Advertising 335: Media Planning Spring 2010

1.
amp Energy Drink
Advertising 335
April 16, 2010

2.
Agency
The Hyped Typers are an ideal agency for
those who are looking for a fresh, energetic
and articulate creative team to suit their needs.
The Hyped Typers comprises four Iowa State
graduates. Combined, the agency has 16
years of experience with multiple advertising
media including broadcast, print and with an
emphasis in social media.
We the Hyped Typers take pride in our ability
to pair pioneering strategic plans with
ingenious ideas in order to satisfy our clientele.
Alex Rich
Allard Jobson
Michaela Sabin
Rebecca VanDeCasteele

3.
Plan Summary
Brand:
PepsiCo amp Energy Drink
Product:
Energy Drink
Demographic Target:
males, ages 18-24, college students
Geographic Target:
National, Pacific area colleges
Timing:
August, November-December, March-May
Reach:
Target=70
Actual=70.5
Frequency:
Target=5
Actual=4.8
Media:
National TV, Spot Newspapers, Internet, Product
Placement, Sponsorships
CPM:
$284.34
CPP:
$6,827
Budget:
$20,000,000

4.
Industry Trends
From the start of energy drinks in 1995, annual retail
sales have been on the rise. Over the past few
years, sales have decreased to a 15-20 percent
annual growth rate, with estimated sales over $4.8
billion in 2011.
With the push for a healthier lifestyle, the
development of diet energy drinks has shown great
interest from the energy drink consumers. It wasn’t
until the year 2007 that amp decided to spend
money advertising its line of drinks. In 2008 amp
spent a little over $18 million in advertisements,
almost a 100 percent increase from the year
before.
Over the past couple of years, amp’s advertising
spending have been blown away by Red Bull’s
$51.3 million. Monster holds up the rear with a little
over $1 million in spending in 2008.
It is easy to see that the focus on energy drinks
have risen drastically over the past 15 years. With
the invention of diet energy drinks and 5-hour
energy drinks, it is easy to see that this industry is
not going anywhere anytime soon.

5.
Product
PepsiCo launched the amp Energy Drink lines to
take advantage of the new market. A 16 oz
container of amp includes 143 mg of caffeine.
As of 2009, amp products include sugar free,
overdrive (red cherry flavored), relaunch (orange
flavored), elevate (mixed berry flavored), lightening
(lemonade flavored) and amp green tea.
In the first quarter of 2010, amp
launched energy gum and amp juice.

6.
Situation Analysis
Product attributes:
Product is produced and distributed
by PepsiCo. It tastes like a cousin of
Mountain Dew and comes in different
sizes and types.
Competition:
Red Bull & Monster energy drinks
Current pricing:
$1.49 for 8 ounces.
Competition pricing:
Red Bull: $2.00, Monster: $1.99.

7.
SWOT
Strengths Weaknesses
• One of the cheapest energy • Less known compared
drinks in market compared to Red Bull & Monster
to Red Bull & Monster • Not marketing towards
• PepsiCo is a very well everyone (more
known company with a very towards males rather
good brand image than females)
• There is much variety in the • Limited advertising
product line efforts
• Good social media contacts • Relatively new to the
(Facebook, Twitter, etc.) market
• Interesting, interactive
website
Opportunities Threats
• Create street teams and • PepsiCo getting rid of
campaigns around target amp
markets • Red Bull/Monster
• Create more products like a becoming more
“shot” instead of a big can powerhouses
• Create more “juice” products • Stricter regulations
for more health-conscious from the FDA
demographic • Aging market with
more people becoming
more health-conscious

8.
Current Distribution
This product is distributed all over in the United
States. There are street teams with amp cars that
distribute free limited-edition cans of the product at
lifestyle venues and events.
Each local amp Energy team can be followed on
Twitter to see which events they are hosting or
attending next in each region.
Twitter and Facebook pages
give fans access to events,
videos and updates.

9.
Current Advertising
With a current ad
campaign with a theme
of “amp UP”, amp has
produced many viral
videos that portray some
sort of extreme activity.
These are 30-second to Right before the end of the
1-minute spots that spot, the words on the screen
dramatically show say “right before your big
activities such as getting moment.... AMP UP”.
a tattoo and
snowboarding down a
mountain.
Along with the viral videos (that have begun airing
on national television), amp also sponsors NASCAR
Sprint Cup Series driver Dale Earnhardt Jr., extreme
sports athletes Mason Aguirre, Hannah Teter, Keir
Dillon, Kevin Pearce, Chad Kagy and Anthony
Napolitan. And World Extreme Cage Fighting
(WEC) announced amp will be the official energy
drink of WEC.

10.
Goals and Strategy
The main goals of this campaign are to raise
awareness and steal share market share from
Monster. We also hope to make amp the “in drink”
for the target.
Our strategy is to pair high frequency (5) with high
reach (70) to target new consumers as well as
current consumers as many times as possible.
We will use national television, spot collegiate
newspaper advertising as well as product
placement, sponsorships and sampling to reach our
goal.

11.
Demographic Target
Through our research we have found that most amp
energy drink consumers are single, white, males,
ages 18-24 and having some college experience.
This leads us to believe that the consumer is likely
in college. We have chosen to target male college
students with our advertising efforts.

12.
Geographic Target
The MRI data shows that there is a higher emphasis
of energy drink consumers in the Pacific, South East
and South West regions of the United States.
PACIFIC- MKTG REGN 7137 26.3 16.4 134
SOUTH WEST 3626 13.4 13.9 114
SOUTH EAST 5309 19.6 11.9 97
WEST CENTRAL 3630 13.4 10.9 89
EAST CENTRAL 2783 10.3 9.9 81
MIDDLE ATLANTIC 3654 13.5 10.5 85
NEW ENGLAND 958 3.5 8.8 72
We chose to use spot advertising in the pacific area
colleges paired with a national television campaign.
The Seattle, Los Angeles and Las Vegas spot
markets were chosen based on their location in the
Pacific area and the size of their markets.

13.
Creative Strategy
Amp’s current tag line for their main advertising
campaign is “before your big moment...amp UP”.
We agreed that this was a very creative and
effective idea, so we decided to play with that idea
for the new campaign.
The idea behind this campaign will be “amp UP your
life”. This will be translated into many different
situations that the demographic target will identify
with. For example, while advertising to students
taking finals and working on projects, the tag line
will be “amp UP your finals” or “amp UP your
project”.
Using this idea will provide a seamless transition
from the last campaign and will be consistent with
the overall image of the brand.

14.
Media Mix
National Television Internet
14 Spots/Month 10 MM/Month
(4 Prime Time/10 Late Night)
Targeted websites have the
We chose television programs ability to see other websites a
that have higher viewers that consumer has visited and
are males ages 18-24. display ads accordingly.
MTV: Targeted Websites:
Jersey Shore Facebook
Real World Twitter
STA Travel
ESPN: Textsfromlastnight
SportsCenter ESPN
PTI
TBS:
The Office Spot Print
Conan O’Brien 10 Spots/Month
(Full Page, B/W)
ABC:
Modern Family Advertising in collegiate
newspapers is a great way
to reach college students,
Product Placement our target.
Product placement is a University Times
great way to gain California State University
exposure without the Los Angeles, California
target feeling angry at the
brand or product. The Spectator
Seattle University
We hope to get a product Seattle, Washington
placement deal with Real
World, potentially as the The Rebel Yell
“job” the cast members do UNLV
while on the show. Las Vegas, Nevada

15.
Timing
We decided to run our campaign for a fiscal year,
starting in August. We chose the month of August
to begin with because this is the time at which most
schools are in session. We focused our campaign
to last through the school year, running heavier
advertisements during the finals week in mid
December, late April and early May.
Because our target market consists of college
students with ages 18-24, we have found that in
order for them to stay awake longer, most students
consume energy drinks while studying for finals and
working on big projects.
We came to the conclusion to run heavier ads
around the spring break period as well, when most
students have midterms and group projects due.
When school is out of session, we are going to run
event sponsorship advertisements during the
months of May, June and July.

16.
Reach and Frequency
Reach:
We chose a reach of 70, which is on the higher side,
but still within the average. We hoped to expose a
larger audience to the campaign in order to
ultimately gain a larger consumer base.
Frequency:
Our frequency goal was 5, which is also slightly
high. We hope to reach the target as many times as
possible, in order to get them more familiar with the
brand and product. We hope that this will steal
market share from the competition (Monster), and
ultimately increase our market share and consumer
base.

17.
Budget
We propose a budget of $20 million. In the MFP
campaign, we spent a little over $14 million in spot
newspaper advertising, prime time and late night
television spots and targeted Internet advertising.
The additional $6 million will go to product
placement, free product to give away, event
sponsorships and implementing more stable college
street teams.

18.
Evaluation
$14 of the proposed $20 million was used in a spot
and national campaign in MFP. We obtained a
reach of 70.5 and frequency of 4.8, which are very
close to the targets of 70 and 5 respectively.
The remaining $6 million will be poured into free
product sampling events, sponsorship opportunities,
implementing street teams and a product placement
deal.
The $20 million was spent wisely and our objectives
were met with this campaign.