AMP Case Study

Table of Contents1. Target Audience & Media Mix ____________________________ 32. Timing/Scheduling _____________________________________ 123. Media Budget _________________________________________ 144. Scope _______________________________________________ 175. Spreadsheets _________________________________________ 196. Situation Analysis ______________________________________ 237. Creative Strategy ______________________________________ 288. MFP Software _________________________________________ 309. Media Objectives_______________________________________ 50

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1. Target Audience and Media Mix

Target Audience

The target audience for this media plan will consist of single males between the ages of 18-34. This target will receive 100% of the media attention.

Males are the heavier consumer of energy drinks. Males make up 62.5% of energy drink consumers, and are 30% more likely to have consumed an energy drink in the past 30 days. Among heavy users, males are 36% more likely to have consumed 5 or more energy drinks in the past 30 days. In all 16,928,000 males have consumed at least one energy drink in the past 30 days. 1,884,000 males have consumed an AMP energy drink in the past 30 days, and they are 37% more likely to consume an AMP energy drink. 5,738,000 males have consumed a Monster energy drink in the past 30 days, and they are 42% more likely to consume a Monster energy drink. 10,673,000 males have consumed a Red Bull energy drink in the past 30 days, and they are 25% more like to consume a Red Bull energy drink.

The 18-24 age group is the strongest and most consistent consumer of energy drinks. 7,236,000 18-24 year olds have consumed an energy drink in the past 30 days, and they are 109% more likely to have consumed an energy drink over the past 30 days. The 25-34 age group is also a very strong and consistent consumer base. 7,887,000 25-34 year olds consumed an energy drink in the past 30 days, and they are 62% more likely to have consumed an energy drink in the past 30 days. 18-24 year olds are also 109% more likely to be heavy consumers, drinking 5 or more energy drinks in the past 30 days, while 25-34 year olds are 70% more likely. Among competitors, 18-24 years olds are 149% more likely to have consumed a Monster energy drink in the past 30 days and 126% more likely to have consumed a Red Bull energy drink in the past 30 days, while being 225% more likely to have consumed an AMP in the past 30 days. 25-34 year olds are 66% more likely to have consumed a Monster energy drink in the past 30 days and 66% more likely to have consumed a Red Bull energy drink in the past 30 days, while being 49% more likely to have consumed an AMP in the past 30 days. The 18-34 year old age group is also a strong choice because of their propensity to use new forms of technology, such as smart phones, and their familiarity with social media and other new forms of media.

Singles are a very reliable group as far as energy drink consumption goes. Singles are 73% more likely to have consumed an energy drink in the past 30 days and are 71% more likely to have consumed 5 or more energy drinks in the past 30 days. There are 11,755,000 singles who have consumed an energy drink in the past 30 days. These singles are 108% more likely to have consumed an AMP in the past 30 days, 82% more likely to have consumed a Monster in the past 30 days, and 81% more likely to have consumed a Red Bull in the past 30 days. Singles are also generally a much more adventurous group than those who are married or have children. Seeing

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as much of our campaign is based around adventurous and thrilling activities, this demographic fits well in our campaign.

The plan will also focus upon targeting a select number of occupations which are especially promising consumers of energy drinks. Those who are employed in Natural Resources Construction and Maintenance occupations are 73% more likely to have consumed an energy drink in the past 30 days. Those employed in the Food Preparation and Serving related occupations are also 73% more likely to have consumed an energy drink in the past 30 days. Those employed in the Farming, Fishing, and Forestry occupations are 94% more likely to have consumed an energy drink in the past 30 days. Those employed in the Construction and Extraction occupations are 114% more likely to have consumed an energy drink in the past 30 days. Finally, those in Military Specific occupations are 146% more likely to have consumed an energy drink in the past 30 days. These five occupations will be targeted especially heavy among those in our broader target market of single 18-34 year males.

As far as product usage and lifestyle goes, those with the following purchasing behaviors would be valuable to focus upon. First, those who have purchased athletic footwear at any time in the past 12 months are 26% more likely to have consumed an energy drink at some point in the past 30 days. Persons who cook their own meals are also a valuable target, as those who have purchased any cooking or serving products in the past 12 months are 16% more likely to have consumed an energy drink in the past 30 days. Cigar smokers are also a very valuable target, as those who have purchased a heavy cigar within the past 7 days are 185% more likely to have consumed an energy drink in the past 30 days. Cell phone users are a valuable target as well. Those who have purchased a cell phone, digital phone, or PDA in the past 12 months are 30% more likely to have consumed an energy drink within the past 30 days. Those who participate in a fantasy sports league are 70% more likely to have consumed an energy drink within the past 30 days. Video game users are another valuable target, as those who have participated in video game usage in the past 12 months are 84% more likely to have consumed an energy drink in the past 30 days. Another valuable target is those who are concerned with personal fitness. Those who have engaged in a 2 week or more physical fitness plan, whether it be at their own home, a club, or another facility, range from 13% to 31% more likely to have consumed an energy drink in the past 30 days.

Media Mix

This plan will utilize both mass media and new media in executing its strategy. The mass media will be divided into four categories: magazines, television, radio, and internet. The new media will be executed through a series of promotions, viral messages, and experiential marketing expressed through several different vehicles. The tagline will be “Live Bigger with AMP energy drink” and will be consistent throughout all forms of media. The advertising in nearly all forms of media, both mass and new, will work in conjunction with a unique website and twitter campaign that will drive the plan. Both the website and the twitter campaign will be based around the

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phrase “AMPd UP”. It is our goal to have the phrase “AMPd Up” become synonymous with the words “adventure”, “thrill”, “breathtaking”, “unbelievable”, ect. The website, www.ampdup.com, will be little more than a stream for a twitter hash tag we will generate and will work in the following way. Twitter users will be encouraged to tweet to the hash tag #AMPdUP when they see something they deem to be worthy of description by one or more of the words above. We are looking for people to tweet things such as “About to bungee jump for the first time #AMPdUp”, or a picture from the top of ski slope along with the hash tag #AMPdUp. These tweets can be anything: a link to an article or a video, a picture, simply words, or much more. It will obviously be a goal of ours to get this hash tag trending worldwide so that more and more 18-34 single males tweet about being “APMd Up”. The tweets that are the most reflective of the “thrilling” image we are trying to create for AMP will be put up on the front page of the website (ampdup.com). Those tweets that are reflective of a story that could be particularly amazing will be followed up upon with the user who tweeted it, and if possible, the full story will be told in a section of the site titled “Those Who Live Bigger”. There will also be form on the site for visitors to submit their stories, complete with pictures. The only stories that will be posted on the site, or used in advertisements, will be those of persons who fit into our target market of 18-34 single males.

Magazines

Magazines will be the most heavily weighted form of media in this plan. A great amount of emphasis will be put on reaching the 18-34 single male target through print advertising in magazines. It is clear that magazines are a completely underutilized form of media in the energy drink category. In 2007 and 2008 Monster completely shunned magazine advertising, spending absolutely nothing on this form of media. In 2007 Red Bull spent $1,466,300 on magazine advertising, and $171,300 in 2008. This spending made up a miniscule 2.4% and 0.2% of the total budget in the respective years. AMP itself spent $480,700 on magazine advertising in 2007 and $196,600 in 2008. This made up 4.9% and 1.1% of the total budget respectively. The lack of spending in this category does not make a great deal of sense. The 20% of readers who read magazines the most (the heaviest of users) are 35% more likely to have consumed an energy drink in the past 30 days and 32% more likely to have consumed 5 or more energy drinks in the past 30 days. These are the highest percentages of a Quintile I (heaviest) in any form of mass media, 8% ahead of the closest form of media in consumption of at least one energy drink in the past 30 days and 5% ahead of the closest form of media in 5 or more energy drinks consumed in the past 30 days. Of the heaviest using 20% of magazine readers (Quintile I) 7,312,000 persons have consumed an energy drink in the past 30 days. These readers are also 47% more likely to have consumed an AMP in the past 30 days, as compared to 28% more likely to have consumed a Monster in the past 30 days. Considering that our plan seeks to focus primarily on Quintile I

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(heaviest 20%) users, magazines are the most valuable of media forms according to the aforementioned statistics. The magazine advertising will be based around the tag line “Live Bigger with AMP Energy Drink”. The ads will be largely composed of copy placed on a background of a photo of a person engaging in a “thrilling” activity. The copy will tell the story of the person in the picture in a brief manner. The tagline “Live Bigger with AMP Energy Drink” with show at the top of the ad along with an image of a can of AMP. Near the bottom the ad the copy “Tell Us How You Live Big at www.ampdup.com” will appear on the right side of the page, and the copy “#AMPdUp” will appear on the left side of the page. Only the images/ stories of those who fit into the 18-34 single male demographic will be featured in these ads. In the months leading up to and during the X Games, it is our hope to include our sponsorship of some part of the event in our magazine advertising as well.

We will seek to place insertions in the following magazine titles:

Car and Driver: Magazines in the automotive category are 62% more likely to have consumed an energy drink in the past 30 days. 5,524,000 readers of automotive magazines have consumed an energy drink in the past 30 days. Readers of Car and Driver make up more than 42% of this figure, with 2,342,000 readers of the magazine having consumed an energy drink in the past 30 days. Readers of Car and Driver are also 83% more likely to have consumed an energy drink in the past 30 days. With Car and Driver being such a dominating force within a category that is as highly read by 18-34 single males as is the automotive category, it is a simple choice.

Cigar Aficionado: Although this title may not have the largest readership, those who do read Cigar Aficionado are extremely valuable targets. As is mentioned in the description of the target audience, heavy users of cigars are very often also heavy users of energy drinks. In addition to this, readers of this title are 51% more likely to have consumed an energy drink within the past 30 days and are 53% more likely to have consumed 5 or more energy drinks in the past 30 days.

ESPN the Magazine: Within the target market of 18-34 single males, sports have an incredibly large influence. Among magazines in the sports category, in which 6,219,000 readers have consumed an energy drink in the past 30 days, readers are 46% more likely to have consumed an energy drink in the past 30 days. ESPN the Magazine is a leading contributor to these stats. 3,259,000 readers of this title have consumed an energy drink in the past 30 days, making up 52.4% of the category as a whole. ESPN the Magazine readers are also 95% more likely to have consumed an energy drink in the past 30 days.

Game Informer: As is mentioned in the target audience description, those who play video games are also very likely to be consumers of energy drinks. Readers in the video game/ PC and console magazine category as a whole are 112% more likely to have consumed an energy drink in the past 30 days. Game Informer is the leader in this category, with 1,649,000 readers having consumed an energy drink in the past 30 days and being 128% more likely to have consumed an energy drink in the past 30 days.

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Maxim: It is quite obvious that our target audience demands that we include a men’s magazine in our plan. Within the Men’s magazine category, a whopping 8,585,000 readers have consumed an energy drink in the past 30 days, and readers of the category are 62% more likely to have consumed an energy drink in the past 30 days. Maxim is the leader among Men’s magazines when it comes to energy drinks. 3,519,000 Maxim readers have consumed an energy drink within the past 30 days and they are 123% more likely to have consumed an energy drink in the past 30 days.

Muscle and Fitness: As mentioned in the target audience description, those who are involved in a physical fitness plan are also very often consumers of energy drinks. Muscle and Fitness is a leader within the fitness magazine category when it comes to energy drinks. 1,773,000 readers of muscle and fitness have consumed an energy drink in the past 30 days, and readers of the title are 111% more likely to have consumed an energy drink in the past 30 days.

Rolling Stone: The music magazine category is one that is very consistent among energy drink consumers. 4,727,000 readers within this category have consumed an energy drink in the past 30 days, and readers within the category are 70% more likely to have consumed an energy drink in the past 30 days. Rolling Stone is an extremely strong title within this category when considering the realm of energy drinks. 2,751,000 readers of Rolling Stone have consumed an energy drink in the past 30 days, and they are 87% more likely to have consumed an energy drink in the past 30 days.

Radio

Radio is another form of media that seems to be under utilized in the energy drink category. While the argument for using radio is not quite a staggering as the one for the use of magazines, it is quite clear by looking at the figures that it is a valuable form of media. The heaviest 20% of listeners of radio are 27% more likely to have consumed an energy drink in the past 30 days. 6,891,000 of the Quintile I radio listeners have consumed an energy drink in the past 30 days. These numbers indicate that radio would be a strong choice; however, this is not reflected by the use of the medium. In analyzing the use of national spot radio, which is the form of radio we are seeking to advertise in, it can be seen that AMP is one of the few brands that makes use of the medium. AMP spent $573,700 on national spot radio advertising in 2008. Even so, this made up only 3.1% of the total budget. In addition to this, AMP spent nothing on national spot radio advertising in 2007. Monster did not spend anything on national spot radio advertising in either 2007 or 2008. Red Bull spent $19,600 on national spot radio advertising in 2007, but that made up a meager 0.03% of the total budget. They spent nothing on the medium in 2008.

The radio advertisements will follow along with the same concept used in the magazine advertisements. A story will be told by a narrator of a person doing something “thrilling”, lead by the tagline “Live Bigger with AMP Energy Drink”. The advertisement will close with

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the narrator stating “Find more stories about those who live big, or even tell us a story of your own, at www.ampdup.com”.

We will utilize the following radio formats in the execution of our plan. They will all be within the music category:

Contemporary Hits Radio: This is the most powerful of all the radio formats we will utilize. Listeners of CHR stations are 66% more likely to have consumed an energy drink in the past 30 days, and in all, 8,072,000 listeners of CHR have consumed an energy drink in the past 30 days. These are extremely promising figures, and it would be foolish to pass up advertising on this format.

Urban: This is another very valuable radio format. Listeners of Urban radio stations are 64% more likely to have consumed an energy drink in the past 30 days. 5,917,00 listeners of Urban stations have consumed an energy drink in the past 30 days. Once again, these figures make this format hard to pass up.

Rock: While the numbers are not quite as convincing for Rock stations as were those of the previous two formats, it is still a format that merits utilization. 4,668,000 listeners of Rock stations have consumed an energy drink within the past 30 days. These listeners are also 61% more likely to have consumed an energy drink in the past 30 days.

Alternative: This format has the lowest figures of any that we will utilize, but it is still a powerful influence. 3,188,000 listeners of Alternative radio have consumed an energy drink in the past 30 days. These listeners are also 60% more likely to have consumed an energy drink in the past 30 days.

Television

Although television is the medium most often utilized in advertisement for the energy drink sector, the figures do not show it to be even nearly the most valuable of media forms. Whereas the heavier use quintiles in both magazines and radio have the highest likelihood of energy drink consumption, it is the lightest use quintiles that have the highest likelihood of energy drink consumption when it comes to television. It is the lowest using 20% of television viewers that is 10% more likely to have consumed an energy drink in the past 30 days. The heaviest using 20% of television viewers, on the other hand, have an index number in the mid 80s when it comes to energy drink consumption in the past year. It is for this reason that we will utilize television selectively. Television advertising will only be used in the case of large televised events and very selective programming.

Once again, the television advertisements will follow similarly with the ads for magazine and radio. The only difference between the television and radio ads will be

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that the television will have visual aid to go along with it. The same stories will be told, but the audience will able to a video that’s shows the action taking place. It is quite clear that copy will also be utilized in these ads.

We will seek to place continuous advertising in late night programming. It is also are goal to advertise on certain large televised sporting events. The plan for television will be broken down as follows:

Late Night Programming: This program type does not have the largest viewership, but it can bring us a devoted customer base. Although only 1,040,000 viewers of late night talk and variety programming have consumed an energy drink in the past 30 days, they are 51% more likely to have consumed an energy drink in the past 30 days. Late night comedy is much more promising. All advertisement on Late Night Programming will be Spot TV advertisement. The specific late night programming we will focus upon is as follows:

o Adult Swim: This set of late night cable programming on the Cartoon Network has 3,301,000 viewers who have consumed an energy drink in the past 30 days. Viewers of Adult Swim are also 116% more likely to have consumed an energy drink in the past 30 days.

o Conan O’Brian: The viewership of Conan is not extremely high, but the fact that viewers of the program are 105% more likely to have consumed an energy drink in the past 30 days, making it a valuable program to advertise on.

o Saturday Night Live: SNL is an extremely valuable late night program to advertise on. 1,131,000 viewers of SNL have consumed an energy drink in the past 30 days, and they are 135% more likely to have consumed an energy drink in the past 30 days.

o South Park: This program has an extremely loyal late night base. Viewers of South Park are 140% more likely to have consumed an energy drink in the past 30 days. In all, 2,136,000 viewers of the program have consumed an energy drink in the past 30 days.

Sporting Events: In choosing the select few sporting events we will advertise on, we looked for ones that would appeal to 18-34 single male nearly exclusively, rather than a huge event such as the Super Bowl. We have chosen the following events for National Television Advertising:

o X Games: The X Games is a set of extreme sports programming that fits right in with our demographic and desire to have AMP become synonymous with “thrilling”. 2,394,000 viewers of the X Games have consumed an energy drink in the past 30 days. They are 108% more likely to have consumed an energy drink in the past 30 days.

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o WWE Smackdown!: This program has extremely impressive figures. 2,206,000 viewers of this program have consumed an energy drink in the past 30 days and they are 93% more likely to have consumed an energy drink in the past 30 days.

o WWE Wrestling: This wrestling programming is slightly less valuable than Smackdown!, but it is still impressive. 2,195,000 viewers of this program have consumed an energy drink in the past 30 days and they are 73% more likely to have consumed an energy drink in the past 30 days.

Internet

Internet advertising is very efficient when it comes to the energy drink category. Among those who use the internet 2 or more times a day, there are 11,722,000 people who have consumed at least one energy drink in the past 30 days. These persons are also 11% more likely to have consumed an energy drink in the past 30 days. Among mobile internet users, 3,680,000 users have consumed an energy drink in the past 30 days, and they are 53% more likely to have consumed an energy drink in the past 30 days. Although the majority of our internet advertising will be through standard banner ads and search engine optimization, we will want to especially focus on the following categories:

o Fantasy Sports: As is stated in the target audience description, fantasy sports league owners are very often also heavy consumers of energy drinks. We will play on this by placing a large amount of ads in these leagues and by offering fantasy advice sponsored by AMP. This advice will be placed on several different fantasy host sites and will be under the title “Win Bigger with AMP Energy Drink”.

o Cooking/ Recipe Sites: As is stated in the target audience description, those who cook at home are very likely to be reliable consumers of energy drinks. It is for this reason that we want to put special emphasis on using banner advertisements on this category of sites.

New Media

Over the course of the plan, we will seek to engage in several forms of new media. They are as follows:

o Guerilla Marketing at the X Games: Considering that both the summer and winter X Games are excellent representations of the target market we want to focus upon, it makes complete sense to engage in guerilla marketing at these events. The marketing would be done through

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several methods. First, bumper stickers would be given away that simply state “#AMPdUP”. We would also hand out handbill size flyers with nothing but a QR code on them. It is our hope that the consumers will be curious enough to search the QR code with their mobile device, leading them to www.ampdup.com. An X Games sponsorship in some shape or form will also be pursued.

o Mobile Apps Advertisement: With 18-34 years being one of the heaviest users of smart phones, it makes complete sense to make use of this medium. Placing banner ads on some of the more popular applications, such as Draw Something and Words With Friends, along with audio advertisements on music applications such as Pandora and I Heart Radio will help us to reach a great deal of target market.

o Email Marketing: This method of advertisement is becoming more and more common. With snail mail becoming less and less common because of the expense involved, Email Marketing is taking over. Seeing as snail mail marketing has proven to be extremely effective among our target (An ICOM study in 2010 found that 59% of 18-34 year olds preferred snail mail), it would only be logical to see how its replacement works among the same group.

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2. Timing/Scheduling

Month Reach Goal Frequency GoalJanuary 80 7.0

February 80 7.0March 70 5.0April 70 5.0May 70 5.0June 85 7.0July 85 7.0

August 70 5.0September 70 5.0

October 70 5.0November 0 0.0December 0 0.0

As can be seen from this goals sheet, a flighting media schedule will be utilized in this plan. The winter months are generally the lowest advertised by the energy drink category due to the fact that energy drinks are cold and refreshing beverages and are not as likely to be consumed in cold weather months. It may seem odd then that we have chosen two winter months, January and February, to be peak months in advertising. This has been done because we are looking to center a great deal of our advertising on the X Games. The Winter X Games are in late January. Advertising will be ramped up at the beginning of January in an effort to increase anticipation for the heavy stream of promotion during the event and in the month following. January will also be the launch month. The Summer X Games are in late June. In the same manner as the Winter X Games, advertising will be ramped up in the beginning of June in an effort to increase anticipation for the heavy stream of promotion during the summer games and in the month following. The reach goals are slightly higher for the Summer X Games than the Winter X Games because consumption of energy drinks is generally higher during summer months than in winter months, and the advertising will therefore have slightly more emphasis during these months. The months of November and December will have no advertising whatsoever. This follows the logic of energy drink consumption being lower during cold weather months. The remaining six months have medium reach and frequency goals, and these months will be quite consistent when it comes to the amount of media purchases.

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Januaryo Magazine (emphasis

on Winter X Games sponsorship)

o Spot Radio

o Spot Late Night TV

o National TV (X Games)

o Internet

o Email Marketing (Encourage watching X Games)

o Mobile App Advertising

o Guerilla Marketing at Winter X Games

Februaryo Magazine (emphasis

on stories from Winter X Games)

o Spot Radio

o Spot Late Night TV

o National TV (WWE)

o Internet

o Email Marketing (Thank for watching X Games)

o Mobile App Advertising

Marcho Magazine

o Spot Radio

o Spot Late Night TV

o Internet

o Mobile App Advertising

Aprilo Magazine

o Spot Radio

o Spot Late Night TV

o Internet

o Mobile App Advertising

Mayo Magazine (emphasis

on stories from Winter X Games)

o Spot Radio

o Spot Late Night TV

o National TV (WWE)

o Internet

Juneo Magazine (emphasis

on Summer X Games sponsorship)

o Spot Radio

o Spot Late Night TV

o National TV (X Games)

o Internet

o Email Marketing (Encourage watching X Games)

o Mobile App Advertising

o Guerilla Marketing at Summer X Games

Julyo Magazine (emphasis

on stories from Winter X Games)

o Spot Radio

o Spot Late Night TV

o National TV (WWE)

o Internet

o Email Marketing (Thank for watching X Games)

o Mobile App Advertising

Augusto Magazine (emphasis

on stories from Winter X Games)

o Spot Radio

o Spot Late Night TV

o National TV (WWE)

Septembero Magazine

o Spot Radio

o Spot Late Night TV

o Internet

o Mobile App Advertising

Octobero Magazine

o Spot Radio

o Spot Late Night TV

o Internet

o Mobile App Advertising

November December

The schedule above follows logically along with the frequency and reach goals table. In the months of January and June, in which the X Games take place, we use every type of media in our plan and focus on encouraging our target to watch the X Games. February and July are nearly the same as these two months, less the guerilla marketing at the event itself. In February and July we focus on thanking our target for watching the X Games and encouraging them to view “AMPd Up” stories from the X Games. In November and December there are no expenditures. The remainder of the months are nearly the same, except for the fact that we alternate between advertising through mobile apps and on WWE programming in certain months. In these months most of the new media has been eliminated in an effort to reduce expenditures.

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The advertising in the remaining media forms will also be scaled back from what they were in peak months during these medium goal months.

3. Media Budget

Magazines45%

Internet20%

Spot TV10%

Spot Radio10%

National TV7%

Mobile App5%

Email Marketing2%

Guerilla Marketing1%

Percentage of Budget

Magazines, 45%, $9,900,000

The justification for utilizing nearly half of the $22 million budget on magazine advertising is clearly described in the media mix portion of this case study. The month by month magazine budget will be broken down as follows based on reach and frequency goals and scheduling:

o $1,485,000 in both June and Julyo $1,287,000 in both January and February o $726,000 in March, April, May, August, September, and October

Internet, 20%, $4,400,000

As with magazines, the justification for spending the second largest percentage of the budget on Internet advertising can be found in the media mix portion of the case study. It should be clear that this is a wise choice based on the substantial amount of time 18-34 year olds spend on the internet on a daily basis. The month by month internet budget will be broken down as follows based on reach and frequency goals and scheduling:

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o $660,000 in both June and July o $572,000 in both January and February o $322,667 in March, April, May, August, September, and October

Spot TV, 10%, $2,200,000

Spot TV will be focused on late night programming, as is outlined in the media mix portion of this case study. The justification for giving Spot TV 10% of the budget can also be found in this section. The month by month Spot TV budget will be broken down as follows based on reach and frequency goals and scheduling:

o $330,000 in both June and Julyo $286,000 in both January and Februaryo $161,333 in March, April, May, August, September, and October

Spot Radio, 10%, $2,200,000

In the same manner as each of the previous media forms, the justification for giving Spot Radio 10% of the budget can be found in the media mix portion of this case study. The month by month Spot Radio budget will be broken down as follows based on reach and frequency goals and scheduling:

o $330,000 in both June and Julyo $286,000 in both January and Februaryo $161,333 in March, April, May, August, September, and October

National TV, 7%, $1,540,000

The majority of the reasoning behind only giving National TV 7% of the budget can be found in the media mix portion of this case study. However, it should be acknowledged that the fact that we are only advertising on three programs (all of which are sports), and the fact that we are only using National TV in 6 of 12 months, allows us to spend less on this media form. The month by month National TV budget will be broken down as follows based on reach and frequency goals and scheduling:

o $462,000 in January and Juneo $154,000 in February, May, July, and August

Mobile Apps Advertising, 5%, $1,100,000

Mobile Apps Advertising is an extremely valuable form of new media. The budget for Mobile Apps Advertising would be higher if we were going to use it in more months of the year, but since it will only be used 8 of 12 months out of the year, an exorbitant budget is not necessary. The fact that mobile apps advertising is not as expensive as many forms of mass media also

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allows us to do more with a smaller budget. The month by month Mobile Apps Advertising budget will be broken down as follows based on reach and frequency goals and scheduling:

o $165,000 in January, February, June, and Julyo $110,000 in March, April, September, and October

Email Marketing, 2%, $440,000

Email marketing will only be used in four months of the year. Two of these months will be used to raise awareness of AMPs sponsorship of the X Games. The other two months will be used to direct the target to www.ampdup.com to read stories of X Games athletes. Since we will only be using Email Marketing sparingly, we do not need an extensive budget. The month by month Email Marketing budget will be broken down as follows based on reach and frequency goals and scheduling:

o $88,000 in both January and June o $132,000 in both February and July

Guerilla Marketing at X Games, 1%, $220,000

Since Guerilla Marketing will be used only two weeks out of the year, at the summer and winter X Games, we do not need any sort of large budget. The more than $100,000 that will devoted to each of these weeks will be more than enough to print the extensive amount of materials we want to distribute. The month by month Guerilla Marketing budget will be broken down as follows based on reach and frequency goals and scheduling:

o $110,000 in January (Winter X Games)o $110,000 in June (Summer X Games)

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4. Scope

For this plan, we have chosen to use both national and spot advertising. The choice to use national advertising was quite obvious, seeing as the two media forms that take up the largest portion of our budget, magazines and internet, are not ones in which spot advertising can be used effectively. We also chose to use National TV advertising for the sporting events we will be advertising on (X Games and WWE) because the audiences for these programs are almost entirely composed of our target market. However, in analyzing the data it was clear that there were individual markets are geographic areas that we in need of extra advertising attention. We started by looking at cities that had substantial populations, a large amount of estimated energy drink users, and a high CDI. Among these cities, we then singled out the markets in which the 18-34 population did not compose an impressive amount of the estimated users. The markets that fit these criteria were as follows:

City CDIPercentage of

Estimated Users in the 18-34 Age Group

Los Angeles, CA 121 1.7%

New York, NY 112 0.2%

Austin, TX 106 9.1%

Norfolk et al, VA 103 11.7%

Columbus, OH 102 5.4%

San Francisco et al, CA

101 2.0%

Oklahoma City, OK 97 10.8%

Tampa et al, FL 96 4.2%

Green Bay- Appleton, WI

94 5.5%

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In addition to these nine markets, which are spread pretty wide throughout the entirety of the US, we wanted to target several markets within geographic areas that had promising figures in the realm of heavy energy drink consumers. Those who live in the Pacific Marketing Region are 34% more likely to have consumed an energy drink in the past 30 days and 45% more likely to have consumed 5 or more energy drinks in the past 30 days. Those who live in the Southwest Marketing region are 14% more likely to have consumed an energy drink in the past 30 days and 18% more likely to have consumed 5 or more energy drinks in the past 30 days. Among these two marketing regions, we wanted to choose an additional six markets that reflected a high number of estimated users and a high CDI. Those six markets are as follows:

City Estimated Users

CDI

Las Vegas, NV 231,561 114

Fresno-Visalia, CA

186,108 113

Houston, TX 646,249 109

San Diego, CA 334,500 109

Phoenix, AZ 551,960 106

Dallas-Ft Worth, TX

730,764 105

Within these 15 markets, Spot TV and Spot Radio advertising will both be utilized. The exact mediums and formats within these media forms that will be utilized can be found in the media mix portion of this case study.

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5. Spreadsheets

AMP Raw Number Data

Market HHs Est Users CDIEst AMP Sales $(000)

Total Across EV%

Los Angeles, CA 5759523.0 1975624.0 121.0 18053.3 7753321.3 19.8Las Vegas, NV 715284.0 231561.0 114.0 2411.9 949370.9 2.4Fresno-Visalia, CA 580872.0 186108.0 113.0 1048.3 768141.3 2.0New York, NY 7554817.0 2409489.0 112.0 17222.5 9981640.5 25.5Houston, TX 2078638.0 646249.0 109.0 5824.6 2730820.6 7.0San Diego, CA 1074776.0 334500.0 109.0 1812.0 1411197.0 3.6Austin, TX 642383.0 193206.0 106.0 1784.8 837479.8 2.1Phoenix, AZ 1834080.0 551960.0 106.0 4268.2 2390414.2 6.1Dallas-Ft Worth, TX 2449167.0 730764.0 105.0 4303.8 3184339.8 8.1Norfolk, VA 727756.0 214258.0 103.0 1382.5 943499.5 2.4Columbus, OH 918044.0 265280.0 102.0 2899.5 1186325.5 3.0San Francisco, CA 2529617.0 729476.0 101.0 6847.9 3266041.9 8.3Oklahoma City, OK 679584.0 188372.0 97.0 2114.0 870167.0 2.2Tampa, FL 1807482.0 495394.0 96.0 3905.9 2306877.9 5.9Green Bay-Appleton, WI 442226.0 118318.0 94.0 1365.1 562003.1 1.4Total 29794249.0 9270559.0 1588.0 75244.3 39141640.3 100.0

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AMP Percentage Data

Market HHs Est Users CDIEst AMP Sales $(000)

Total Across EV%

Los Angeles, CA 19.3 21.3 7.6 24.0 72.3 18.1Las Vegas, NV 2.4 2.5 7.2 3.2 15.3 3.8Fresno-Visalia, CA 1.9 2.0 7.1 1.4 12.5 3.1New York, NY 25.4 26.0 7.1 22.9 81.3 20.3Houston, TX 7.0 7.0 6.9 7.7 28.6 7.1San Diego, CA 3.6 3.6 6.9 2.4 16.5 4.1Austin, TX 2.2 2.1 6.7 2.4 13.3 3.3Phoenix, AZ 6.2 6.0 6.7 5.7 24.5 6.1Dallas-Ft Worth, TX 8.2 7.9 6.6 5.7 28.4 7.1Norfolk, VA 2.4 2.3 6.5 1.8 13.1 3.3Columbus, OH 3.1 2.9 6.4 3.9 16.2 4.1San Francisco, CA 8.5 7.9 6.4 9.1 31.8 8.0Oklahoma City, OK 2.3 2.0 6.1 2.8 13.2 3.3Tampa, FL 6.1 5.3 6.0 5.2 22.6 5.7Green Bay-Appleton, WI 1.5 1.3 5.9 1.8 10.5 2.6Total 100.0 100.0 100.0 100.0 400.0 100.0

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AMP Weighted Data

Column Weight 1.0 1.0 2.0 1.0

Market HHs Est Users CDIEst AMP Sales $(000)

Total Across EV%

Los Angeles, CA 19.3 21.3 58.1 24.0 122.7 12.7Las Vegas, NV 2.4 2.5 51.5 3.2 59.6 6.2Fresno-Visalia, CA 1.9 2.0 50.6 1.4 56.0 5.8New York, NY 25.4 26.0 49.7 22.9 124.0 12.8Houston, TX 7.0 7.0 47.1 7.7 68.8 7.1San Diego, CA 3.6 3.6 47.1 2.4 56.7 5.9Austin, TX 2.2 2.1 44.6 2.4 51.2 5.3Phoenix, AZ 6.2 6.0 44.6 5.7 62.3 6.4Dallas-Ft Worth, TX 8.2 7.9 43.7 5.7 65.5 6.8Norfolk, VA 2.4 2.3 42.1 1.8 48.7 5.0Columbus, OH 3.1 2.9 41.3 3.9 51.1 5.3San Francisco, CA 8.5 7.9 40.5 9.1 65.9 6.8Oklahoma City, OK 2.3 2.0 37.3 2.8 44.4 4.6Tampa, FL 6.1 5.3 36.5 5.2 53.1 5.5Green Bay-Appleton, WI 1.5 1.3 35.0 1.8 39.6 4.1Total 969.7 100.0

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Market Rankings with 2.0 Weight on CDI

Market HHs Est Users CDIEst AMP Sales $(000)

Total Across EV%

New York, NY 25.4 26.0 49.7 22.9 124.0 12.8Los Angeles, CA 19.3 21.3 58.1 24.0 122.7 12.7Houston, TX 7.0 7.0 47.1 7.7 68.8 7.1San Francisco, CA 8.5 7.9 40.5 9.1 65.9 6.8Dallas-Ft Worth, TX 8.2 7.9 43.7 5.7 65.5 6.8Phoenix, AZ 6.2 6.0 44.6 5.7 62.3 6.4Las Vegas, NV 2.4 2.5 51.5 3.2 59.6 6.2San Diego, CA 3.6 3.6 47.1 2.4 56.7 5.9Fresno-Visalia, CA 1.9 2.0 50.6 1.4 56.0 5.8Tampa, FL 6.1 5.3 36.5 5.2 53.1 5.5Austin, TX 2.2 2.1 44.6 2.4 51.2 5.3Columbus, OH 3.1 2.9 41.3 3.9 51.1 5.3Norfolk, VA 2.4 2.3 42.1 1.8 48.7 5.0Oklahoma City, OK 2.3 2.0 37.3 2.8 44.4 4.6Green Bay-Appleton, WI 1.5 1.3 35.0 1.8 39.6 4.1Total 969.7 100.0

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6. Situation Analysis

1. Analysis of Marketing Objectives & Strategies

The market for energy drinks in the US emerged in 1995 when Pepsico introduced the first nationally branded energy drink: Josta. After this introduction, the growth of the energy drink market has been astounding. For many years, the energy drink market maintained a 50% growth rate, and by 2001 it had increased to $8 million in annual sales. Although this growth rate has slowed, the market for energy drinks is still growing rapidly. Maintaining a growth rate of 15%-20% in recent years, the market reached more than $4.8 billion in 2011. In an effort to continue growing, brands in the energy drink market have turned to methods such as making the cans as big as 24 oz and introducing diet energy drinks and reduced sugar energy drinks.

AMP was introduced by Pepsico in 2001. Originally, AMP was launched off of the Mountain Dew platform, and was only available in the popular soda’s flavor. However, in 2009 AMP began to be produced under its own brand name. AMP has made many strides since then, and is now available in almost 10 variations. The advertising for AMP has also been ramped up in recent years. Having never spent money on advertising before 2007, the brand dedicated $9.9 million to advertising in its first year doing so. In 2008, the brand upped the ante to $18.3 million in advertising spending. In these years, AMP has engaged in mass media advertising that has been directed primarily towards network and cable television advertising. AMP has also engaged in sponsorships with sports such as NASCAR and World Extreme Cage Fighting.

Seeing as AMP is a newer energy drink in the market, it is clearly still in the awareness building stage. AMP currently has the 5th largest market share in the energy drink market at 3.6%. The current brand awareness for AMP among those aged teen-34 is 14%.

The goal of this campaign is to increase brand awareness by 10% and, in effect, knock off the number two brand Monster. AMP currently has about one third of the user base of Monster. Monster also has a brand awareness of 39%. AMP has made $22 million available in this year’s advertising budget in hopes of achieving these goals.

2. Competitive Considerations

The major competitors of AMP in the energy drink market are as follows:o SoBe

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o Red Bull o Monster o Liquid X o Full Throttle o Burno Mother o Rockstar o Vault o Relentless o Cocaine o Red Rooster o Pimp Juice o Who’s Your Daddy? o Lost

Among these, Red Bull is the market leader with a 42.6% share. Monster follows with a 14.4% share. Rockstar and Full Throttle take spots three and four with 11.4% and 6.9% market shares respectively. In terms of advertising spending, Red Bull leads the pack. Red Bull spent almost $61 million on advertising in 2007. Their media purchases were spread out throughout all forms, however, the large majority of the budget was used on network TV, cable TV, and local radio. Among the market leaders, AMP was second in media spending despite holding the fifth spot down the list. Monster surprisingly has a nearly nonexistent media budget. Due to the fact that the brand entered the market so early, Monster is able to continue to hold its marketing share using aggressive marketing tactics such as guerilla marketing and sponsorships. The share of voice among market leaders are as follows:

3. Creative History of the Brand

AMP is currently positioned as a healthy option in the energy drink market. It is meant to be a refreshing beverage directed towards young, high energy males. The current tagline for AMP is “It’s Time to Rethink Energy”. AMP has traditionally focused the large majority of its media budget on network and cable television. AMP has also begun trying to position itself

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as the smart choice in energy drinks. Recently, the brand has released several variations based on what a person is trying to achieve. For example, there are different beverages for “Focus”, “Active”, and “Boost”. AMP has also recently trended towards emphasizing the use of Vitamins in their drinks.

4. Target Audience

The target audience for our campaign is 18-34 single males. Within this demographic we are especially looking to target those who are employed in labor intensive or service industry positions. We are also looking for consumers who have a mind for adventure. 18-34 single males who often participate in an activity “for the thrill of it” are exactly the persons who we want to target.

5. Geography

For this plan, we have chosen to use both national and spot advertising. The choice to use national advertising was quite obvious, seeing as the two media forms that take up the largest portion of our budget, magazines and internet, are not ones in which spot advertising can be used effectively. We also chose to use National TV advertising for the sporting events we will be advertising on (X Games and WWE) because the audiences for these programs are almost entirely composed of our target market. However, in analyzing the data it was clear that there were individual markets are geographic areas that we in need of extra advertising attention. We started by looking at cities that had substantial populations, a large amount of estimated energy drink users, and a high CDI. We also, wanted to target several markets within geographic areas that had promising figures in the realm of heavy energy drink consumers. Those who live in the Pacific Marketing Region are 34% more likely to have consumed an energy drink in the past 30 days and 45% more likely to have consumed 5 or more energy drinks in the past 30 days. Those who live in the Southwest Marketing region are 14% more likely to have consumed an energy drink in the past 30 days and 18% more likely to have consumed 5 or more energy drinks in the past 30 days. Among these two marketing regions, we wanted to choose markets that reflected a high number of estimated users and a high CDI. The spot markets which were chosen based on the above criteria are as follows:

o New York, NYo Los Angeles, CAo Houston, TXo San Francisco, CAo Dallas-Ft Worth, TXo Phoenix, AZo Las Vegas, NV

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o San Diego, CAo Fresno-Visalia, CAo Tampa, FLo Austin, TXo Columbus, OHo Norfolk, VAo Oklahoma City, OKo Green Bay-Appleton, WI

6. Timing and Purchase Cycle

The winter months are generally the lowest advertised by the energy drink category due to the fact that energy drinks are cold and refreshing beverages and are not as likely to be consumed in cold weather months. It may seem odd then that we have chosen two winter months, January and February, to be peak months in advertising. This has been done because we are looking to center a great deal of our advertising on the X Games. The Winter X Games are in late January. Advertising will be ramped up at the beginning of January in an effort to increase anticipation for the heavy stream of promotion during the event and in the month following. January will also be the launch month. The Summer X Games are in late June. In the same manner as the Winter X Games, advertising will be ramped up in the beginning of June in an effort to increase anticipation for the heavy stream of promotion during the summer games and in the month following. The reach goals are slightly higher for the Summer X Games than the Winter X Games because consumption of energy drinks is generally higher during summer months than in winter months, and the advertising will therefore have slightly more emphasis during these months. The months of November and December will have no advertising whatsoever. This follows the logic of energy drink consumption being lower during cold weather months. The remaining six months have medium reach and frequency goals, and these months will be quite consistent when it comes to the amount of media purchases.

7. Media Mix

The media mix for this plan will utilize both mass and new media. The forms of mass media that will be utilized, in order of the weight which will be given to each, are as follows:

o Magazineso Interneto Spot TVo Spot Radioo National TV

The new forms of media that will be utilized, in order of the weight to be given to each, are as follows:

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o Mobile Apps Marketingo Direct Email Marketingo Guerilla Marketing

All of the selected media forms will rely heavily on the consumer connecting with both twitter and a website that will be created for the campaign.

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7. Creative Strategy

Creative Brief

1. Key Fact:

AMP is the energy drink choice of those single males from the ages of 18-34 who live for the thrill of life. AMP doesn’t just sponsor famous athletes, it sponsors anyone with breathtaking story to tell.

2. Consumer Problem:

It is often not enough just to live a healthy and active lifestyle. Life often calls for adventure, and a little extra boost is necessary to get you going.

3. Advertising Objective

Use the stories of our consumers to generate awareness for the AMP brand in a manner that raises brand awareness by 10% and unseats the perennial number two in the category, Monster.

4. Creative Strategya. Prospect Definition

Single males between the ages of 18-34 who live an active lifestyle and are adventure enthusiasts.

b. Principal Competition

The main competition is Monster, as we are looking to replace them as the number two brand in the category. Red Bull, Rockstar, and Full Throttle are also threats, as they make up the number 1,3, and 4 brands in the category respectively.

c. Consumer Benefit

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AMP is the energy drink that believes you don’t need to be famous to tell a great story. The most thrilling stories come from everyday people, and AMP energy drink is here to make those stories possible.

d. Reason Why

AMP energy drink relies on the stories of its own consumers to promote its brand. Celebrities are great, but we would rather here from you. So grab an AMP and get going, because, who knows, your story could be the feature of our next ad.

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8. Media Flight Plan Software

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9. Media Objectives

Seeing as the strategy for this plan has been displayed throughout this case study, this section will be reserved for media objectives

Target Audience/Media Mix: 1. Use a combination of mass media and new media to reach an average of 75% of

our target market of 18-34 single males over a 12 month period2. Use magazines, targeted internet, spot TV, spot radio, national TV, mobile app

advertising, direct email marketing, and guerilla marketing to achieve a 6.0 average frequency among 18-34 single males over a 12 month period

3. Increase brand awareness by 10% among 18-34 single males

Reach/ Frequency Goals:

1. Achieve a combined national and spot reach of 85 and average frequency of 7.0 in the absolute peak months of June and July

2. Achieve a combined national and spot reach of 80 and average frequency of 7.0 in the secondary peak months of January and February

3. Achieve a combined national and spot reach of 70 and average frequency of 5.0 in the medium goal months of March, April, May, August, September, October

4. Nontraditional reach goal is to have 25% of 18-34 single male Twitter users to tweet with the hashtag #AMPdUp

Geography1. Use a combination of national and spot advertising to achieve the above stated

monthly reach and frequency goals2. Use 15 spot markets, all with CDI of 94 and above and estimated users above

100,000. All late night TV and radio buys are restricted to spot buys in these markets.

3. Increase brand awareness by an average of 20% in the Pacific marketing region and 15% in the Southwest marketing region.

Media Budget1. Focus 92% of the media budget on mass media forms and 8% on new media

forms2. Devote 45% of the budget to magazine advertising, 20% to targeted internet

advertising, 10% to spot TV advertising, 10% to spot radio advertising, 7% to national TV advertising, 5% to mobile apps advertising, 2% to direct email marketing, and 1% to guerilla marketing

3. Weight the budget so that 15% goes to both June and July, 13% goes to both January and February, and 7.3333333% goes to each of March, April, May, August, September, and October

Timing/Scheduling

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1. Use the advertisements centered around the summer and Winter X Games to make January, February, June, and July the peak months of media purchases

2. Avoid using any of the media budget in November or December due to the cold weather and lack of valuable events

3. Keep the media purchases constant throughout the other six months of March, April, May, August, September, and October

Non-traditional Media and Sales Promotions1. Use a combination of mobile apps advertising, direct email marketing, and

guerilla marketing (with hashtags and QR codes) to contribute to the reach and frequency goals above

2. Have at least 250 stories submitted to our unique web page www.ampdup.com per month

3. Integrate Twitter into each of the media forms we utilize with our plan4. Gain over 100,000 followers of the Twitter account @AMPdUp

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