Marketing Amp Energy Juice in India

AMP Energy Juice, India 1

Table of Contents

1. Executive Summary ................................................................................................................ 22. Market Analysis ................................................................................................................ 3-13

a. India Soft Drinks Industry b. Energy Drinks in India c. Competition

i. Red Bull ii. Cloud 9

iii. Power Horseiv. Sobe Adrenaline Rushv. Burn

d. Market Environment i. Unorganized Retail in India

ii. Organized Retail in India3. Cultural Analysis .............................................................................................................. 13-19

a. India Hofstede Scoresb. Indian Culturec. Indian Demographicsd. Indian Consumerse. Tremendous Growth of the Middle Class in India

4. AMP Energy Juice Product Description ............................................................................ 19-205. Marketing Communications Objectives ........................................................................... 20-236. Target Audience Analysis ...................................................................................................... 237. Strategies and Tactics ...................................................................................................... 23-30

a. Sales Promotionb. Advertisingc. Public Relations and Event Marketingd. Direct Marketinge. Internet and Social Media

8. Summary ............................................................................................................................... 309. References ....................................................................................................................... 31-32


Executive Summary

Over the past few years, there has been tremendous growth in the functional drink, or

energy drink, category all over the world. Young people are the primary consumers of

functional drinks and continue to fuel growth in this category. AMP Energy Juice, which was

released in the United States in February 2010, is 100% juice infused with the power of

traditional energy drinks. A product launch in India is the perfect opportunity for AMP Energy

Juice to expand and enter the Indian functional drink market which has been growing at a rate

of 50% per year. Indian consumers are increasingly becoming more health conscious, which

means AMP Energy Juice is the perfect product to introduce to this market. This plan highlights

important aspects of the functional drink category in India, the current business situation in

India, and essential information and insight into Indian culture. Communications objectives,

strategies, tactics and creative executions are also provided that will allow AMP Energy Juice to

break into the Indian market successfully. Specific details are provided throughout the plan that

demonstrate that AMP Energy Juice’s strategies and executions are culturally appropriate for

Indian consumers.


Market Analysis

Indian Soft Drinks Industry

In order to understand the current situation for the beverage market in India, it is

important to define which beverages are considered soft drinks. The soft drinks market consists

of bottled water, carbonates, concentrates, functional drinks, juices, tea and coffee. It is also

important to note that a functional drink is what Americans typically refer to as an energy drink,

so the terms may be used interchangeably. In 2008, the soft drinks industry in India grew by

7.7% to reach a market value of $3.4 billion and grew by 8.3% to reach a volume of 5.5 billion

liters. Furthermore, an industry analysis conducted by Datamonitor forecasts the Indian soft

drinks market to have a market value of $4.6 billion, an increase of 36.9%, by 2013 and a

volume of 8.2 billion liters, a 49.9% increase, since 2008 (Datamonitor, 2009).

Globally, India is one of the fastest growing non-alcoholic beverage markets. One

positive factor that is driving the beverage market in India is the rising number of people in the

middle class. This group has seen an increase in income and therefore has extra money to

spend on new beverages. Additionally, the actual amount of people in India is a driving factor

for the beverage industry. The key change that is occurring is that Indian consumers are slowly,

but surely, shifting from traditional home-made beverage options to packaged drinks due to

their increasing disposable income and the convenience factor of packaged drinks (Khan, 2010).

However, a large and untapped market opportunity exists. Currently, the majority of

Indian consumers, about 75%, consume non-alcoholic beverages from stores ‘less than once a

day’, indicating the need to increase penetration of these beverages in the market and


ultimately increase the consumption and sales of store bought beverages (The Indian Express,

2009). This untapped market opportunity should be taken by AMP Energy Juice.

Energy Drinks in India

The energy drink market in India is currently estimated at around 1.5 million cases (of 24

cans) per year, and has been growing at a rate of 50% a year (Shanbaug, 2010). Red Bull was

really the first brand to enter the energy drink market in India in 2003. After initially launching

in India, Red Bull gradually gained the approval of consumers and the brand was successfully

secured into the Indian market (The Indian Express, 2006). Red Bull’s success basically started

the energy drink market in India and inspired many other brands to enter the market, which

will be discussed in further detail in the competition section.

In fact, the energy drink segment is the fastest growing segment in the ready to drink

beverage category (Maji, 2009). This can be attributed to the fact that energy drinks are

popular among India’s large youth population. Despite the release of negative media reports on

possible side effects of energy drinks, the young population continues to fuel the energy drink

trend and demonstrates that there is a large growth potential for this market (Khan, 2010).

It is extremely important to understand that the consumption of energy drinks varies

inversely with age and directly with income (The Indian Express, 2009). In other words, young

Indians are the primary consumers of energy drinks in India and have stimulated the continuing

growth of this market. India is a young country and energy is one of the important consumer

needs of its youth (Chamikutty, 2008). Additionally, Indian consumers who have greater income

will also be more likely to purchase from this category. Hence, it is easy to understand why


young people with increasing disposable income are the target audience for the energy drink

market in India.

Currently, functional drinks are finding favor among health conscious consumers in India

(Khan, 2010). Therefore, it is possible to achieve success in the energy drink market in India by

stressing unique nutritional benefits. Due to the fact that some are still concerned with the

possible side effects of energy drinks, brands need to create differentiation on the basis of

ingredients. Therefore, the demand for energy drinks in India is growing, largely due to youth

and increased disposable income, and consumers are beginning to care more about ingredients

and health benefits of the drinks. It is clear that AMP Energy Juice has the opportunity to enter

the Indian market, given the current conditions.

Competition

There are many energy drinks currently available in India, but Red Bull, Cloud 9, Power

Horse, Sobe Adrenaline Rush and Burn are the most important to discuss. It is important to

understand that while there are clear brand leaders, there are also numerous opportunities for

competitors to strengthen their positions by addressing the three greatest obstacles to greater

consumption- lack of availability, high price, and unappealing taste. The key to the success of

these products in the Indian market definitely lies in the right pricing for the consumer mindset

and widespread retail distribution set-up. Product taste is one of the primary drivers of brand

choice for energy drinks, along with the functional or health benefits the drinks provide to

consumers (The Indian Express, 2009). The Key brands of the market are discussed in further

detail:


Red Bull

As previously stated, Red Bull was the first major successful energy drink in India, or the

pioneer of the market. Red Bull’s primary consumers are in their 20s and

early 30s and live a busy lifestyle. According to Red Bull, the product has

been specially developed for times of increased mental and physical

exertion. Red Bull energy drink claims to increase performance, increase concentration and

reaction speed, improve vigilance, improve emotional status and to stimulate the metabolism

(Red Bull, 2010). Red Bull’s main ingredients are Taurine, Glucuronolactone, caffeine, B-group

vitamins, sucrose and glucose. The international tagline for the product is “Red Bull gives you

wings.” The product claims to be valuable to a wide range of consumers from students studying

for exams, to busy professionals and athletes that need an extra boost to get through their day.

Red Bull was not only the pioneer of the energy drink market in India, but continues to

dominate the Indian market with more than 60% market share (Shanbaug, 2010).

Red Bull utilized buzz marketing, or word of mouth marketing, to gain success in India.

The brand also gained popularity with young consumers by sponsoring youth and extreme

sports events as well as promoting the product on college campuses. Surprisingly, Red Bull did

not use a lot of traditional media to gain awareness. Therefore, the majority of the brand’s

marketing budget is spent on sampling and event sponsorships rather than traditional methods

like print advertisements, television advertisements, etc. Red Bull continues to use

unconventional marketing techniques, such as teams driving Red Bull jeeps around handing out

energy drinks to people in offices, gyms, schools, etc (The Indian Express, 2006).


Cloud 9

Cloud 9 entered the Indian energy drink market in 2008, and is second behind

Red Bull in the category claiming a 25-26% market share (Adgully Bureau, 2010).

This brand claims to give you “a high you’ll never want to come down from,” and

takes credit as the first Indian natural energy drink with pomegranate (Cloud 9,

2010). It is important to note that Cloud 9 is an Indian energy drink, as opposed to

Red Bull which dominates the market but is not based in India. Cloud 9 promises to help

consumers to lift their spirits, boost energy, perk up, party all night, work 30 hours a day and be

on the move. Cloud 9’s website did not list the specific ingredients, but claims to be the perfect

balance of energy and health. Cloud 9 targets 15-35 year olds with the tagline, “Do More!”

(Cloud 9, 2010). The Cloud 9 brand advertises on local trains and busses, on television, through

outdoor advertisements, as well as in bars, pubs and restaurants. Similar to Red Bull, Cloud 9

gained popularity by handing out free samples at colleges.

Power Horse

Power Horse is another energy drink currently available to Indian

consumers. The Power Horse brand claims to increase physical performance

and mental alertness, reduce stress recovery period, stimulate metabolism,

blood circulation, and the central nervous system. Additionally, Power Horse

claims to contribute to detoxification from harmful substances, strengthen the heart, and to be

a drink for all situations in daily life (Power Horse, 2010). Power Horse’s main ingredients are

Taurine, Glucuronolactone, Caffeine, Sucrose, Glucose, Inositol, Vitamin B12, B2 and B6, Ca-

Pantothenate and Niacin.


The brand positions itself for businessmen and businesswomen who need to excel and

perform for longer periods of time at work. Like other energy drinks, Power Horse is also

targeted at students who need to concentrate, athletes who need to regain energy, and anyone

who needs help getting through a tough day. The brand’s tagline is “Power Horse- Free your

energy!” (Power Horse, 2010). Power Horse is the only competitor that provides recipes for

mixing alcohol with the energy drink to make cocktails. This is an interesting approach,

considering many Indian consumers are weary of mixing alcohol and energy drinks due to

reports of negative impacts on health.

Sobe Adrenaline Rush

Sobe Adrenaline Rush, by PepsiCo India, was introduced to the market in

2008. According to PepsiCo India, Sobe Adrenaline Rush is a maximum energy

supplement aimed at helping consumers perform at their peak by energizing

their body and mind and charging up energy and alertness levels. This brand

tried to differentiate itself from others in the market through its citrus fruit

punch flavor and the fact that Sobe Adrenaline Rush was developed by a nutritionist to be a

maximum energy supplement rather than a product that just gives a mental kick (PRdomain,

2008). Sobe Adrenaline Rush is targeted at urban youth age 24 and older who are hardworking

and goal oriented. In terms of marketing, Sobe Adrenaline Rush was supported by strong point

of sale promotion and sampling efforts. Sobe’s key ingredients are Taurine, L-Carnitine, D-

Ribose, Inositil and vitamins B and C. PepsiCo is constantly looking to expand sales in the energy

drink market and introduce new products, creating an opening for the launch of AMP energy


juice, also a PepsiCo product, to the Indian market. Market share information is not available

for Sobe Adrenaline Rush and others in the category besides Red Bull and Cloud 9.

Burn

Burn, by Coca-Cola, was released to the Indian market In December 2009.

However, this was not Coca-Cola’s first attempt to enter the energy drink

market in India. The Coca-Cola company tried to launch its first energy drink

to the Indian market, Shock, in 2001 but was unsuccessful and took the

product off of the shelves due to poor sales performance (Datamonitor, 2009).

Coca-Cola launched Burn hoping to break the stronghold gained by established brands such as

Red Bull and Cloud 9. Burn’s key ingredients include Guarana, Taurine, Glucuronolactone,

Caffeine, Inositol and theobromine. Burn uses the tagline, “Can you take the heat?” to target

youngsters and socially active adults who are regulars at pubs, clubs, restaurants, bars and

discos. Burn has launched a TV commercial for advertising and has conducted sampling at high

end parties, pubs, resto-bars and clubs to gain brand awareness. The brand also created

innovative merchandise with the Burn logo, which is an iconography of a flame (Afaqs, 2009).

Coca-Cola has high hopes of gaining market share with Burn energy drink in India, and is trying

to avoid poor sales performance of the product by learning from past mistakes with Shock

energy drink.


Market Environment

The retail landscape in India is divided into

two sectors, organized and unorganized retail. The

majority of retail in India, 98%, is classified as

unorganized and is made up of counter-stores, street vendors, roadside peddlers, and Kirana

stores or family-run stores (Thathoo & Kacheria, 2007). Organized retail in India refers to

modern retail formats like supermarkets and hypermarkets that are prevalent in most

developed countries like the United States, and accounts for 2% of the retail industry in India. It

is essential to understand that the Indian retail market is in a state of flux, undergoing a

metamorphosis, with a huge potential to stand at par with other international retail markets,

and ready to meet the demands and standards required of a global market (Thathoo &

Kacheria, 2007).

Unorganized Retail in India

As previously stated, unorganized retail in India comprises 98% of the market. It is very

important to understand that the transformation that has taken place in the psyche of the

average Indian consumer is only partial because they will still continue to visit the

neighborhood kirana stores and other street vendors like they are accustomed to doing. The

convenience and personal services like home delivery, small credit facilities, and other last

minute purchases will still keep the unorganized neighborhood stores in business (Indian Retail

Forum, 2009).

Therefore, the main benefit of unorganized retail in India is convenience for the

consumer. Kirana stores and street vendors have the ability to cater to the local population in


the area, which is a driving factor for Indian consumers. Home-delivery service is provided for

any size shopping order and is delivered within minutes of calling the order in, with an itemized

hand-written bill. Credit is important to unorganized retailers because they tend to have a loyal

and limited consumer base, allowing them to sell goods on credit and settle the bill at the end

of the month. These stores are located within walking distance, demonstrating that proximity is

valued by Indian consumers (Thathoo & Kacheria, 2007). This is especially convenient for Indian

consumers who prefer to buy goods when they need them rather buying in bulk in advance.1

Organized Retail in India

Even though organized retail in India only makes up 2%, it has a very promising future.

Currently, the flood of products in the market coupled with a wealthier, more informed Indian

consumer have created the atmosphere for the entry of organized retail to tap into the $320

billion Indian retail industry (Thathoo & Kacheria, 2007). Obviously, the organized retail

segment in India is growing, but some important considerations need to be taken into account

in order to enter the organized Indian retail market.

Therefore, it is important for brands, such as AMP energy Juice, wishing to enter this

market to have a thorough understanding of the challenges and shortcomings of the highly

diversified Indian market. The Indian organized retail sector is an untapped space that is likely

to grow at a fast pace with potentials of high return for early market entrants. However, brands

looking to enter the market need to understand the factors and dynamics required for survival

1 This assertion is based on the fact that many Indians do not have access to refrigeration and make more frequent shopping trips to keep food from spoiling.


and growth in the Indian retail space, keeping in mind infrastructure challenges and other

regulations (Indian Retail Forum, 2009).

Even though the Indian organized retail industry is growing at a fast pace, there are still

a number of challenges that must be overcome. The first challenge to address is the lack of

sufficient supply chain management and logistics (Indian Retail Forum, 2009). This is a challenge

because the organized retail sector in India is fairly new and still trying to figure out the basics.

Other challenges include the gap in the demand and supply of the trained workforce, tax

structures that favor small retailers like kirana stores, different sales tax structures in different

states, and the high cost of real estate and limited land available in prime market locations

(Indian Retail Forum, 2009). These challenges and problems still need to be addressed by

organized retailers, but there are also positive factors that contribute to the growth of Indian

organized retail.

Better infrastructure and improved transportation systems have allowed the organized

retail sector to grow. As the infrastructure continues to improve in India, organized retailers will

be able to expand to different areas and have better methods of transporting goods to the

stores. Rising income also benefits the organized retail sector, because many Indians now have

more disposable income to spend on products that they want. This can be explained by the rise

of the women workforce, providing dual income for families, and a young population with

increased spending power. Furthermore, the expanded reach of mass media and

advertisements have led to rising consumer awareness and a new found desire for quality

products. Economic liberation and a rapidly changing lifestyle in India also contribute to the


organized retail sector (Indian Retail Forum, 2009). It is clear that these growth factors are only

going to continue to fuel the growth of the organized retail sector, demonstrating the

importance of a brand like AMP energy juice to enter this market at such a key time.

Cultural Analysis

India Hofstede Scores

The Geert Hofstede analysis of cultural dimensions in India produced the following

scores:

Power Distance (PDI) is 77 Long Term Orientation (LTO) is 61 Masculinity (MAS) is 56 Individualism (IDV) is 48 Uncertainty Avoidance Index (UAI) is 40

India’s highest score was in the category of Power distance. India’s power distance score

is higher than the world average, and much higher than the United States average.

Furthermore, India’s power distance demonstrates a high level of inequality of power and

wealth within Indian society. This level of inequality is supported by Indian leaders as well as


the Indian population in general. Therefore, the population of India accepts this high power

distance as a cultural norm of their society.

India’s second highest rank was in the category of long term orientation. Again, India

ranked higher than both the world average and the United States in this dimension. Indian

values that coincide with this high long term orientation score are thrift and perseverance. This

high long term orientation score also indicates that Indian culture values steady persistence and

working hard to accomplish tasks and goals.

Masculinity in India was the third highest ranking which measures just over the half-way

point and within a few points of the world average and the score for the United States. In other

words, India lands right in the middle and is not extremely masculine or feminine. Similarly,

India’s individualism ranking of 48 is also close to the middle of the spectrum, but is much lower

than the score for individualism in the United States.

Lastly, India’s lowest ranking dimension was uncertainty avoidance at 40, which is lower

than the world average of 65. India’s uncertainty avoidance ranking indicates that the Indian

population may be more open to unstructured ideas and situations. This score also indicates

that India is more accepting of uncertainty and more tolerant of things that are different from

what they are used to. This score also indicates that Indians are more relativist regarding

religion, which makes sense because of the acceptance of many religions in India. This Geert

Hofstede analysis gives insight into Indian culture to gain a better understanding and is helpful

in deciding how to market to India (Hofstede, 2009).


Indian Culture

India has a vast history that has helped to shape the culture that is still present in the

country today. It is not necessary to describe the complete history of India for the purposes of

this paper, but it is important to understand that the culture is deeply rooted in tradition. The

influences of Hinduism and the tradition of the caste system in India have helped to create a

culture that emphasizes established hierarchical relationships and Indians are always conscious

of their status in relation to other people. Interestingly, even though Indians have accepted

modern means of living and have worked to improve their lifestyles, their values and beliefs still

remain unchanged (Gupte, 2009).

Family life and relationships in India are very important to the population. Indians

typically define themselves by the groups that they belong to rather than their individual status.

Respect for elders is a major component of Indian culture, and elders are the driving force of

the Indian family (Gupte, 2009). Indians greatly value respect for one another and a sort of

helpful nature stems from this respect and leads Indians to want to help one another.

Additionally, Indian families are very accommodating and willing to accept change.

It has been said that Indian culture is about respecting elders, honoring heroes and

cherishing love. The culture has a very high level of tolerance and hence the arrival of so many

external cultures was not restricted, resulting in the diverse country that India is today. With

this in mind, it is clear that India’s high tolerance will be beneficial to the Indian market. This is

good news for AMP energy juice, demonstrating that the product will be launched in a culture

that is accepting and accommodating. Furthermore, the arrival of technology and the

emancipation of women in India demonstrates this high level of tolerance and has led Indians


to mingle with western concepts. Indian people are very flexible in the sense that they would

like to imbibe the changes dictated by western influence and yet clearly affirm their belief in

traditions (Gupte, 2009).

As far as the culture of business in India, people prefer to do business with those that

they know. Hence, the popularity of Kirana stores and small retailers close to home who can

deal with consumers on a more personal level. Additionally, when doing business in India, it is

advisable to go through a third party introduction because it gives immediate credibility (Gupte,

2009). With this in mind, AMP energy juice can establish credibility with Indian consumers

because the product is made by PepsiCo which has already been established in the soft drink

market in India, as well as the energy drink market through Sobe Adrenaline Rush. Informing

Indian consumers that the product is made by a well known and established brand will help the

product to be accepted in the market and will make the product more approachable for Indian

consumers.

Indian Demographics

In order to market AMP energy juice to the Indian market, it is important to understand

the demographics of the country. India is a diverse country that has 23 official languages and

more than 1,000 dialects (Wharton School, 2008). Therefore, marketing to India is not the same

as marketing to the United States because there are so many official languages and dialects that

are used by various Indian consumers. Additionally, 72% of the country lives in rural India, while

27% resides in urban areas (Census India, 2007). With this widespread distribution of people, it

is vitally important that marketers understand where consumers are in order to target and

reach them efficiently and effectively.


India is home to a population of 1,156,897,766 people, as of July 2009, and is currently

the world’s second largest country (CIA World Factbook, 2010). In fact, population projections

for the country anticipate the Indian population to reach 1.5 to 1.8 billion by the year 2050, due

to the 1.407% growth rate that is occurring (Rosenberg, 2009). With this in mind, it is clear that

entry to the Indian market is vitally important as soon as possible to gain brand awareness and

secure a customer base in this growing economy.

As previously stated, India has a large youth population. In fact, Indians make up a fifth

of the world’s citizens below the age of 20. This youthful, enthusiastic generation has been

nurtured on success and are eager to become Indian consumers. Indian youth are still deeply

rooted in Indian culture and traditions but are also connected to and curious about the outside

world. With basic needs satisfied and the future taken into consideration, these young

consumers consider purchasing products that represent ‘the good life’ (Wharton School, 2008).

Therefore, this young population is valuable to marketers because they are willing to spend

beyond their means in order to acquire the products that they desire.

Indian Consumers

In order to market to India’s large population, it is obviously critical to have an

understanding of Indian Consumers. Specifically, despite having a large consumer base that is

growing steadily, the market is complex and the propensity and capacity for Indian consumers

to spend depends on a unique blend of price and value (Wharton School, 2008). Brands that

understand this complexity will be most successful in the Indian retail market, which is

constantly growing. Through word of mouth, their own observations and the media, Indian

consumers can now visualize a better life and they demand it (Wharton School, 2008).


Since organized retail has grown in India, consumers have had to undergo a major

transformation from saving and purchasing only bare necessities to spending more money and

indulging themselves more often. Today, armed with a higher income, credit cards, exposure to

the shopping culture of the west and a desire to improve the standard of living, Indian

consumers are spending like never before (Thathoo & Kacheria, 2007). Therefore, the Indian

consumer mindset has shifted from saving and surviving to spending and thriving. This mindset

was created by the growth of organized retail, but this mindset also continues to fuel the

continued growth of the organized retail market. In other words, Indian consumers have

modified purchasing behavior because of organized retail, but their change in behavior

contributes to the continued expansion of the organized retail segment.

Tremendous Growth of the Middle Class in India

India is experiencing tremendous growth of the middle class segment. Specifically, real

average household disposable income has roughly doubled since 1985. Rising incomes in India

have caused an increase in household consumption, and a new Indian middle class has emerged

(Wharton School, 2008). Today’s Indian consumers that are being targeted by brands are

popularly known as aspiring India, or the middle income segment that is growing faster than

ever since the country’s economy has grown at an average of 5.7% per year (Wharton School,

2008). It is clear that aspiring India, which will be referred to as aspirants, are the ideal target

market for brands such as AMP Energy Juice that wish to enter the market in India. This middle

class segment is more willing than ever to contribute to the growth of the Indian economy by

purchasing more than just the basic necessities for the first time in their lives. Furthermore,


“As economic growth occurs, the destitute will transform into aspirants and

enter the consumption arena. Aspirants will become climbers with increased per

capita consumption, creating an automatic volume growth for several categories.

The socio-economic transformation of consumers offers a large window of

opportunity for marketers, as 100 million to 150 million consumers have just

begun their journey, while another 100 million are on the road to consumption”

(Wharton School, 2008).

Obviously, the middle class in India is only going to continue to grow in years to come,

making it the perfect time for brands to enter the Indian market and establish a strong

consumer base of brand loyalists. Moreover, as Indian income rises the shape of India’s income

pyramid will change drastically since more than 291 million Indians will move from desperate

poverty to a more sustainable life, adding a number of first-time consumers to the market

(Wharton School, 2008). Therefore, the middle class, currently located at the middle of the

income pyramid, is driving the growth of the consumer goods market. This relates directly to

the energy drink market in India, because increased income leads consumers to purchase

packaged beverages and energy drinks more frequently than ever before.

AMP Energy Juice Product Description

AMP Energy Juice, an extension of AMP by PepsiCo, was released to the

U.S. market in February 2010, and is currently only sold in the United States.

AMP Energy Juice claims to answer the call of energy-deprived souls

everywhere. The new AMP Energy Juice is 100% juice infused with all the


power of the original AMP energy drink. This functional drink is also an excellent source of B

and C vitamins. AMP Energy Juice is a great option for those looking to get a boost of energy

and is made with a stimulating blend of Taurine, Ginseng, and Guarana without any added

sugar. AMP Energy Juice was created for consumers who wanted something that went beyond

traditional energy drinks. AMP Energy Juice is available in two flavors, orange and mixed berry,

which are available in 12 oz. single serving re-sealable bottles.

Marketing Communications Objectives

Increasing AMP Energy Juice brand awareness in India

Objective:

To obtain at least 10% of the current functional drink market share by the end of

2011. This is a realistic goal for AMP Energy Juice considering the fact that 2

competitors, Red Bull and Cloud 9, currently have the largest share of the market.

Current situation:

AMP Energy Juice is not currently available in the Indian market. There is potential

to succeed in this market, which is growing at a rate of 50% per year, due to the

youth centric population, increase in the consumption of functional drinks and the

current trend for health and wellness.

How this will be done:

The launch campaign for AMP Energy Juice will focus on the fact that AMP Energy

Juice is 100% juice infused with all the power of regular energy drinks, without

added sugar. Stressing this benefit and the healthy ingredients of the drink will help


to differentiate AMP Energy Juice from competitors such as Red Bull, Cloud 9, and

other carbonated energy drinks.

Increasing AMP Energy Juice brand awareness among the target audience through promotions

Objective:

It is crucial to have AMP Energy Juice promotions in India in order to successfully

enter the functional drink market. Above all, promotions will be important to ensure

that both urban and rural Indians are exposed to the product. Rural India is essential

to this marketing campaign, considering approximately 70% of the population live in

rural areas.

Current situation:

AMP Energy Juice does not currently have any promotions because the product has

not been launched to the Indian market yet.


Sampling will be a key way to expose the target audience to AMP Energy Juice. This

is the ultimate promotional tactic because it can be used to introduce the drink to

the target, build trial and ultimately get new users. Sampling will be done in

supermarkets in key urban areas. Additionally, samples will be distributed in rural

India via AMP Energy Juice vans that travel around. Event marketing will also be

used to launch the product, via the 2010 Commonwealth games in Delhi.


Increasing awareness of AMP Energy Juice through marketing media channels

Objective:

AMP Energy Juice will build brand awareness by using all IMC tools to target Indian

consumers, both urban and rural, to reach as many consumers in the target

audience as possible.

Current situation:

AMP Energy Juice does not currently use each IMC discipline to reach consumers.


This will be done using advertising, public relations and event sponsorship, sales

promotions, direct marketing and internet marketing. Mobile marketing will also be

used to reach the target audience, since mobile subscribers in India are growing at

nearly 100% each year (Prabhudesai, 2007). Social media will also be used to reach

the target audience.

To position AMP Energy Juice as the preferred functional juice drink in India

Objective:

In order to make a successful entry into the functional drink market in India, and

stay there, AMP Energy Juice will need to differentiate itself from the standard

carbonated energy drinks that it will compete with. This will be done by positioning

the product as a healthy beverage that has the added boost of energy drinks,

without the added sugar.

Current situation:


AMP Energy Juice does not currently have a position in the Indian market. However,

Indian consumers will want to try the product because it is a new kind of functional

drink and is different from other energy drinks currently available in India.


Advertising will focus on the healthy benefits of AMP Energy Juice. This will be

beneficial because Indian consumers are becoming increasingly health conscious.

Target Audience Analysis

AMP Energy Juice will target young consumers (18-35), both male and female, urban

and rural, who lead a busy lifestyle. These consumers are hardworking and goal oriented. This

includes students, busy professionals, athletes, party goers and basically anyone who needs an

added boost of energy to get through their busy day or night. These consumers are also

increasingly health conscious. These young consumers have increased disposable income and

tend to have a spending approach rather than a saving approach like previous generations.

Strategies and Tactics

Sales Promotion

Sales promotion is the most important IMC tool for AMP Energy Juice. Following Red

Bull’s example, the market leader, AMP Energy Juice will use sampling to get the attention of

their target audience. By distributing samples of the new AMP Energy Juice, Indian consumers

will be introduced to the product. Additionally, sampling allows consumers to actually taste and

try the product which will generate new users for AMP Energy Juice. It is vitally important that

samples are distributed in supermarkets and hypermarkets in urban areas, as well as in rural


areas where the remaining 70% of the population resides. Full re-sealable bottles of AMP

Energy Juice, in both the orange and mixed berry flavors, will be handed out. It is also important

to make sure that the drinks are chilled so that consumers get the right first impression of the

drink. Here are the specifics for culturally appropriate sales promotion of AMP Energy Juice:

Samples will be distributed to young consumers at

supermarkets, hypermarkets, and malls. Due to their

location, these establishments will help to reach young

consumers in urban areas. A booth will be set up outside of

stores and in malls to attract attention to the sample

distribution. AMP Energy Juice reps will also explain the health benefits of the drink to

consumers.

Stickers of the AMP logo will be placed throughout the store,

increasing in size as consumers get closer to the product.

A point-of-sale display will surround AMP Energy Juice

products, in the refrigerated section, to draw attention. Coupons will also be available

via this display.

AMP Energy Juice will also distribute samples

in the most populated areas of rural India. This

will be done via AMP Energy Juice vans that

drive through the country, stopping in

populated rural areas, which will be set up in

advance. The van tour will be advertised via


print, radio, and television to inform consumers when AMP Energy Juice vans will be in

their area. This mix of communication channels will ensure that the majority of rural

Indians are reached, since many may not have internet yet. The van will park in various

locations to hand out the samples for a 2 hour period in each location, or until the

specified amount of drinks for that location has been distributed. Again, the health

benefits will be stressed to consumers. These vans will also act as moving billboards for

the brand.

AMP Energy Juice will also appeal to rural Indians by

leveraging the power of Kirana stores. Samples will

be provided to various small stores in rural areas to

be distributed after the AMP Energy Juice van tour

has visited the area distributing samples. In doing

so, consumers who missed the van will still be able to sample the product, and the

brand can also form relationships with store owners for future distribution and sales of

AMP Energy Juice.

Advertising

Advertising will be done in a variety of ways to spread awareness, generate trial and

ultimately generate users and increase sales in India. Again, AMP Energy Juice will make sure to

target both urban and rural consumers. The following tactics are culturally appropriate for

advertising in India:


Wall paintings will be used as a way to advertise to Indians in rural areas. This is a great

way to attract young consumers who live in rural areas. A graphic of a wall painting is

provided as an example.

AMP Energy Juice will advertise on outdoor billboards in major cities. These billboards

will be useful to introduce the product in urban areas and to inform consumers of the

benefits of AMP Energy Juice.

Print advertising will be used to reach both urban and rural Indian consumers. This is a

great way for AMP Energy Juice to advertise, considering the fact that Indian newspaper

advertising is not only healthy at present, but is also expected to grow at a respectable

9% over the next 4-5 years (Prabhudesai, 2009).

AMP Energy Juice will also utilize online advertising through

banner ads on Yahoo! India, whose primary user base is in

the 18-34 age group, AMP’s target audience. This is a great

way to reach this young target audience, especially because

72% of young people in India access the internet on a regular basis (Prabhudesai, 2009).

This is also beneficial because growth of the internet is also taking place in rural areas.

Television ads will also be utilized. This will be beneficial because many Indians have

televisions, even in rural areas, and the television industry is projected to grow at the

rate of 15% between 2010-2014 (Prabhudesai, 2009).

Lastly, radio advertisements will air on popular stations, for the target audience,

expressing the product benefits of AMP Energy Juice and encouraging young consumers

to try it. Radio has excellent reach in both urban and rural India.


Public Relations and Event Marketing

AMP Energy Juice will also utilize public relations and event marketing for the launch

campaign. News releases will be utilized to spread awareness to the target audience about the

launch of the new AMP Energy Juice. These news releases will inform consumers about the

healthy benefits of the product, specifically that it is a 100% juice infused with all the power of

traditional energy drinks, without any added sugar, and the drink provides an excellent source

of B and C vitamins. The stimulating blend that includes taurine, ginseng and guarana, will also

be discussed and the effects of these ingredients on the consumer will also be discussed. It is

important to explain the ingredients due to the current trend of health consciousness among

Indian consumers in the target audience. Event marketing will also be used to launch AMP

Energy Juice by being a co-sponsor for the 2010 Commonwealth Games held in Delhi. This is the

perfect event for AMP Energy Juice, which will be held October 3-14, 2010, for the following

reasons:

Delhi is the largest metropolis by area, and the

second largest metropolis by population in India,

home to roughly 15 million people. This provides a

great reach for the target audience.

This will be the biggest multi-sport event ever

conducted in India.


The director of the organizing committee for the 2010 Commonwealth Games estimates

that the games alone will generate about $5 billion (US dollars).

The games are also viewed as a matter of opportunity and business which will give India

return for all investments in a very efficient way.

With a fast-growing population, Delhi is a mega-city experiencing rapid economic

expansion, and Delhi is committed to legacy through venue development and access

and sport promotion to India’s young generation.

This is the perfect event to launch the product because there will be a huge population

present, especially young people who desire energy drinks, to spread awareness and

generate trial.

Direct Marketing

Direct marketing will be utilized via direct mail. This is a great way to reach both urban

and rural Indians considering the postal system in India is one of the best in the world

considering the vastness of India’s geography. AMP Energy Juice will benefit from direct

mailing, especially because mail is delivered twice daily. Mobile marketing will also be utilized

by AMP Energy Juice to reach the target audience. This mobile marketing strategy is culturally

appropriate to the target audience for the following reasons:

SMS text messaging continues to grow in

popularity among young people.

There are a total of 391.76 million wireless

subscribers in India (Prabhudesai, 2009).


Wireless phones are growing at close to 13% quarter on quarter in India.

In 5 years, India has gone from

33 million mobile subscribers to

close to 400 million,

demonstrating that this

provides excellent reach to the

target audience (Prabhudesai,

2009).

Mobile advertising is more personal and can be better targeted.

Mobile advertising will reach 309.43 million urban

subscribers and 120.29 rural subscribers, which

provides great reach to the target market throughout

the country.

Most of the growth in mobile subscriptions is taking place in rural areas, providing

another way to reach these consumers.

Internet and Social Media

AMP Energy Juice does not currently have its own website, so the brand will launch a

new website. Furthermore, social media, specifically Orkut and Facebook, will be used by AMP

Energy Juice to reach the target audience. Social media is a great way to inform consumers

about the product and to allow them to interact with the brand. Even though the entire Indian

population does not have the internet, this will be a great way to reach the target audience

http://trak.in/wp-content/uploads/2009/07/IndianMobileUserbasegrowth.jpg


who are younger and tend to use the internet more. The use of social media is culturally

appropriate for the following reasons:

Orkut, the leader of the online social scene in India, has

over 17 million unique visitors per month.

Facebook holds the number 4 slot of among all websites

in India, with nearly 13 million unique viewers per

month, resulting in a Facebook office opening in India due

to this success (Amar, 2010).

This is a great way for Indian users to find out about the

product, events, and other information they would want to know about AMP Energy

Juice.

A huge portion of the India’s roughly 60 to 65 million internet users are participating in

top social media portals (Amar, 2010).

Social media marketing via online community creation is also a rising trend in India.

Summary

The market and cultural analysis provided give insight into India’s current business

situation and competitive climate. Additionally, this analysis describes Indian consumers and

culture, which must be understood in order to successfully enter the market in India. Each of

the culturally appropriate objectives, strategies and tactics provided above will allow AMP

Energy Juice to successfully enter the market in India.


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Documents

Marketing Amp Energy Juice in India