Amp Energy Drink

Media Plan

Amanda Gilpin Alexandra Morris

Jenny Morris Laura Pope

Molly Singraber !!!

Table of Contents

Executive Summary...................................................................................... 1 Situation Analysis ....................................................................................2-14

Amp Background Information ................................................................2-3 Current Look & Feel of Advertising .......................................................4-6 Industry Information: Category Trends....................................................... 7 Competitor Information............................................................................8-9 External Information – Trends Influencing the Industry .......................... 10 Current Users............................................................................................. 11 Geographical Emphasis............................................................................. 12 Seasonality and Timing............................................................................. 13 Consumers and Consumer Decision Making Process............................... 14

SWOT Analysis ........................................................................................... 15 Primary Research ..................................................................................16-19 Target Audience.....................................................................................20-22 Media Plan..............................................................................................23-28

Objectives & Budget ................................................................................ 23 Scheduling................................................................................................. 24 Media Mix: Traditional ............................................................................. 25 Media Mix: Non-traditional ...................................................................... 26 Rationale.................................................................................................... 27 Metrics....................................................................................................... 28!

Creative Strategy ...................................................................................31-33 Reference Page .......................................................................................34-35 Appendices..............................................................................................36-51

Appendix A: Competitors ........................................................................ 36 Appendix B: CDI/BDI Chart................................................................37-44 Appendix C: Survey Data ...................................................................45-48 Appendix D: Geographic List of Student Group Sponsorships ............... 49 Appendix E: Media Flow Chart/GRPs.................................................50-51

1

Executive Summary

In our breakdown of PepsiCo’s Amp Energy drink, we’ve concluded that the company could

use a marketing strategy with an edge. The energy drink industry implements similar strategies-

targeting millennial men with corporate sponsorships. Energy drink companies have traditionally

been supporters of active sport users. Amp’s advertising strategies have successfully proven

themselves to be generic. The strong budget for the 2013 year gives room for flexibility and an

increase in market share. PepsiCo stands strong and holds the brand at a higher level than Monster.

While all the data says men drink energy drinks, we found in our primary research that

women are not uninterested users. In fact, women are looking for a product geared towards them,

especially when they are focusing on their studies. Amp is looking to expand its usage outside of

their traditional audience and this plan targets Asian American Females 18-24. Our research gives

reason to target not only a different racial makeup but also a different gender within that audience.

We propose a media plan that leverages word-of-mouth advertising in sponsorships of college

student organizations and social media platforms. The emphasis Asian American’s place on family,

education, and community also plays into our media plan with our in-language television spots,

yellow-page ads, and plan to give away college scholarships. These various forms of media will

accomplish our marketing and advertising objectives to increase awareness and sales.

The opportunity to recruit a new consumer base will set Amp apart from its competitors

since current energy drink consumers are brand switchers who struggle to foster brand loyalty. In

our creative ads we will relay a message that Amp energy drink is linked with the trusted PepsiCo.

brand; a tradition and a past-time. Amp is ready to gain brand loyal Asian consumers who will

spread the word to their peers about the “Dew” like energy drink.

2

Amp Background Information Company & Brand

Amp energy drinks have been available to the public since of 2001. The drink was created

by Pepsi Co and paired with Mountain Dew to be successful in the action sports market. It is an

energy drink that has the taste of Mountain Dew gaining it some popularity among loyal Mountain

Dew users. In 2006, Amp helped PepsiCo reach the third highest sales within the energy drink

realm. From 2009, Amps estimated sales have totaled $281,608,000 and their average sales are

$1,347,000 dollars.

Product Amp is under the category of energy drinks and targets college students, young adults, and

athletes seeking a quick boost of energy throughout their daily tasks. PepsiCo has found that young

adults live a fast pace lifestyle so Amp energy drinks offer four times the caffeine, which enters the

blood stream faster causing a quicker effect. Amp’s research found that the best way to sell their

product was to create a few variations. These three variations are called Focus, Active, and Amp

Boost. By cutting down to three, the company believed that they could reach a versatile group. Amp

Active is targeted for people who needed a boost during their workouts, Amp Focus is targeted for

young adults in the work force, and Amp Boost is targeted for students who need a lift when

studying for exams.

Drinks come in three sizes, 8.4 oz, 16 oz, and 24 oz. The cost of an 8.4 oz can is roughly

around $1.50, which is 0.18 cents per ounce. The flavor is similar to that of Mountain Dew and is

known for being sweet, sugary, and having a pleasant after taste. Amps competitors such as Red

Bull charges $1.89 dollars for their 8.4 oz can and Monster charges $1.50 for their 7.75 oz can.

3

Therefore Amp is giving the lowest price compared to its competitors, which can be a beneficial

tool for campaigning.

Place

Amp is sold in over 200 countries but its main focus is in the United States. It is distributed

in retail stores like gas stations, grocery stores, and vending machines. Purchases can be made also

by typing in their personal zip code into ampenergy.com in order to find the closest location to

purchase the product. Canada and North America are the most popular regions when it comes to

Amp sales.

Promotion

The company spends about $8.6 million in advertising. These dollars are strategically placed

within sponsoring sporting events and athletes as opposed to traditional methods like billboards,

commercials, and print. In the past is has been a successful campaign strategy; however, it is now

time to reach different markets and in order to reach potential new users more modern and

interactive forms of advertising should be used.

4

Current Look & Feel of Advertising

AMP Energy was initially distributed under the Mountain Dew brand, but since 2009, it has

been produced and labeled under its own stand-alone trademark name. Spending 8.6 million dollars

in advertising annually, most of the budget is spent on the sponsorship of various sporting events

and athletes. Since 2008, AMP Energy has sponsored NASCAR driver Dale Earnhardt Jr. In 2009,

AMP Energy released a limited edition Dale Earnhardt Jr. themed energy drink which was a

combination of three flavors: orange, lime and berry. In 2012, Hannah Teter, Olympic women’s

halfpipe champion, joined the Amp energy brand as a promotional figure. Her involvement with the

brand centered around a Amp energy juice drink quilt that will be donated to Teter’s charity,

Hannah’s Gold Foundation. Again in 2010, Amp became the official sponsor of the Word Extreme

Cage fighting competition. Taking their involvement with the World Extreme Cage fighting further,

Amp energy drink sponsored Urijah Faber, bantamweight Ultimate Fighting Champion (UFC).

Their current advertising takes charge in the market by sponsoring these in-your-face sports:

UFC fighting, U.S. Open Snowboarding Championships, and NASCAR racing. These sponsorships

allow Amp energy’s current advertising tactic to be one that is pushing the consumer out the door to

act versus an approach of engaging the consumer to the advertisements themselves. They give the

feel that the consumer needs to rush to get their energy. The Pepsi brand aims to energize the media

as much as the drink would energize a consumer.

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PRINT Slogan: “How do you Amp yourself?” Description: Current ads promote each flavor of the beverage as an action. The example given shows Hannah Teter performing a snowboard trick with the headline: “Hannah Teter is Relaunch.” Relaunch represents one flavor of Amp energy.

DIGITAL/TV COMMERCIAL (YouTube):

Slogan: “Amp yourself” Description: In their commercial media executions, Amp energy uses the slogan “Amp yourself” to relate to a number of circumstances. These circumstances include, a goalie’s reaction time, jump-starting a car, and a reality commercial of a day-in-the-life of UFC fighter, Urijah Faber. Each commercial spot plays on the ability of the individual to “amp themselves” after drinking Amp energy drink

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FACEBOOK Slogan: “Rethink energy” Description: The current Facebook banner advertisements for Amp energy drink prompt the consumer to “like” the page and then “rethink” how they view their energy. They also use the site as an interactive medium by holding contests with their members. The most current advertisement through a contest asks the consumer to take a picture of themselves with an Amp energy beverage while sporting a beard or mustache. This is pushing the consumer to action.

SPONSORSHIPS Description: The current goal of Amp energy drink’s sponsorships is to relate the brand to positive faces in the sporting world. As mentioned earlier, UFC, snowboarding, and NASCAR are a few of the target markets that PepsiCo chose to promote the Amp energy drink brand.

THEME: The advertising executions by Amp energy drink all create an overarching theme of “pushing” advertisements. They see the consumer as an outlet for the energy drink. They want the consumer to feel motivated to reach for the shelves whether they are relating to the advertisements or not. The Amp energy drink campaigns are interested in promoting action instead of interaction.

7

Industry Information & Category Trends

The energy drink industry has been on the rise since 2009 where consumers began spending

34% more than the previous years in the category. Energy drinks alone account for 22% of all drink

sales within the United States. Some of the bigger brands are Red Bull and Monster. Pepsi saw the

potential in the category and believed that the power of energy drinks added with the taste of

Mountain Dew would be a successful product. However, they were the latecomers to the industry,

with Red Bull being the first to enter the industry and make a “splash.” The first brand name on the

market is still enjoying market success. It is a definite weakness that Pepsi will have to work hard

for the name of their product to be recognized and associated with quality.

Energy drinks and shots are making a strong appearance. Energy shots went up more than

896 million dollars in sales, taking up 7.63% of the industry according to Chicago-based market

research firm SymphonyIRI Group’s InfoScan numbers from convenience store channel. Major

brands such as 5-hour Energy, Monster, and others posted solid gains.” (Reill, 2012)

Gary Hemphill, a senior vice president at Beverage Marketing Corp.’s information services

division, said the core market for energy shots have been younger males, but that appeal is evolving.

“Energy is a need that spans both sexes and a wide range of ages,” he said. “So the energy-products

consumer has begun to broaden well beyond the original core consumer, and companies have begun

to market their products accordingly.”

Between 2006-2007, American’s spent $744 million on energy beverages accounting for

34% increase in spending over the year’s prior. From 2001-2006, the market grew 516% with over

3.2 billion dollars in sales. The category did extremely well in single unit purchases. 80% of these

sales come from convenience stores and gas stations. There is evidence that women are drinking

energy shots more than men, showing an opportunity for Amp to target females.

8

Competitor Information

The energy drink category is considered a very competitive market. Although, there is one

brand that stands out among the rest, the remaining energy drink brands have a lot of potential in the

market and have a decent share size of that market. There are three direct competitors that Amp

competes with, and they are Red Bull, Monster, and Rockstar. These are the top three brands

because they have the three highest markets share percentages and have sales above Amp. There are

a few indirect competitors with energy drinks, and they are products that can fulfill the same energy

kick that energy drinks provide. These indirect competitors are 5-hour energy, sports drinks, and

coffee. 5-hour energy is the product that most closely resembles energy drinks; therefore, we will

conduct research on this product as well. (See Appendix A)

Red Bull: is a functional beverage with a unique combination of high quality ingredients to

vitalize the body and mind. (RedbullUSA) Perceived as the drink that gives you wings. It can be

purchased in convenient stores, mixed with alcohol at bars, and is sold in 20 packs online. With a

large budget, Red Bull’s advertisements and promotions include television commercials, event and

team sponsorships, street ads, and billboards. Red Bull has a strong share of voice in television,

allowing them to spend most of their advertising dollars on this outlet.

Monster: is a can of the meanest energy drink, which delivers twice the buzz of a regular energy

drink. (Monsterenergy.com). Monster is a big supporter of extreme sports and concerts, and

promotes their product through sponsorship of these events. They have increased their budget in the

past year to try and attack Red Bull through more advertisements and promotions. While Monster

advertises mostly through business to business advertising, their small share of voice in this

category suggest they allocate more of their media budget through other outlets to try and surpass

Red Bull.

9

Rockstar: is the world’s most powerful energy drink blended with herbs to provide an energy

boost to those who lead active lives such as athletes and rock stars. Rockstar promotes its product

through sponsorships of active events such as BMX racing, bull riding, surfing, etc. They allocate

most of their media dollars to newspaper and Internet to promote their product to their young target

market.

5-hour energy: is made for hard working people to help provide a quick and easy shot of energy

to last up to 5 hours. Their product is aimed towards working adults and they promote to this target

through television advertisements and billboards. 5-hour energy also puts their product on display at

check out lines and cash registers to emphasize point of purchase decisions.

Brand Budget Media Mix 2011 Share of Voice 2011 RedBull $52 million for 2013 35% Cable TV

30% Network TV 26% Cable TV 54% Network TV

Monster $20 million for 2013 94% Business to Business 5% Business to Business

Rockstar $27 million for 2013 56% Newspaper 44% Internet

12% Newspaper

10

External Information – Trends Influencing the Industry Health:

• Society’s increasing concern for health and wellness. • Trends toward health foods (natural or organic) could force energy drink companies to shift their product’s positioning to appeal to the health-conscious consumers. • Mainstream brands have begun to release low carbohydrates, sugar free, and diet versions of their drinks. • Other energy drink companies has emerged and positioned themselves as a “natural” product, offering drinks with herbal ingredients like green tea extract and Acai natural energy boost. • US has set a limitation on the maximum caffeine per serving in energy drinks. As a result, any companies have increased the amount of caffeine ounces per can by including two servings in one can.

Economic: • The instability of our economy over the past years: influence of the recession and post-

recession causes economic uncertainty in the market. • Outlook is bright because in 2011, the new product count nearly doubled compared to

the previous year. • Sales of energy drinks and shots have remained relatively strong for the last few years,

but the same core group of customers continues to buy them. Legal:

• Energy drink market under investigation for deceiving customers about the ingredients and health value of their products. • Companies overstating the benefits of exotic-sounding ingredients while understating the role of caffeine. Many of the energy drinks do not indicate the amount of caffeine contained in one bottle. Investigators are looking into whether the addition of ingredients like guarana—another source of caffeine—violates laws that ban putting multiple sources of caffeine in one beverage without disclosing the overall amount.

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Current Users

Gender: Men: 62.5% Women: 37.5 % Age: 18-24: 26.7 % 25-34: 29.1% 35-44: 22.1% 45-54: 13.4% 55-64: 5.5% 65+: 3.2% Race: White: 65 % Black: 15.8% Asian: 3.2% Other: 16.3 % Relationship Status: Single: 43.4% Married: 42.2% Divorced: 14.4 % Education: Grad School Plus: 19.2% Some College: 31.3% Graduated High School: 31.5% Twelfth Grade or Less: 18% Employment: Employed: 76.2% Non Employed: 23.8% Occupation: Sales and Office Occupations Construction and Maintenance Income: Amp users have a wide range of household incomes

Living: Own Home: 54.5% Rent Home: 44.7% Live Free of Rent: 0.8% Families: Parents: 38.9% Have no children in Household: 48.2% Have children in Household: 51.8% Internet Usage: Heavy Internet users: 20.8% Any Access To Internet: 85.6 % Internet Access at Home: 66.6% Magazine Usage: Heavy Users: 27 % Main magazine publications they use are Automotive, General Editorials, Home Service, Sports, and Women’s magazines. Radio Usage: Heavy Radio Users: 25.4% Main radio formats they listen to are Country, Soft Adult Contemporary, CHR, and Urban. Television Usage: Light Users: 21.8% Many of the current users fall into the lighter usage of television. Of the users that do watch television, Sport channels were overwhelmingly popular. Newspaper Usage: Read any daily newspaper: 37.2% Read any one daily newspaper: 29.5% Psychographics: Experiencers

12

Geographical Emphasis

Current Amp Energy Geographic Focus • Coast and Central Regions • Urban and liberal cities • States with a range in climate and terrain

So what? • Amp energy brings in the most sales in these areas • Street teams liven up these areas to promote the brand in its most populated areas

Where does this leave Amp Energy geographically, today? • Most potential for Asian American audience lies in:

Chicago, Los Angeles, Honolulu, New York, San Francisco

(See Appendix B for complete CDI/BDI Chart)

Market Name HH (000) Amp User (000) CDI Index Chicago, IL 3,515,299 1,089,782 109 Honolulu, HI 442,274 120,672 96 Los Angeles, CA 5,759,523 1,975,624 121 New York, NY 7,554,817 2,409,489 112 San Fran, CA 2,529,617 729,476 101

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Seasonality and Timing One particular facet of our target age audience (18-24) includes education seekers. Asian American females are statistically shown to be in pursuit of an education, which drove our strategy to look at college activity (Furirchi et. al., 250). When are peak times for Amp Energy Drink Sales?

• August • November • December • March • April • May

Current Seasonality and Timing Plan • Promotion in best time for Asian American Females in academia • Remove stigma of energy drinks with positive correlations to education • Encourage brand promotion for peak times of sales interaction

14

Consumers and Consumer Decision Process

What are consumers looking for in energy drinks?

• Amount of caffeine per serving • Something to “stay awake” to

study/part longer • Health is NOT their main

concern: willing to sacrifice a few calories for time doing their favorite hobby or getting through the work day

• A low thought, low decision-making effort

• Flavor variety is the most important consideration

Key Consumer Purchasing Insights

“Those energy drinks with

lower prices that provide the

same benefits are likely to be

more favorable.”

“All energy drink companies that

wish to have influence in society

must meet the following criteria:

low-cost, low consumer

involvement, familiar brands, little

thought, search, or time given to

purchase.”

“Energy drink needs are satisfied when consumers like the flavor, price, and positive effects on his/her cognitive performance and mood.” Buyers use sources like the

Internet for becoming familiar with a brand but not for purchasing results-centered products like energy drinks.

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SWOT Analysis

Strengths: -Variety of flavors -PepsiCo. renowned soft drink brand. -Likability of Mountain Dew flavor and after taste -Creative name of product and its association with music

Weaknesses: -Latecomer to the market -Low brand awareness -Target too segmented for future growth, narrowly skewed towards alternative, extremist men -Current branding strategies too similar to competitors

Opportunities: -Consumer spending happens consistently year round. -Non-traditional media, internet & gaming -Strong SOV -New product exposure directed away from typical male audiences.

Threats: -“Health focused” consumers. -Rise of new and different energy brands. -In-store availability -Current consumers as brand switchers

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Primary Research Research Objectives

• To determine what qualities users look for in energy products: taste, appearance, energy boost, etc.

• To gauge where Amp stands in relation to other brands in the energy drink market in the minds of all consumers.

• To uncover specific consumer behavior and the decision making process when it comes to buying energy drinks.

• To expose the common forms of media usage in men/women ages 18-24. Method For our primary research we compiled two surveys on Surveymonkey.com and distributed them both to over 300 people for completion, but only 110 submitted answers. You can see in Appendix A the variety of styles of questions asked in our survey including likert, rank-order, semantic differential, and open-ended. We chose to conduct surveys because they provide objective data that can reach a mass of people. Interviews and focus groups would have been more difficult because focus groups can be influenced by one participant and therefore affect the answers of the others participating. The survey was easy to put together and allowed us to reach a larger randomized sample. (See Appendix C for full survey questions and analysis)

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Survey Results

Key Finding Almost everyone who completed the survey has consumed an energy drink at least once. Analysis These results suggest the majority of those surveyed are more likely to consume energy drinks in the future.

Key Finding The highest percentage of those surveyed consume energy drinks when mixed with alcohol, then to get that extra boost in the evening, and lastly to stay alert while studying. Analysis These results signify that consumers would be persuaded to consume energy while studying or out on the social scene. It also signifies opportunity to promote Amp for boosts in the morning and staying alert at work.

90#

10#

0# 20# 40# 60# 80# 100#

Response#

Have%you%consumed%energy%drinks%before?%

No#

Yes#

0# 10# 20# 30# 40# 50# 60#

Reasons#for#consump9on#

Why%do%you%consume%energy%drinks?%

To#stay#alert#on#the#job#

To#stay#alert#while#studying#

To#pull#an#all#nighter#

Mixed#with#alcohol#

Recharge#aGer#exercising#

Boost#in#the#evening#

Boost#in#the#aGernoon#

Boost#in#the#morning#

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Key Finding The top three mediums ranked the highest among those surveyed were Smartphones, social media, and television. The least used medium was Internet blogs. Analysis These results suggest that Amp should not focus on advertising through blogs, news sites, and magazines. The most efficient ways to reach our target audience will be through Smartphones, social media, and television.

Key Finding The majority of those who completed this survey were females (82.4%) Analysis This information shows that what we gathered through our survey will help us target females more successfully.

Media#Outlets#

Rank%your%media%usage%

Internet#blogs#

Internet#browsing#

Internet#News#sites#

Radio#

Social#Media#

Magazines#

Print#newspaper#

0# 10# 20# 30# 40# 50# 60# 70# 80#

Gender#

What%is%your%gender%

Female#

Male#

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Key Finding Majority of those surveyed were not aware that Amp is owned by Pepsi Co. Analysis This information signifies lack of greater Brand Awareness and an opportunity to use the large PepsiCo. name to help promote Amp to a larger market.

Survey Take Away Points: 1. Amp does not dedicate enough of its advertisements to women, who were showing a large percentage of buying power. 2. The PepsiCo. Brand name does not carry as strong of a weight with Amp as it does with its other drink products, which could be hurting the marketing and brand awareness. 3. The best way to reach our audience is through technology and social media. 4. Energy drinks are consumed in a single sitting for studying purposes or as a part of the social scene.

0# 10# 20# 30# 40# 50# 60# 70# 80# 90#

Response#

Did%you%know%Pepsi%Co.%owns%Amp?%

No#

Yes#

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Target Audience- Asian American Women in Academia

Description of our audience in general:

Asian American Females in college or recent college grads; in their twenties and still

dependent on their parents. Specifically, we will hone in on Chinese and Filipino women,

because they make up 40% of the 8 million people female population. These students often deal

with major academic pressures. After getting accepted into college, they are expected to excel

academically so that they can ultimately land a professional job that guarantees money and

stability. Their parents play a big role in choosing their major and pushing them to work hard in

college. These women are renting apartments with money their parents give them and using their

own money for entertainment or fashion mostly. Their parents also pay for their expensive taste

in cars. These women are trend shoppers and have a preference for well-known brands. They are

media sophisticates with heavy Internet and social media usage.

Geographic Segmentation: Los Angeles, New York, San Francisco, Honolulu, Chicago.

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We recognize the size and the power of the largely untapped market of more than 17

million Asian Americans. In our survey we had a large amount of responses from female energy

drink users who expressed interest in a product specifically geared towards their gender. No

other energy drink is tapping in to the lucrative female market and we see this as a possible

cornering of the market. These affluent, well-educated individuals are an impressionable and

easily targetable audience. They want to create their own world in the U.S. separate from that of

their parents; they are creators. They cling to Asian culture with in-language advertising but they

still strive to be a unique part of American culture, using “chameleon behavior.” They will aid in

the sales objective, since they are the fastest growing demographic regarding buying power in

the U.S. The most potential we see in this group is the likelihood they will become brand loyal,

as they have a high preference for brand names such as PepsiCo.

Scope of audience from U.S. Census: According to U.S. Census data from March of 2012, There is an estimated 17.3 million

U.S. residents of Asian descent. This group comprises 5.6 percent of the total population. To

give a rough estimate of Asian American Females we would target with this campaign we used

Gender data from the 2010 Census population. We estimate 3,650,000 people in our scope.

There are 5.6 million Asians in the state of California alone; the largest Asian population

in the 2010 Census, followed by New York (1.6 million). Hawaii had the highest proportion of

Asians (57 percent).

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“A Day in the Life”

A late night studying for her finance exam, Kristi Chu awakes, groggy, grouchy and not

even close to being ready for the day. It’s the busiest time of the spring semester and she just

wants it to be spring break already. All she wants is a full 5 hours of sleep and for her parents to

lay off about her interviews and studying. Finals, papers, and job hunting are all creeping up on

her and on top of that she is not a morning person. She gets on Facebook, where she has adjusted

her language settings to Chinese, to chat with her friends online before going to class. She grabs

a water bottle and decides to drink lemon water for breakfast. She’s trying to lose weight because

she thinks all her studying is causing her to gain stress weight. While she’s in her economics

class she browses online at Zara for new business professional attire and then eBay for a new

iPhone5 case. Asoya.com is her last online shopping site, where she can buy She gets on the bus

to go home after class and plays with her iPhone app games. While she’s home the rest of the

night she turns on her Netflix online, grabs a Diet Pepsi for caffeine, and tries to multi-task doing

homework. All this stress from homework makes her depressed and tired. As she lies down at

night and tries to forget about all her duties she reads her favorite fashion magazine, Audrey.

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Media Plan- Objectives

Marketing Objective: Increase sales of Amp by 25% among Asian American females within the first six months of the campaign. We will do so by finding and targeting these new female users to buy more as opposed to focusing on frequency with the current audience. Advertising Objective: To establish 35% overall brand awareness for 18-24 year old Asian American Women Media Objective: Boost Amp awareness by reaching 80% of Asian American women in Academia an average of 3 during the academic periods March-May, August-September, and November-December. Promise: Amp energy drink will provide you with the extra boost needed during the day or night while giving you the exceptional taste of mountain dew and the reliability of the Pepsi Brand.

Media Plan- Budget

Based on our $25,000,000 budget for the year 2013 the advertising spending will follow the percentages outlined in the graph below:

2013 Expenditure Per Vehicle Selection

Television- 25% Print- 20% Online/Digital- 30% Non-Traditional- 25%

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Media Plan- Scheduling

Spot Advertising:

• Ad spending during periods of high demand; spring final exam times on college campuses (November, December, March, April, May).

• September and August start of the new school year and student group sponsorships

• Not necessary to have heavy ad exposure in the summer months, as that is when drink consumers are outside enjoying the weather. Weather is their form of energy, not our caffeinated drink.

• The months in which we will use the highest amount of our budget and most of our advertising will be based around college student’s curriculum.

See Appendix E for Full Media Flow Chart

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Media Plan- Media Mix 1) Digital/Rich Media Search Engine Advertising (Google, Yahoo, Bing) Rich Media Advertising (Facebook, YouTube) Banner Advertising (Zara.com, AsianWeek.com)

2) In-Language TV TV Asia

3) Print

Magazines -Audrey -US Weekly -SAPNA Magazine Yellow-Page Directories

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Media Plan- Media Mix 4) Sponsorships -Music Festivals -College Asian American Student Organizations

(See Appendix D for list of all universities and sponsored groups) 5) Online Facebook & Twitter Campaign -Scholarship Competition for Asian American women entering undergraduate or graduate school. -You must like our fan page and then fill out the application posted on the page -You get additional points when your scholarship is reviewed for the number of likes you can get for the fan page -Twitter updates will be sent out from the Amp page too during the summer when students are getting ready to apply and receive scholarships.

6) Street Team “Amp Camp” -Drive green colored vehicles and give out free samples on city streets. -College campus raffles giving away concert tickets -Tailgate at football games on college campuses with a tent with Amp logo -Visit business offices and college classrooms to hand out free samples

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Media Mix Rationale

Non-Traditional -Sponsorships of Asian American Student Organizations within college campuses and musical festivals for up-and-coming college artists will allow us to reach our media objective. -The street team allows for more engagement of the brand directly with our target audience. -Sampling is a strong promotional tactic that will get the product into consumers’ hands with little effort. -Press releases sent out to major college newspapers by an AMP PR agent will increase brand preference if human-interest element is included for the female target. -Our primary surveys showed many Asian American women use Facebook as a tool to keep in contact with friends from their home country, family, and new friends that they have accumulated within America. Social media is the most cost-effective way to spread Amp image by word-of-mouth marketing. -Scholarship on social media ties into the Asian American definition of success and growing educational importance. -Interactivity- two way communication with the customers

Television -83% of Asian Americans watch live television, which is too big of the population to ignore. -Because a large majority of our target audience live in locations such as California, New York, and Chicago we can make smaller buys in local markets and not have to worry about national spotting. -Television is becoming one of the most influential advertising tactics because of the combination of sound, music, and pictures that create a story for the brand. -TV creates a sense of community in users, and that is an important factor for Asian Americans -Extreme concentration of Asian Americans makes them easy to reach through spot TV ads.

Print -Print ads with PepsiCo visuals and the Amp name will help familiarize the Asian American target with the American Brand. -Asian American 18-24 year olds show a high interest in fashion and status brands from magazines. -Audrey magazine launched in March 2003 in response to the growing demand for a high-quality publication that serves Asian American women. -Women look to visual print ads when trying to find hip new brands, such as Amp energy.

Digital/Online -The top products purchased online amongst Asian Americans remains as apparel and books. Banner ads placed on the Zara shopping website will hopefully catch the eye of our female Asian and non-Asian buyers since they are interested in Fashion. -Asian Indians and Chinese spend the most hours on the Internet and young Asian Americans between the ages of 25 and 34 are the heaviest Internet users. -High reach potential -Numerous creative options

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Metrics Television:

• Spot television reach can be determined by ratings and frequency can be met by seeing the ratings of each show.

Print:

• The circulation of the magazines will evaluate by how many viewers there are for each advertisement.

• QR codes will be placed on our magazine ads for users to scan and get a coupon for Amp. Success can be measured by how many visitors the code receives and then how many people redeem the coupon.

Online/Digital: • For online advertising on websites such as Bing, Yahoo, and Google, we will measure the

traffic of the websites and the amount of clicks. • To measure the advertising on Facebook, we will evaluate the number of click-throughs.

Non-Traditional: • Scholarship reach will be determined by how many applicants there are for the

scholarship. • Amount of Facebook likes the page receives and number of people who sign up for the

Facebook contest will show how well our brand is doing in the online realm. • Sponsorship success can be measured by handing out surveys to the college students who

attended or hosted the Amp event. General positive comments and a high intent to purchase quotient from the surveys will be the metrics.

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Creative Strategy Competition: Where are they now? Rockstar: Rockstar uses sponsorships to get their message out to the consumer. They use social media sites like Facebook, YouTube, and Twitter to promote their sponsored sports by interacting with the consumer through contests, promotional teams, and special events. Through commercial advertising, Rockstar uses the consequences of drinking the beverage to promote the benefits of “drinking responsibly.” Overall, their advertisements have a reoccurring theme of flash, and action.

Red Bull: Red Bull energy drink advertisements work around the slogan “Gives you wings.” This slogan ties together their sponsored events, media campaigns, and special events. The theme of their current advertising campaigns relate the ability for individuals to do more than they ever though they could. Their advertisements show that consumes can achieve the impossible by drinking Red Bull; that the energy they receive from Red Bull can give them abilities beyond their wildest dreams.

5 Hour Energy: The 5 Hour Energy brand holds its advertisements in a niche market. Their take on the “energy shot” prompts their advertisements to be viewed as shorter, in-your-face, and to the point. They focus their efforts on a bullet-point approach to show the consumer the benefits they will receive immediately and without fluff. Their overarching theme is quick results. Monster:

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The Monster brand has the look and feel that stresses the extremes of life. Their advertisements use the black can as an overarching theme. They promote the dark colors and neon flavor names to draw the consumer in with intrigue. They hold a place in the media through TV, digital, and sponsored events.

Key Insight: Consumers need to understand that Amp energy drink is a good source of energy in moderation. It is a community charged brand for the college student. Amp will provide consumers with a better understanding of the Pepsi Co. ownership of Amp as well as highlight its dedication to college students.

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Creative Summary Who is our Target

• Academia Seekers • Asian American Females in their twenties • Those who long for extra energy in their day-to-day lives to meet academic pressure • Located in Los Angeles, New York, San Francisco, Honolulu, and Chicago.

Where are we now in the mind of this person?

• We are seen an energy drink that holds a variety of flavors. • We are related to popular sporting events, such as UFC fighting. • We are seen as a sugary, unhealthy beverage that promotes poor nutritional choices.

Where is our competition in the minds of this person? • Our competition is associated with sponsored events like UPROAR festival or Flugtag. • They are seen as a “cousin” to our brand as ones that is readily available in convenience

stores. • They are seen as leaders in the energy drink industry.

Where would we like to be in the mind of the person?

• More than just an energy drink, we are a brand that is creating a movement to increase energy levels and productivity for the eager academic consumers.

What is the consumer promise, “the big idea”? • Our promise to consumers is that Amp energy drink will provide the extra energy boost

needed during the day or night while giving the exceptional taste of mountain dew and the reliability of the Pepsi Brand.

What is the supporting evidence? • Amp energy drink sponsors events like NASCAR to promote the brand and the benefits

of its ingredients. • Amp energy drink uses its relation to mountain dew to show how flexible the drink is in

mainstream media.

What is the tone for this advertising? • ENGAGING, ENERGETIC

Creative Take Away Points:

-Highlight the association between the taste of PepsiCo’s Mountain Dew and Amp energy drink. -Use social media- more engagement in college towns, focusing on finals stress as well as sponsoring student organizations. -Tie Amp together with the concept of Asian “tonic drinks,” which inspired the energy drink industry in the early 1980s. Less acculturated Asian women will feel more of a connection with the brand if they know it comes from a concept back home.

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Brand Personality: Energy is a fine tool. Those who have it exhaust it. Those who long for it cannot obtain it. This vicious cycle needs to end. There are overwhelming options to achieve this energy anomaly. Coffee, soda, pills; where does the madness end? The answer is with Amp energy drink. The PepsiCo born drink, Amp shares similarities with its cousin Mountain Dew, which brings familiarity and satisfaction to the taste buds. In a world where options of how to gain energy are wearing you out, choose the simplest choice. Just as you work each day to contain your energy, Amp energy drink takes the struggle out of your hands by putting that energy into a can. Say goodbye to the guessing game of soda brands, coffee prices, and dangerous pills. Open a can of Amp energy drink today and join the movement to get your energy back.

Creative Concepts

TAGLINE: “Join the movement” Digital: Launch a social media campaign that associates Amp energy drink with a scholarship program for college students. Facebook advertisement: HEADLINE: “Dewing our Dewty”

COPY: Amp energy drink asks you to join the movement to get your energy back. We recognize that you are a hard-working student and that you have educational needs that can be trying on your pocketbook. Amp energy drink wants to put ease back into your educational regime by launching our “Join the Movement” scholarship program. This program will give you a fighting chance to excel after college. For details and to apply please visit our website: www.ampenergy.com

Banner advertisement: HEADLINE: “Green with Giving” COPY: JOIN THE MOVEMENT: website link YouTube advertisement: SPOT: 15 seconds SCRIPT:

During a regular school day a teacher is speaking in a Charlie Brown teacher voice (wah, wah, wah) to a classroom of bored students. A street team for Amp energy drink storms into the room. They give out amp energy drink samples. They read the copy from the Facebook advertisement: Amp energy drink asks you to join the movement to get your energy back. We recognize that you are a hard-working student and that you have educational needs that can be trying on your pocketbook. Amp energy drink wants to put ease back into your educational regime by launching our “Join the Movement” scholarship program. This program will give you a fighting chance to excel after college. They write the website (www.ampenergy.com) on the board and leave in a flash.

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Sponsorship: TAGLINE: “Join the Movement” TACTIC: The Amp energy brand will aim to sponsor Asian American student run organizations to promote scholarship and academics. This will allow the consumer to relate Amp energy drink to academics and educational success.

Print: VISUAL: Fusion of amp energy with a clock, textbook, Pepsi can, and party hat. HEALINE: Fuse your opportunities TAGLINE: “Pepsi. We Dew Amp”

COPY: You’re tired. You have been studying for hours for a test that will be over in fifty minutes. The library has become synonymous to home; your laptop has become your pillow. It is hard for us to watch as you waste away hours without relief. Join the movement to end the madness. Amp energy drink provides a way for you to enjoy a refreshing beverage with the outcome of lasting energy. We can’t help to cancel your tests, but we can help you get through them. Amp energy gives you the escape you need to get through long, endless hours. Take your study time back. Dew Amp.

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Reference

Albergotti, R. (2012, August 28). New york probes energy drink makers. Retrieved from http://online.wsj.com/article/SB10000872396390444230504577615690249123150.html http://ampenergy.com/ Britt, B. (2012, August 23). Deliver magazine . Retrieved from https://delivermagazine.com/2012/08/marketing-to-asian-americans/ Duchan, E., & Patel, N. (n.d.). Energy drinks. Retrieved from http://www.labint-online.com/featured-articles/energy-drinks/index.html Gates, K. (2008). Power surge. Supermarket News. Retrieved October 8, 2012 from LexisNexis Academic Journal. Geskey, R. D. (2010). The 2011 thumbnail media planner: Fast media facts and costs. Charleston, SC: CreateSpace. Ishak, W. W., Ugochukwu, C., Bagot, K., Kahlili, D., & Zaky, C. (2012). Energy drinks (PMC3280075). Retrieved from Innovations in Clinical Neuroscience website: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3280075/ Kai-Hwa Wang, F. (2012, October 20). Imdiversity looking for "nude"?. Retrieved from http://imdiversity.com/villages/asian/looking-for-nude/ Mintel. (2010, August). Energy drink market experiences a jolt in sales, but stalls in attracting new customers. Retrieved online October 6, 2012 at http://www.mintel.com/press-centre/press-releases/584/energy-drink-market-experiences-a-jolt-in-sales-but-stalls-in-attracting-new-customers-reports-mintel. Mintel. (2012, June). Energy Drinks and Energy Shots. Retrieved online October 8, 2012 at http://oxygen.mintel.com/display/590639/. Parikh, D. (2007, May 07). diversitybusiness.com. Retrieved from http://www.diversitybusiness.com/news/supplierdiversity/45200672.asp Pepsi-Cola North America Beverages. (2009, May 05). Amp energy and dale earnhardt jr. are “tradin’ paint” in the beverage aisle this spring and summer. Retrieved from http://www.bevnet.com/news/2009/5-5-2009-AMP_tradin_paint Pirovano, T. (2010, March 10). U.s. demographics are changing… are your marketing plans ready?. Retrieved from http://blog.nielsen.com/nielsenwire/consumer/u-s-demographics-are-changing-are-your-marketing-plans-ready/

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Reill, H. (2012). Bursting with energy. Convenience store decisions, Retrieved from http://www.csdecisions.com/2012/07/17/bursting-with-energy-2/ www.Rockstarenergy.com Seidman, R. (2011, May 05). 'NCIS' voted america's all-time favorite tv show; 'Two and a half men,' 'bones,' 'house' several current shows rank. Retrieved from http://tvbythenumbers.zap2it.com/2011/05/05/ncis-voted-americas-all-time-favorite-tv-show-two-and-a-half-men-bones-house-several-current-shows-rank/91686/ Singh, V. (2012). Factors influencing consumer decisions while purchasing energy drinks on the University of the West Indies St. Augustine campus. Retrieved online on October 1, 2012 at http://uwispace.sta.uwi.edu/dspace/handle/2139/11598. Solomon, M. (2009). Consumer behavior buying, having, and being (8th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. U.S. Census Bureau, 2010 Census Brief - Overview of Race and Hispanic Origin <http://www.census.gov/prod/cen2010/briefs/c2010br-02.pdf> http://www.villainstat.com/www/zara.com

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Appendix A

Financial information Brand positioning Company promotion

Company pricing, offering, and distribution

Current users

Red Bull

Category leader with 42% of the market share. Creating the energy drink category in the 1990s.

Has an innovator image. “Gives you wings.” The hip drink to provide you with energy with or without alcohol. Small, sleek can, so you can finish it in a single sitting. Brand awareness percentage is in the high 60s.

Promotion through sponsorship of extreme sporting events, cultural events, concerts, TV spots and outdoor marketing such as a street team “Wings team” of attractive females handing out the product. Finally, purchased the New York Red Bulls, a Major League Soccer Team. Now spends over 20 million annually for advertisements.

Present in 164 countries, with the same strong image all around the world. Sold in stores, events, bars and online in the 8 oz cans.

Target market consists of a younger demographic. Hip youngsters, students, and some athletes.

Monster

Holds 29% of the energy drink market share. Started in 2002, so behind Red Bull.

“Unleash the beast,” seen as substitute for soda and more than just a regular boost of energy, like Red Bull. Not as much of an adult beverage. Brand awareness is 39%

Not widely advertised in the media but sponsors many sporting events and positioned as getting “double for the same price,” compared to Red Bull. Promotes to people who are “on the go”

Has the 27 different drinks under the Monster umbrella in North America. Has also expanded world-wide

Target customer is a man between ages 14-26. Major consumers are athletes, gamers, and artists who need that extra energy compared to normal people

Rockstar 11.4% of the market share

Seen as an energy drink for a much younger audience, not so much adults. Brand awareness is 14%

Sponsors UPROAR festivals which has hard rock and heavy metal bands, also sponsors UFC fighters to attract a more differentiated audience. Has ties with Playboy where potential models can apply at their events. Does not advertise nationally, but reinforces and differentiates its target market from the rest of the industry.

About two dollars a can. Only sells in the 16 oz can.

Mainly teens, college kids, and young adults. Tried to branch out by attracted more females by introducing Rockstar Pink, a low calorie, low sugar drink.

5 Hour Energy

In 8 years, retail sales have reached $1 billion. Holds 90% of the energy shot market

An energy shot, one serving to give the working adult energy to get through the day. Less flashy than other energy drinks. Very simple

Began to sponsor NASCAR events, puts media dollars towards TV ads. TV commercials are aimed towards the working consumer who needs the energy for their job.

Sold in drug and convenient stores where the customer can easily find it

Young adults looking for constant energy (unlike energy drinks with burnout) throughout the day and not consuming too much sugar. Small player for younger people but successful for office worker or middle aged group

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Appendix C

Through secondary data we collected an array of information regarding Amp energy drink and the behaviors of people who consume the product. We gathered much about the current, predominantly white male consumers but we wanted to know specifically why users choose Amp, if they know Amp is under Pepsi Co, and what distinguishes Amp from other brands in the consumer decision process. Also, with our primary research we hoped to reach the Asian American demographic and see what they are looking for in energy products. In essence, we needed to answer what the buying cycle is for Amp consumers so we can properly segment the Asian-American population and position our product.

AMP Energy Drink Part I

1. Have you ever consumed an energy drink (at least one time)? -Yes -No 2. How often do you drink energy drinks? -More than once a week -Once a week -Once a month -Once a year -Never 3. When you do drink energy drinks, why do you drink them? Check all that apply. -Energy boost in the morning -Energy boost in the afternoon -Energy boost in the evening -Recharge after going to the gym/exercising -Mixed with alcohol -To pull an all-nighter -To stay alert when studying -To stay alert on the job 4. Please rank the following features from most important (1) to least important (6) when evaluating energy drinks. -Price -Packaging -Taste -Availability in store -Brand Name -Energy Boost 5. Where do you buy energy drinks from when you buy them? Check all that apply. -Convenience stores (ex: Walgreens, CVS) -Grocery stores (ex: Walmart, Jewel Osco) -A bulk warehouse store (ex: Sam’s Club, Costo) -Gas stations (ex: Marathon) -Online (ex: sites such as Amazon, Ebay, etc.) -Other (please specify)

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6. Please rank the following in terms of where you buy energy drinks the most, (1) being the most (6) being the least. -Convenience stores (ex: Walgreens, CVS) -Grocery stores (ex: Walmart, Jewel Osco) -A bulk warehouse store (ex: Sam’s Club, Costo) -Gas stations (ex: Marathon) -Online (ex: sites such as Amazon, Ebay, etc.) -Other (please specify) 7. When buying energy drinks what quantity do you purchase? -1 single can (16-24oz) -6 pack -12 pack -24 pack -Other (please specify) 8. How important is it to you that energy drink advertising appeal to your race or ethnicity? -Very important -Important -Neutral -Unimportant -Very unimportant 9. What do you think is the tone of Amp energy drinks? Check all that apply.

-Bright -Healthy -Dark -Unhealthy -Trendy -Manly -Out-of-date -Girly -Lively -Safe -Lazy -Dangerous

10. Do you consume energy drinks with another drink or food item? If so, please provide the name. -No

-Yes (please specify)

What Survey #1 Revealed: The first survey asked 10 questions that would tell us about how those who took our survey viewed and consumed energy drinks. These questions elaborated on how often they consume energy drinks, in what situation they consume them in, where they buy them, and what tone Amp Energy drinks have.

! Almost 100% of those we surveyed have consumed an energy drink (90%) ! A large portion consumes energy drinks only once a month (38%). ! When consuming energy drinks, it is mostly during the evening (46.6%) or mixed with

alcohol (63.6%).

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! The features found most important to the audience, ranked from most important to least: taste, price, energy boost, availability, brand name, and packaging.

! Convenient stores such as Walgreens and CVS were the places where most of the audience purchased energy drinks.

! 83.3% of those surveyed only purchase 1 single can at a time. ! Appealing to race and ethnicity is unimportant (72.7%). ! Most of those surveyed say Amp’s tone is lively and dangerous, yet unhealthy, ! Energy drinks are not consumed with food

AMP Energy Drink Part II 1. Please rank the following forms of media in terms of your personal media usage, (1) being the most used (9) being the least used.

-Smartphone -Television -Print Newspaper -Magazine -Social Media (Facebook, Twitter) -Radio -Internet News Sites (Wall Street Journal Online, NYT Online) -Internet Browsing (Google, Bing, Yahoo) -Internet Blogs 2. Did you know Pepsi Co. is the owner of Amp Energy Drinks? -Yes -No 3. What unique qualities would make an energy drink stand out among competitors? 4. FEMALES ONLY. What would be a good strategy for marketers to implement to make energy drinks appealing to you? 5. MALES ONLY. What would be a good strategy for marketers to implement to make energy drinks appealing to you? 6. Gender -Male -Female 7. What is your age? -18 to 24 -25 to 34 -35 to 44 -45 to 54 -55 to 64 -65 to 74 -75 or older

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8. What race do you identify yourself as? -Asian American -African American -Caucasian -Hispanic -Native American -Other (please specify) 9. FUN QUESTION! What do you want to be when you grow up?

What Survey #2 Revealed:

In the second survey, of 9 questions, we asked questions more about the demographics

and psychographics of those we surveyed. We added one question about how much people associate Amp with Pepsi Co to see if we can discover how strong the link is between the two. The questions asked survey takers to rank their media usage, how energy drinks could appeal to them, and their age and race. From these questions we are able to see how to go about targeting our audience, what media to use, and what strategy to implement.

! Smartphones are the most popular medium for personal media usage ! Following smartphones, other forms of media ranked from most used to least used were as

follows: Social Media (Facebook, Twitter), Internet browsing (Yahoo, Google, Bing), Television, Magazine, Print Newspaper, Radio, Internet News Sites (Wall Street Journal, NY Times online), and Internet Blogs.

! Majority of those surveyed did not know Pepsi Co. is the owner of Amp. 85.7% were unaware Amp is under the Pepsi Co. domain.

! To make more energy drinks stand out among competitors, they need to have better taste, hold sponsored events on college campuses, make sure it is safe and be endorsed by celebrities or doctors, and have low calories.

! To appeal effectively to women, energy drinks must: advertise low calories and low sugar, appeal to working women, make it have a fruitier taste, advertise towards women, and making the package friendlier and more girly.

! To appeal effectively to men, energy drinks must: become more healthy since many men are concerned with appearance and health conditions, market at music festivals and concerts, have a better taste, and prove they are healthy.

! 82.4% of those surveyed were female. ! 94% of those surveyed were ages 18-24. ! 69.2% of those who completed the survey identified themselves as Caucasian and 20.9.3% as

Asian American.

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Appendix D New York: Columbia University:

Asian American Alliance New York University Asian American Women’s Alliance Syracuse University: Asian Students In America (ASIA) California: -University of Southern California Student Coalition For Asian Pacific Empowerment South Asian Business Association Asian American Business Association University of California, Berkeley Asian American Association (AAA) Asian American Public Leaders Asian Business Association (ABA) University of California, Los Angeles Asian Greek Counsel Asian American Studies Graduate Student Association Hawaii

" Hawaii pacific University o Japanese Circle o The Siam Club o Korean Student Organization

" University of Hawaii at Manoa o Chinese Students and Scholars Association

Illinois " U of I

o Asian American Association (AAA) o Asian Pacific American Coalition o C-U Times Student Association (CUTSA)

" Northwestern- o Asian Pacific American Coalition

" University of Chicago o Asian Pacific American Coalition

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Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Spot Females 18-24

Total Cost (In Millions) Percent

Digital/Online Media 7.5 30 Search Engine Advertising (Google, Yahoo, Bing) 18.2 18.2 18.2 18.2 18.2 18.2 18.2 Rich Media Advertising (Facebook, YouTube) 4.6 4.6 4.6 4.6 4.6 4.6 4.6 Banner Advertising (Zara.com, AsianWeek.com) 0.06 0.06 0.06 0.06 0.06 0.06 0.06 In-Language Local TV Markets 6.25 25 TV Asia 1.3 1.3 1.3 1.3 1.3 Print Magazines 2.5 10 Audrey 0.2 0.2 0.2 SAPNA Magazine 0.04 0.04 0.04 U.S. Weekly 0.50 0.5 0.5 Yellow-Page Directories 0.06 0.06 0.06 2.5 10

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ABOVE THE BOARD Non-Traditional 6.25 25 Street Teams Social Media Campaign (Facebook & Twitter)

Sponsorships ___________ _________ TOTAL 25 100 Gross Rating Points 24.16 23.66 24.16 24.16 23.66 23.66