Amp Energy Media Plan. Meghan Eaton

Amp Energy Media Plan Meghan Eaton

Executive Summary With the needs of the consumer in mind, and the inventive way of marketing the different energy effects and ingredients, Amp Energy should be prospering instead of enjoying only moderate success. This leads Gem Marketing to believe that there is a problem in getting the message out to consumers, as well as poor execution of Amp s marketing strategy. This media plan will give Amp the tools they need to execute a strong advertising campaign, through smart media buys. A flight style media plan was chosen, 2 months on 1 month off for the year. This campaign will focus on measureable mediums that will allow traceable marketing success. If this media plan is chosen, Amp s message will hit 90% of the target audience at least 7 times within the first month. This will result in higher sales within the first month, and get stronger as the campaign continues. The campaign will be advertised nationally as well as in 28 major metro market areas that make up a majority of heavy energy drink consumers. In a competitive market like this, you have to spend money to make money. Amp s SOV is only 10% within the category, and its sales reflect that, at 10.5% of the market share (MRI). Bringing that budget up will allow more opportunity to build positive awareness and brand recognition to the target audience, which will result in higher sales. 1

Table of Contents Executive Summary...1 Table of Contents.2 Situation Analysis/SWOT..3-4 Target Audience 5-6 Media Objectives.7 Media Strategies..8 Media Mix....9 -Detailed Month/Spot Markets..10-11 Budget. 12 Timing Strategy. 13 Year Flowchart..14 Frequency Distribution...15 Monthly Media Breakdown.16-22 2

Situation Analysis Amp energy drink is very popular among 18-24 year olds. 41% of its consumers are in this age group according to the MRI data. There are 3 different energy effects to choose from, whether you need to focus for a big day of classes, stay active for a double header against the rival school, or if you just need a boost. Amp has the different flavors and effects for every energy need. Most of their flavors are under 130 calories, for the calorie cautious person, and there are also 2 options under 15 calories. Amp energy drink is sold nationwide. Though the brand is profiting, Amp, by Pepsico is not prospering like they should be. MRI data shows that Amp only has one third the user base as Monster energy which is number 2 in the energy drink market, as of 2008 (MRI). Pepsico, also the maker of Gatorade, has both the number 4 th and 5 th competitive products within energy drink market. Gatorade Energy comes in 4 th place and Amp has the 5 th spot as of 2008 (MRI). Category Nationally branded energy drinks started in 1995 with the launch of Josta, by Pepsico. By 2001, the US energy drink market had increased to $8 million in annual sales. By 2011, sales grew to $4.8 billion. Energy drinks have been widely popular as a drink mixer, but have shown to be dangerous. There has been a lot of negative awareness through the media because of the bad effects that they have on people that don t use caution, as many don t. 3

Strengths Weaknesses Opportunities Threats Popular brand association with Pepsico, the parent brand. o Spending power 41% of amp drinkers are 18-24. The highest percentage in the category out of the top competitors. (MRI) Each Amp energy flavor focuses on a different positive energy effect. They advertise to choose your energy. o Yellow- Active o Blue- Focus o Green, red, purple- Boost Different athletes endorse their products. o Amp drinkers tend to be into sports. Is not the top of mind energy drink choice by the majority of energy drink consumers. Red Bull is. Not a wide user base, both a strength (easy target audience) but a weakness because there has to be a reason older folks aren t consuming the product. 10% SOV within the category and 10.5% of energy drink sales (using MRI data to get these numbers). Monster spent only $1.3 million in measured media advertising in 2008. It would be wise to advertise in those measurable mediums to reach the audience that Monster may not be reaching. 41% of users are 18-24; opportunity to continue taking market share within this age segment, since this drink is popular amongst this segment. Competition. Primarily Red Bull, Monster and Rockstar. Health issues, particularly in heart patients o Recent death of a young girl with a heart problem that got some media coverage, negative awareness for the category. The popularity of use with mixers. Very dangerous. The rise in other energy products such as: pills, gum, 5 hour energy shots. Other secondary competitors such as tea and coffee. 4

Target Audience Primary Target Audience: 18-24 men. Rationale: This audience segment was chosen because the segment has the highest energy drink consumption in the market. They are the heavy energy drink users. According to the MRI data, 18-24 year olds consume over 109% more than the national average. They are also high brand consumers. According to MRI data, this age group is 225% more likely than average to consume Amp. Men are heavy consumers. MRI data shows men drink energy drinks heavily 30% more than women. Secondary Target audience: Men age 25-34. Rationale: This segment was chosen because MRI data shows that this age group is 70% above the national average of heavy energy drink users. They are also 49% above the national brand consumers. Not near as many consumers as the 18-24 year old group, but definitely not a group to ignore. 5

Meet Jake: Jake is a 23 year old student at UCLA that works construction every summer when he is not surfing. He is a bachelor, and is lucky to live 2 blocks from the ocean with his roommates who are also students. He and his roommates have the ultimate bachelor pad, with a 42 inch flat screen for the awesome gaming experience with an X-Box 360. Jake is very athletic. In high school he was captain of the football team, and was point guard in basketball. Jake made the cover of surfing magazine last month, and the ladies love him. With all these activities and late night studies, Jake is a very busy guy that averages only 5 hours of sleep per night. He lives life to the fullest, and takes advantage of every opportunity. When he is done with school, Jake plans on opening his own surf shop and surf instruction school. 6

Media Objectives In spot markets, reach at least 85% of the target audience at least 50 times by December, 2013. Nationally, reach at least 80% of the target audience, at least 35 times by December 2013. Nationally, the minimum GRP count per quarter should be at least 700, and a minimum of 9 frequencies per quarter to the target audience. Spot Plan Spot Plan Reach Freq GRPs %Share Est $(000) January 90 7 630 5.2 1797.1 February 90 7 630 4.6 1601.7 March 0 0 0 0 0 April 85 6 510 2.5 859.5 May 90 7 630 4.6 1601.7 June 0 0 0 0 0 July 88 6 528 4 1383 August 85 5.5 467.5 2.4 839.9 September 0 0 0 0 0 October 85 6 510 2.3 781.3 November 85 6 510 2.5 859.5 December 0 0 0 0 0 Spot Media 1245 28.2 9723.8 Spot Contingency 500 Total Spot $$ 10223.8 Total Plan 35000 National Plan National Plan Reach Freq GRPs %Share Est $(000) January 80 5 400 9.1 3125.4 February 85 5 425 9.6 3320.7 March 0 0 0 0 0 April 80 5 400 9.1 3125.4 May 85 5 425 9.6 3320.7 June 0 0 0 0 0 July 78 4.5 351 7.9 2742.5 August 80 4.5 360 8.2 2812.8 September 0 0 0 0 0 October 82 5 410 9.3 3203.5 November 80 5 400 9.1 3125.4 December 0 0 0 0 0 National Media 3171 71.8 24776.2 National Contingency 0 Total National $$ 24776.2 Rationale: A high frequency was chosen as most important because of the competitive nature of the market. There are so many brands of energy drinks that some get lost in the mix. High frequency will deliver more buys than high reach. 7

Media Strategies Rationale: After looking through MRI data, which shows which media the target audience consumes, the following media buys were chosen: o TV/sports will be used because of the high media usage within the target audience. o Radio will be the main platform, as there is such a wide reach. o Magazines are well targeted, so there will be minimum waste, also a good visual medium for Amp. o Use internet targeted websites so that, just like with magazines, we will know who we are reaching, and another great visual. This campaign will focus on radio in metro areas, as well as nationally, as you can see on the next 2 pages. What you see in January on page 10 is very similar to the media buys throughout the entire year with a few minor variations. The ads will be shown in each medium all 8 months that the ads are being placed. o TV-Sports. MRI data shows that the target audience watches sports on TV; therefore it is a welltargeted choice even though they tend to watch less overall TV. o Radio, targeted to the programs that the target audience listens to. o Men s targeted magazines such as Car and Driver, Maxim, Sports Illustrated, and Game Informer, a well-targeted, low waste medium. o Internet Targeted Sites and Sponsorships, as with the magazine choices, there is almost no waste. The sites chosen are those that will reach the target audience. The target audience also tends to spend a lot of time online, another reason why this is the perfect medium choice for this segment. 8

Media Mix Rationale: 68% of the budget will go to national advertising expenditures. o This is because the product is competitive nationwide, and it would be a waste of a budget not to use the largest piece of the budget to gain awareness on a national level. 32% of the budget will be going to spot market radio advertisements. There are 28 select cities as shown on page 11, which have the greatest market potential. These markets will use spot radio ads, and the reach and frequency at which they hear about Amp will be greater than the rest of the nation. These are the most competitive spots because it is where the most energy drinks are consumed. Rationales about the different mediums chosen are on page 8. Spot Radio 32% Internet 19% Magazines 1% TV (Sports) 26% National Radio 22% 32% National Spot 68% 9

Sample Month January Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200 Medium Covg. Unit GRPs CPP CPM Total Cost Net TV-Sports NATL :30 30 35000 243.58 1050000 Net Radio-Morning Drive NATL :30 60 3783 26.33 226980 Net Radio-Daytime NATL :30 90 3281 22.83 295290 Net Radio-Evening Drive NATL :30 120 2460 17.12 295200 Net Radio-Nightime NATL :30 90 1666 11.59 149940 Magazines-Mens NATL FPG 4C 4 8809 61.31 35236 Internet-Trgtd Sites NATL Banner 20 23650 164.59 473000 Internet-Sponsorship NATL Banner 10 23650 164.59 236500 National Totals 424 6514 45.34 2762146 Spot Radio-Morning Drive SPOT :30 60 7961 110.57 477660 Spot Radio-Daytime SPOT :30 90 9756 135.5 878040 Spot Radio-Evening Drive SPOT :30 60 10326 143.42 619560 Spot Radio-Nighttime SPOT :30 60 1244 17.28 74640 Spot Totals 270 7592 105.45 2049900 Total Plan 559.29125 8604 59.88 4812046 Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations. **MFP CHART *This is the media report from January. It is a close example to what every month looks like, with a few different quantities chosen in each section in other months. The flow chart will also show the media break down in a few pages. The rest of the year s media breakdowns start on page 16. 10

Spot Markets These are some of the top markets for highest energy drink consumption, and they will be the cities in which the spot radio advertisements will run. Market Name Rank %US St. Louis, MO 21 1.1 Seattle-Tacoma, WA 14 1.58 San Diego, CA 27 0.93 San Antonio, TX 37 0.7 Salt Lake City, UT 35 0.78 Sacramento-Stockton, CA 20 1.23 Portland, OR 23 1.02 Phoenix, AZ 12 1.6 Omaha, NE 75 0.36 Minneapolis-St. Paul, MN 15 1.51 Milwaukee, WI 34 0.79 Miami-Ft. Lauderdale, FL 16 1.36 Las Vegas, NV 43 0.63 Detroit, MI 11 1.7 Atlanta, GA 8 2.04 Houston, TX 10 1.82 Los Angeles, CA 2 5 New York, NY 1 6.54 Philadelphia, PA 4 2.61 San Francisco et al, CA 6 2.14 Washington, DC 9 2.05 Denver, CO 18 1.31 Dallas-Ft. Worth, TX 5 2.16 Columbus, OH 32 0.8 Cleveland, OH 17 1.36 Chicago, IL 3 3.07 Boston, MA 7 2.12 Austin, TX 51 0.56 28 Markets Chosen, covering 48.87% of US households. 11

$34,500,000 Budget Reach Avg Freq GRPS $(000) Goal Est Goal Est Goal Est Balance Goal Est Balance January 90 91 7 7.6 630 694-63 4922.4 4812 110.4 February 90 90.9 7 7 630 635-4 4922.4 4812.3 110.1 March 0 0 0 0 0 0 0 0 0 0 April 85 88.9 6 6 510 532-22 3984.8 4125.1-140.3 May 90 90.8 7 7.4 630 670-40 4922.4 5100.7-178.3 June 0 0 0 0 0 0 0 0 0 0 July 88 89.2 6 7.1 528 634-106 4125.5 4118 7.4 August 85 87 5.5 5.6 468 488-20 3652.8 3225.5 427.2 September 0 0 0 0 0 0 0 0 0 0 October 85 89.1 6 6.9 510 618-108 3984.8 4128.8-143.9 November 85 89.1 6 6.8 510 605-95 3984.8 4114.8-130 December 0 0 0 0 0 0 0 0 0 0 Total 4415.5 4876 0 34500 34437.35 62.654 National Contingency $(000): 0 Spot Contingency $(000): 500 Rationale: Though Pepsico was only willing to spend up to $30MM, Gem Marketing believes it is important to spend $34.5MM to reach the competitive goals. Currently, the SOV is only 10%, and the sales are only 10.5% in the category. This shows that you really have to spend money to make money, especially in this market. 12

Timing Strategy Rationale: The flight strategy was chosen because it is unnecessary and very expensive to pay for continuous advertising and also unnecessary. Advertising during these months will provide just enough for the consumers recognize the brand and build positive awareness. Every 3 rd month we will give the ads a break, and also it will allow the consumer time without getting overloaded with Amp ads. Then after a month without, the ads will start up again for 2 months at a time. This will keep reminding the consumers about the product, and why they should choose Amp. 16 14 12 10 8 6 4 2 0 Flight Strategy 13

Flowchart 14

Frequency Distribution National Spot Combined F F+ F F+ F F+ 0 17.1 100 37.8 100 9 100 1 14.6 82.9 16.9 62.2 7.3 91 2 13.1 68.3 11.1 45.3 8.6 83.7 3 10.9 55.1 7.9 34.2 8.9 75.1 4 8.9 44.2 5.8 26.3 8.5 66.2 5 7.1 35.3 4.4 20.4 7.9 57.7 6 5.7 28.2 3.4 16 7.1 49.8 7 4.6 22.4 2.6 12.6 6.3 42.7 8 3.6 17.9 2 10 5.5 36.4 9 2.9 14.2 1.6 8 4.8 30.9 10 2.3 11.3 1.2 6.4 4.1 26.1 11 1.8 9 1 5.2 3.5 22 12 1.5 7.2 0.8 4.2 3 18.5 13 1.2 5.7 0.6 3.4 2.5 15.5 14 0.9 4.6 0.5 2.8 2.1 13 15 0.7 3.6 0.4 2.3 1.8 10.9 16 0.6 2.9 0.3 1.9 1.5 9.1 17 0.5 2.3 0.3 1.5 1.3 7.6 18 0.4 1.8 0.2 1.3 1.1 6.3 19 0.3 1.5 0.2 1 0.9 5.3 20 1.2 1.2 0.9 0.9 4.4 4.4 Gross Rating Points 424 270 694 Reach 82.9 62.2 91 Average Frequency 5.1 4.3 7.6 15

Monthly Media Breakdowns February Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200 Medium Covg. Unit GRPs CPP CPM Total Cost Net TV-Sports NATL :30 20 35000 243.58 700000 Net Radio-Morning Drive NATL :30 120 3783 26.33 453960 Net Radio-Daytime NATL :30 90 3281 22.83 295290 Net Radio-Evening Drive NATL :30 90 2460 17.12 221400 Net Radio-Nightime NATL :30 60 1666 11.59 99960 Magazines-Mens NATL FPG 4C 5 8809 61.31 44045 Internet-Keyword/Search NATL Listing 40 23650 164.59 946000 Internet-Trgtd Sites NATL Banner 20 23650 164.59 473000 National Totals 445 7267 50.57 3233655 Spot Radio-Morning Drive SPOT :30 30 7961 110.57 238830 Spot Radio-Daytime SPOT :30 70 9756 135.5 682920 Spot Radio-Evening Drive SPOT :30 60 10326 143.42 619560 Spot Radio-Nighttime SPOT :30 30 1244 17.28 37320 Spot Totals 190 8309 115.4 1578630 Total Plan 540.204955 8908 62 4812285 Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations. 16

April Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200 Medium Covg. Unit GRPs CPP CPM Total Cost Net TV-Sports NATL :30 30 35000 243.58 1050000 Net Radio-Morning Drive NATL :30 60 3783 26.33 226980 Net Radio-Daytime NATL :30 100 3281 22.83 328100 Net Radio-Evening Drive NATL :30 100 2460 17.12 246000 Net Radio-Nightime NATL :30 90 1666 11.59 149940 Magazines-Mens NATL FPG 4C 3 8809 61.31 26427 Internet-Trgtd Sites NATL Banner 34 23650 164.59 804100 Internet-Sponsorship NATL Banner 15 23650 164.59 354750 National Totals 432 7376 51.33 3186297 Spot Radio-Morning Drive SPOT :30 30 7961 110.57 238830 Spot Radio-Daytime SPOT :30 40 9756 135.5 390240 Spot Radio-Evening Drive SPOT :30 30 10326 143.42 309780 Spot Totals 100 9389 130.4 938850 Total Plan 482.107871 8556 59.55 4125147 Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations. 17

May Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200 Medium Covg. Unit GRPs CPP CPM Total Cost Net TV-Sports NATL :30 40 35000 243.58 1400000 Net Radio-Morning Drive NATL :30 60 3783 26.33 226980 Net Radio-Daytime NATL :30 120 3281 22.83 393720 Net Radio-Evening Drive NATL :30 100 2460 17.12 246000 Net Radio-Nightime NATL :30 100 1666 11.59 166600 Magazines-Mens NATL FPG 4C 6 8809 61.31 52854 Internet-Trgtd Sites NATL Banner 34 23650 164.59 804100 Internet-Sponsorship NATL Banner 10 23650 164.59 236500 National Totals 470 7504 52.22 3526754 Spot Radio-Morning Drive SPOT :30 30 7961 110.57 238830 Spot Radio-Daytime SPOT :30 100 9756 135.5 975600 Spot Radio-Evening Drive SPOT :30 30 10326 143.42 309780 Spot Radio-Nighttime SPOT :30 40 1244 17.28 49760 Spot Totals 200 7870 109.3 1573970 Total Plan 570.215742 8945 62.25 5100724 Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations. 18

July Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200 Medium Covg. Unit GRPs CPP CPM Total Cost Net TV-Sports NATL :30 35 35000 243.58 1225000 Net Radio-Morning Drive NATL :30 60 3783 26.33 226980 Net Radio-Daytime NATL :30 100 3281 22.83 328100 Net Radio-Evening Drive NATL :30 60 2460 17.12 147600 Net Radio-Nightime NATL :30 100 1666 11.59 166600 Magazines-Mens NATL FPG 4C 5 8809 61.31 44045 Internet-Trgtd Sites NATL Banner 11 23650 164.59 260150 Internet-Sponsorship NATL Banner 3 23650 164.59 70950 National Totals 374 6603 45.95 2469425 Spot Radio-Morning Drive SPOT :30 30 7961 110.57 238830 Spot Radio-Daytime SPOT :30 100 9756 135.5 975600 Spot Radio-Evening Drive SPOT :30 30 10326 143.42 309780 Spot Radio-Nighttime SPOT :30 100 1244 17.28 124400 Spot Totals 260 6341 88.07 1648610 Total Plan 504.280465 8166 56.83 4118035 Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations. 19

August Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200 Medium Covg. Unit GRPs CPP CPM Total Cost Net TV-Sports NATL :30 30 35000 243.58 1050000 Net Radio-Morning Drive NATL :30 40 3783 26.33 151320 Net Radio-Daytime NATL :30 100 3281 22.83 328100 Net Radio-Evening Drive NATL :30 60 2460 17.12 147600 Net Radio-Nightime NATL :30 100 1666 11.59 166600 Magazines-Mens NATL FPG 4C 8 8809 61.31 70472 Internet-Trgtd Sites NATL Banner 20 23650 164.59 473000 Internet-Sponsorship NATL Banner 5 23650 164.59 118250 National Totals 363 6902 48.03 2505342 Spot Radio-Daytime SPOT :30 45 9756 135.5 439020 Spot Radio-Evening Drive SPOT :30 20 10326 143.42 206520 Spot Radio-Nighttime SPOT :30 60 1244 17.28 74640 Spot Totals 125 5761 80.02 720180 Total Plan 425.634839 7578 52.74 3225522 Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations. 20

October Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200 Medium Covg. Unit GRPs CPP CPM Total Cost Net TV-Sports NATL :30 40 35000 243.58 1400000 Net Radio-Morning Drive NATL :30 60 3783 26.33 226980 Net Radio-Daytime NATL :30 120 3281 22.83 393720 Net Radio-Evening Drive NATL :30 80 2460 17.12 196800 Net Radio-Nightime NATL :30 100 1666 11.59 166600 Magazines-Mens NATL FPG 4C 8 8809 61.31 70472 Internet-Trgtd Sites NATL Banner 15 23650 164.59 354750 Internet-Sponsorship NATL Banner 5 23650 164.59 118250 National Totals 428 6840 47.6 2927572 Spot Radio-Daytime SPOT :30 60 9756 135.5 585360 Spot Radio-Evening Drive SPOT :30 50 10326 143.42 516300 Spot Radio-Nighttime SPOT :30 80 1244 17.28 99520 Spot Totals 190 6322 87.81 1201180 Total Plan 523.204955 7891 54.92 4128752 Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations. 21

November Target Demo: All Men ages 18-24 Natl Univ (000):14369 Spot Univ (000):7200 Medium Covg. Unit GRPs CPP CPM Total Cost Net TV-Sports NATL :30 30 35000 243.58 1050000 Net Radio-Morning Drive NATL :30 90 3783 26.33 340470 Net Radio-Daytime NATL :30 120 3281 22.83 393720 Net Radio-Evening Drive NATL :30 60 2460 17.12 147600 Net Radio-Nightime NATL :30 90 1666 11.59 149940 Magazines-Mens NATL FPG 4C 5 8809 61.31 44045 Internet-Trgtd Sites NATL Banner 25 23650 164.59 591250 Internet-Sponsorship NATL Banner 5 23650 164.59 118250 National Totals 425 6671 46.43 2835275 Spot Radio-Daytime SPOT :30 60 9756 135.5 585360 Spot Radio-Evening Drive SPOT :30 60 10326 143.42 619560 Spot Radio-Nighttime SPOT :30 60 1244 17.28 74640 Spot Totals 180 7109 98.73 1279560 Total Plan 515.19417 7987 55.58 4114835 Note: CPM based on media that contribute both cost and GRPs; For Total Plan, Spot GRPs are weighted to %US coverage before calculations. 22