1distributed30GRPseachmonthinMensMagazines,costing$840,900/month.Cycle2distributed22GRPseachmonthin,
costingapproximately$616,700.

Internet(28.6%)

Consumersinourtargetmarketareheavyusersoftheinternet.Theygoonlineforeverythingfromschoolandwork,tosocial

networkingtocheckingsportsstatistics.Havingadvertisementsonspecificallytargetedsiteswillincreasebrandvisibilityandawareness.
ThemonthsofMayandDecemberwillseeahighervolumeofinternetusersinourtargetmarketduetoexams.Inbetweenstudy
sessions,ourtargetmarketwillvisitsitessuchasNASCAR.com,G4.com,UFC.com,XTSports.comandESPN.com.

Cycle1distributed50GRPseachmonthinTargetedInternetSites,costingapproximately$1,182,500.Cycle2distributed70GRPs

inDecemberandMay,costingapproximately$1,655,500.

16

SpotRadio(3.2%)
AMPEnergymakesitsnationalmessageaccessibletotheprimarytargetmarketthroughtheindividualspotmarketsthatproveto
haveahighcategorydevelopmentindex.Asimilarideasupportsourreasoningforpurchasingspotradioforthemorningdriveand
daytimeparts.Thesespotswillallowmembersofourtargetmarkettohearthemessagewhiletheygetreadyanddrivetoworkand
schoolandduringthedaytimewhenthemiddaydrowsinessbeginstosetin.Thefrequencyatwhichtheyhearthemessageismore
importantinourspotradiobuysthanourspottelevisionpurchases.Radioallowsfornovisual,andthereforemusthaveasubstantial
numberofverbalspotstobrandthemessageintoconsumersminds.WewillcreateaspecificspotradiocampaigntitledAMPUPYour
Dayandfeatureitonalternativerock,classicrock,contemporaryhits,andsportsstations.
Cycle1distributed35GRPsinSpotRadioMorningDriveeachmonth,costingapproximately$101,200/month.Nopurchaseswere
madeinSpotRadioMorningDriveduringCycle2.
Cycle2distributed45GRPsinSpotRadioDaytime,costingapproximately$236,900/month.NopurchasesweremadeinSpot
RadioDaytimeduringCycle1.

MediaNotRecommended

Newspapers:Newspapersarenotaneffectiveoutletforadvertising,asmostconsumersinourtargetmarketfindnewsfrom
othersources,suchastheinternet.Additionally,AMPEnergysadvertisementswillfeaturehighcolorimagesthatwillnot
transferwelltoblackandwhite.

Outdoor:TraditionaloutdoorisanexpensivemediumthatwillnotfitintoAMPEnergyscurrentbudget.Thelimitedmessage
exposurethatbillboardsandotheroutdoormediaallow,arenotconduciveforbuildingawareness.

17

NontraditionalMediaStrategy

AMPEnergysstimulatingandenergeticimagerequiresmediathatengagestheconsumertocommunicatethebenefitsofthe

brand.OurgoalistocreateanemotionalconnectionbetweenthetargetaudienceandtheimagesandmessagesportrayedinAMP
Energysadvertisements.Acreativeapproachthatwillresonatewithourtargetmarketincludestheintegrationofguerillaadvertising
andinteractivesocialmedia.

Socialmediaisaverypersonalmethodofconnectingwiththeconsumer.Itturnscommunicationintointeractivedialogue,

creatingatwowayflowofinformation.Itsfairlylowcostandonlyrequirestheskillsofspecializedemployeestomanagethebrands
presenceonnetworkingsites.

Guerillaadvertisinginvolvestargetingconsumersinunexpectedplacesusingunconventionalmethods.Guerillaadvertising

reliesontime,energy,andimaginationtofindthebestapproachforengagingandinteractingwithconsumers.Successfulguerilla
marketingeffortsgetmaximumresultsfromminimalresources,andtheycreateamemorablebrandexperiencefortheconsumer.

Wehavesetaside$2,850,000ofourbudgettoimplementournontraditionalmediastrategies.

SocialMedia(0.8%)
Twitter:AMPUpYourDayTrend

Foundedin2006,Twitterisnowoneofthefastestgrowingsocialnetworkingsitesontheinternet.Anestimated200million

usersgenerateabout65milliontweetsaday(BBC).Twitteruserscanaddhashtagstotheendoftheirtweetstoindicateatrendtopoic
thattheyarereferringto.

Aspartofitssocialmediaplan,AMPEnergywillholdadailyTwittercontest,anextensionoftheAMPUpYourDaySpot

Radiocampaign.Twitteruserscansubmitenergeticphotosorstatusesto@AMPEnergywiththetrend#AMPupyourdayattached.Users
withthebesttwitpicwillreceiveacouponforafreeAMPEnergydrink.

18

Facebook:AMPUpYourDayPhotoContest

AsofJanuary2011,Facebookhasmorethan600millionactiveusersworldwide(MSNBC).Facebookisasmoothintegrationof

brandsandconsumers;bothbrandsandconsumerscansetupprofilesandinteractinacasualsetting.Facebookisthemostpopular
socialnetworkingsite.Originallyintendedforonlycollegeanduniversitystudents,Facebookhasnowgrowntoincludeallusersthatcan
provideanemailaddress.MostconsumersinourtargetmarketareonFacebookatleastonceaday.CurrentlyAMPEnergyhasabout
190,000Facebookfans.FanswholikeAMPEnergyonFacebookcanviewupdatesfromthebrand.

SimilartotheirTwittercampaign,AMPEnergywilluseFacebooktoconductaphotoandvideocontesttitledAMPUpYour

Day.FansofAMPEnergycanpostphotosonthefanpagetoreceiveAMPEnergycouponsandextremesportinggearsuchasbikesand
helmets.

AMPEnergy.com:AnInteractiveExperience

AMPEnergyscurrentwebsitefeaturesflashimagesofcurrentsportsandmusicpromotions.Thoughthewebsiteisedgyand

filledwithcelebrityendorsements,itisarelativelyimpersonalexperienceandnoninteractiveexperience.Withtheheavyinfluxof
internettraffic,asitereallyneedstostandouttocatchtheattentionoftheconsumer.

AnupdatedAMPEnergy.comwillfeatureblogsfromAMPEnergyssponsoredathletes,whereuserscanpostandinteractwith

theathletestheyadmire.Thewebsitewillalsofeatureaninteractiveflavorcreator.Thiswillbringmorefocustotheactualproductrather
thanthepromotions.UserswillbeabletovirtuallycreatetheirownpersonalizedflavorofAMPEnergy,giveittheirownnameandchoose
abackgroundforadigitalpromotionalposter,puttingtheirfaceonanextremeathletesbody.Userscanthensharethepostervia
FacebookandTwitter.PopularflavorsmightlaterbechosenasthenextproductintheAMPEnergyline.

Oursocialmediacampaignwillcostapproximately$200,000.Theactualcostofsocialmediaisalmostnegligible,butwewill

hirefiveyearroundemployeesatasalaryof$40,000eachtosetupandrunthesites.

19

GuerillaAdvertising(5.8%)
AMPEnergyrAMPUP!SkateParks

Toincreasebrandawarenessinourchosenspotmarkets,AMPEnergywillpurchasecommercialspacetobuildpublicskate

parks.TheskateparkswillbenoticeablymarkedwithAMPEnergyslogoandimagery.Inordertopromotetheopeningoftheskate
parks,AMPEnergywillhireskaterstoflythroughthestreets,handingoutAMPEnergydrinksandmemorabiliatoonlookers.Thisstunt
willattractneighborstousetheskateparkandpromoteAMPEnergyasapersonalbrandthatcontributestothecommunity.Thefirsttwo
skateparkswillbebuiltinFresno,CaliforniaandLasVegas,NevadainthemonthofJuly.Ourtargetmarketisstronglyrepresentedin
bothofthesecities,andbyopeningtheskateparksatthebeginningofthecampaign,AMPEnergywillhaveastrongstartonitsclimbfor
brandawareness.Theseskateparkswillworkasalastingandimpressiveformofguerillaadvertising.
VideoGameAdPlacements

Ourtargetmarketrelaxesandescapesthestressesoftherealworldbyplayingvideogames.Byplacingadvertisementsandbrand

imagesinthegamestheyplay,wecaneffectivelyreachourtargetmarketinaplacetheynormallywouldntexpecttofindmedia.Wehave
chosentoplaceourbrandingamessuchasNASCARthegame,NeedforSpeed,Uncharted3,andsnowboardinggames.Thesegames
correlatewithAMPEnergysextremesportsandhighpowerimage.
Ourguerillaadvertisingcampaignwillcostapproximately$1,400,000.Wewilloriginallyopentwoskateparksattheapproximate
estimatedcostof$500,000eachandtesttheresponseandeffecttheyhaveonthetargetmarketbeforeinvestingmoneyinopeningmore.
Additionally,wewillplaceheavyproductadvertisementinfourappropriatevideogamesattheestimatedcostof$100,000each.
Sponsorship(5.2%)
AMPEnergyisknownforsponsoringmanysportsevents,suchasNASCARracesandsnowboardingchampionships.Althoughour
mediacampaignretractsfromheavysponsorshipinfavorofothertraditionalandnontraditionaloptions,weproposethelight
continuationofsomesponsorshipopportunities.Insteadofpouringconsiderableamountsofourbudgettowardssponsoringlargeevents,
wewillinsteadfocusonatwoselectathletes.WewillbeassociatesponsorsofDaleEarnhardtJr.andDennyHamlin.

20

AssociatesponsorshipofNASCARdrivescostsapproximately$500,000perdriver(Calore).Weproposeabudgetof$1,250,000for
oursponsorshipsbecausehighrankingdrivesoftencostaboveaverage,andthismoneywillleaveroomfornegotiation.

OverallEvaluationoftheCommunicationPlan
Theintentofourcommunicationplanwastoseekoutanopeninginthemarketstructurethroughwhichwecouldbreakaway
fromthecluttercreatedbyothermediamessages,andeffectivelyreachourtargetaudiencethroughanationalandspotcampaign.We
chosespotswithahighcategorydevelopmentindexoragreatpotentialforsales.Ournextstepinexercisingthisplanwastochoosethe
mostappropriatetimeframeinwhichtoexposeourmessage.Indoingso,wechosetorunourplanbeginninginthemonthofJulyandrun
advertisingintermittentlythroughtheendofJune.Ourrationaleforcreatingapulsingmediascheduleresultedfromresearchofthe
targetmarket.Membersofourtargetaudienceareheavyusersofcertainmediaduringparticulartimesoftheyear.Byintegratinga
traditionalandnontraditionalmediastrategy,AMPEnergywillbeabletosurpassMonsterasthenumbertwobrandinthecategory.
BeginninginJuly,AMPEnergywillbeginitscampaign,whichwasdesignedtoincreasebrandawarenessby10%amongourtargetmarket
byJuly2012.Toachievethisgoal,AMPEnergywillusebothvisualandaudiomedia,suchasTV,magazines,internet,andradio.Atthe
sametime,inordertofosternewconsumerrelationshipsaswellasstrengthenexistingones,AMPEnergywillimplementseveral
continuousnontraditionalmedia,awaytomaintaintopofmindawareness.TheAMPUpYourDayCampaignsynchronizesthe
traditionalandnontraditionalmediausedinthecampaign.
Asaresultofourcarefullyselectedmediaoutlets,andthemannerinwhichourmessageswereexposedtothetargetaudience,itis
likelythatourproposedplanwillsuccessfullymeetourobjectivesassetforthefiscalyearof2012.Byselectinganaffectiveaperture,in
ourcasetheframeofourtargetaudiencesworkandschoolday,ourmessageswillbeabletoreachthetargetaudienceeffectivelyand
efficiently,whichwillinturnleadtoourobjectivesbeingmet.Asaresultofourvisualelement,intheformoftelevision,magazines,and
internet,incombinationwithradio,ourmessageswillachievetheaffectivereachandfrequencygoals.Likewise,ourcontinuous
nontraditionalmediawillensurethatouraudienceiskeptawareofAMPEnergysexistenceandthevarietyandbenefitsithastooffer.

21

References

"bbc.co.uk".BBC.Retrieved28March2011.

Calore,Paul."NASCARSponsorPricesCostToSponsorANASCARRacingTeam|WhatItCosts."SportsandFitness|WhatItCosts.Web.
26Apr.2011.<http://sports.whatitcosts.com/sponsornascarteampg2.htm>.

"Goldmantoclients:Facebookhas600millionusers".MSNBC.January5,2011.RetrievedJulyJanuary15,2011.

Hein,Kenneth(21January2008)."PepsiCoPositionsAmpasEveryman'sDrink".AdWeek.Retrieved19January2011.

"AMPEnergySignsKeirDillonandKevinPearce".SnowboardMagazine.8January2009.Retrieved15December2010.

SuburbanRails."SkateparksF.A.Q.HowMuchDoISPEND/HowMuchDoesASkateparkCost?""SkateparkDesignBuild:SuburbanRails
"Web.26Apr.2011.<http://suburbanrails.com/cgibin/WebObjects/PWDA.woa/wa/page?id=7595>.

Tanner,Steve."AmpEnergyTradin'Paint".BevReview.doi:02November2005.Retrieved18January2011.

22

Appendices
AppendixA:CreativeBrief
Client:AMPEnergy
Media/CommunicationVehicles:

SpotTVEarlyFringe/News&Cable

SpotRadioMorningDrive&EveningDrive

SocialMedia:Facebook,Twitter,AMPsOfficialWebsite

KeyFact:AMPEnergy,fromthetrustedbrandofPepsiCo,isanaffordable,healthyenergydrinkthatispervasiveinthecommunity
ofitsaudience.
Problem:AMPEnergyhaslowtopofmindawarenessamongothermajorenergydrinks.
Objectives:

ToimproveconsumerpreferenceofAMP

Tobuildtopofmindawarenessintargetmarkets

TopromoteAMPEnergydrinkasahealthyandaffordablechoice

ToemphasizeAMPEnergysawarenessofcustomerpreference

TargetMarket:Unmarriedmenandwomenfromages1834;WithmidtohighHHI,above$40,000;interestedinsports(mostlyextreme
onessuchasdirtbiking)andvideogames;watchesalargeamountofTVwithavarietyoftasteinprogramming,fromrealityTVtogaming
networks;extensiveinternetusers,especiallysportssitesandsocialnetworking;latenightradiouse;widerangeofoccupations,from
salesandofficetoconstructionandmaintenance(notCEOs)

23

Insight:Iworkeighthoursadayatanoffice,andafterwards,Ienjoyspendinghoursplayingvideogamesandwatchingmyfavorite
NASCARdriversontelevision.Ineedadrinkthatwillkeepmeenergizedenoughtoworkmyjobandenjoymyhobbies.
Promise:AMPEnergysatisfiesitscustomerswithavarietyofaffordabledrinksthatcombinestimulants,goodtaste,andvitamins.
Support:
AMPEnergycontainsacombinationofBvitamins,taurine,ginseng,andguarana
AMPEnergypromotesalonglineofproductsgearedtowardseveryconsumerpreference:AMPSugarFree,AMPOverdrive,AMP
Focus,AMPTraction,AMPLightning,andnow,AMPgumandjuice
AMPEnergyencouragescustomercomplaintsandquestionsthroughtheireasilyaccessiblesocialmediasites
Mandatories:

http://www.ampenergy.com

24

AppendixB:MRIAnalysisforTargetMarket
(Amp:Past30Days/Monster:Past30Days)
Demographics

Age
1824:Vert=41.5%/31.8%Index=325/249
2534:Vert=26.9%/29.9%Index=149/166

Race
White:Vert=79.9%/64.5%Index=104/84

Education
SomeCollege:Vert=36.2%/30.9Index=132/113
GraduatedHighSchool:Vert=33%/32.7%Index=104/103
TwelfthGradeorLess:Vert=18%/21.5%Index=117/139

Employment
EmployedFullTime:Vert=60.1%/63.7%Index=112/119
EmployedPartTime:Vert=15.5%/13.2%Index=136/116

Professions

FoodPreparationServingRelatedOccupations:Vert=7%/4.8%Index=237/163
PersonalCareandServiceOccupations:Vert=3.3%/2%Index=149/92
SalesandRelatedOccupations:Vert=11.6%/10%Index=146/126
Farming,FishingandForestryOccupations:Vert=0.5%/0.9%Index=143/272
ConstructionandExtractionOccupations:Vert=5.3%/8%Index=143/214
ProductionOccupations:Vert=6.1%/6.6%Index=145/157
TransportationandMaterialMovingOccupations:Vert=8.5%/7.4%Index=191/166
MilitarySpecificOccupations:Vert=1.7%/1.5%Index=441/393

HHI
<$10,000:Vert=6.2%/5.7%Index=109/101

25

 $30,000$39,999:Vert=13.0%/12.4%Index=129/120
$50,000$79,999:Vert=24.9%/18.9%Index=126/95

Status
Single:Vertical=52.2%/45.8%Index=208/182

Region

Pacific:Vertical=19.4%/37.2%Index=99/189
WestCentral:Vertical=19.6%/15.6%Index=130/103
EastCentral:Vertical=15.2%/11.2%Index=119/88
SouthEast:Vertical=21.8%/10.9%Index=108/54

MediaUsage

Television

G4:Vertical=8.7%/6.4%Index=294/217
AdultSwim:Vertical=15.4%/13.4%Index=273/238
ComedyCentral:Vertical=38.6%/34.7%Index=173/156
ESPN:Vertical=38.7%/34.7%Index=133/120
ESPN2:Vertical=26.2%/22.2%Index=146/124
Spike:Vertical=31.9%/28.3%Index=186/165
Fuse:Vertical=5%/3.9%Index=283/216
MTV:Vertical=34.8%/29.1%Index=220/185
MTV2:Vertical=17.4%/15.4%Index=271/241

LateNightTalk/Variety:Vertical=4.1%/3.6%Index=163/142
AutoRacingSpecials:Vertical=8.6%/6.2%Index=136/98
GravityGames:Vertical=5.5%/2.9%Index=568/301
FootballCollegeWeekend:Vertical=20.5%/15.2%Index=135/100
FootballProWeekend:Vertical=32.5%/27.3%Index=139/117

Radio
Alternative:Vertical=17.1%/14.1%Index=233/192

26

Rock:Vertical=22.9%/20.7%Index=214/194
ClassicRock:Vertical=19%/11.4%Index=198/119
ContemporaryHits:Vertical=35%/30.6%Index=196/171
Sports:Vertical=6.9%/4%Index=148/85

Magazines

4Wheel&OffRoad:Vertical3.6%/4%Index=234/260
Blender:Vertical=3.3%/2.4%Index=374/270
Car&Driver:Vertical=11.9%/8.9%Index=252/189
Details:Vertical=1.9%/1.3%Index=360/243
ESPNTheMagazine:Vertical=14.7%/13%Index=239/211
GameInformer:Vertical=11.1%/7.4%Index=418/279
OfficialXboxMagazine:Vertical=8.3%/5.2%Index=401/249
PCGamer:Vertical=3.1%/3.3%Index=242/258
Maxim:Vertical=18.7%/15.2%Index=321/261
Truckin':Vertical=5.3%/3.4%Index=344/220

27

AppendixC:SRDSLifestyleAnalystData

Food & Beverages: Drink Energy Drinks

Market Name
Chicago, IL

HHs Est Users

Market
Potential
Index (CDI)

Estimated
AMP Sales
$(000)

3515299

1089782

109

10351.0

El Paso et al, TX-NM

307073

99603

114

612.5

Fresno-Visalia, CA

580872

186108

113

1048.3

Las Vegas, NV

715284

231561

114

2411.9

Los Angeles, CA

5759523

1975624

121

18053.3

Miami-Ft. Lauderdale, FL

1570334

530350

119

4661.2

New York, NY

7554817

2409489

112

17222.5

28

AppendixD:BudgetSummary
SizeofBudget:$24million
CampaignPeriod:July2011June2012
AmountAllocatedtoMedia:$20,772,100(86.6%)

MEDIATYPE
NetworkTelevision

Sports

$4,553,800

CableLateFringe

$1,241,500
SpotTelevision

LateFringe/News

$285,500

Cable

$449,300
SpotRadio

MorningDrive

$303,500

Daytime

$473,800
Magazines

Mens

$3,756,200
Internet

TargetedSites

$6,858,500
Nontraditional

SocialMedia

$200,000

VideoGamePlacement
$400,000

SkateParks

$1,000,000

Sponsorships

$1,250,000

SEASONALITY
1stQuarter(JulSep)

2ndQuarter(OctDec)

3rdQuarter(JanMar)

4thQuarter(AprJun)

CONTINGENCY$3,150,000(13.4%)
National

Spot

Nontraditional

Amount

Percent

$5,795,300

$734,800

$777,300

$3,756,200

$6,858,500

$2,850,000

27.9%

$20,772,100

100%

$7,959,500
$4,238,400
$712,500
$7,861,900
$20,772,100

38.3%
20.4%
3.4%
37.8%
100%

$1,500,000
$1,500,000
$150,000
$3,150,000

47.6%
47.6%
4.8%
100%

3.5%
3.7%
18.1%
33.0%
13.7%

29

AppendixE:SpotMarkets

Market Name

Rank

%US

Los Angeles, CA

New York, NY

6.54

Las Vegas, NV

43

0.63

Fresno-Visalia, CA

55

0.5

Miami-Ft. Lauderdale, FL

16

1.36

Chicago, IL

3.07

El Paso, TX

98

0.27

7 Markets Chosen, covering 17.37% of US households.

30

AppendixF:Flowchart

31