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Adcentric MFP

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Marisa Negri

on 9 May 2011

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Transcript of Adcentric MFP

Started in 2001 by Pepsico
To enter the growing and profitable energy drink market
Projected sales for the energy drink market in 2011: $4.8 billion Amp’s goal to take #2 spot (Monster) by increasing brand loyalty
Increase brand awareness by 10 percentage points Plan Summary The Problem Target: 18-34, current energy drink users
active/energetic males to become brand loyal
great starting point: Amp’s past Advertising company, BBDO
made to fit our target of on-the-go younger males
reached through funny ads that demonstrate the target lifestyle Budget: $24 million Large amount of Competition
Established companies with strong brand loyalty
New products entering market constantly & Brand Awareness:
Amp 14%
Monster 39%
Red Bull 60-70% The Challenge Increase brand awareness-by 10 percentage points by 2012
Make better use of Mass media-especially television and spot radio TARGET RESEARCH Demographics Males 18 to 34
employed with moderate annual salary (50-74k)
(mainly) sales/office occupations and maintenance/construction jobs Geographic focus: Southeast, West Central, Southwest, and East Central Regular Users
Heavy/Loyal Users of Amp
The Hispanic Potential-increase revenue/awareness Psychographics & Behaviorgraphics Target audience lives an on-the-go lifestyle, driven by success
Hobbies: hiking, boating, rock climbing, skiing Large percentage are parents (single/divorced, married
Own their own home, generally with a personal loan
purchase household and maintenance tools
High interest in automotive-trucks, parts and accessories Internet use for news and sports
Very interested in sports: Pro and College, Fantasy League
Buy products according to needs, not style
Practical spending, Wal-Mart Media Habits Target audience includes sales/office and maintenance/construction jobs
(some) Probably own smart phones, use apps Radio: Daytime, while at work
Television: news and sports programming
Internet: moderately, at least once a day
email, social/new media TARGET PROFILE Eduardo, friends call him Eddie
27 and lives in Houston, TX
Lifestyle: Active, outdoors, and sports
Single with no rush
Spending: Hobbies, primarily on self
Media Use: TV and Internet MARKET INFORMATION #1 Red Bull
$82.5 million on media in 2009
#2 5-Hour Energy
~$57 million on media
#3 Amp
$18 million media spending
Amp’s objective is to overtake Monster as the #2 energy drink brand in the country Top Valued Markets:
Los Angeles, CA
New York, NY
Chicago, IL
Atlanta, GA
San Francisco, CA Least Valued Markets:
Charlotte, NC
Indianapolis, IN
Orlando, FL Estimated Value To determine the Estimated Value of various markets based on geographical location, we chose to weight the following categories:
1) Estimated Amp Sales $(000)
2) Percentage of Men 18-34
3) Percentage of Estimated Users Share of Voice Red Bull dominates Share of Voice with 43.97%
Amp is currently third in SOV with 15.65%
Amp spends 3.14% of its budget in national spot radio, which puts them #1 in SOV with 44.9% of the market Strengths #2 in Network TV
Pre-established sponsorships:
NASCAR: Dale Earn- hardt, Jr
Snowboarding: Scotty Lago and others
Mixed Martial Arts (MMA) fifighting: Urijah Faber and others
The Winter X Games High Magazine Share-of-Voice (79%)
Highest, and only out of top competitors, in National Spot Radio (44.9%) Weaknesses Social media
Cable share-of-voice
Local radio use
Brand awareness
Brand loyalty Opportunities Hispanic market untouched by any large energy drink company
Room for expansion of the brand into this market to raise product awareness, especially in the selected target of men ages 18-34. Event sponsorship: X Games, Winter X Games, Cage fifighting, and Racing - Could have a larger following if Amp made its presence more known and sponsored more events
Monster does not use much mass media - Amp has the chance to take over this media segment and potentially gain a larger brand following
Cable would be a great place for Amp to take a larger Share-of-Voice and possibly surpass 5-Hour Energy in the market Threats Monster Energy has a large sponsorship base
Monster may have already marked certain events/territories So little Cable that 5 Hour Energy was able to take a large portion of the market that could have been avail- able to AMP
There are not many threats to Amp due to the brand’s small share of the market. opportunities SWOT ANALYSIS THE SOLUTION Creative Strategy Cool, Edgy & Extreme
Sponsored athlete endorsements
Build upon the intense yet humorous appeal of BBDO's Amp campaign Message:
Amp will provide the consumer with independence, achievement & recognition
Amp takes your life to the next level
With Amp, our men are able to "get up and go" Target Audience Objectives Increase brand awareness by 10 percentage points to 24% by 2012
Hispanic men account for 27% of the energy drinkers in the United States and for the most part are not targeted National campaign + Spot advertising
Target spot markets where there is a strong Hispanic presence
Reach goal by aiming at our target demographics with a broad-based media campaign featuring relevant lifestyle advertising Overall Campaign Objectives
Monthly Reach: 70
Monthly Frequency: 2
Monthly GRPs: 140
What How Balanced approach to reach and frequency
Essential for TA to be exposed to the message at minimum frequency 2+ so the Amp brand message is established and our prospects develop a higher interest level
Spot campaign = focused on markets that have high indices and large Hispanic populations
Spot & National = same goals Geographic Objectives Spot Markets
El Paso
Las Vegas
New York City
Los Angeles
Atlanta The budget for spot buys will be used largely in spot cable and network television:
Comedy Central
Discovery Channel
*Sports, late night talk shows, fighting matches, and “tough” reality TV shows appeal to our target Media Strategies Spent $1,996,259/month for 12 months
National buys (Network TV, Network Cable, & Internet): spent $1,416,580/month -> 70.96% of our monthly spending
Spot buys (Spot Cable, Spot TV, & Spot Radio): $579,679/month -> 29.04% of our monthly budget
Total spending = $23,955,108 $44,892 to spare
Last minute sponsorships that become available to Amp
Implement a guerrilla marketing campaign that can be reinforced using QR codes, viral videos, and events 7 Different Media:
National Spot Radio
Social Media
Network Cable
Spot TV
Network TV
Event Sponsorship
Media & Vehicle Mix Timing & Schedule Activity each month throughout the year
Starts in July & continues for the next 12 months
Consistency in messaging
Amp has to work hard to break through the clutter
Pepsico has indicated that in the future they would consider increasing spending up to $30 million/per year
If these higher budgets are approved, AdCentric recommends that Amp heavy-up their spending in the months right before and during the events that Amp sponsors
In the past, Amp Energy employed BBDO New York as their creative agency.
BBDO created multiple TV spots for Amp, including one that aired during the 2008 Super Bowl
The Super Bowl spot showed a truck driver that was helping a man start his car and instead of attaching the cables to his truck, he attached them to his chest and then drank Amp. Recently, BBDO employed Dale Earnhardt Jr. to be their spokesperson
BBDO created two taglines for Amp, “Amp Yourself” and “Fuel Your Passion”
As featured above, they also created a Dale Jr. collector series 12 oz. can for Amp drinkers
And to finish of the Campaign, Amp was the sponsor of The Amp Energy 500 at Talladega
The main goal of this campaign was to distinguish Amp from Mountain Dew by creating its own identity.
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