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MediaPlanningCaseStudy
PaigePorter,AndrewSiegel
andLauraSilverman
TableofContents
ExecutiveSummary.................................................................................................................................................... 2
SituationAnalysis ....................................................................................................................................................... 3
CompetitiveConsiderations........................................................................................................................................................... 4
CompetitiveAdvertisingExpenditureAnalysis....................................................................................................................... 5
ShareofVoice ..................................................................................................................................................................................................................... 5
MediaExpenditures.......................................................................................................................................................................................................... 6
MediaMixAnalysis ........................................................................................................................................................................................................... 6
SWOTAnalysis .................................................................................................................................................................................... 9
MarketingandCommunicationDirection....................................................................................................... 10
MediaObjectives ...................................................................................................................................................... 12
MediaStrategy:DevelopmentoftheMediaPlanfor20112012............................................................. 14
NontraditionalMediaStrategy ....................................................................................................................................................18
OverallEvaluationoftheCommunicationPlan............................................................................................. 21
References.................................................................................................................................................................. 22
AppendixA:CreativeBrief.................................................................................................................................... 23
AppendixB:MRIAnalysisforTargetMarket ................................................................................................. 25
AppendixC:SRDSLifestyleAnalystData ......................................................................................................... 28
AppendixD:BudgetSummary............................................................................................................................. 29
AppendixE:SpotMarkets ..................................................................................................................................... 30
AppendixF:Flowchart ........................................................................................................................................... 31
ExecutiveSummary
AMPEnergyisownedbyPepsiCoandwasoriginallyintroducedin2001.OriginallyintendedasaproductofMountainDew,
AMPEnergyhasnowbranchedoffandbecomethenumberfourproductinsalesintheenergydrinkcategory(Kenneth).TheAMP
Energylinehasdiversifiedintoawideoptionofdrinksincludingchoicessuchassugarfreeandagreenteaflavor;additionally,
AMPEnergynowoffersjuiceandgumproducts.Asagrowingcompetitorintheenergydrinkmarket,AMPEnergyhasastrong
voicetoincreaseitsshare.
OurmediastrategyforAMPEnergyexplainsandsupportshowweplantomeetourobjectivesofknockingoffthenumber
twobrand,Monster,andincreasingourbrandawarenessinourtargetmarketby10%.ThemediaplanwillnotonlyincreaseAMP
Energysshareofvoice,butitwillalsoincreasethebrandstotalawareness.Ourbudgetof$24milliondollarswillbediffusedinto
anationalandspotcampaignoverthefiscalyearof2012.Mostofthebudgetwillfiltertowardsanationalcampaign,butwewill
additionallyfocusonsevenmainspotmarkets:Chicago,IL,Fresno,CA,NewYork,NY,ElPaso,TX,LasVegas,NV,LosAngeles,CA,
andMiami,FL.Wewillimplementtraditionalmediawithinthesemarkets,butwewillalsosetaside$3,000,000fromtheoriginal
budgettoachievesomenontraditionalmediagoals,suchastheconstructionofAMPEnergysponsoredskateparksandasocial
mediacampaign.
Wehavecarefullythoughtaboutourmediaobjectives.Thetargetmarketforthiscampaignincludesmalesandfemalesages
1834withanHHIofabout$10,000andabove.Wewillimplementapulsingmediaschedulethatrunsduringthesummermonths
ofJuneandJulyandduringtheendoftermmonthsofDecemberandMay.Ourcampaignwillswitchmediafocusdependingonthe
month.Duringtheschoolyear,wewillfocusheavilyononlineadvertising,takingadvantageoftheincreaseininternettraffic.
Duringthesummermonths,wewillfocusheavilyonatelevisioncampaign,workingwiththewatchingpatternsofourtarget
audience.Wewillalsospreadourbudgetoverradio,newspaper,andselectednontraditionalmediainspotmarkets.Duringour
summermonths,wehaveasetreachof78andfrequencyof3.3inourspotmarkets,andwehaveasetreachof70andfrequency
of2.7inournationalcampaign.Duringourfinalsmonths,wehaveasetreachof76andfrequencyof3.1inourspotmarkets,and
wehaveasetreachof63andfrequencyof2.5inournationalcampaign.Throughastrongcampaignandprecisemediachoices,
ourobjectiveswillbemet.
SituationAnalysis
Price:
AMPEnergycomesinmanydifferentvarietiesandsizes.TheoriginalAMPEnergy8.4ouncecancosts$1.49,whilea16ouncecan
costs$2.29.ConsumerscanbuyAMPinavaluepackof4cans,totaling64fluidouncesat$6.49.Thesepricesvaryfromstoretostore.
Promotion:
AMPEnergyhasamajorpresenceintheworldofNASCAR.TheirmajorformofadvertisingisfocusedonNASCARsponsorships.
AMPEnergyhassponsoredNASCARdriverDaleEarnahrdtJuniorsince2007(Tanner).Inrelationtothissponsorship,AMPcreateda
Dalethemedenergydrinkwhichincludedacombinationofthreeflavors:orange,limeandberry(Tanner).AMPhasalsosponsoredthe
TalladegaSuperSpeedwayRaceformanyyears.In2008and2009theracewastitletheAMPEnergy500.AMPwasalsoasponsorofthe
27thannualU.S.SnowboardingChampionshipin2009withpartnerBurtonSnowboardsinVermont.AMPcontinuestosponsora
snowboardteamthatincludesathletesMasonAguirre,KeirDillon,KevinPearce,JackMitrani,LukeMitraniandScottyLago.InOctober
2010,AMPEnergyJuiceproducedashortfilmaboutTalladegaSuperspeedwaytitledTheLegendofHallowdegawhichstarredDavid
ArquetteandincludedappearancesbyDaleEarnhardtJr.andDarrellWaltrip(SnowboardMagazine).In2009AMPEnergysponsoreda
promotionwhichinvolvedgraphicdesigners,musiciansandartistscreatingcustomAMPEnergybrandedrefrigeratorsthatwereplaced
indesigners'homesandretailstores.AMPEnergysponsoredtheWorldExtremeCagefighting(WEC)seriesin2010.Additionally,it
sponsorsUFCathletesUrijahFaber,ChadMendesandJosephBenavidez.AMPusessportingeventsasanadvertisingoutlettoreachtheir
targetaudience.TheiraffiliationswithsportsaidinaugmentingtheimageofAMPEnergyasahighpowereddrinkofchoiceofextreme
athletes.
ProductandPlace:
TheAMPEnergybrandwasfoundin2001asadivisionofPepsiCo.ItwasinitiallydistributedundertheMountainDewsoftdrink
brand.In2009,AMPEnergyestablisheditsowntrademarknameandhassincebeendistributedsolelyunderitsownname.AMPEnergy
issoldintheUnitedStatesandCanada,andin2009,itwasthefourthenergydrinkbrandintheUnitedStatesintermsofoverallretail
sales.
Originally,AMPEnergywasdistributedasaflavorextensionofMountainDew.Theoriginalflavorcontainstaurine,Bvitamins,
guarana,ginsengandmaltodextrin.Theservingof8.4fluidouncesofAMPEnergycontains74milligramsofcaffeine.Asof2010,theAMP
EnergybrandhasvastlyexpandeditsflavorsandvarietiestoincludeAMPEnergy(Original),SugarFree,Overdrive,Relaunch,Elevate,
Traction,GreenTea,Lightning,andSugarFreeLightning.In2010AMPEnergyalsointroducedalineofjuicescalledAMPEnergyJuices.
TheyaremadewithBvitamins,taurine,ginsengandguarana.Thesejuicesareproducedintwoflavors:OrangeandMixedBerry,andthey
arepackagedin12ouncebottles.AMPEnergygumwasintroducedatthesametime,anditismadefromablendofBvitamins,taurine
andcaffeine.
CompetitiveConsiderations
AttitudesTowardsEnergyDrinks
AccordingtoMintelsJuly2010EnergyDrinksandShotsReport,flavorvarietyisthemostimportantconsiderationamong
energydrinksdrinkersinpurchasingenergybeverages.Youngadults,aged1834areputoffbytheunavailabilityoftheirfavorite
flavors.Becauseofthisconsideration,leadingbrandRedBullhasseenconsumersmovingtootherbrands.AMPEnergysvarietyof
flavorscanhelpfosterbrandloyalty.
Anotherconsiderationamongenergydrinkusersistheamountofcaffeineinaserving.Consumersofenergydrinksusually
lookforahighamountofcaffeineperounce.Mostconsumersaged1834listthattheprimaryreasonforusingenergydrinksisto
getanenergyboost.Thissametargetismorelikelythantheaveragepersontouseenergydrinkstostayawakesotheycanstudy
and/orpartylonger.AMPEnergyfallsbehinditscompetitorsinitscaffeineratio.Itonlycontains8.9milligramsofcaffeineper
ounce.5HourEnergycontains69milligramsofcaffeineperounce,andRockstarandMonsterbothcontain10milligramsof
caffeineperounce.
AudienceAwareness
ConsumersawareofAMPEnergysaytheproducttastesgoodandiseffective.But,theseconsumersonlymakeup14%ofAMP
Energystargetaudience.Theother86%ofthetargetdoesnothaveAMPEnergybrandawareness.Thisnumberisfarbehindother
energydrinkssuchasRedBull,whoseawarenessreachesintothe70thpercentile.Anincreaseinadvertisingexpenditureinthe
appropriatemediawillhelpincreaseAMPEnergysaudienceawareness.
CompetitiveAdvertisingExpenditureAnalysis
EnergyDrinksfor2009
ShareofVoice(seeFigure1andChart1):
Currently,AMPEnergyholdsa10.04%shareofvoicewithinitsproductcategory.Althoughnotnegligible,AMPEnergys
advertisingexpendituresbarelystanduptotheexpendituresofotherbrandssuchasRedBulland5HourEnergy.Thesebrandseasily
takeoverthemajorityoftheproductcategory.
Figure1
EnergyDrinkCategorySOV
Percentage
Other
12.37
13%
Percentage
Monster
0.76
1%
Percentage
AMP
10.04
10%
Percentage
MediaExpenditures(seeChart2):
5HourEnergy
Percentage
FullThrottle
0.19
0%
31.15
31%
Percentage
RedBull
45.17
45%
Percentage
Rockstar
0.32
0%
EnergyDrink
Spending
($000)
Percentage
Share(%)
FullThrottle
356
0.19
Monster
1407.4
0.77
AMP
18335.8
10.04
Rockstar
580.6
0.32
RedBull
82517.9
45.17
5HourEnergy
56911.2
31.15
Other
22,576.3
12.36
Total
182699.8
100%
AMPhasboostedadspendingsignificantlyoverthepastfewyears.In2009,thebrandspent$9.9milliononadvertisingandzero
dollarsbeforethat.By2011,thebrandincreaseditsspendingto$18.3milliondollars.Thoughanincreasedbudgetwillnotcomparewith
RedBulls$82.5million,AMPsspendingwillfaroutshineMonsters2010spendingofonly$1.4million.
In2009,themajorityofadvertisingdollarswerespentincableandnetworkTV,totaling$127,246,700.RedBullspentmostinthis
medium,followedby5HourEnergyandAMP.
MediaMixAnalysis(seeChart3):
ThemajorityofAMPsadvertisingbudgetin2009wasspentinNetworkTV(61.2%),followedbyCableTV(33.0%),withspending
inothermediaalmostnegligible.Thecategoryleader,RedBull,spent34.4%inCableTVand32.2%inNetworkTV.
Chart1:ShareofVoice(2009)
Share of Voice Big Six (%)
PRODUCT
Natl
BCable Hispanic Hispanic Local Local
Natl
Spot Network Network
SLN Spot
US
YEAR to-B TV
Newspapers Outdoor TV TV
Syndication Internet Total
Mags
Newsp Mags Radio Magazines Newsp Radio Radio
TV
AMP
2009 12.3
6.8
33.8
100
28.9
1.6
0.1
MONSTER
2009 20.5
0.1
1.2
RED BULL
1.8
32.1
100
100
92.1
62
68.5
94.6
ROCKSTAR 2009
7.3
4.2
0.9
3.8
0.1
14.9
0.4
FULL
THROTTLE 2009
0.5
100
4.1
0.1
0.2
0.2
5-HOUR
ENERGY
DRINK
2009 65.5
61
100
0.5
38
TOTALS
100
100
100
100
100
100
100
100
100
100
100
100
100
1.2
0 13.2
100
19.2 11.5
1.5
0.8
64.2 51.6
0 35.6
100
100
Chart2:CompetitiveSpending(2009)
Competitive Spending ($000s)
PRODUC YEA
T
R
Loc Loca
Natl
Hispan Hispan al
l
Natl Spot Networ
Mag Radi Magazin News Radi
Networ Newspape Outdo
ic
ic
k
Mags Newsp
s
o
es
p
o
Radio
k TV
rs
or
SLN
TV
Spot
TV
Syndicati
on
US
Intern
et
Grand
Total
2.3
0.0
58.0
0.0
153.6
18335.8
0.0
0.0
0.0
661.5
0.0
12.2
1315.7
26535.
0
258.9
3060.8
6369.
4
2384.
5
13714.9
513.8
82517.9
0.0
351.0
10.4
0.0
0.0
4.4
0.0
119.4
580.6
0.0
0.0
0.0
0.0
130.9
0.0
1.2
0.0
1.3
356.0
0.0
0.0
460.0
182.7
0.0
0.0
0.0
1907.
4
0.0
0.0
56911.2
217.9
573.
7
460.0
38758.
5
273.7
3194.0
13714.9
800.3
160017
.2
Bto-B
Cable
TV
AMP
2009 72.7
6055.7
0.0
0.0
0.0
0.0
196.6
0.0
573.
7
0.0
11218.
8
4.4
MONSTE
R
2009
121.
4
49.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
471.0
10.4
28410.
6
7.2
5.1
0.0
886.
4
360.9
0.0
0.0
0.0
2009
0.0
0.0
0.0
0.0
0.0
71.0
24.4
0.0
0.0
FULL
THROTTL
E
2009
0.0
0.0
0.0
0.0
0.0
4.7
0.0
217.9
388.
8
53972.
3
0.0
0.0
0.0
0.0
0.0
593. 88488.
3
2
7.2
5.1
0.0
962.
1
581.9
RED
BULL
ROCKST
AR
CHASER
5-HOUR
ENERGY
DRINK
TOTALS
2009
6369. 5017.
4
0
Chart3:MediaMixAnalysis(2009)
Media Mix Big Six (%)
Bto-B
Cab
le
TV
His
pa
nic
Ma
gs
Hisp
anic
New
sp
Lo
cal
Ma
gs
Loca
l
Radi
o
Maga
zines
Natl
Ne
wsp
Nat
l
Sp
ot
Ra
dio
Netw
ork
Radi
o
Netw
ork
TV
Newsp
apers
Outd
oor
SL
N
TV
Spot
TV
Synd
icati
on
US
Inter
net
Grand
Total
PRODUCT
YEA
R
AMP
2009
4.0
33.0
0.0
0.0
0.0
0.0
1.1
0.0
3.1
0.0
61.2
0.1
0.1
0.
0
0.3
0.0
0.8
100.0
MONSTER
2009
121.
4
3.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
35.8
0.0
0.0
0.
0
50.3
0.0
0.9
100.0
0.1
34.4
0.1
0.1
0.0
1.1
0.4
0.0
0.0
0.0
32.2
0.3
3.7
7.
7
2.9
16.6
0.6
100.0
RED BULL
ROCKSTAR
2009
0.0
0.0
0.0
0.0
0.0
12.2
4.2
0.0
0.0
0.0
60.5
1.8
0.0
0.
0
0.8
0.0
20.6
100.0
FULL
THROTTLE
2009
0.0
0.0
0.0
0.0
0.0
1.3
0.0
61.2
0.0
0.0
0.0
0.0
36.8
0.
0
0.3
0.0
0.4
100.0
2009
0.7
95.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
0.3
0.0
0.0
0.
0
3.4
0.0
0.0
100.0
SWOTAnalysis
Strengths:
NameAMPEnergyclearlyidentifiespurpose/use
Consumersareautomaticallyawarethattheproductisatypeof
energybeverage
Stemsfromawellknownbrand(PepsiCo)andproduct
(MountainDew)
Backgroundaddstocredentialsoftheproduct
StrongtiestoNASCAR
NASCARsaudienceisverysimilartoAMPEnergystarget
audience
Diversityofproducts:energyjuice,energygum
Generalapprovaloftasteofthedrink
Opportunities:
Weaknesses:
Potentialpsychologicaladdiction
o Mayleadtonegativeresponsefromtargetaudience
Causesheadachesandwithdrawalsymptoms
Potentialtosimulateintoxication
o Mayleadtonegativeresponsefromtargetaudience
Threats:
Someotherbrandspromotethemixtureofalcoholwiththeir
energydrinks
o AMPEnergy,notasupporterofthisidea,attractsalarge
audienceofpeopleagainstalcoholabuse
Monster(amaincompetitor)advertisersthroughsponsorship
o Opensopportunityformainstreammedia
o PepsiCosincreasetoa$24millionbudgetallowsroom
forimplementationofmultiplemedia
Mostbrandsdonotofferjuiceandgum:
AMPEnergyhasanadvantageasoneoftheonlycompetitorsin
thiscategory
Manysimilarproductsinenergydrinkmarket
o AMPEnergyisalatecomertothemarket
o Otherbrandsarealreadymoreestablishedandhave
strongerbrandawareness
Establishedbrandalreadyhavestrongadvertising
campaignsrunningandapouringalotofmoneyintothem
o RedBullcurrentlyrunsa$51.3millioncampaign
o AMPEnergyisworkingwithhalfofRedBulls
budget
MarketingandCommunicationDirection
MarketingObjective:
AMPEnergywantstodistinguishitselffromtheeverincreasingfieldofenergydrinks,stealsharefromitscompetitors,and
knockoffthenumbertwobrand,Monster.
AdvertisingObjective:
AMPEnergysmarketingobjectiveistoincreasebrandawarenessamong1834yearoldsby10percentagepoints(from14%
to24%)inthefiscalyearof2012.
BudgetRecommendation:
Initially,weweregiven$24millionwithwhichtoruna12monthcampaign,beginninginJuly2011.Ofthis$24million,weset
aside$1.5milliondollarsforourspotcontingency,and$1.5millionforournationalcontingency.Wealsosetaside$3millionfor
nontraditionalmedia.Thisleftus$18millionfortraditionalmedia,anaverageof$4.5millionforeachmonthinourpulsingschedule.
CreativeBrief:
SeeAppendixA.
TargetMarket:
Demographics
Consumersofenergydrinksareaged1834.TheyhaveanaverageHHIof$25,000andabove(eitherastheirownincomeorasa
dependentoftheirparents).Thetargetisprimarilywhite.TheyaremostlyspreadoutovertheUnitedStates,butthereisaslightly
strongermarketintheMidwest.Mostofthetargethaseitherneverbeenmarriedoriscurrentlyengagedandwithoutchildren.
Psychographics
Ourtargetmarketiscomprisedofcollegestudentsandyoungprofessionals.Theseconsumersoftenattendorwatchextreme
sportsevents,suchasskateboardingandBMX.Thetargetconsumeslargequantitiesofmedia;theyspendalotoftimewatching
television,usingtheinternet,andplayingofteninteractivevideogames.Theyuseenergydrinksinplaceofadditionalsleeptoreinvigorate
themselves,relievethemiddaydrowsiness,andboostlevelsofconcentrationlateintothenight.
10
EducationandProfession
Thetargetisinavarietyoflevelsintheirlives.Somedrinkersarefulltimecollegestudents.Othersareyoungprofessionals,
workingthingssuchasconstructionormidleveldeskjobs.Manymembersofthetargetaudienceserveinthemilitary.
**SeeAppendixBformoreinformation
11
MediaObjectives
Geography:
WewillreachAMPEnergysprioritymarketsthroughanationalandspotcampaign.Inadditiontoournationalmediapurchases,
wewillfocusonsevenspotmarketswithhighproductcategoryperformance.Basedondatareports,wehavefoundthatAMPEnergyhas
amostlynationalcapability,butsomeareashaveaslightlyhigherpotentialforgrowthinthetargetmarket.
**SeeAppendixCforSRDSLifestyleAnalystData
Continuity(scheduling):
ThegoalistoincreaseAMPEnergysbrandawarenessby10percentagepointsinthefiscalyearof2012.Toachievethisgoal
throughscheduling,wewillfocusonapulsingcampaign.Ourcampaignwillbesplitintotwosegments:summermonths(June,July,
August)andendoftermmonths(DecemberandMay).Ournontraditionalmediawillmostlyrunthroughouttheentireyear.Wewillstart
stronginthesummermonthstogrowawarenessofAMPEnergysname,andthenwewillcontinuetoremindourtargetofAMPEnergy
throughouttherestofthefiscalyear.
TargetMarket:
Toconcentratemessagedeliverytowardsunmarriedmenandwomenfromages1834withmidtohighHHI,above$25,000.The
targetisinterestedinsports(mostlyextremeonessuchasdirtbiking)andvideogames.TheywatchalargeamountofTVwithavariety
oftastesinprogramming,fromrealityTVtogamingnetworks.Theyarefrequentinternetusers,especiallysportssitesandsocial
networking.Theyhaveawiderangeofoccupations,fromsalesandofficetoconstructionandmaintenancetofulltimestudents.The
targetmarketisprimarilyCaucasian,butthereisalsoanoticeableHispanicandAfricanAmericansegment.
Budget:
Toeffectivelyreachourtargetmarket,increasebrandawarenessby10percent,andpotentiallysurpassMonsterasthenumber
twobrandbystealingsharesfromthecompetitors,whileefficientlyusingthe$24millionprovidedinourbudgetduringthemonthsof
JulyJuneinthefiscalyearof2012.
12
**SeeAppendixDformoreinformation
ReachandFrequencyTradeoff:
Tohaveanaveragereachof77.1andfrequencyof3.2inourproposedtargetmarket.Wedecidedthisobjectivebasedonthe
Ostrowmodelsformulaforpredictingeffectivefrequencyandourpotentialbudgetof$24million.ForJune,JulyandAugust,wehavea
setreachof78.3andfrequencyof3.3.ForDecemberandMay,wehaveasetreachof75.8andfrequencyof3.1.
CreativeConstraints:
TorevamptheAMPEnergybrandwithafreshcampaignthatwillattractalotofbuzzfromthetargetaudience.Brand
name.Brandlogo.
SpecialMarketingDifficulties
Createanoverallnationalcampaignwithafewselectedspotmarketswhilestillreachingourtargetmarketwithout
outspendingourbudgetof$24million.
13
MediaStrategy:DevelopmentofMediaPlanfor20112012
TheAMPEnergyMediaPlanfor20112012willbecomposedofanationalandspotcampaign,featuringpulsedmediabuys
throughouttheyear.Themonthsofheavymediaspendingaredividedintotwocycles,basedontheconsumerbehaviorofthetarget
audience.Traditionalmediawillbepulsedthroughoutthemediaschedule,whilenontraditionalmediawillstaycontinuous.Themajority
ofthebudgetwillbeallottedfortraditionalmediabuys,whileasmalleramountwillbereservedfornontraditionalmediastrategies.
Geography:
Asateam,wedecidedthemosteffectivewaytoreachourtargetmarket(menandwomenfromtheagesof1834whoaresingleor
engagedwithnochildren,earningahouseholdincomeof$25,000plus/year,)whileusingourallottedbudgetof$24millionefficiently,is
tolaunchanationalandspotmediaplanforAMPEnergy.Wechosetoincludesevenmarketcitieswithhighcategorydevelopment
indicesprovidedbySRDSLifestyleAnalystData,placinganemphasisonapproximately17.37%ofU.S.households:
Chicago,IL
Fresno,CA
NewYork,NY
ElPaso,TX
LasVegas,NV
LosAngeles,CA
Miami,FL
Whilelocalizedadscreateamoreresonatereach,nationaladvertisementshaveasimilarlikelihoodtoreachthetargetaudienceata
lowercostperunit.Themixtureofnationalandspotadvertising,placedinavarietyofmediavehicles,workstosuccessfullyreachour
targetaudienceatthelowestcost.
**SeeAppendixEformoreinformation
Scheduling:
Giventwelvemonthstoallocateourbudget,beginninginJuly2011,andtakingintoaccountAMPEnergysdesiretoincreasebrand
awareness,wemadeanexecutivedecisiontospendourbudgetonmediabuysforthemonthsofJune,July,December,andMay.During
theendoftermmonths,manyconsumersinourtargetmarketarebusywithexamsandotherstrenuousactivitiesthatrequirelatenights
14
ofhighenergy.Duringoursummermonths,manyconsumersinourtargetmarketwishtotakeadvantageoftheirvacationsandspend
latenightimmersedinmedia.Ourmediaplanisdividedintotwocycles,adjustedaccordingtoourtargetmarketsactivities:
Cycle1:July,AugustandJune(Reach78.3%,AverageFrequency3.3)
Cycle2:MayandDecember(Reach75.8%,AverageFrequency3.1)
MediaRecommended:
TheAMPEnergytargetmarketconsumesalotofmedia.Theywillbestrespondtobluntandedgymessageswithalargecool
factor,simplemessageswithlargeattractions.Ourconsumersaredrawntogaming,sports,andsocialmedia.Asampleofmediatheyuse
includesESPN.com,ESPNandESPN2TVstations,Facebook.com,SpikeTV,networksstationsduringimportantsportingevents,G4,MTV,
andESPNmagazine.
**SeeAppendixFformoreInformation.
Television(27.2%)
Televisionadvertisementsprovidethetargetmarketwithanengagingaudioandvisualexperience.Mostofourconsumersenjoy
watchingextremelivesports,realityshows,comedy,andprogramsrelatingtovideogames.Fornetworktelevision,wewillplace
commercialsinthelatenightandsportsdayparts.Consumerswilleitherseethecommercialswhilewatchingagameorenjoyinglate
nighttelevision,suchasacomedytalkshoworrealitytelevision.Wewillspreadourcommercialsoverthebigfour:ABC,NBC,Fox,and
CBS.
Forourspotcampaign,AMPEnergycanconveyitsmessageonaneighborhoodlevel(alocalizedmessage)tothe90%ofUS
householdsthatsubscribetocable.Wewillplacetelevisionspotsoncableandlatefringe/newsdayparts.Membersofourtargetmarket
spendtheirlatenightsafterschoolandworktunedintochannelssuchasG4,AdultSwim,ComedyCentral,ESPN,ESPN2,Spike,UFC,MTV,
MTV2andVH1.
WeconcentratedourpurchaseoftelevisionduringCycle1(June,July,August))withlightplacementsinCycle2(Mayand
December).ManymembersofourtargetmarketarenotgatheredaroundtelevisionsinMayandDecember,asexamsandtravelconsume
themajorityoftheirtime.
15
Cycle1distributed55GRPseachmonthinNetworkTVSports,costing$1,113,100/monthCycle2distributed30GRPsin
DecemberandMay,costing$607,200/month
Cycle1distributed55GRPseachmonthinNetworkCableLateFringe,costing$290,600/month.Cycle2distributed35GRPseach
month,costing$184,900/month.
Cycle1distributed35GRPseachmonthinSpotTVLateFringe/News,costing$95,200/month.NopurchasesweremadeinSpot
TVLateFringe/NewsduringCycle2.
Cycle2distributed35GRPseachmonthinSpotCable,costing$224,700/month.
Magazines(15.7%)
Membersofourtargetaudienceusemagazinestosupplementtheirknowledgeofvideogames,sports,andentertainment.Since
consumersactivelyseekinformationfrommagazines,themediumservesasaneffectiveplatformforAMPEnergyadvertising.Magazines,
suchas4Wheel&OffRoad,Blender,CarandDriver,Details,ESPNtheMagazine,GameInformer,OfficialXboxMagazine,PCGamer,Maxim,
andTruckin,aregoodoutletstoreachmembersofourtargetmarket.
Cycle1distributed30GRPseachmonthinMensMagazines,costing$840,900/month.Cycle2distributed22GRPseachmonthin,
costingapproximately$616,700.
Internet(28.6%)
Consumersinourtargetmarketareheavyusersoftheinternet.Theygoonlineforeverythingfromschoolandwork,tosocial
networkingtocheckingsportsstatistics.Havingadvertisementsonspecificallytargetedsiteswillincreasebrandvisibilityandawareness.
ThemonthsofMayandDecemberwillseeahighervolumeofinternetusersinourtargetmarketduetoexams.Inbetweenstudy
sessions,ourtargetmarketwillvisitsitessuchasNASCAR.com,G4.com,UFC.com,XTSports.comandESPN.com.
Cycle1distributed50GRPseachmonthinTargetedInternetSites,costingapproximately$1,182,500.Cycle2distributed70GRPs
inDecemberandMay,costingapproximately$1,655,500.
16
SpotRadio(3.2%)
AMPEnergymakesitsnationalmessageaccessibletotheprimarytargetmarketthroughtheindividualspotmarketsthatproveto
haveahighcategorydevelopmentindex.Asimilarideasupportsourreasoningforpurchasingspotradioforthemorningdriveand
daytimeparts.Thesespotswillallowmembersofourtargetmarkettohearthemessagewhiletheygetreadyanddrivetoworkand
schoolandduringthedaytimewhenthemiddaydrowsinessbeginstosetin.Thefrequencyatwhichtheyhearthemessageismore
importantinourspotradiobuysthanourspottelevisionpurchases.Radioallowsfornovisual,andthereforemusthaveasubstantial
numberofverbalspotstobrandthemessageintoconsumersminds.WewillcreateaspecificspotradiocampaigntitledAMPUPYour
Dayandfeatureitonalternativerock,classicrock,contemporaryhits,andsportsstations.
Cycle1distributed35GRPsinSpotRadioMorningDriveeachmonth,costingapproximately$101,200/month.Nopurchaseswere
madeinSpotRadioMorningDriveduringCycle2.
Cycle2distributed45GRPsinSpotRadioDaytime,costingapproximately$236,900/month.NopurchasesweremadeinSpot
RadioDaytimeduringCycle1.
MediaNotRecommended
Newspapers:Newspapersarenotaneffectiveoutletforadvertising,asmostconsumersinourtargetmarketfindnewsfrom
othersources,suchastheinternet.Additionally,AMPEnergysadvertisementswillfeaturehighcolorimagesthatwillnot
transferwelltoblackandwhite.
Outdoor:TraditionaloutdoorisanexpensivemediumthatwillnotfitintoAMPEnergyscurrentbudget.Thelimitedmessage
exposurethatbillboardsandotheroutdoormediaallow,arenotconduciveforbuildingawareness.
17
NontraditionalMediaStrategy
AMPEnergysstimulatingandenergeticimagerequiresmediathatengagestheconsumertocommunicatethebenefitsofthe
brand.OurgoalistocreateanemotionalconnectionbetweenthetargetaudienceandtheimagesandmessagesportrayedinAMP
Energysadvertisements.Acreativeapproachthatwillresonatewithourtargetmarketincludestheintegrationofguerillaadvertising
andinteractivesocialmedia.
Socialmediaisaverypersonalmethodofconnectingwiththeconsumer.Itturnscommunicationintointeractivedialogue,
creatingatwowayflowofinformation.Itsfairlylowcostandonlyrequirestheskillsofspecializedemployeestomanagethebrands
presenceonnetworkingsites.
Guerillaadvertisinginvolvestargetingconsumersinunexpectedplacesusingunconventionalmethods.Guerillaadvertising
reliesontime,energy,andimaginationtofindthebestapproachforengagingandinteractingwithconsumers.Successfulguerilla
marketingeffortsgetmaximumresultsfromminimalresources,andtheycreateamemorablebrandexperiencefortheconsumer.
Wehavesetaside$2,850,000ofourbudgettoimplementournontraditionalmediastrategies.
SocialMedia(0.8%)
Twitter:AMPUpYourDayTrend
Foundedin2006,Twitterisnowoneofthefastestgrowingsocialnetworkingsitesontheinternet.Anestimated200million
usersgenerateabout65milliontweetsaday(BBC).Twitteruserscanaddhashtagstotheendoftheirtweetstoindicateatrendtopoic
thattheyarereferringto.
Aspartofitssocialmediaplan,AMPEnergywillholdadailyTwittercontest,anextensionoftheAMPUpYourDaySpot
Radiocampaign.Twitteruserscansubmitenergeticphotosorstatusesto@AMPEnergywiththetrend#AMPupyourdayattached.Users
withthebesttwitpicwillreceiveacouponforafreeAMPEnergydrink.
18
Facebook:AMPUpYourDayPhotoContest
AsofJanuary2011,Facebookhasmorethan600millionactiveusersworldwide(MSNBC).Facebookisasmoothintegrationof
brandsandconsumers;bothbrandsandconsumerscansetupprofilesandinteractinacasualsetting.Facebookisthemostpopular
socialnetworkingsite.Originallyintendedforonlycollegeanduniversitystudents,Facebookhasnowgrowntoincludeallusersthatcan
provideanemailaddress.MostconsumersinourtargetmarketareonFacebookatleastonceaday.CurrentlyAMPEnergyhasabout
190,000Facebookfans.FanswholikeAMPEnergyonFacebookcanviewupdatesfromthebrand.
SimilartotheirTwittercampaign,AMPEnergywilluseFacebooktoconductaphotoandvideocontesttitledAMPUpYour
Day.FansofAMPEnergycanpostphotosonthefanpagetoreceiveAMPEnergycouponsandextremesportinggearsuchasbikesand
helmets.
AMPEnergy.com:AnInteractiveExperience
AMPEnergyscurrentwebsitefeaturesflashimagesofcurrentsportsandmusicpromotions.Thoughthewebsiteisedgyand
filledwithcelebrityendorsements,itisarelativelyimpersonalexperienceandnoninteractiveexperience.Withtheheavyinfluxof
internettraffic,asitereallyneedstostandouttocatchtheattentionoftheconsumer.
AnupdatedAMPEnergy.comwillfeatureblogsfromAMPEnergyssponsoredathletes,whereuserscanpostandinteractwith
theathletestheyadmire.Thewebsitewillalsofeatureaninteractiveflavorcreator.Thiswillbringmorefocustotheactualproductrather
thanthepromotions.UserswillbeabletovirtuallycreatetheirownpersonalizedflavorofAMPEnergy,giveittheirownnameandchoose
abackgroundforadigitalpromotionalposter,puttingtheirfaceonanextremeathletesbody.Userscanthensharethepostervia
FacebookandTwitter.PopularflavorsmightlaterbechosenasthenextproductintheAMPEnergyline.
Oursocialmediacampaignwillcostapproximately$200,000.Theactualcostofsocialmediaisalmostnegligible,butwewill
hirefiveyearroundemployeesatasalaryof$40,000eachtosetupandrunthesites.
19
GuerillaAdvertising(5.8%)
AMPEnergyrAMPUP!SkateParks
Toincreasebrandawarenessinourchosenspotmarkets,AMPEnergywillpurchasecommercialspacetobuildpublicskate
parks.TheskateparkswillbenoticeablymarkedwithAMPEnergyslogoandimagery.Inordertopromotetheopeningoftheskate
parks,AMPEnergywillhireskaterstoflythroughthestreets,handingoutAMPEnergydrinksandmemorabiliatoonlookers.Thisstunt
willattractneighborstousetheskateparkandpromoteAMPEnergyasapersonalbrandthatcontributestothecommunity.Thefirsttwo
skateparkswillbebuiltinFresno,CaliforniaandLasVegas,NevadainthemonthofJuly.Ourtargetmarketisstronglyrepresentedin
bothofthesecities,andbyopeningtheskateparksatthebeginningofthecampaign,AMPEnergywillhaveastrongstartonitsclimbfor
brandawareness.Theseskateparkswillworkasalastingandimpressiveformofguerillaadvertising.
VideoGameAdPlacements
Ourtargetmarketrelaxesandescapesthestressesoftherealworldbyplayingvideogames.Byplacingadvertisementsandbrand
imagesinthegamestheyplay,wecaneffectivelyreachourtargetmarketinaplacetheynormallywouldntexpecttofindmedia.Wehave
chosentoplaceourbrandingamessuchasNASCARthegame,NeedforSpeed,Uncharted3,andsnowboardinggames.Thesegames
correlatewithAMPEnergysextremesportsandhighpowerimage.
Ourguerillaadvertisingcampaignwillcostapproximately$1,400,000.Wewilloriginallyopentwoskateparksattheapproximate
estimatedcostof$500,000eachandtesttheresponseandeffecttheyhaveonthetargetmarketbeforeinvestingmoneyinopeningmore.
Additionally,wewillplaceheavyproductadvertisementinfourappropriatevideogamesattheestimatedcostof$100,000each.
Sponsorship(5.2%)
AMPEnergyisknownforsponsoringmanysportsevents,suchasNASCARracesandsnowboardingchampionships.Althoughour
mediacampaignretractsfromheavysponsorshipinfavorofothertraditionalandnontraditionaloptions,weproposethelight
continuationofsomesponsorshipopportunities.Insteadofpouringconsiderableamountsofourbudgettowardssponsoringlargeevents,
wewillinsteadfocusonatwoselectathletes.WewillbeassociatesponsorsofDaleEarnhardtJr.andDennyHamlin.
20
AssociatesponsorshipofNASCARdrivescostsapproximately$500,000perdriver(Calore).Weproposeabudgetof$1,250,000for
oursponsorshipsbecausehighrankingdrivesoftencostaboveaverage,andthismoneywillleaveroomfornegotiation.
OverallEvaluationoftheCommunicationPlan
Theintentofourcommunicationplanwastoseekoutanopeninginthemarketstructurethroughwhichwecouldbreakaway
fromthecluttercreatedbyothermediamessages,andeffectivelyreachourtargetaudiencethroughanationalandspotcampaign.We
chosespotswithahighcategorydevelopmentindexoragreatpotentialforsales.Ournextstepinexercisingthisplanwastochoosethe
mostappropriatetimeframeinwhichtoexposeourmessage.Indoingso,wechosetorunourplanbeginninginthemonthofJulyandrun
advertisingintermittentlythroughtheendofJune.Ourrationaleforcreatingapulsingmediascheduleresultedfromresearchofthe
targetmarket.Membersofourtargetaudienceareheavyusersofcertainmediaduringparticulartimesoftheyear.Byintegratinga
traditionalandnontraditionalmediastrategy,AMPEnergywillbeabletosurpassMonsterasthenumbertwobrandinthecategory.
BeginninginJuly,AMPEnergywillbeginitscampaign,whichwasdesignedtoincreasebrandawarenessby10%amongourtargetmarket
byJuly2012.Toachievethisgoal,AMPEnergywillusebothvisualandaudiomedia,suchasTV,magazines,internet,andradio.Atthe
sametime,inordertofosternewconsumerrelationshipsaswellasstrengthenexistingones,AMPEnergywillimplementseveral
continuousnontraditionalmedia,awaytomaintaintopofmindawareness.TheAMPUpYourDayCampaignsynchronizesthe
traditionalandnontraditionalmediausedinthecampaign.
Asaresultofourcarefullyselectedmediaoutlets,andthemannerinwhichourmessageswereexposedtothetargetaudience,itis
likelythatourproposedplanwillsuccessfullymeetourobjectivesassetforthefiscalyearof2012.Byselectinganaffectiveaperture,in
ourcasetheframeofourtargetaudiencesworkandschoolday,ourmessageswillbeabletoreachthetargetaudienceeffectivelyand
efficiently,whichwillinturnleadtoourobjectivesbeingmet.Asaresultofourvisualelement,intheformoftelevision,magazines,and
internet,incombinationwithradio,ourmessageswillachievetheaffectivereachandfrequencygoals.Likewise,ourcontinuous
nontraditionalmediawillensurethatouraudienceiskeptawareofAMPEnergysexistenceandthevarietyandbenefitsithastooffer.
21
References
"bbc.co.uk".BBC.Retrieved28March2011.
Calore,Paul."NASCARSponsorPricesCostToSponsorANASCARRacingTeam|WhatItCosts."SportsandFitness|WhatItCosts.Web.
26Apr.2011.<http://sports.whatitcosts.com/sponsornascarteampg2.htm>.
"Goldmantoclients:Facebookhas600millionusers".MSNBC.January5,2011.RetrievedJulyJanuary15,2011.
Hein,Kenneth(21January2008)."PepsiCoPositionsAmpasEveryman'sDrink".AdWeek.Retrieved19January2011.
"AMPEnergySignsKeirDillonandKevinPearce".SnowboardMagazine.8January2009.Retrieved15December2010.
SuburbanRails."SkateparksF.A.Q.HowMuchDoISPEND/HowMuchDoesASkateparkCost?""SkateparkDesignBuild:SuburbanRails
"Web.26Apr.2011.<http://suburbanrails.com/cgibin/WebObjects/PWDA.woa/wa/page?id=7595>.
Tanner,Steve."AmpEnergyTradin'Paint".BevReview.doi:02November2005.Retrieved18January2011.
22
Appendices
AppendixA:CreativeBrief
Client:AMPEnergy
Media/CommunicationVehicles:
SpotTVEarlyFringe/News&Cable
SpotRadioMorningDrive&EveningDrive
SocialMedia:Facebook,Twitter,AMPsOfficialWebsite
KeyFact:AMPEnergy,fromthetrustedbrandofPepsiCo,isanaffordable,healthyenergydrinkthatispervasiveinthecommunity
ofitsaudience.
Problem:AMPEnergyhaslowtopofmindawarenessamongothermajorenergydrinks.
Objectives:
ToimproveconsumerpreferenceofAMP
Tobuildtopofmindawarenessintargetmarkets
TopromoteAMPEnergydrinkasahealthyandaffordablechoice
ToemphasizeAMPEnergysawarenessofcustomerpreference
TargetMarket:Unmarriedmenandwomenfromages1834;WithmidtohighHHI,above$40,000;interestedinsports(mostlyextreme
onessuchasdirtbiking)andvideogames;watchesalargeamountofTVwithavarietyoftasteinprogramming,fromrealityTVtogaming
networks;extensiveinternetusers,especiallysportssitesandsocialnetworking;latenightradiouse;widerangeofoccupations,from
salesandofficetoconstructionandmaintenance(notCEOs)
23
Insight:Iworkeighthoursadayatanoffice,andafterwards,Ienjoyspendinghoursplayingvideogamesandwatchingmyfavorite
NASCARdriversontelevision.Ineedadrinkthatwillkeepmeenergizedenoughtoworkmyjobandenjoymyhobbies.
Promise:AMPEnergysatisfiesitscustomerswithavarietyofaffordabledrinksthatcombinestimulants,goodtaste,andvitamins.
Support:
AMPEnergycontainsacombinationofBvitamins,taurine,ginseng,andguarana
AMPEnergypromotesalonglineofproductsgearedtowardseveryconsumerpreference:AMPSugarFree,AMPOverdrive,AMP
Focus,AMPTraction,AMPLightning,andnow,AMPgumandjuice
AMPEnergyencouragescustomercomplaintsandquestionsthroughtheireasilyaccessiblesocialmediasites
Mandatories:
http://www.ampenergy.com
24
AppendixB:MRIAnalysisforTargetMarket
(Amp:Past30Days/Monster:Past30Days)
Demographics
Age
1824:Vert=41.5%/31.8%Index=325/249
2534:Vert=26.9%/29.9%Index=149/166
Race
White:Vert=79.9%/64.5%Index=104/84
Education
SomeCollege:Vert=36.2%/30.9Index=132/113
GraduatedHighSchool:Vert=33%/32.7%Index=104/103
TwelfthGradeorLess:Vert=18%/21.5%Index=117/139
Employment
EmployedFullTime:Vert=60.1%/63.7%Index=112/119
EmployedPartTime:Vert=15.5%/13.2%Index=136/116
Professions
FoodPreparationServingRelatedOccupations:Vert=7%/4.8%Index=237/163
PersonalCareandServiceOccupations:Vert=3.3%/2%Index=149/92
SalesandRelatedOccupations:Vert=11.6%/10%Index=146/126
Farming,FishingandForestryOccupations:Vert=0.5%/0.9%Index=143/272
ConstructionandExtractionOccupations:Vert=5.3%/8%Index=143/214
ProductionOccupations:Vert=6.1%/6.6%Index=145/157
TransportationandMaterialMovingOccupations:Vert=8.5%/7.4%Index=191/166
MilitarySpecificOccupations:Vert=1.7%/1.5%Index=441/393
HHI
<$10,000:Vert=6.2%/5.7%Index=109/101
25
$30,000$39,999:Vert=13.0%/12.4%Index=129/120
$50,000$79,999:Vert=24.9%/18.9%Index=126/95
Status
Single:Vertical=52.2%/45.8%Index=208/182
Region
Pacific:Vertical=19.4%/37.2%Index=99/189
WestCentral:Vertical=19.6%/15.6%Index=130/103
EastCentral:Vertical=15.2%/11.2%Index=119/88
SouthEast:Vertical=21.8%/10.9%Index=108/54
MediaUsage
Television
G4:Vertical=8.7%/6.4%Index=294/217
AdultSwim:Vertical=15.4%/13.4%Index=273/238
ComedyCentral:Vertical=38.6%/34.7%Index=173/156
ESPN:Vertical=38.7%/34.7%Index=133/120
ESPN2:Vertical=26.2%/22.2%Index=146/124
Spike:Vertical=31.9%/28.3%Index=186/165
Fuse:Vertical=5%/3.9%Index=283/216
MTV:Vertical=34.8%/29.1%Index=220/185
MTV2:Vertical=17.4%/15.4%Index=271/241
LateNightTalk/Variety:Vertical=4.1%/3.6%Index=163/142
AutoRacingSpecials:Vertical=8.6%/6.2%Index=136/98
GravityGames:Vertical=5.5%/2.9%Index=568/301
FootballCollegeWeekend:Vertical=20.5%/15.2%Index=135/100
FootballProWeekend:Vertical=32.5%/27.3%Index=139/117
Radio
Alternative:Vertical=17.1%/14.1%Index=233/192
26
Rock:Vertical=22.9%/20.7%Index=214/194
ClassicRock:Vertical=19%/11.4%Index=198/119
ContemporaryHits:Vertical=35%/30.6%Index=196/171
Sports:Vertical=6.9%/4%Index=148/85
Magazines
4Wheel&OffRoad:Vertical3.6%/4%Index=234/260
Blender:Vertical=3.3%/2.4%Index=374/270
Car&Driver:Vertical=11.9%/8.9%Index=252/189
Details:Vertical=1.9%/1.3%Index=360/243
ESPNTheMagazine:Vertical=14.7%/13%Index=239/211
GameInformer:Vertical=11.1%/7.4%Index=418/279
OfficialXboxMagazine:Vertical=8.3%/5.2%Index=401/249
PCGamer:Vertical=3.1%/3.3%Index=242/258
Maxim:Vertical=18.7%/15.2%Index=321/261
Truckin':Vertical=5.3%/3.4%Index=344/220
27
AppendixC:SRDSLifestyleAnalystData
Market Name
Chicago, IL
Market
Potential
Index (CDI)
Estimated
AMP Sales
$(000)
3515299
1089782
109
10351.0
307073
99603
114
612.5
Fresno-Visalia, CA
580872
186108
113
1048.3
Las Vegas, NV
715284
231561
114
2411.9
Los Angeles, CA
5759523
1975624
121
18053.3
Miami-Ft. Lauderdale, FL
1570334
530350
119
4661.2
New York, NY
7554817
2409489
112
17222.5
28
AppendixD:BudgetSummary
SizeofBudget:$24million
CampaignPeriod:July2011June2012
AmountAllocatedtoMedia:$20,772,100(86.6%)
MEDIATYPE
NetworkTelevision
Sports
$4,553,800
CableLateFringe
$1,241,500
SpotTelevision
LateFringe/News
$285,500
Cable
$449,300
SpotRadio
MorningDrive
$303,500
Daytime
$473,800
Magazines
Mens
$3,756,200
Internet
TargetedSites
$6,858,500
Nontraditional
SocialMedia
$200,000
VideoGamePlacement
$400,000
SkateParks
$1,000,000
Sponsorships
$1,250,000
SEASONALITY
1stQuarter(JulSep)
2ndQuarter(OctDec)
3rdQuarter(JanMar)
4thQuarter(AprJun)
CONTINGENCY$3,150,000(13.4%)
National
Spot
Nontraditional
Amount
Percent
$5,795,300
$734,800
$777,300
$3,756,200
$6,858,500
$2,850,000
27.9%
$20,772,100
100%
$7,959,500
$4,238,400
$712,500
$7,861,900
$20,772,100
38.3%
20.4%
3.4%
37.8%
100%
$1,500,000
$1,500,000
$150,000
$3,150,000
47.6%
47.6%
4.8%
100%
3.5%
3.7%
18.1%
33.0%
13.7%
29
AppendixE:SpotMarkets
Market Name
Rank
%US
Los Angeles, CA
New York, NY
6.54
Las Vegas, NV
43
0.63
Fresno-Visalia, CA
55
0.5
Miami-Ft. Lauderdale, FL
16
1.36
Chicago, IL
3.07
El Paso, TX
98
0.27
30
AppendixF:Flowchart
31