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JOHN DUNNE, JORDAN FENNEL, MADELAINE CIRINO, CHRIS DILLON
TABLE OF CONTENTS
Situation Analysis SWOT Brand Challenge Alternative 1 Alternative 2 Creative Brief Big Idea IMC Strategies 3 14 15 15 16 18 21 21
SITUATION ANALYSIS DHCD RESEARCH COMPANY ANALYSIS
When North Carolina Pharmacist Caleb Bradham created Pepsi Cola in the 1890’s, it was unlikely he could have foreseen the brand’s future success. Years later, through the ups and downs of the early 20th century, Pepsi-Cola grew to become one of the U.S.’s most popular soft drinks. In 1965, Pepsi-Cola continued to grow by merging with Frito-Lay and becoming PepsiCo Incorporated: a dominant force in both the snack and beverage industries. Today, the brand that started in a pharmacy has become a company with over 19,000 employees and $510 million in sales.i PepsiCo Inc’s ambitious attitude towards tapping new markets is reflected in their mission: “To be the world’s premier consumer products company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”ii Eager to be a part of a booming energy drink market, PepsiCo launched Amp in 2001. Alongside the already successful Mountain Dew, the two drinks created a spot for themselves in the action sports market.iii Amp has since expanded its reach and in 2006 helped PepsiCo climb to third in energy drink sales.iv
In an effort to move up from the 5th top-selling energy drink, PepsiCo has ‘amped’ up their 2008 media spending. Aside from introducing several new flavors, “PepsiCo spent $8.6 million for Amp during Q1, nearly the same amount spent for the brand in all of 2007 according to Nielsen Monitor-Plus. Amp beat out other major energy drink brands in the first quarter with a 28.7% sales growth.”v Pepsi Co Inc’s future rests on the shoulders of CEO Indra K. Nooyi. Nooyi has been CEO of PepsiCo Inc. since October 2006 and has been working with the company for over a decade. Ms. Nooyi started in 1994 as Senior Vice President of Strategic Planning and has worked her way up to the top of the corporation. Her familiarity with the product and her history in corporate strategy and planning makes her a critical part of Pepsi and Amp’s success.
Pepsi introduced Amp in November 2001 as an addition to the Mountain Dew brand product line after its success with Code Red.vi The pre-established recognition of Mountain Dew gave Amp a huge advantage over its competitors. The citrus flavor of Mountain Dew carried over into the Amp product to reinforce the energizing boost that 4
consumers are looking for in an energy drink. Essential to the energy drink category is the tall, slim can in which Amp is housed.vii The can holds 8.4 ounces and features a pull tab for easy opening.viii
Calories Total Fat (g) Sodium (mg) Total Carbs (g) Sugars (g) Protein (g) Vitamin A %DV Vitamin C %DV Calcium %DV Iron %DV Niacin %DV Vitamin B6 %DV Folate %DV Vitamin B12 %DV Pantothenic Acid %DV Zinc %DV Selenium (mg)
110 0 65 29 29 0 0 0 0 0 10 10 0 10 10 0 0
Nutrition Information for the 3 Energy Drink brands distributed by PepsiCo.
130 0 115 36 33 1 0 100 0 0 100 10 100 10 10
Multipacks of Amp come in environmentally-friendly packaging from the Zumbiel Packaging company with Z-view. The Z-view feature is actually a cutout in the paperboard packaging used for multipacks that allows consumers to see the actual product inside the packaging. This feature reduces the amount of paperboard used for multipack packaging by 10%. ix The packaging for SoBe Adrenaline Rush, another energy drink also produced by PepsiCo, looks very similar to the design and construction of Amp’s packaging but they are two very different products. Some of Amp’s key ingredients that provide that extra boost of energy are ginseng, taurine and guarana. It also contains B-vitamins along with simple and complex 5
SoBe Adrenaline Rush 130 0 95 34 33 0 0 100 0 0 240 30 100 -
carbohydrates to keep the consumer going and energized. The biggest boost of energy comes from the 75mg of caffeine in the 8.4-oz. can compared to the 37mg contained in 8 ounces of Mountain Dew. Riboflavin, the B vitamin contained in Amp, adds an extra twist that truly differentiates the product from others in the energy drink category. When Amp is placed in black light, riboflavin actually makes the drink glow, which spurred rumors that the drink glows in the dark. Other materials on the can also glow under black light. Amp Energy offers five additional flavor varieties for those looking for an energy drink with a twist. Amp Energy Elevate has a mixed berry flavor in a blue can that comes with L-Theanine that sharpens the mind and maintains focus. Amp Energy Overdrive comes in a red can and offers yerba mate with an intense cherry flavor. In the orange can, Amp Energy ReLaunch contains electrolytes and B vitamins that re-energize with an orange citrus flavor. Amp Energy Traction comes in a purple can and is charged with a combination of maltodextrin and D-ribose with a grape flavor to maintain focus for the long haul.x PepsiCo spent $8.6 million on advertising for Amp in the first quarter of this year (2008), an amount almost equivalent to the advertising expenditure for the entire year of 2007. Advertising during the Super Bowl in 2008 accounted for most of this drastic increase in advertising expense, and it paid off with a 28.7% growth in sales for the first quarter.xi A new promotion running during the prime beverage season from May through July is the Dale Earnhardt, Jr. Collector Series that features four specially-designed 12oz. can varieties, of which Wal-Mart will sell in 8-packs for $8.88, tying in the number of Jr.’s car, 88, with the price. Amp is the new sponsor for Dale Earnhardt, Jr. and the Amp Energy 500 Nascar race that will be held Talladega on October 5.xii
In the highly competitive environment of energy drinks, different brands are going through great lengths in order to acquire additional market shares as well as differentiate themselves from the abundant competition. With well over 150 + energy drinks crowding the shelves brands are always coming up with new flavors, line extensions, and edgy marketing campaigns in order to stay ahead of the competition.xiii Based on the original flavor formula of Mountain Dew, Amp Energy Drink, which competes in the non carbonated soft drink category, is PepsiCo’s first real entry into the energy drink market, which is the fastest-growing category in soft drinks and accounts for 22 percent of drink salesxiv. Pepsi hopes the established Mountain Dew brand name will help give Amp Energy a good market share by providing the consumer with a product in which they are already familiar. Red Bull, which accounts for 35% of the market, is currently the major direct competition to all energy drinks, followed closely by Hansen’s Monster Energy which accounts for 28% of the market, according to Morningstar Incxv. Since Red Bull created the energy drink market in the 1990’s it has continued to be an innovator in image marketing and now spends upwards of $20 million dollars annually on marketing its brand. Initially Red Bull spent the majority of its marketing dollars attempting to court the younger demographic by having a noticeable presence and product giveaways at events, concerts, extreme sports, and other functions that appealed to the 18-24 demoxvi.
As Red Bull grew, they began sponsoring a variety of sports including Formula One racing, NASCAR, Motocross, an air race, and even the Red Bull Flugtag, where people compete to build the best “human powered flying machine”.
Figure 2 Image taken by, Scoop Independent new, [Retrieved from web 7/17/08] Available at: www.scoop.co.nz/features/photos.html Figure 1 Image taken by, Henrik Sendelbach 23 July 2005, [Retrieved from web 7/17/08] Available at: mmons.wikimedia.org/wiki/Image:Red_Bull_car.jpg
Red Bull took sponsorship to the next level with its recent purchase of a Major League Soccer team, The New York Red Bulls, which was the first acquisition of its kind in the US soccer market. Keeping up with the “do it first trend” Red Bull just announced that it will make its 16.9 oz can a permanent offer along with the 4-packs of 12 oz cans already being distributed. Amp Energy is now considered a
“mega-brand” by Pepsi and they plan to spend accordingly in order to make Amp Energy the drink of the masses. Pepsi hopes the 25 million dollar deal with NASCAR driver Dale Earnhardt Jr. as well as the “Amp Yourself” advertising campaigns, combined with sponsorships of a variety of extreme sports will help make Amp the choice of goaloriented males 18-34. The second major direct competitor of Amp Energy is Hansen’s Monster Energy, followed by Coca-Cola’s Rockstar and Full Throttle. Monster Energy is now being distributed by Anheuser-Busch and has seen good market penetration due to its wide product variety and highly targeted non-traditional marketing techniques. Along with its 8-packs of 16oz cans Monster also launched a Frappuccino-type drink available in 16ounce cans. The three flavors: Big Black, Mean Bean, and Loca Mocha, will be marketed to the mid 20’s early 30’s coffee drinkers in an attempt to convert them from their usual hot caffeine drinks.
Coca-Colas RockStar energy as well as FullThrottle currently account for more market share then Amp, with 11.4% and 6.9% respectively, both brands continue to target the 18-24 demo through edgy media campaigns and sponsorships of extreme sporting events. Rockstar has sponsored several Mixed Marshal Arts (MMA) events in both the UFC and EliteXC fighting leagues with hopes of courting the fans of this increasingly popular sport. The majority of energy drinks are aimed at the youth market and associated with fast paced high energy life styles and extreme sports of all kinds. The names of the different brands are meant to convey power and attitude such as Amp, Rockstar, Full Throttle, Red Bull, Adrenaline Rush and even Pimp Juice. Energy drinks
Figure 3 [Image Retrieved from web 7/17/08] Available at: www.totalmma.com/.../
sell for at least 2 dollars per can, which is far more expensive then the categories indirect competition which includes soft drinks,
coffee, teas, and even caffeine enhanced waters. The biggest difference between other categories is that energy drinks are purchased for a noticeable increase in energy and not necessarily for refreshment. The indirect competition such as soft drinks and coffees rely mostly on their taste and refreshing nature to appeal to the consumer, where as in the energy drink market customers may not even like the taste of the product but still buy and drink it as long as they get the desired energy boost.
The energy drink market enjoyed tremendous growth since its inception in 1997. In particular, the category experienced a tremendous surge in growth from 2001- 2006. the market grew by 516% with over 3.2 billion dollars in sales in 2006. Future growth estimates show that this rate will slow considerably in the next 5 years with only an additional 62% growth by 2011.xvii During this five year period, 2001-2006, the markets growth could primarily be attributed to the increasing amount of distribution channels such as supermarkets and gas stations. In addition, the category thrived on single unit purchases (80% of energy drink sales come from convenience stores), which was positive in terms of growth. Unit sales prices for the average energy drink are much higher than other nonalcoholic beverages. However, recent trends in purchasing behavior have shifted away from single units to value size containers, which has hurt the overall market. MRI data shows that the western census regions of the country show more prevalent usage of energy drinks; they are 19% more likely to consume energy drinks.xviii Another in depth independent study verified this data showing that the western regions occupied $243.0 million or 21.57% of the market in 2007.xix Other important regions include the Mid-Atlantic with 194.9 million and the South East with 184..2 million. The total U.S market for Energy Drinks was around 1,126.5 million dollars in 2007. Men are significantly more likely to use energy drinks. Primarily, the market is driven by 18-24 year old males. Brand positioning in the past has been obviously slanted toward young adult males with brands like Pimpjuice, Full Throttle Blue Demon, Daredevil, Rockstar, and Rip It. Advertising and promotion campaigns have also followed suit, often featuring extreme sports and other activities featuring plenty of 10
action and adventurous lifestyles. Age demographics are key to understanding target segmentation. 18-24 year olds comprise over a quarter of the market. Another key age segment whose potential has yet to be fully realized is teens age 12-17. This demographic has also jumped to nearly a quarter of the market. Interestingly, the two segments that have experienced the most growth in the last 5 years are adults age 24-34 and teens age 12-17. Mintel reports that these demographics are taking up energy drinks as opposed to coffee for early morning pick-me-ups. Teens are also prone to use energy drinks in social situations and some brands have positioned their drinks in this way – the party goers beverage of choice and an aid to more “enhanced” life experiences. MRI data also show that, among heavy users, African American and White/Hispanic have shown to be more likely to drink energy drinks. This was also verified in Simmons Spring 2006 survey NCS as reported by Mintel.
Consumers of energy drinks can be greatly distinguished by age. A third (34%) of respondents aged 18-24 are likely to consume energy drinks---exhibiting the highest incidence among respondents of all age groups. In 2006, an estimated 9.9 million adults aged 18-24 were likely to drink energy drinksxx What originally started as a boost targeted towards action sports enthusiasts and ‘extreme’ athletes; energy drinks have become the popular ailment for midday drowsiness and lack of focus (Some 63% of respondents who have drunk an energy drink in the last three months are likely to drink energy drinks in the afternoon) (Site 1). Now, with a dominant portion of sales in convenience stores, energy drink consumption spans across many markets and covers almost all geographic areas.
Today’s 18-24 year-old consumer usually lives life at a very fast pace. Typically motivated by achievement, these consumers have a busy, goal directed lifestyle. Image is important to them. They favor established, prestige products and services and are interested in time-saving devices given their hectic schedules.xxi Aside from the most defining segment (age) of energy drink users, race has become a distinguishable characteristic of product usage. “Hispanics (27%) and blacks (21%) are significantly more likely to drink energy drinks when compared to whites (12%) and Asians (16%).” And while one in two Hispanics teens are likely to drink energy drinks (Site 3), they have little presence in Amp’s sales. One the other hand, whites account for over 70% of Amp’s sales (blacks 16.3%, Asians 1.2%).xxii Sometimes the consumer is looking for more than just a boost when deciding their energy drink purchase. “Nearly one in three respondents who have drunk energy drinks in the past three months report flavor as the most prized ingredients in energy drinks. Most energy drinks contain herbs such as guarana, which provide these drinks an exotic taste not available in the other types of non-alcoholic beverages.”xxiii This is good considering the selection of flavors Amp has available.
OTHER INDUSTRY TRENDS
To much extent, the energy drink industry has gone on unregulated since it came into a mass production in 1997. However, recent research attention toward the health risks of these caffeine-laden beverages may pose potential problems with future industry growth. Currently, the FDA limits the caffeine content in soda beverages to 65 mg for every 12-ounce can; energy drinks such as Cocaine have as much as 280 mg of caffeine in their 8.4 contains.xxiv If research findings show that such concentrated levels 12
of caffeine pose significant health risks, the energy drink industry might be braced for a falling out among key consumer demographics. At the least, the Industry may be required to put caffeine warning labels on these products; currently only four companies provide warnings on the packages.xxv Other research findings have been focused on the advertised health benefits made by some energy drink brands. In these cases, brands have claimed to have medicinal properties with the supplements they offer. The FDA and other health research organizations are currently scrutinizing these claims, and some early findings have already shown that nutritional value is relatively low among the market leaders. Another trend in the industry has to do with its rapid growth. The amount of product proliferation in the past 6 years could be steering energy drink companies toward a price war situation. With so many products, all offering very similar benefits, many brands will have difficulty differentiating themselves from the rest of the pack— thus leaving price as the only viable differentiation strategy. Other controversial trends deal with energy drink usage. A common practice with the club and bar scene in many large cities is to mix energy drinks with alcoholic beverages. In 2006, a study was conducted among 26 Brazilian men. The study found that, though the energy drink mixer did propel the men into a heightened state inebriation, the drinks significantly limited the perception of inebriation — due to the masking of the alcohols depressants. xxvi Considering these factors, government regulation looks to be in the immediate future for much of the energy drink Industry as the health implications of consuming high amounts of caffeine come into view.
• Large financial support from parent company Pepsi Co. • Key endorsers for target markets (Dale Earnhardt, Jr. and other action athletes) • Ranked in the top 5 brands of energy drinks • Increasing brand awareness • Strong appeal in 2 key demographics for energy drinks (12-17 and 18-24) • High levels of sales increases in 2008 first quarter • Product growth and extensive product line • Creative advertising
• • • • •
Energy drink industry has grown substantially since 2001 Emerging teenage segment Expansion within channels of distribution Cultural shifts toward active lifestyles create an increased need for caffeinated products Predominant single-unit sales results in a high profit margin due to smaller container sizes
• Brand identity get confused with the many other brands Pepsi Co. owns • Limited broadcast advertising
• Overall limitations of the economy conditions resulting in less expenditures on luxury goods • Decreasing numbers of convenience stores which have provided 80% of total sales • Shifting trend toward family size containers and multi-unit packs limiting profit margin • Growing concern about the effects of caffeine • Proliferation of products and competition which can drive prices down • Though usage rate among teens is growing, the population of teenagers is declining
Amps challenge is to distinguish itself as separate beverage rather than an extension of its sibling company, Mountain Dew, and parent company, PepsiCo. Improving consumer’s perception and altering Amp’s overall brand image via innovative advertising techniques and unique product offerings will help Amp tackle the challenge of becoming a diverse and separate energy drink suitable for the masses.
Since Amp’s 2001 debut, our initial target market has continued to age. Now entering the workforce, these consumers are looking for a more sophisticated energy drink and won’t necessarily respond to the same high energy, low involvement ads. In an effort to create a more down-to-earth and socially conscious energy drink, Amp will employ a combination of cause related marketing, outdoor advertising that is both fun and unexpected and finally traditional television and print advertising to alter our brand image. Campaigns surrounding metropolitan clean-ups and public building renovations will appeal to concerned consumers and potentially create a bond between Amp and its drinkers. Contests focused on cleaning up designated areas in shortened time periods would capture the high-energy philanthropy that Amp embodies.
• • To Increase awareness of new brand image by 30% within the first 4 months of the campaign To increase positive attitudes toward brand by 35% withing the first 3 months of the campaign.
TARGET MARKET PROFILE
Our target market is comprised of young adult males 18-34 who have just entered the workforce and live active, on-the-go lifestyles. Many people within this target market have recently become young professionals who are career oriented and well educated. They use energy drinks to counter midday drowsiness. Our target market will respond best to simple, low involvement messages that play up artfulness and aesthetics while maintaining elements of humor and wit. These consumers would be most exposed to media surfing the web and during their daily commute.
For young adults age 18-34 who have just recently entered the workforce and need to energize their on-the-go lifestyles. Amp energy drink meets this need with a refreshing taste that is easy to drink and is packed with supplements, B-vitamins and 75 mg of caffeine to keep the drinker focused. Infused in every drink, is the B-vitamin riboflavin, which provides a healthier and more energized experience. Amp is youthful, sophisticated, and fast paced
Amp’s well-established edgy image that it has created in the consumer’s mind provides a perfect foundation that can be built upon to make Amp more of a recognized and familiar brand. Drastic increases in promotions of the brand through more aggressive advertising and public relations activities targeted toward the existing target market will reinforce the image and brand position that have already been introduced. Increasing sponsorships of sporting events, especially extreme sports, by saturating the events with the Amp logo and products will provide more exposure and create a greater awareness of the brand. All activities geared toward promoting the brand will focus on exposing the target market to the product or its logo using unconventional methods, especially in college towns and spring break hotspots, by means of guerilla or grassroots types of marketing. 16
• • To Increase sales by 20 % within the first 5 months of the campaign To Increase awareness and trial by 30% within the first 5 months of the campaign
TARGET MARKET PROFILE
Our target market is comprised of college age males 18-24 who live carefree active lifestyles and enjoy sports. These consumers will frequently attend sporting events or watch them on T.V. with their group of friends. There main source of media is television. They use energy drinks as supplements to daily activity, and will often consume more than one a day. Our consumers will often engage in social events centered around sports such as tailgating or home parties. The greatest opportunity to reach them with advertising will be during an important game as well as continued exposure on sport channels such as ESPN. Our consumers will appreciate simple, low involvement messages that heavily use humor and sex appeal. They also may respond to blunt and edgy messages with a large “cool” factor. Media that our consumer s will frequently use are ESPN.com, ESPN and ESPN 2 T.V. stations, Facebook.com, Spike TV, Networks stations during important sporting events, The Versus Channel, The Speed Channel, BET, MTV, MTV2. ESPN magazine.
For white males 18-24 who need to have a drink that keeps them energized so they can have a good time. Amp energy drink offers these individuals a wide variety of a smooth, drinkable flavors that bring taste to the forefront of the drinking experience. Also, Amp offers a blend of supplements, B-vitamins and 75 mg of caffeine to keep the drinker going. Amp energy is fun, exciting and action-packed.
SELECTION OF ALTERNATIVE
We believe Alternative A will be the best strategy for Amp to employ to achieve its desired separation and distinction from parent company PepsiCo and sibling company Mountain Dew. This strategy would also be best suited for increasing brand awareness and brand equity by way of innovative cause marketing and strategic partnerships with not-for-profit organizations such as Habitat for Humanity. By sponsoring positive community enhancement programs, Amp Energy will further distinguish itself as a unique beverage and will be more likely to break through the intense clutter associated with the energy drink market. Alternative A would also allow us to position Amp in a more sophisticated light in order to retain our aging target market as they enter the business world and work force. Although this strategy will be best for increasing brand awareness and brand equity over the long run, sales may remain static in the short term. In order to counter this we may also have to implement a series of sales promotions and product give-a-ways to help spike sales and increase product trial.
CREATIVE STRATEGIES CREATIVE BRIEF
The new campaign strategy will help differentiate Amp as its own brand of energy drinks, separate from Mountain Dew and its parent company Pepsi. To accomplish this, the new strategy involves revamping the entire concept of the brand and starting fresh with an entirely new image that will set Amp apart from all other energy drink brands in the market. Advertising and promoting Amp provides the best method of educating consumers about the new campaign and how the brand has changed for the better. Being the fifth top-selling energy drink brand, Amp has lots of competition, but also has room for improvement. Red Bull leads the pack with its 35% market share, followed closely by 18
Monster Energy holding 28%. In addition, two Coca-Cola energy drinks, Rockstar and Full Throttle, along with Red Bull, targets the 18-24 year old demographic which interferes with the 18-34 year old market that Amp appeals to. The energy drink market grew significantly from 2001 through 2006, but with several dozen new competitors who have entered the market, growth has slowed considerably. Other causes for this decline in the growth rate include an increase in the number of distribution channels and the new consumer trend of shifting away from single unit purchases and toward value size containers. Once consumers are convinced to try the product, the powerful boost of energy and kick of different flavors will help it sell itself. For this reason, the formula for the drink will remain the same. Everything else including the logo, packaging, advertising and promotional activities will change or intensify. The goal is to make consumers feel like Amp Energy is the energy drink of the masses, that it is the energy drink of young, successful business people who are motivated to make a difference and do something that matters. The advertising and promotional activities gear toward giving Amp a socially conscious image, providing a sense of sophistication that allows the brand to gracefully age along with its consumers who previously fell within the 18-24 year old demographic and are now in the 18-34 year old demographic. The new brand image will encompass the lifestyle of a male, 18-34 year old consumer who is not only socially conscious, but also environmentally conscious, involved in the community, self-improvement oriented, and motivated to help others and make a difference. Consumers view energy drinks as the solution to midday drowsiness and as a source of exotic and intense flavors that cannot be found in other types of non-alcoholic beverages. Amp meets both of these criteria with a boost of energy provided by caffeine, along with other ingredients, and its bold flavors. The one true concept that people should take away from Amp’s advertising is that this is an independent brand of energy drink unlike any other that demonstrates how a little motivation can go a long way and make a big difference when it really matters. Amp can provide that bit of motivation, and the advertising can show the results of 19
putting in that extra effort. This should be done with an upbeat, outgoing, positive and sophisticated tone with a clever humorous twist and a nuance of sex appeal. Most of the advertising efforts will be focused on young professionals in large metropolitan areas. Advertising will be done primarily on television and outdoors, but also in magazines and newspapers. A series of promotional events that promote the social consciousness as a new priority for amp will be employed. These events could possibly center on the phrase “Revamp yourself. Revamp your world” and “Revamp it.” The Revamp Your World campaign will be a nationwide contest among different cities and will involve each participating group “revamping” a specific area of their city that they feel is currently in despair. The winner will receive a new community center. The “Revamp it” campaign will be an ongoing microcosm of the larger “Revamp Your World” campaign in which participants will be encouraged to do small things for the public interest. A sweepstakes will be held via a new website, www.revamp.com, and the winners will receive free amp for one year. Participants will post videos or pictures of their community service, and, not one, but multiple winners will be chosen. All IMC efforts will center on the idea that as the consumer becomes energized by Amp energy drink, he/she will revamp the surrounding environment and his/herself. Such a radical change to the image of a brand requires a hefty budget. Sufficient funds would be needed to redesign the Amp logo and packaging for all Amp products and replace existing products and merchandise. Other expenses to be considered in the budget include contest rewards and prizes and increased advertising costs to create new ads for various media for the new campaign. The transition from the previous image of Amp to the new campaign must be clear and evident. The focus of the advertising must be on socially conscious nature of Amp and the importance and effects of change. Every aspect of this new campaign must not be comparable to that of any other brand, especially Mountain Dew and other PepsiCo products. Copy development research will measure the effectiveness of these campaign strategy by comparing the responses from focus groups prior to and after the initiation of the new campaign. The campaign will have proved to be a success when responses from 20
focus groups conducted after the start of the campaign reveal understanding of the new campaign and all the concepts that need to be portrayed through the main message. Also, copy testing questionnaires will measure how much and the level of recall of the message consumers retain after they are exposed to the advertising.
Central message: “REVAMP YOURSELF. REVAMP YOUR WORLD” AND “REVAMP IT” The phrase “REVAMP IT” speaks to the heart of our new brand image. We want to be an energy drink company that inspires people to help their communities all while maintaining the enthusiasm, action-seeking, fervor that people have come to expect with our brand. We feel the juxtaposition of enthusiastic energy and philanthropy will not only appeal to our target market, but also get those that are not necessarily regular energy drink users to support our brand. The low involvement nature of this tagline matches perfectly with the typical schema pattern of our target — especially when paired with philanthropic imagery.
IMC OBJECTIVES Sales Promotion
Amp will partner with Habitat for Humanity and Sony to sponsor a nationwide competition that will be held among cities called “Revamp Your World.” This competition will involve the cities accomplishing various community service projects or community building tasks of their choice. Entries will be graded on the following criteria: community improvement, resourcefulness, environmental considerations, style and teamwork. Each city will be required to submit a documentation video outlining the problem area of the city, the process it took to “revamp” that area, and the end result. Detailed guidelines will provide limitations for every entry on the amount of money they can spend on their community project, the minimum scope the project must reach within 21
the community and the amount of people that can participate. A city may submit more than one area if there are individual groups that are interested in participating. The city that does the best job will win an “amped community center” within the area they have completed the community service projects. This community center will not be ordinary in any way; it will be amped. It will feature free Amp energy drinks for a year, an IMAX theater, an indoor/outdoor skate park, state-of-the-art computer labs, media centers with 55-inch LCD television screens, Playstation3 game consoles provided by Sony, a roller skating rink, a water park complete with water slides, a study center complete with a library, and finally, managers to help facilitate staff hiring and operations for the first two years. The center will be gated and equipped with a state-of-the-art security system to keep the property and those inside safe. In addition to “Revamp Your World,” there will be a “Revamp It” public relations campaign that will reinforce Amp’s outdoor advertising. “Revamp it” will entail doing miniature versions of “Revamp Your world.” Activities may range from cleaning a public bathroom, helping a homeless person, or even donating time to a special education facility. Multiple entries will be chosen as winners; each winner will receive free Amp energy drinks for a year. Those participating will enter the contest by posting pictures and detailed accounts of projects they have completed for the public interest to www.revamp.com. This website will serve as a construct for participants to post videos about their clean-ups and make suggestions about other possible clean-up sites, as well as share common experiences which will ultimately create a community within our target consumers. To get the word our about this contest, Amp will use traditional press releases and traditional advertising which will explain the contest in detail. Also, revamp.com will serve as promotion, specifically for the revamp campaigns. In addition, a series of localized outdoor advertising will be employed to generate awareness about the “Revamp it” campaign.
Amp will send press releases to major news sources. The press release will fully explaining the “Revamp Yourself - Revamp Your World” and “Revamp it” contests. The mainstream media will have extra incentive to broadcast these releases because an energy drink company has never sponsored a community service event before. Also, as Amp’s unusual out-of-home advertising accumulates, publicity for the ad campaign will most likely increase as these ads may get exposure from local media outlets. We will provide video and pictures of these out-of-home ads with the press release. As for interactive public relations, Revamp.com will be constructed to promote all of the “Ravamp” campaign, including: detailed information about both contests, forums for those participating in “Revamp it,” featured winners,
Amp’s advertising will employ a variety of media vehicles to best raise awareness of our changing brand image and the Revamp campaigns. First, localized outdoor advertising will target areas within large cities that have remained dirty or unkept. These outdoor advertisements will be unique since they will feature possible applications for the “Revamp It” contest. For example, one urinal in a dirty men’s bathroom might be spotless while the others are still dirty, and on or near the clean toilet, the Amp logo and the phrase “Revamp it” will appear. These types of outdoor advertisements will not only inspire participation in the revamp contests, but also reinforce the brand image as well. Another source of reinforcement of the brand image will come from television ads. These ads could feature someone who looks like the target market (a young white male in a business suit) drinking an Amp energy drink. He then, in a state of excitement and enthusiasm, begins participating in community service activities. For example, in one ad, he might be sitting on a city bench that is very dirty, and after finishing his Amp, he proceeds to clean the bench spotless, slapping on a “Revamp it” sticker when he is finished. To further reinforce the entire ad campaign, the outdoor and television advertising will match each other. For example, the same bench the man cleans in the TV 23
ad will be featured as an outdoor advertisement as well. In this way, consumers will literally and physically be pulled into the campaign because they will see the bench in real life — complete with the sticker and the Amp logo. This pairing of outdoor and TV advertising will not only help generate awareness on a localized level, but it will also gain national awareness as it proliferates through word of mouth. The goal through this grassroots type of promotion is that the message not only be stamped in the minds of the consumer but within the culture itself.
Amp will use mail in advertisements to our target consumers, young professionals age 24-34 who have recently entered the work force, with an attached coupon to help these consumers try our product — many of them may be trying it for the first time. The increased revenue from the trial purchases will help fund the expensive “Revamp” campaign and help ease our transition into a new brand image. In addition to the traditional mail out, Amp will also do a test market for a new innovative form of direct marketing — viral marketing. Through a blast e-mail, we will inform those registered with revamp.com that they can send out a phone message to a friend. This phone message will be directly from Amp and inform the friend that he/she has been recruited to be apart of the Revamp movement. This tactic could be very useful in increasing awareness among our target consumers — especially if the friends contacted are similar to our registered users. .
• • Internal sales data provided by Amp and PepsiCo Data from Mintel and other reporting agencies
• Conduct market research- Gather more psychographic information about our target market so we can better define them. • • • Test the “Revamp it”message by hosting focus groups panels
Do a test market in a Large City such as New York or Chicago for out-of-home advertising — specifically looking for awareness increase and publicity. Do a FCG to understand about how consumers would react to a cause marketing campaign from an energy drink company.
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