AMP Energy Juice, India 1 Table of Contents 1. Executive Summary ................................................................................................................ 2 2. Market Analysis ................................................................................................................ 3-13 a.

India Soft Drinks Industry b. Energy Drinks in India c. Competition i. Red Bull ii. Cloud 9 iii. Power Horse iv. Sobe Adrenaline Rush v. Burn d. Market Environment i. Unorganized Retail in India ii. Organized Retail in India 3. Cultural Analysis .............................................................................................................. 13-19 a. India Hofstede Scores b. Indian Culture c. Indian Demographics d. Indian Consumers e. Tremendous Growth of the Middle Class in India 4. AMP Energy Juice Product Description ............................................................................ 19-20 5. Marketing Communications Objectives ........................................................................... 20-23 6. Target Audience Analysis ...................................................................................................... 23 7. Strategies and Tactics ...................................................................................................... 23-30 a. Sales Promotion b. Advertising c. Public Relations and Event Marketing d. Direct Marketing e. Internet and Social Media 8. Summary ............................................................................................................................... 30 9. References ....................................................................................................................... 31-32

AMP Energy Juice, India 2

Executive Summary
Over the past few years, there has been tremendous growth in the functional drink, or energy drink, category all over the world. Young people are the primary consumers of functional drinks and continue to fuel growth in this category. AMP Energy Juice, which was released in the United States in February 2010, is 100% juice infused with the power of traditional energy drinks. A product launch in India is the perfect opportunity for AMP Energy Juice to expand and enter the Indian functional drink market which has been growing at a rate of 50% per year. Indian consumers are increasingly becoming more health conscious, which means AMP Energy Juice is the perfect product to introduce to this market. This plan highlights important aspects of the functional drink category in India, the current business situation in India, and essential information and insight into Indian culture. Communications objectives, strategies, tactics and creative executions are also provided that will allow AMP Energy Juice to break into the Indian market successfully. Specific details are provided throughout the plan that demonstrate that AMP Energy Juice s strategies and executions are culturally appropriate for Indian consumers.

AMP Energy Juice, India 3

Market Analysis
Indian Soft Drinks Industry In order to understand the current situation for the beverage market in India, it is important to define which beverages are considered soft drinks. The soft drinks market consists of bottled water, carbonates, concentrates, functional drinks, juices, tea and coffee. It is also important to note that a functional drink is what Americans typically refer to as an energy drink, so the terms may be used interchangeably. In 2008, the soft drinks industry in India grew by 7.7% to reach a market value of $3.4 billion and grew by 8.3% to reach a volume of 5.5 billion liters. Furthermore, an industry analysis conducted by Datamonitor forecasts the Indian soft drinks market to have a market value of $4.6 billion, an increase of 36.9%, by 2013 and a volume of 8.2 billion liters, a 49.9% increase, since 2008 (Datamonitor, 2009). Globally, India is one of the fastest growing non-alcoholic beverage markets. One positive factor that is driving the beverage market in India is the rising number of people in the middle class. This group has seen an increase in income and therefore has extra money to spend on new beverages. Additionally, the actual amount of people in India is a driving factor for the beverage industry. The key change that is occurring is that Indian consumers are slowly, but surely, shifting from traditional home-made beverage options to packaged drinks due to their increasing disposable income and the convenience factor of packaged drinks (Khan, 2010). However, a large and untapped market opportunity exists. Currently, the majority of Indian consumers, about 75%, consume non-alcoholic beverages from stores less than once a day , indicating the need to increase penetration of these beverages in the market and

AMP Energy Juice, India 4 ultimately increase the consumption and sales of store bought beverages (The Indian Express, 2009). This untapped market opportunity should be taken by AMP Energy Juice. Energy Drinks in India The energy drink market in India is currently estimated at around 1.5 million cases (of 24 cans) per year, and has been growing at a rate of 50% a year (Shanbaug, 2010). Red Bull was really the first brand to enter the energy drink market in India in 2003. After initially launching in India, Red Bull gradually gained the approval of consumers and the brand was successfully secured into the Indian market (The Indian Express, 2006). Red Bull s success basically started the energy drink market in India and inspired many other brands to enter the market, which will be discussed in further detail in the competition section. In fact, the energy drink segment is the fastest growing segment in the ready to drink beverage category (Maji, 2009). This can be attributed to the fact that energy drinks are popular among India s large youth population. Despite the release of negative media reports on possible side effects of energy drinks, the young population continues to fuel the energy drink trend and demonstrates that there is a large growth potential for this market (Khan, 2010). It is extremely important to understand that the consumption of energy drinks varies inversely with age and directly with income (The Indian Express, 2009). In other words, young Indians are the primary consumers of energy drinks in India and have stimulated the continuing growth of this market. India is a young country and energy is one of the important consumer needs of its youth (Chamikutty, 2008). Additionally, Indian consumers who have greater income will also be more likely to purchase from this category. Hence, it is easy to understand why

AMP Energy Juice, India 5 young people with increasing disposable income are the target audience for the energy drink market in India. Currently, functional drinks are finding favor among health conscious consumers in India (Khan, 2010). Therefore, it is possible to achieve success in the energy drink market in India by stressing unique nutritional benefits. Due to the fact that some are still concerned with the possible side effects of energy drinks, brands need to create differentiation on the basis of ingredients. Therefore, the demand for energy drinks in India is growing, largely due to youth and increased disposable income, and consumers are beginning to care more about ingredients and health benefits of the drinks. It is clear that AMP Energy Juice has the opportunity to enter the Indian market, given the current conditions. Competition There are many energy drinks currently available in India, but Red Bull, Cloud 9, Power Horse, Sobe Adrenaline Rush and Burn are the most important to discuss. It is important to understand that while there are clear brand leaders, there are also numerous opportunities for competitors to strengthen their positions by addressing the three greatest obstacles to greater consumption- lack of availability, high price, and unappealing taste. The key to the success of these products in the Indian market definitely lies in the right pricing for the consumer mindset and widespread retail distribution set-up. Product taste is one of the primary drivers of brand choice for energy drinks, along with the functional or health benefits the drinks provide to consumers (The Indian Express, 2009). The Key brands of the market are discussed in further detail:

AMP Energy Juice, India 6 Red Bull As previously stated, Red Bull was the first major successful energy drink in India, or the pioneer of the market. Red Bull s primary consumers are in their 20s and early 30s and live a busy lifestyle. According to Red Bull, the product has been specially developed for times of increased mental and physical exertion. Red Bull energy drink claims to increase performance, increase concentration and reaction speed, improve vigilance, improve emotional status and to stimulate the metabolism (Red Bull, 2010). Red Bull s main ingredients are Taurine, Glucuronolactone, caffeine, B-group vitamins, sucrose and glucose. The international tagline for the product is Red Bull gives you wings. The product claims to be valuable to a wide range of consumers from students studying for exams, to busy professionals and athletes that need an extra boost to get through their day. Red Bull was not only the pioneer of the energy drink market in India, but continues to dominate the Indian market with more than 60% market share (Shanbaug, 2010).

Red Bull utilized buzz marketing, or word of mouth marketing, to gain success in India. The brand also gained popularity with young consumers by sponsoring youth and extreme sports events as well as promoting the product on college campuses. Surprisingly, Red Bull did not use a lot of traditional media to gain awareness. Therefore, the majority of the brand s marketing budget is spent on sampling and event sponsorships rather than traditional methods like print advertisements, television advertisements, etc. Red Bull continues to use unconventional marketing techniques, such as teams driving Red Bull jeeps around handing out energy drinks to people in offices, gyms, schools, etc (The Indian Express, 2006).

AMP Energy Juice, India 7 Cloud 9 Cloud 9 entered the Indian energy drink market in 2008, and is second behind Red Bull in the category claiming a 25-26% market share (Adgully Bureau, 2010). This brand claims to give you a high you ll never want to come down from, and takes credit as the first Indian natural energy drink with pomegranate (Cloud 9, 2010). It is important to note that Cloud 9 is an Indian energy drink, as opposed to Red Bull which dominates the market but is not based in India. Cloud 9 promises to help consumers to lift their spirits, boost energy, perk up, party all night, work 30 hours a day and be on the move. Cloud 9 s website did not list the specific ingredients, but claims to be the perfect balance of energy and health. Cloud 9 targets 15-35 year olds with the tagline, Do More! (Cloud 9, 2010). The Cloud 9 brand advertises on local trains and busses, on television, through outdoor advertisements, as well as in bars, pubs and restaurants. Similar to Red Bull, Cloud 9 gained popularity by handing out free samples at colleges. Power Horse Power Horse is another energy drink currently available to Indian consumers. The Power Horse brand claims to increase physical performance and mental alertness, reduce stress recovery period, stimulate metabolism, blood circulation, and the central nervous system. Additionally, Power Horse claims to contribute to detoxification from harmful substances, strengthen the heart, and to be a drink for all situations in daily life (Power Horse, 2010). Power Horse s main ingredients are Taurine, Glucuronolactone, Caffeine, Sucrose, Glucose, Inositol, Vitamin B12, B2 and B6, CaPantothenate and Niacin.

AMP Energy Juice, India 8 The brand positions itself for businessmen and businesswomen who need to excel and perform for longer periods of time at work. Like other energy drinks, Power Horse is also targeted at students who need to concentrate, athletes who need to regain energy, and anyone who needs help getting through a tough day. The brand s tagline is Power Horse- Free your energy! (Power Horse, 2010). Power Horse is the only competitor that provides recipes for mixing alcohol with the energy drink to make cocktails. This is an interesting approach, considering many Indian consumers are weary of mixing alcohol and energy drinks due to reports of negative impacts on health. Sobe Adrenaline Rush Sobe Adrenaline Rush, by PepsiCo India, was introduced to the market in 2008. According to PepsiCo India, Sobe Adrenaline Rush is a maximum energy supplement aimed at helping consumers perform at their peak by energizing their body and mind and charging up energy and alertness levels. This brand tried to differentiate itself from others in the market through its citrus fruit punch flavor and the fact that Sobe Adrenaline Rush was developed by a nutritionist to be a maximum energy supplement rather than a product that just gives a mental kick (PRdomain, 2008). Sobe Adrenaline Rush is targeted at urban youth age 24 and older who are hardworking and goal oriented. In terms of marketing, Sobe Adrenaline Rush was supported by strong point of sale promotion and sampling efforts. Sobe s key ingredients are Taurine, L-Carnitine, DRibose, Inositil and vitamins B and C. PepsiCo is constantly looking to expand sales in the energy drink market and introduce new products, creating an opening for the launch of AMP energy

AMP Energy Juice, India 9 juice, also a PepsiCo product, to the Indian market. Market share information is not available for Sobe Adrenaline Rush and others in the category besides Red Bull and Cloud 9. Burn Burn, by Coca-Cola, was released to the Indian market In December 2009. However, this was not Coca-Cola s first attempt to enter the energy drink market in India. The Coca-Cola company tried to launch its first energy drink to the Indian market, Shock, in 2001 but was unsuccessful and took the product off of the shelves due to poor sales performance (Datamonitor, 2009). Coca-Cola launched Burn hoping to break the stronghold gained by established brands such as Red Bull and Cloud 9. Burn s key ingredients include Guarana, Taurine, Glucuronolactone, Caffeine, Inositol and theobromine. Burn uses the tagline, Can you take the heat? to target youngsters and socially active adults who are regulars at pubs, clubs, restaurants, bars and discos. Burn has launched a TV commercial for advertising and has conducted sampling at high end parties, pubs, resto-bars and clubs to gain brand awareness. The brand also created innovative merchandise with the Burn logo, which is an iconography of a flame (Afaqs, 2009). Coca-Cola has high hopes of gaining market share with Burn energy drink in India, and is trying to avoid poor sales performance of the product by learning from past mistakes with Shock energy drink.

AMP Energy Juice, India 10 Market Environment The retail landscape in India is divided into two sectors, organized and unorganized retail. The majority of retail in India, 98%, is classified as unorganized and is made up of counter-stores, street vendors, roadside peddlers, and Kirana stores or family-run stores (Thathoo & Kacheria, 2007). Organized retail in India refers to modern retail formats like supermarkets and hypermarkets that are prevalent in most developed countries like the United States, and accounts for 2% of the retail industry in India. It is essential to understand that the Indian retail market is in a state of flux, undergoing a metamorphosis, with a huge potential to stand at par with other international retail markets, and ready to meet the demands and standards required of a global market (Thathoo & Kacheria, 2007). Unorganized Retail in India As previously stated, unorganized retail in India comprises 98% of the market. It is very important to understand that the transformation that has taken place in the psyche of the average Indian consumer is only partial because they will still continue to visit the neighborhood kirana stores and other street vendors like they are accustomed to doing. The convenience and personal services like home delivery, small credit facilities, and other last minute purchases will still keep the unorganized neighborhood stores in business (Indian Retail Forum, 2009). Therefore, the main benefit of unorganized retail in India is convenience for the consumer. Kirana stores and street vendors have the ability to cater to the local population in

AMP Energy Juice, India 11 the area, which is a driving factor for Indian consumers. Home-delivery service is provided for any size shopping order and is delivered within minutes of calling the order in, with an itemized hand-written bill. Credit is important to unorganized retailers because they tend to have a loyal and limited consumer base, allowing them to sell goods on credit and settle the bill at the end of the month. These stores are located within walking distance, demonstrating that proximity is valued by Indian consumers (Thathoo & Kacheria, 2007). This is especially convenient for Indian consumers who prefer to buy goods when they need them rather buying in bulk in advance.1 Organized Retail in India Even though organized retail in India only makes up 2%, it has a very promising future. Currently, the flood of products in the market coupled with a wealthier, more informed Indian consumer have created the atmosphere for the entry of organized retail to tap into the $320 billion Indian retail industry (Thathoo & Kacheria, 2007). Obviously, the organized retail segment in India is growing, but some important considerations need to be taken into account in order to enter the organized Indian retail market. Therefore, it is important for brands, such as AMP energy Juice, wishing to enter this market to have a thorough understanding of the challenges and shortcomings of the highly diversified Indian market. The Indian organized retail sector is an untapped space that is likely to grow at a fast pace with potentials of high return for early market entrants. However, brands looking to enter the market need to understand the factors and dynamics required for survival

This assertion is based on the fact that many Indians do not have access to refrigeration and make more frequent shopping trips to keep food from spoiling.

AMP Energy Juice, India 12 and growth in the Indian retail space, keeping in mind infrastructure challenges and other regulations (Indian Retail Forum, 2009). Even though the Indian organized retail industry is growing at a fast pace, there are still a number of challenges that must be overcome. The first challenge to address is the lack of sufficient supply chain management and logistics (Indian Retail Forum, 2009). This is a challenge because the organized retail sector in India is fairly new and still trying to figure out the basics. Other challenges include the gap in the demand and supply of the trained workforce, tax structures that favor small retailers like kirana stores, different sales tax structures in different states, and the high cost of real estate and limited land available in prime market locations (Indian Retail Forum, 2009). These challenges and problems still need to be addressed by organized retailers, but there are also positive factors that contribute to the growth of Indian organized retail. Better infrastructure and improved transportation systems have allowed the organized retail sector to grow. As the infrastructure continues to improve in India, organized retailers will be able to expand to different areas and have better methods of transporting goods to the stores. Rising income also benefits the organized retail sector, because many Indians now have more disposable income to spend on products that they want. This can be explained by the rise of the women workforce, providing dual income for families, and a young population with increased spending power. Furthermore, the expanded reach of mass media and advertisements have led to rising consumer awareness and a new found desire for quality products. Economic liberation and a rapidly changing lifestyle in India also contribute to the

AMP Energy Juice, India 13 organized retail sector (Indian Retail Forum, 2009). It is clear that these growth factors are only going to continue to fuel the growth of the organized retail sector, demonstrating the importance of a brand like AMP energy juice to enter this market at such a key time.

Cultural Analysis
India Hofstede Scores The Geert Hofstede analysis of cultural dimensions in India produced the following scores: Power Distance (PDI) is 77 Long Term Orientation (LTO) is 61 Masculinity (MAS) is 56 Individualism (IDV) is 48 Uncertainty Avoidance Index (UAI) is 40

y y y y y

India s highest score was in the category of Power distance. India s power distance score is higher than the world average, and much higher than the United States average. Furthermore, India s power distance demonstrates a high level of inequality of power and wealth within Indian society. This level of inequality is supported by Indian leaders as well as

AMP Energy Juice, India 14 the Indian population in general. Therefore, the population of India accepts this high power distance as a cultural norm of their society. India s second highest rank was in the category of long term orientation. Again, India ranked higher than both the world average and the United States in this dimension. Indian values that coincide with this high long term orientation score are thrift and perseverance. This high long term orientation score also indicates that Indian culture values steady persistence and working hard to accomplish tasks and goals. Masculinity in India was the third highest ranking which measures just over the half-way point and within a few points of the world average and the score for the United States. In other words, India lands right in the middle and is not extremely masculine or feminine. Similarly, India s individualism ranking of 48 is also close to the middle of the spectrum, but is much lower than the score for individualism in the United States. Lastly, India s lowest ranking dimension was uncertainty avoidance at 40, which is lower than the world average of 65. India s uncertainty avoidance ranking indicates that the Indian population may be more open to unstructured ideas and situations. This score also indicates that India is more accepting of uncertainty and more tolerant of things that are different from what they are used to. This score also indicates that Indians are more relativist regarding religion, which makes sense because of the acceptance of many religions in India. This Geert Hofstede analysis gives insight into Indian culture to gain a better understanding and is helpful in deciding how to market to India (Hofstede, 2009).

AMP Energy Juice, India 15 Indian Culture India has a vast history that has helped to shape the culture that is still present in the country today. It is not necessary to describe the complete history of India for the purposes of this paper, but it is important to understand that the culture is deeply rooted in tradition. The influences of Hinduism and the tradition of the caste system in India have helped to create a culture that emphasizes established hierarchical relationships and Indians are always conscious of their status in relation to other people. Interestingly, even though Indians have accepted modern means of living and have worked to improve their lifestyles, their values and beliefs still remain unchanged (Gupte, 2009). Family life and relationships in India are very important to the population. Indians typically define themselves by the groups that they belong to rather than their individual status. Respect for elders is a major component of Indian culture, and elders are the driving force of the Indian family (Gupte, 2009). Indians greatly value respect for one another and a sort of helpful nature stems from this respect and leads Indians to want to help one another. Additionally, Indian families are very accommodating and willing to accept change. It has been said that Indian culture is about respecting elders, honoring heroes and cherishing love. The culture has a very high level of tolerance and hence the arrival of so many external cultures was not restricted, resulting in the diverse country that India is today. With this in mind, it is clear that India s high tolerance will be beneficial to the Indian market. This is good news for AMP energy juice, demonstrating that the product will be launched in a culture that is accepting and accommodating. Furthermore, the arrival of technology and the emancipation of women in India demonstrates this high level of tolerance and has led Indians

AMP Energy Juice, India 16 to mingle with western concepts. Indian people are very flexible in the sense that they would like to imbibe the changes dictated by western influence and yet clearly affirm their belief in traditions (Gupte, 2009). As far as the culture of business in India, people prefer to do business with those that they know. Hence, the popularity of Kirana stores and small retailers close to home who can deal with consumers on a more personal level. Additionally, when doing business in India, it is advisable to go through a third party introduction because it gives immediate credibility (Gupte, 2009). With this in mind, AMP energy juice can establish credibility with Indian consumers because the product is made by PepsiCo which has already been established in the soft drink market in India, as well as the energy drink market through Sobe Adrenaline Rush. Informing Indian consumers that the product is made by a well known and established brand will help the product to be accepted in the market and will make the product more approachable for Indian consumers. Indian Demographics In order to market AMP energy juice to the Indian market, it is important to understand the demographics of the country. India is a diverse country that has 23 official languages and more than 1,000 dialects (Wharton School, 2008). Therefore, marketing to India is not the same as marketing to the United States because there are so many official languages and dialects that are used by various Indian consumers. Additionally, 72% of the country lives in rural India, while 27% resides in urban areas (Census India, 2007). With this widespread distribution of people, it is vitally important that marketers understand where consumers are in order to target and reach them efficiently and effectively.

AMP Energy Juice, India 17 India is home to a population of 1,156,897,766 people, as of July 2009, and is currently the world s second largest country (CIA World Factbook, 2010). In fact, population projections for the country anticipate the Indian population to reach 1.5 to 1.8 billion by the year 2050, due to the 1.407% growth rate that is occurring (Rosenberg, 2009). With this in mind, it is clear that entry to the Indian market is vitally important as soon as possible to gain brand awareness and secure a customer base in this growing economy. As previously stated, India has a large youth population. In fact, Indians make up a fifth of the world s citizens below the age of 20. This youthful, enthusiastic generation has been nurtured on success and are eager to become Indian consumers. Indian youth are still deeply rooted in Indian culture and traditions but are also connected to and curious about the outside world. With basic needs satisfied and the future taken into consideration, these young consumers consider purchasing products that represent the good life (Wharton School, 2008). Therefore, this young population is valuable to marketers because they are willing to spend beyond their means in order to acquire the products that they desire. Indian Consumers In order to market to India s large population, it is obviously critical to have an understanding of Indian Consumers. Specifically, despite having a large consumer base that is growing steadily, the market is complex and the propensity and capacity for Indian consumers to spend depends on a unique blend of price and value (Wharton School, 2008). Brands that understand this complexity will be most successful in the Indian retail market, which is constantly growing. Through word of mouth, their own observations and the media, Indian consumers can now visualize a better life and they demand it (Wharton School, 2008).

AMP Energy Juice, India 18 Since organized retail has grown in India, consumers have had to undergo a major transformation from saving and purchasing only bare necessities to spending more money and indulging themselves more often. Today, armed with a higher income, credit cards, exposure to the shopping culture of the west and a desire to improve the standard of living, Indian consumers are spending like never before (Thathoo & Kacheria, 2007). Therefore, the Indian consumer mindset has shifted from saving and surviving to spending and thriving. This mindset was created by the growth of organized retail, but this mindset also continues to fuel the continued growth of the organized retail market. In other words, Indian consumers have modified purchasing behavior because of organized retail, but their change in behavior contributes to the continued expansion of the organized retail segment. Tremendous Growth of the Middle Class in India India is experiencing tremendous growth of the middle class segment. Specifically, real average household disposable income has roughly doubled since 1985. Rising incomes in India have caused an increase in household consumption, and a new Indian middle class has emerged (Wharton School, 2008). Today s Indian consumers that are being targeted by brands are popularly known as aspiring India, or the middle income segment that is growing faster than ever since the country s economy has grown at an average of 5.7% per year (Wharton School, 2008). It is clear that aspiring India, which will be referred to as aspirants, are the ideal target market for brands such as AMP Energy Juice that wish to enter the market in India. This middle class segment is more willing than ever to contribute to the growth of the Indian economy by purchasing more than just the basic necessities for the first time in their lives. Furthermore,

AMP Energy Juice, India 19 As economic growth occurs, the destitute will transform into aspirants and enter the consumption arena. Aspirants will become climbers with increased per capita consumption, creating an automatic volume growth for several categories. The socio-economic transformation of consumers offers a large window of opportunity for marketers, as 100 million to 150 million consumers have just begun their journey, while another 100 million are on the road to consumption (Wharton School, 2008). Obviously, the middle class in India is only going to continue to grow in years to come, making it the perfect time for brands to enter the Indian market and establish a strong consumer base of brand loyalists. Moreover, as Indian income rises the shape of India s income pyramid will change drastically since more than 291 million Indians will move from desperate poverty to a more sustainable life, adding a number of first-time consumers to the market (Wharton School, 2008). Therefore, the middle class, currently located at the middle of the income pyramid, is driving the growth of the consumer goods market. This relates directly to the energy drink market in India, because increased income leads consumers to purchase packaged beverages and energy drinks more frequently than ever before.

AMP Energy Juice Product Description

AMP Energy Juice, an extension of AMP by PepsiCo, was released to the U.S. market in February 2010, and is currently only sold in the United States. AMP Energy Juice claims to answer the call of energy-deprived souls everywhere. The new AMP Energy Juice is 100% juice infused with all the

AMP Energy Juice, India 20 power of the original AMP energy drink. This functional drink is also an excellent source of B and C vitamins. AMP Energy Juice is a great option for those looking to get a boost of energy and is made with a stimulating blend of Taurine, Ginseng, and Guarana without any added sugar. AMP Energy Juice was created for consumers who wanted something that went beyond traditional energy drinks. AMP Energy Juice is available in two flavors, orange and mixed berry, which are available in 12 oz. single serving re-sealable bottles.

Marketing Communications Objectives

Increasing AMP Energy Juice brand awareness in India  Objective:  To obtain at least 10% of the current functional drink market share by the end of 2011. This is a realistic goal for AMP Energy Juice considering the fact that 2 competitors, Red Bull and Cloud 9, currently have the largest share of the market.  Current situation:  AMP Energy Juice is not currently available in the Indian market. There is potential to succeed in this market, which is growing at a rate of 50% per year, due to the youth centric population, increase in the consumption of functional drinks and the current trend for health and wellness.  How this will be done:  The launch campaign for AMP Energy Juice will focus on the fact that AMP Energy Juice is 100% juice infused with all the power of regular energy drinks, without added sugar. Stressing this benefit and the healthy ingredients of the drink will help

AMP Energy Juice, India 21 to differentiate AMP Energy Juice from competitors such as Red Bull, Cloud 9, and other carbonated energy drinks. Increasing AMP Energy Juice brand awareness among the target audience through promotions  Objective:  It is crucial to have AMP Energy Juice promotions in India in order to successfully enter the functional drink market. Above all, promotions will be important to ensure that both urban and rural Indians are exposed to the product. Rural India is essential to this marketing campaign, considering approximately 70% of the population live in rural areas.  Current situation:  AMP Energy Juice does not currently have any promotions because the product has not been launched to the Indian market yet.  How this will be done:  Sampling will be a key way to expose the target audience to AMP Energy Juice. This is the ultimate promotional tactic because it can be used to introduce the drink to the target, build trial and ultimately get new users. Sampling will be done in supermarkets in key urban areas. Additionally, samples will be distributed in rural India via AMP Energy Juice vans that travel around. Event marketing will also be used to launch the product, via the 2010 Commonwealth games in Delhi.

AMP Energy Juice, India 22 Increasing awareness of AMP Energy Juice through marketing media channels  Objective:  AMP Energy Juice will build brand awareness by using all IMC tools to target Indian consumers, both urban and rural, to reach as many consumers in the target audience as possible.  Current situation:  AMP Energy Juice does not currently use each IMC discipline to reach consumers.  How this will be done:  This will be done using advertising, public relations and event sponsorship, sales promotions, direct marketing and internet marketing. Mobile marketing will also be used to reach the target audience, since mobile subscribers in India are growing at nearly 100% each year (Prabhudesai, 2007). Social media will also be used to reach the target audience. To position AMP Energy Juice as the preferred functional juice drink in India  Objective:  In order to make a successful entry into the functional drink market in India, and stay there, AMP Energy Juice will need to differentiate itself from the standard carbonated energy drinks that it will compete with. This will be done by positioning the product as a healthy beverage that has the added boost of energy drinks, without the added sugar.  Current situation:

AMP Energy Juice, India 23  AMP Energy Juice does not currently have a position in the Indian market. However, Indian consumers will want to try the product because it is a new kind of functional drink and is different from other energy drinks currently available in India.  How this will be done:  Advertising will focus on the healthy benefits of AMP Energy Juice. This will be beneficial because Indian consumers are becoming increasingly health conscious.

Target Audience Analysis

AMP Energy Juice will target young consumers (18-35), both male and female, urban and rural, who lead a busy lifestyle. These consumers are hardworking and goal oriented. This includes students, busy professionals, athletes, party goers and basically anyone who needs an added boost of energy to get through their busy day or night. These consumers are also increasingly health conscious. These young consumers have increased disposable income and tend to have a spending approach rather than a saving approach like previous generations.

Strategies and Tactics

Sales Promotion Sales promotion is the most important IMC tool for AMP Energy Juice. Following Red Bull s example, the market leader, AMP Energy Juice will use sampling to get the attention of their target audience. By distributing samples of the new AMP Energy Juice, Indian consumers will be introduced to the product. Additionally, sampling allows consumers to actually taste and try the product which will generate new users for AMP Energy Juice. It is vitally important that samples are distributed in supermarkets and hypermarkets in urban areas, as well as in rural

AMP Energy Juice, India 24 areas where the remaining 70% of the population resides. Full re-sealable bottles of AMP Energy Juice, in both the orange and mixed berry flavors, will be handed out. It is also important to make sure that the drinks are chilled so that consumers get the right first impression of the drink. Here are the specifics for culturally appropriate sales promotion of AMP Energy Juice:  Samples will be distributed to young consumers at supermarkets, hypermarkets, and malls. Due to their location, these establishments will help to reach young consumers in urban areas. A booth will be set up outside of stores and in malls to attract attention to the sample distribution. AMP Energy Juice reps will also explain the health benefits of the drink to consumers.  Stickers of the AMP logo will be placed throughout the store, increasing in size as consumers get closer to the product.  A point-of-sale display will surround AMP Energy Juice products, in the refrigerated section, to draw attention. Coupons will also be available via this display.  AMP Energy Juice will also distribute samples in the most populated areas of rural India. This will be done via AMP Energy Juice vans that drive through the country, stopping in populated rural areas, which will be set up in advance. The van tour will be advertised via print, radio, and television to inform consumers when AMP Energy Juice vans will be in

AMP Energy Juice, India 25 their area. This mix of communication channels will ensure that the majority of rural Indians are reached, since many may not have internet yet. The van will park in various locations to hand out the samples for a 2 hour period in each location, or until the specified amount of drinks for that location has been distributed. Again, the health benefits will be stressed to consumers. These vans will also act as moving billboards for the brand.  AMP Energy Juice will also appeal to rural Indians by leveraging the power of Kirana stores. Samples will be provided to various small stores in rural areas to be distributed after the AMP Energy Juice van tour has visited the area distributing samples. In doing so, consumers who missed the van will still be able to sample the product, and the brand can also form relationships with store owners for future distribution and sales of AMP Energy Juice. Advertising Advertising will be done in a variety of ways to spread awareness, generate trial and ultimately generate users and increase sales in India. Again, AMP Energy Juice will make sure to target both urban and rural consumers. The following tactics are culturally appropriate for advertising in India:  Wall paintings will be used as a way to advertise to Indians in rural areas. This is a great way to attract

AMP Energy Juice, India 26 young consumers who live in rural areas. A graphic of a wall painting is provided as an example.  AMP Energy Juice will advertise on outdoor billboards in major cities. These billboards will be useful to introduce the product in urban areas and to inform consumers of the benefits of AMP Energy Juice.  Print advertising will be used to reach both urban and rural Indian consumers. This is a great way for AMP Energy Juice to advertise, considering the fact that Indian newspaper advertising is not only healthy at present, but is also expected to grow at a respectable 9% over the next 4-5 years (Prabhudesai, 2009).  AMP Energy Juice will also utilize online advertising through banner ads on Yahoo! India, whose primary user base is in the 18-34 age group, AMP s target audience. This is a great way to reach this young target audience, especially because 72% of young people in India access the internet on a regular basis (Prabhudesai, 2009). This is also beneficial because growth of the internet is also taking place in rural areas.  Television ads will also be utilized. This will be beneficial because many Indians have televisions, even in rural areas, and the television industry is projected to grow at the rate of 15% between 2010-2014 (Prabhudesai, 2009).  Lastly, radio advertisements will air on popular stations, for the target audience, expressing the product benefits of AMP Energy Juice and encouraging young consumers to try it. Radio has excellent reach in both urban and rural India.

AMP Energy Juice, India 27 Public Relations and Event Marketing AMP Energy Juice will also utilize public relations and event marketing for the launch campaign. News releases will be utilized to spread awareness to the target audience about the launch of the new AMP Energy Juice. These news releases will inform consumers about the healthy benefits of the product, specifically that it is a 100% juice infused with all the power of traditional energy drinks, without any added sugar, and the drink provides an excellent source of B and C vitamins. The stimulating blend that includes taurine, ginseng and guarana, will also be discussed and the effects of these ingredients on the consumer will also be discussed. It is important to explain the ingredients due to the current trend of health consciousness among Indian consumers in the target audience. Event marketing will also be used to launch AMP Energy Juice by being a co-sponsor for the 2010 Commonwealth Games held in Delhi. This is the perfect event for AMP Energy Juice, which will be held October 3-14, 2010, for the following reasons:  Delhi is the largest metropolis by area, and the second largest metropolis by population in India, home to roughly 15 million people. This provides a great reach for the target audience.  This will be the biggest multi-sport event ever conducted in India.  The director of the organizing committee for the 2010 Commonwealth Games estimates that the games alone will generate about $5 billion (US dollars).

AMP Energy Juice, India 28  The games are also viewed as a matter of opportunity and business which will give India return for all investments in a very efficient way.  With a fast-growing population, Delhi is a mega-city experiencing rapid economic expansion, and Delhi is committed to legacy through venue development and access and sport promotion to India s young generation.  This is the perfect event to launch the product because there will be a huge population present, especially young people who desire energy drinks, to spread awareness and generate trial. Direct Marketing Direct marketing will be utilized via direct mail. This is a great way to reach both urban and rural Indians considering the postal system in India is one of the best in the world considering the vastness of India s geography. AMP Energy Juice will benefit from direct mailing, especially because mail is delivered twice daily. Mobile marketing will also be utilized by AMP Energy Juice to reach the target audience. This mobile marketing strategy is culturally appropriate to the target audience for the following reasons:  SMS text messaging continues to grow in popularity among young people.  There are a total of 391.76 million wireless subscribers in India (Prabhudesai, 2009).  Wireless phones are growing at close to 13% quarter on quarter in India.

AMP Energy Juice, India 29  In 5 years, India has gone from 33 million mobile subscribers to close to 400 million, demonstrating that this provides excellent reach to the target audience (Prabhudesai, 2009).  Mobile advertising is more personal and can be better targeted.  Mobile advertising will reach 309.43 million urban subscribers and 120.29 rural subscribers, which provides great reach to the target market throughout the country.  Most of the growth in mobile subscriptions is taking place in rural areas, providing another way to reach these consumers. Internet and Social Media AMP Energy Juice does not currently have its own website, so the brand will launch a new website. Furthermore, social media, specifically Orkut and Facebook, will be used by AMP Energy Juice to reach the target audience. Social media is a great way to inform consumers about the product and to allow them to interact with the brand. Even though the entire Indian population does not have the internet, this will be a great way to reach the target audience who are younger and tend to use the internet more. The use of social media is culturally appropriate for the following reasons:

AMP Energy Juice, India 30  Orkut, the leader of the online social scene in India, has over 17 million unique visitors per month.  Facebook holds the number 4 slot of among all websites in India, with nearly 13 million unique viewers per month, resulting in a Facebook office opening in India due to this success (Amar, 2010).  This is a great way for Indian users to find out about the product, events, and other information they would want to know about AMP Energy Juice.  A huge portion of the India s roughly 60 to 65 million internet users are participating in top social media portals (Amar, 2010).  Social media marketing via online community creation is also a rising trend in India.

Summary
The market and cultural analysis provided give insight into India s current business situation and competitive climate. Additionally, this analysis describes Indian consumers and culture, which must be understood in order to successfully enter the market in India. Each of the culturally appropriate objectives, strategies and tactics provided above will allow AMP Energy Juice to successfully enter the market in India.

AMP Energy Juice, India 31

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