AMP Energy

DFCD RESEACHJOHN DUNNE, JORDAN FENNEL, MADELAINE CIRINO, CHRIS DILLON

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TABLE OF CONTENTS

Situation Analysis 3

SWOT 14

Brand Challenge 15

Alternative 1 15

Alternative 2 16

Creative Brief 18

Big Idea 21

IMC Strategies 21

SITUATION ANALYSIS2

SITUATION ANALYSIS

DHCD RESEARCH

COMPANY ANALYSIS

When North Carolina Pharmacist

Caleb Bradham created Pepsi Cola in the

1890’s, it was unlikely he could have

foreseen the brand’s future success. Years

later, through the ups and downs of the

early 20th century, Pepsi-Cola grew to

become one of the U.S.’s most popular

soft drinks. In 1965, Pepsi-Cola continued

to grow by merging with Frito-Lay and becoming PepsiCo Incorporated: a dominant

force in both the snack and beverage industries. Today, the brand that started in a

pharmacy has become a company with over 19,000 employees and $510 million in sales.i

PepsiCo Inc’s ambitious attitude towards tapping new markets is reflected in their

mission: “To be the world’s premier consumer products company focused on convenient

foods and beverages. We seek to produce healthy financial rewards to investors as we

provide opportunities for growth and enrichment to our employees, our business partners

and the communities in which we operate. And in everything we do, we strive for

honesty, fairness and integrity.”ii

Eager to be a part of a booming energy drink market, PepsiCo launched Amp in

2001. Alongside the already successful Mountain Dew, the two drinks created a spot for

themselves in the action sports market.iii Amp has since expanded its reach and in 2006

helped PepsiCo climb to third in energy drink sales.iv

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In an effort to move up from the 5th top-selling energy drink, PepsiCo has

‘amped’ up their 2008 media spending. Aside from introducing several new flavors,

“PepsiCo spent $8.6 million for Amp during Q1, nearly the same amount spent for the

brand in all of 2007 according to Nielsen Monitor-Plus. Amp beat out other major

energy drink brands in the first quarter with a 28.7% sales growth.”v

Pepsi Co Inc’s future rests on the shoulders of CEO Indra K. Nooyi. Nooyi has

been CEO of PepsiCo Inc. since October 2006 and has been working with the company

for over a decade. Ms. Nooyi started in 1994 as Senior Vice President of Strategic

Planning and has worked her way up to the top of the corporation. Her familiarity with

the product and her history in corporate strategy and planning makes her a critical part of

Pepsi and Amp’s success.

PRODUCT ANALYSIS

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

brand product line after its success with Code Red.vi The pre-established recognition of

Mountain Dew gave Amp a huge advantage over its competitors. The citrus flavor of

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Mountain Dew carried over into the Amp

product to reinforce the energizing boost

that consumers are looking for in an energy

drink. Essential to the energy drink category

is the tall, slim can in which Amp is

housed.vii The can holds 8.4 ounces and features a pull tab for easy opening.viii

Nutrition Information for the 3 Energy Drink brands distributed by PepsiCo.

AM

P E

ne

rgy

No

Fea

r

So

Be

Ad

ren

alin

e R

ush

Calories 110 130 130Total Fat (g) 0 0 0Sodium (mg) 65 115 95Total Carbs (g) 29 36 34Sugars (g) 29 33 33Protein (g) 0 1 0Vitamin A %DV 0 0 0Vitamin C %DV 0 100 100Calcium %DV 0 0 0Iron %DV 0 0 0Niacin %DV 10 - -Vitamin B6 %DV 10 100 240Folate %DV 0 10 30Vitamin B12 %DV 10 100 100Pantothenic Acid %DV 10 - -Zinc %DV 0 10 -Selenium (mg) 0   10   -

Multipacks of Amp come in environmentally-friendly packaging from the

Zumbiel Packaging company with Z-view. The Z-view feature is actually a cutout in the

paperboard packaging used for multipacks that allows consumers to see the actual

product inside the packaging. This feature reduces the amount of paperboard used for

multipack packaging by 10%. ix The packaging for SoBe Adrenaline Rush, another

energy drink also produced by PepsiCo, looks very similar to the design and construction

of Amp’s packaging but they are two very different products.

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Some of Amp’s key ingredients that provide that extra boost of energy are

ginseng, taurine and guarana. It also contains B-vitamins along with simple and complex

carbohydrates to keep the consumer going and energized. The biggest boost of energy

comes from the 75mg of caffeine in the 8.4-oz. can compared to the 37mg contained in 8

ounces of Mountain Dew. Riboflavin, the B vitamin contained in Amp, adds an extra

twist that truly differentiates the product from others in the energy drink category. When

Amp is placed in black light, riboflavin actually makes the drink glow, which spurred

rumors that the drink glows in the dark. Other materials on the can also glow under black

light.

Amp Energy offers five additional flavor varieties for those looking for an energy

drink with a twist. Amp Energy Elevate has a mixed berry flavor in a blue can that comes

with L-Theanine that sharpens the mind and maintains focus. Amp Energy Overdrive

comes in a red can and offers yerba mate with an intense cherry flavor. In the orange can,

Amp Energy ReLaunch contains electrolytes and B vitamins that re-energize with an

orange citrus flavor. Amp Energy Traction comes in a purple can and is charged with a

combination of maltodextrin and D-ribose with a grape flavor to maintain focus for the

long haul.x

PepsiCo spent $8.6 million on advertising for Amp in the first quarter of this year

(2008), an amount almost equivalent to the advertising expenditure for the entire year of

2007. Advertising during the Super Bowl in 2008 accounted for most of this drastic

increase in advertising expense, and it paid off with a 28.7% growth in sales for the first

quarter.xi

A new promotion running during the prime beverage season from May through

July is the Dale Earnhardt, Jr. Collector Series that features four specially-designed 12-

oz. can varieties, of which Wal-Mart will sell in 8-packs for $8.88, tying in the number of

Jr.’s car, 88, with the price. Amp is the new sponsor for Dale Earnhardt, Jr. and the Amp

Energy 500 Nascar race that will be held Talladega on October 5.xii

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COMPETITIVE ANALYSIS

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

going through great lengths in order to acquire additional market shares as well as

differentiate themselves from the abundant competition. With well over 150 + energy

drinks crowding the shelves brands are always coming up with new flavors, line

extensions, and edgy marketing campaigns in order to stay ahead of the competition.xiii

Based on the original flavor formula of Mountain Dew, Amp Energy Drink,

which competes in the non carbonated soft drink category, is PepsiCo’s first real entry

into the energy drink market, which is the fastest-growing category in soft drinks and

accounts for 22 percent of drink salesxiv. Pepsi hopes the established Mountain Dew brand

name will help give Amp Energy a good market share by providing the consumer with a

product in which they are already familiar.

Red Bull, which accounts for 35% of the market, is currently the major direct

competition to all energy drinks, followed closely by Hansen’s Monster Energy which

accounts for 28% of the market, according to Morningstar Incxv. Since Red Bull created

the energy drink market in the 1990’s it has continued to be an innovator in image

marketing and now spends upwards of $20 million dollars annually on marketing its

brand.

Initially Red Bull spent the majority of its

marketing dollars attempting to court the younger

demographic by having a noticeable presence and

product giveaways at events, concerts, extreme sports,

and other functions that appealed to the 18-24

demoxvi.

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As Red Bull grew, they began sponsoring a variety of sports including Formula One

racing, NASCAR, Motocross, an air race, and even the Red Bull Flugtag, where people

compete to build the best “human powered flying machine”.

Figure 2 Image taken by, Scoop Independent new, [Retrieved from web 7/17/08] Available at:

www.scoop.co.nz/features/photos.html

Red Bull took sponsorship to the

next level with its recent purchase of a

Major League Soccer team, The New

York Red Bulls, which was the first

acquisition of its kind in the US soccer

market. Keeping up with the “do it first

trend” Red Bull just announced that it

will make its 16.9 oz can a permanent

offer along with the 4-packs of 12 oz

cans already being distributed.

Amp Energy is now considered a

“mega-brand” by Pepsi and they plan to spend accordingly in order to make Amp Energy

the drink of the masses. Pepsi hopes the 25 million dollar deal with NASCAR driver Dale

Earnhardt Jr. as well as the “Amp Yourself” advertising campaigns, combined with

sponsorships of a variety of extreme sports will help make Amp the choice of goal-

oriented males 18-34.

The second major direct competitor of Amp Energy is Hansen’s Monster Energy,

followed by Coca-Cola’s Rockstar and Full Throttle. Monster Energy is now being

distributed by Anheuser-Busch and has seen good market penetration due to its wide

product variety and highly targeted non-traditional marketing techniques. Along with its

8-packs of 16oz cans Monster also launched a Frappuccino-type drink available in 16-

ounce cans. The three flavors: Big Black, Mean Bean, and Loca Mocha, will be marketed

to the mid 20’s early 30’s coffee drinkers in an attempt to convert them from their usual

hot caffeine drinks.

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Figure 1 Image taken by, Henrik Sendelbach 23 July 2005, [Retrieved from web 7/17/08] Available at: mmons.wikimedia.org/wiki/Image:Red_Bull_car.jpg

Coca-Colas RockStar energy as well as FullThrottle currently account for more

market share then Amp, with 11.4% and 6.9% respectively, both brands continue to

target the 18-24 demo through edgy media campaigns and sponsorships of extreme

sporting events. Rockstar has sponsored several Mixed Marshal Arts (MMA) events in

both the UFC and EliteXC fighting leagues with hopes of courting the fans of this

increasingly popular sport.

The majority of energy drinks are aimed at the youth market and associated with

fast paced high energy

life styles and extreme

sports of all kinds. The

names of the different

brands are meant to

convey power and

attitude such as Amp,

Rockstar, Full Throttle,

Red Bull, Adrenaline

Rush and even Pimp

Juice. Energy drinks

sell for at least 2 dollars per can, which is far more expensive then

the categories indirect competition which includes soft drinks,

coffee, teas, and even caffeine enhanced waters.

The biggest difference between other categories is that energy drinks are

purchased for a noticeable increase in energy and not necessarily for refreshment. The

indirect competition such as soft drinks and coffees rely mostly on their taste and

refreshing nature to appeal to the consumer, where as in the energy drink market

customers may not even like the taste of the product but still buy and drink it as long as

they get the desired energy boost.

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Figure 3 [Image Retrieved from web 7/17/08] Available at: www.total-mma.com/.../

MARKET ANALYSIS

The energy drink market enjoyed tremendous growth since its inception in 1997.

In particular, the category experienced a tremendous surge in growth from 2001- 2006.

the market grew by 516% with over 3.2 billion dollars in sales in 2006. Future growth

estimates show that this rate will slow considerably in the next 5 years with only an

additional 62% growth by 2011.xvii

During this five year period, 2001-2006, the markets growth could primarily be

attributed to the increasing amount of distribution channels such as supermarkets and gas

stations. In addition, the category thrived on single

unit purchases (80% of energy drink sales come

from convenience stores), which was positive in

terms of growth. Unit sales prices for the average

energy drink are much higher than other non-

alcoholic beverages. However, recent trends in

purchasing behavior have shifted away from single

units to value size containers, which has hurt the

overall market.

MRI data shows that the western census regions of the country show more

prevalent usage of energy drinks; they are 19% more likely to consume energy drinks.xviii

Another in depth independent study verified this data showing that the western regions

occupied $243.0 million or 21.57% of the market in 2007.xix Other important regions

include the Mid-Atlantic with 194.9 million and the South East with 184..2 million. The

total U.S market for Energy Drinks was around 1,126.5 million dollars in 2007.

Men are significantly more likely to use energy drinks. Primarily, the market is

driven by 18-24 year old males. Brand positioning in the past has been obviously slanted

toward young adult males with brands like Pimpjuice, Full Throttle Blue Demon,

Daredevil, Rockstar, and Rip It. Advertising and promotion campaigns have also

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followed suit, often featuring extreme sports and other activities featuring plenty of

action and adventurous lifestyles. Age demographics are key to understanding target

segmentation. 18-24 year olds comprise over a quarter of the market. Another key age

segment whose potential has yet to be fully realized is teens age 12-17. This

demographic has also jumped to nearly a quarter of the market. Interestingly, the two

segments that have experienced the most growth in the last 5 years are adults age 24-34

and teens age 12-17. Mintel reports that these demographics are taking up energy drinks

as opposed to coffee for early morning pick-me-ups. Teens are also prone to use energy

drinks in social situations and some brands have positioned their drinks in this way – the

party goers beverage of choice and an aid to more “enhanced” life experiences.

MRI data also show that, among heavy users, African American and

White/Hispanic have shown to be more likely to drink energy drinks. This was also

verified in Simmons Spring 2006 survey NCS as reported by Mintel.

CONSUMER ANALYSIS

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

respondents aged 18-24 are likely to consume energy drinks---exhibiting the highest

incidence among respondents of all age groups. In 2006, an estimated 9.9 million adults

aged 18-24 were likely to drink energy drinksxx

What originally started as a boost targeted

towards action sports enthusiasts and ‘extreme’

athletes; energy drinks have become the popular

ailment for midday drowsiness and lack of focus

(Some 63% of respondents who have drunk an

energy drink in the last three months are likely to

drink energy drinks in the afternoon) (Site 1). Now,

with a dominant portion of sales in convenience stores, energy drink consumption spans

across many markets and covers almost all geographic areas.

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Today’s 18-24 year-old consumer usually lives life at a very fast pace. Typically

motivated by achievement, these consumers have a busy, goal directed lifestyle. Image is

important to them. They favor established, prestige products and services and are

interested in time-saving devices given their

hectic schedules.xxi

Aside from the most defining segment

(age) of energy drink users, race has become a

distinguishable characteristic of product usage.

“Hispanics (27%) and blacks (21%) are

significantly more likely to drink energy drinks

when compared to whites (12%) and Asians

(16%).” And while one in two Hispanics teens

are likely to drink energy drinks (Site 3), they have little presence in Amp’s sales. One

the other hand, whites account for over 70% of Amp’s sales (blacks 16.3%, Asians

1.2%).xxii

Sometimes the consumer is looking for more than just a boost when deciding their

energy drink purchase. “Nearly one in three respondents who have drunk energy drinks in

the past three months report flavor as the most prized ingredients in energy drinks. Most

energy drinks contain herbs such as guarana, which provide these drinks an exotic taste

not available in the other types of non-alcoholic beverages.”xxiii This is good considering

the selection of flavors Amp has available.

OTHER INDUSTRY TRENDS

To much extent, the energy drink industry has gone on

unregulated since it came into a mass production in 1997.

However, recent research attention toward the health risks of these

caffeine-laden beverages may pose potential problems with future

industry growth. Currently, the FDA limits the caffeine content in

soda beverages to 65 mg for every 12-ounce can; energy drinks

such as Cocaine have as much as 280 mg of caffeine in their 8.4

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contains.xxiv If research findings show that such concentrated levels of caffeine pose

significant health risks, the energy drink industry might be braced for a falling out among

key consumer demographics. At the least, the Industry may be required to put caffeine

warning labels on these products; currently only four companies provide warnings on the

packages.xxv

Other research findings have been focused on the advertised health benefits made

by some energy drink brands. In these cases, brands have claimed to have medicinal

properties with the supplements they offer. The FDA and other health research

organizations are currently scrutinizing these claims, and some early findings have

already shown that nutritional value is relatively low among the market leaders.

Another trend in the industry has to do with its rapid growth. The amount of product

proliferation in the past 6 years could be steering energy drink companies toward a price

war situation. With so many products, all offering very similar benefits, many brands will

have difficulty differentiating themselves from the rest of the pack— thus leaving price

as the only viable differentiation strategy.

Other controversial trends deal with energy drink usage. A common practice with

the club and bar scene in many large cities is to mix energy drinks with alcoholic

beverages. In 2006, a study was conducted among 26 Brazilian men. The study found

that, though the energy drink mixer did propel the men into a heightened state inebriation,

the drinks significantly limited the perception of inebriation — due to the masking of the

alcohols depressants. xxvi

Considering these factors, government regulation looks to be in the immediate

future for much of the energy drink Industry as the health implications of consuming high

amounts of caffeine come into view.

Strengths Large financial support from parent

company Pepsi Co. Key endorsers for target markets (Dale

Earnhardt, Jr. and other action athletes)

Opportunities

Energy drink industry has grown substantially since 2001

Emerging teenage segment

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Ranked in the top 5 brands of energy drinks

Increasing brand awareness Strong appeal in 2 key demographics for

energy drinks (12-17 and 18-24) High levels of sales increases in 2008 first

quarter Product growth and extensive product line Creative advertising

Expansion within channels of distribution

Cultural shifts toward active lifestyles create an increased need for caffeinated products

Predominant single-unit sales results in a high profit margin due to smaller container sizes

Weaknesses

Brand identity get confused with the many other brands Pepsi Co. owns

Limited broadcast advertising

Threats

Overall limitations of the economy conditions resulting in less expenditures on luxury goods

Decreasing numbers of convenience stores which have provided 80% of total sales

Shifting trend toward family size containers and multi-unit packs limiting profit margin

Growing concern about the effects of caffeine Proliferation of products and competition which

can drive prices down Though usage rate among teens is growing, the

population of teenagers is declining

SWOT ANALYSIS

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BRAND CHALLENGE

Amps challenge is to distinguish itself as separate beverage rather than an

extension of its sibling company, Mountain Dew, and parent company, PepsiCo.

Improving consumer’s perception and altering Amp’s overall brand image via innovative

advertising techniques and unique product offerings will help Amp tackle the challenge

of becoming a diverse and separate energy drink suitable for the masses.

ALTERNATIVE 1

Since Amp’s 2001 debut, our initial target market has continued to age. Now

entering the workforce, these consumers are looking for a more sophisticated energy

drink and won’t necessarily respond to the same high energy, low involvement ads. In an

effort to create a more down-to-earth and socially conscious energy drink, Amp will

employ a combination of cause related marketing, outdoor advertising that is both fun

and unexpected and finally traditional television and print advertising to alter our brand

image. Campaigns surrounding metropolitan clean-ups and public building renovations

will appeal to concerned consumers and potentially create a bond between Amp and its

drinkers. Contests focused on cleaning up designated areas in shortened time periods

would capture the high-energy philanthropy that Amp embodies.

IMC OBJECTIVES

To Increase awareness of new brand image by 30% within the first 4 months of

the campaign

To increase positive attitudes toward brand by 35% withing the first 3 months of

the campaign.

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TARGET MARKET PROFILEOur target market is comprised of young adult males 18-34 who have just entered

the workforce and live active, on-the-go lifestyles. Many people within this target market

have recently become young professionals who are career oriented and well educated.

They use energy drinks to counter midday drowsiness.

Our target market will respond best to simple, low involvement messages that play up

artfulness and aesthetics while maintaining elements of humor and wit.

These consumers would be most exposed to media surfing the web and during their daily

commute.

POSITIONING STATEMENTFor young adults age 18-34 who have just recently entered the workforce and

need to energize their on-the-go lifestyles. Amp energy drink meets this need with a

refreshing taste that is easy to drink and is packed with supplements, B-vitamins and 75

mg of caffeine to keep the drinker focused. Infused in every drink, is the B-vitamin

riboflavin, which provides a healthier and more energized experience. Amp is youthful,

sophisticated, and fast paced

ALTERNATIVE 2

Amp’s well-established edgy image that it has created in the consumer’s mind

provides a perfect foundation that can be built upon to make Amp more of a recognized

and familiar brand. Drastic increases in promotions of the brand through more aggressive

advertising and public relations activities targeted toward the existing target market will

reinforce the image and brand position that have already been introduced. Increasing

sponsorships of sporting events, especially extreme sports, by saturating the events with

the Amp logo and products will provide more exposure and create a greater awareness of

the brand. All activities geared toward promoting the brand will focus on exposing the

target market to the product or its logo using unconventional methods, especially in

college towns and spring break hotspots, by means of guerilla or grassroots types of

marketing.

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IMC OBJECTIVES

To Increase sales by 20 % within the first 5 months of the campaign

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

TARGET MARKET PROFILE

Our target market is comprised of college age males 18-24 who live carefree

active lifestyles and enjoy sports. These consumers will frequently attend sporting events

or watch them on T.V. with their group of friends. There main source of media is

television. They use energy drinks as supplements to daily activity, and will often

consume more than one a day. Our consumers will often engage in social events centered

around sports such as tailgating or home parties. The greatest opportunity to reach them

with advertising will be during an important game as well as continued exposure on sport

channels such as ESPN.

Our consumers will appreciate simple, low involvement messages that heavily use

humor and sex appeal. They also may respond to blunt and edgy messages with a large

“cool” factor.

Media that our consumer s will frequently use are ESPN.com, ESPN and ESPN 2

T.V. stations, Facebook.com, Spike TV, Networks stations during important sporting

events, The Versus Channel, The Speed Channel, BET, MTV, MTV2. ESPN magazine.

POSITIONING STATEMENT

For white males 18-24 who need to have a drink that keeps them energized so

they can have a good time. Amp energy drink offers these individuals a wide variety of a

smooth, drinkable flavors that bring taste to the forefront of the drinking experience.

Also, Amp offers a blend of supplements, B-vitamins and 75 mg of caffeine to keep the

drinker going. Amp energy is fun, exciting and action-packed.

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SELECTION OF ALTERNATIVE

We believe Alternative A will be the best strategy for Amp to employ to achieve

its desired separation and distinction from parent company PepsiCo and sibling company

Mountain Dew. This strategy would also be best suited for increasing brand awareness

and brand equity by way of innovative cause marketing and strategic partnerships with

not-for-profit organizations such as Habitat for Humanity. By sponsoring positive

community enhancement programs, Amp Energy will further distinguish itself as a

unique beverage and will be more likely to break through the intense clutter associated

with the energy drink market. Alternative A would also allow us to position Amp in a

more sophisticated light in order to retain our aging target market as they enter the

business world and work force.

Although this strategy will be best for increasing brand awareness and brand

equity over the long run, sales may remain static in the short term. In order to counter this

we may also have to implement a series of sales promotions and product give-a-ways to

help spike sales and increase product trial.

CREATIVE STRATEGIES

CREATIVE BRIEF

The new campaign strategy will help differentiate Amp as its own brand of

energy drinks, separate from Mountain Dew and its parent company Pepsi. To

accomplish this, the new strategy involves revamping the entire concept of the brand and

starting fresh with an entirely new image that will set Amp apart from all other energy

drink brands in the market.

Advertising and promoting Amp provides the best method of educating

consumers about the new campaign and how the brand has changed for the better. Being

the fifth top-selling energy drink brand, Amp has lots of competition, but also has room

for improvement. Red Bull leads the pack with its 35% market share, followed closely by

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Monster Energy holding 28%. In addition, two Coca-Cola energy drinks, Rockstar and

Full Throttle, along with Red Bull, targets the 18-24 year old demographic which

interferes with the 18-34 year old market that Amp appeals to.

The energy drink market grew significantly from 2001 through 2006, but with

several dozen new competitors who have entered the market, growth has slowed

considerably. Other causes for this decline in the growth rate include an increase in the

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

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

? Mountain Dew (2008), History, [Retrieved from the web on: 07/14/08] Available at: HYPERLINK "http://www.mountaindew.com/#/aboutdew/history.php" http://www.mountaindew.com/#/aboutdew/history.php

iv Mintel (2007), Energy Drinks, Executive Summary, [Retrieved from Mintel database: 07/15/08]

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

vi “Amp,” Beverage Aisle, 11 (3), 31. [Retrieved from the web on: 7/15/08]vii

? “A winning hand: A gangbuster year leaves PepsiCo holding all the right cards,” Beverage Industry, 93 (1), 35. [Retrieved from the web on: 7/15/08]

viii “Amp Energy Drink MANUFACTURER: Independent Products CATEGORY:217- Isotonic, Energy Producing Beverages,” Product Alert, 31 (22). [Retrieved from the web on: 7/15/08]

ix “Packaging with a plus: more retailers and suppliers are adding a green element to their beverage packaging,” Beverage World, 127 (3), 76. [Retrieved from the web on: 7/15/08]x

? Pepsi (2008), Product Information, [Retrieved from the web on: 7/15/08] Available at: http://www.pepsiproductfacts.com/infobyproduct.php

xi Mintel Oxygen (2008), PepsiCo profits from AMP, LifeWater ads, Brand Week [Retrieved from the web on: 7/15/08]xii

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number of distribution channels and the new consumer trend of shifting away from single

unit purchases and toward value size containers.

Once consumers are convinced to try the product, the powerful boost of energy

and kick of different flavors will help it sell itself. For this reason, the formula for the

drink will remain the same. Everything else including the logo, packaging, advertising

and promotional activities will change or intensify.

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

? FactExpert (2005), In the Beginning...RedBull,[Retrieved from web on 7/17/08] Available at: http://energydrinks.factexpert.com/909-redbull.php

xiv Mintel (2007), Energy Drinks — US, [ Retrieved from Mintel online database: 07/17/08 ]

xv Morningstar Inc. (2008), Hansen Natural Corporation [Retrieved from web 7/18/08] http://quote.morningstar.com/Quote/Quote.aspx?Ticker=HANSxvi Mintel (2007), Red Bull, the billion-dollar brand, [Retrieved from Mintel’s database: 07/17/08]

xvii

? Mintel (2007), Energy Drinks — US, [ Retrieved from Mintel online database: 07/11/08 ]

xviii MRI (2007) Fall 2007 Product Beverages [ Retrieved from MRI online database: 07/11/08 }xix

? Parker M., Phillip, The 2007 – 2012 Outlook for Energy Drinks in the United States [ Retrieved from Web on: 04/27/04 ] Available at: http://academic.marketresearch.com.lp.hscl.ufl.edu/product/display.asp?productid=1716006&curl=&surl=%2Fsearch%2Fresults%2Easp%3Fprid%3D827557796%26query%3Denergy%2Bdrinks%26cmdgo%3DGo&prid=827557796

xx Mintel, Energy Drinks (2007), Executive Summary, [Retrieved from Mintel’s database: 07/17/08] "

xxi Kerin, Hartley, Berkowitz, and Rudelius (2006), Marketing 8th Edition, New York: McGraw-Hill Irwin,xxii

? Mintel (2007), Energy Drinks, Consumers: When, Where, and How, [Retrieved from 20

The goal is to make consumers feel like Amp Energy is the energy drink of the

masses, that it is the energy drink of young, successful business people who are

motivated to make a difference and do something that matters. The advertising and

promotional activities gear toward giving Amp a socially conscious image, providing a

sense of sophistication that allows the brand to gracefully age along with its consumers

who previously fell within the 18-24 year old demographic and are now in the 18-34 year

old demographic.

The new brand image will encompass the lifestyle of a male, 18-34 year old

consumer who is not only socially conscious, but also environmentally conscious,

involved in the community, self-improvement oriented, and motivated to help others and

make a difference.

Consumers view energy drinks as the solution to midday drowsiness and as a

source of exotic and intense flavors that cannot be found in other types of non-alcoholic

beverages. Amp meets both of these criteria with a boost of energy provided by caffeine,

along with other ingredients, and its bold flavors.

The one true concept that people should take away from Amp’s advertising is

that this is an independent brand of energy drink unlike any other that demonstrates how

a little motivation can go a long way and make a big difference when it really matters.

Amp can provide that bit of motivation, and the advertising can show the results of

Mintel’s database: 07/17/08]

xxiii MRI (Fall 2007), Energy Drinks Drank in Last 6 Months Amp, [Retrieved from MRI database: 07/17/08]http://ureporter2.mriplusonline.com/selectdemo.aspxxiv

? Foreman, Judy (2007) "Are energy drinks Bad for you", Boston Globe [Retrieved from Lexus Nexus online data base 07/18/08]

xxv Mason, Michael (2006) "The Energy-Drink Buzz is Unmistakable. The Health Impact is Unknown" [Retrieved from web on 07/18/08 at:http://www.nytimes.com/2006/12/12/health/12cons.html?_r=1&scp=4&sq=energy%20drinks&st=cse&oref=slogin

xxvi23Mason, Michael (2006) "The Energy-Drink Buzz is Unmistakable. The Health Impact is Unknown" [Retrieved from web on 07/18/08 at:http://www.nytimes.com/2006/12/12/health/12cons.html?_r=1&scp=4&sq=energy%20drinks&st=cse&oref=slogin

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putting in that extra effort. This should be done with an upbeat, outgoing, positive and

sophisticated tone with a clever humorous twist and a nuance of sex appeal.

Most of the advertising efforts will be focused on young professionals in large

metropolitan areas. Advertising will be done primarily on television and outdoors, but

also in magazines and newspapers. A series of promotional events that promote the

social consciousness as a new priority for amp will be employed. These events could

possibly center on the phrase “Revamp yourself. Revamp your world” and “Revamp it.”

The Revamp Your World campaign will be a nationwide contest among different

cities and will involve each participating group “revamping” a specific area of their city

that they feel is currently in despair. The winner will receive a new community center.

The “Revamp it” campaign will be an ongoing microcosm of the larger “Revamp Your

World” campaign in which participants will be encouraged to do small things for the

public interest.

A sweepstakes will be held via a new website, www.revamp.com, and the winners

will receive free amp for one year. Participants will post videos or pictures of their

community service, and, not one, but multiple winners will be chosen. All IMC efforts

will center on the idea that as the consumer becomes energized by Amp energy drink,

he/she will revamp the surrounding environment and his/herself.

Such a radical change to the image of a brand requires a hefty budget. Sufficient

funds would be needed to redesign the Amp logo and packaging for all Amp products

and replace existing products and merchandise. Other expenses to be considered in the

budget include contest rewards and prizes and increased advertising costs to create new

ads for various media for the new campaign.

The transition from the previous image of Amp to the new campaign must be

clear and evident. The focus of the advertising must be on socially conscious nature of

Amp and the importance and effects of change. Every aspect of this new campaign must

not be comparable to that of any other brand, especially Mountain Dew and other

PepsiCo products.

Copy development research will measure the effectiveness of these campaign

strategy by comparing the responses from focus groups prior to and after the initiation of

the new campaign. The campaign will have proved to be a success when responses from

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focus groups conducted after the start of the campaign reveal understanding of the new

campaign and all the concepts that need to be portrayed through the main message. Also,

copy testing questionnaires will measure how much and the level of recall of the message

consumers retain after they are exposed to the advertising.

BIG IDEA

Central message: “REVAMP YOURSELF. REVAMP YOUR WORLD” AND

“REVAMP IT”

The phrase “REVAMP IT” speaks to the heart of our new brand image. We want

to be an energy drink company that inspires people to help their communities all while

maintaining the enthusiasm, action-seeking, fervor that people have come to expect with

our brand. We feel the juxtaposition of enthusiastic energy and philanthropy will not

only appeal to our target market, but also get those that are not necessarily regular energy

drink users to support our brand. The low involvement nature of this tagline matches

perfectly with the typical schema pattern of our target — especially when paired with

philanthropic imagery.

IMC OBJECTIVES

Sales Promotion

Amp will partner with Habitat for Humanity and Sony to sponsor a nationwide

competition that will be held among cities called “Revamp Your World.” This

competition will involve the cities accomplishing various community service projects or

community building tasks of their choice. Entries will be graded on the following

criteria: community improvement, resourcefulness, environmental considerations, style

and teamwork. Each city will be required to submit a documentation video outlining the

problem area of the city, the process it took to “revamp” that area, and the end result.

Detailed guidelines will provide limitations for every entry on the amount of money they

can spend on their community project, the minimum scope the project must reach within

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the community and the amount of people that can participate. A city may submit more

than one area if there are individual groups that are interested in participating. The city

that does the best job will win an “amped community center” within the area they have

completed the community service projects. This community center will not be ordinary

in any way; it will be amped. It will feature free Amp energy drinks for a year, an IMAX

theater, an indoor/outdoor skate park, state-of-the-art computer labs, media centers with

55-inch LCD television screens, Playstation3 game consoles provided by Sony, a roller

skating rink, a water park complete with water slides, a study center complete with a

library, and finally, managers to help facilitate staff hiring and operations for the first two

years. The center will be gated and equipped with a state-of-the-art security system to

keep the property and those inside safe.

In addition to “Revamp Your World,” there will be a “Revamp It” public relations

campaign that will reinforce Amp’s outdoor advertising. “Revamp it” will entail doing

miniature versions of “Revamp Your world.” Activities may range from cleaning a public

bathroom, helping a homeless person, or even donating time to a special education

facility. Multiple entries will be chosen as winners; each winner will receive free Amp

energy drinks for a year. Those participating will enter the contest by posting pictures and

detailed accounts of projects they have completed for the public interest to

www.revamp.com. This website will serve as a construct for participants to post videos

about their clean-ups and make suggestions about other possible clean-up sites, as well as

share common experiences which will ultimately create a community within our target

consumers.

To get the word our about this contest, Amp will use traditional press releases and

traditional advertising which will explain the contest in detail. Also, revamp.com will

serve as promotion, specifically for the revamp campaigns. In addition, a series of

localized outdoor advertising will be employed to generate awareness about the “Revamp

it” campaign.

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Public Relations

Amp will send press releases to major news sources. The press release will fully

explaining the “Revamp Yourself - Revamp Your World” and “Revamp it” contests. The

mainstream media will have extra incentive to broadcast these releases because an energy

drink company has never sponsored a community service event before. Also, as Amp’s

unusual out-of-home advertising accumulates, publicity for the ad campaign will most

likely increase as these ads may get exposure from local media outlets. We will provide

video and pictures of these out-of-home ads with the press release.

As for interactive public relations, Revamp.com will be constructed to promote all

of the “Ravamp” campaign, including: detailed information about both contests, forums

for those participating in “Revamp it,” featured winners,

Advertising

Amp’s advertising will employ a variety of media vehicles to best raise awareness

of our changing brand image and the Revamp campaigns. First, localized outdoor

advertising will target areas within large cities that have remained dirty or unkept. These

outdoor advertisements will be unique since they will feature possible applications for the

“Revamp It” contest. For example, one urinal in a dirty men’s bathroom might be

spotless while the others are still dirty, and on or near the clean toilet, the Amp logo and

the phrase “Revamp it” will appear. These types of outdoor advertisements will not only

inspire participation in the revamp contests, but also reinforce the brand image as well.

Another source of reinforcement of the brand image will come from television

ads. These ads could feature someone who looks like the target market (a young white

male in a business suit) drinking an Amp energy drink. He then, in a state of excitement

and enthusiasm, begins participating in community service activities. For example, in

one ad, he might be sitting on a city bench that is very dirty, and after finishing his Amp,

he proceeds to clean the bench spotless, slapping on a “Revamp it” sticker when he is

finished. To further reinforce the entire ad campaign, the outdoor and television

advertising will match each other. For example, the same bench the man cleans in the TV

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ad will be featured as an outdoor advertisement as well. In this way, consumers will

literally and physically be pulled into the campaign because they will see the bench in

real life — complete with the sticker and the Amp logo.

This pairing of outdoor and TV advertising will not only help generate awareness

on a localized level, but it will also gain national awareness as it proliferates through

word of mouth. The goal through this grassroots type of promotion is that the message

not only be stamped in the minds of the consumer but within the culture itself.

Direct Marketing

Amp will use mail in advertisements to our target consumers, young professionals

age 24-34 who have recently entered the work force, with an attached coupon to help

these consumers try our product — many of them may be trying it for the first time. The

increased revenue from the trial purchases will help fund the expensive “Revamp”

campaign and help ease our transition into a new brand image.

In addition to the traditional mail out, Amp will also do a test market for a new

innovative form of direct marketing — viral marketing. Through a blast e-mail, we will

inform those registered with revamp.com that they can send out a phone message to a

friend. This phone message will be directly from Amp and inform the friend that he/she

has been recruited to be apart of the Revamp movement. This tactic could be very useful

in increasing awareness among our target consumers — especially if the friends

contacted are similar to our registered users.

.

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RECOMMENDED RESEARCH

Sales data

Internal sales data provided by Amp and PepsiCo

Data from Mintel and other reporting agencies

Attitude data

Conduct market research- Gather more psychographic information about our

target market so we can better define them.

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

Do a test market in a Large City such as New York or Chicago for out-of-home

advertising — specifically looking for awareness increase and publicity.

Do a FCG to understand about how consumers would react to a cause marketing

campaign from an energy drink company.

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