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Amp energy drink - Presentation Transcript
AMP Energy Drink Ad Exuberance Nikki Feola Rachel Huffman Jaime Hutkin October 25, 2010
PepsiCo Incorporated Mission Statement
“ Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce 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.”
PepsiCo Inc. General Information
Care for customers, consumers, and the world at large
Sell products with pride and confidence
Speak truthfully
Balance short term and long term risks and benefits
Embrace diversity and inclusion
Respect others and succeed together
Diverse customer base  sells products in over 200 countries
Operating margin is 5% larger than that of its competitors
Leader in U.S. liquid refreshment beverage category (has a market share of 25%)
PepsiCo Incorporated: One of the leading global snack and beverage companies
Incorporated in Delaware in 1919
Reincorporated in North Carolina in 1986
Major brands owned by PepsiCo:
Mountain Dew
amp Energy Drinks
amp Energy Drink Background/General Information
Originated in the United States
Produced, sold, and distributed primarily in the U.S.
Successful due to its association with Mountain Dew
However, it is not considered one of PepsiCo’s 18 brands that have top sales
Market share of energy drinks improved approximately 1% from 2007 to 2009
Slogan: “ amp Up”
Does not do a lot of traditional advertising but sponsors athletes/sporting events
amp Energy Drink Physical Attributes and Features
Caffeine per 8 ounce serving: 71 milligrams
Red Bull’s 8.2 ounce drink contains 80 milligrams
Jolt’s 12 ounce drink contains 71 milligrams
Tin can keeps beverage cooler longer
One can holds 16 ounces  2 servings in 1
Distributed in retail stores
Can type in personal area code on the under the stores tab to find nearest vendor
Price per can $1.99 + tax at CVS
$2.79 per can at Dunkin Donuts
INGREDIENTS: Carbonated water, high fructose corn syrup, citric acid, orange juice from concentrate, natural flavors, guarana, sodium benzoate, sodium polyphosphates, maltodextrin, caffeine, gum arabic, erythoric acid, taurine, panax ginseng, calcium disodium edta (to product flavor), potassium benzoate, brominated vegetable oil, yellow 5.
amp Energy Drink Consumer Benefits
Consumer drinks amp Energy when feeling sluggish, tired, drowsy, overworked, etc.
Four times the needed amount of caffeine  extra boost of energy
Since it contains more caffeine, it enters the bloodstream faster
Consumers become awake and alert
9 different flavors of energy drink
appeals to a wide audience
Vitamins included: Vitamin B, electrolytes, L-Theanine
Has less sodium than its competitors (including Red Bull Sugar-Free, Red Bull, Monster Energy XXL)
Differences from its competitors
Different nutritional values
Distinct Mountain Dew taste
Consumer incentives: Every day amp awards its consumers with prizes signed by Dale Jr., NASCAR driver
PepsiCo Inc. and amp Energy Drink Market Analysis (for 2009)
PepsiCo Inc.
Fiscal Year Annual Sales: $43232.00 M
Increased approximately 3%
Return on Key Ratios
Return on Equity: 35%
Operating Profit Margin: 19%
amp Energy Drink
Total Estimated amp Sales: $281,608 ,000
Average amp Sales: $1,347,000
Based on the market share, sales of amp Energy drink are rising
Sales for the Entire Market
FDMx and convenience store sales and forecast of energy drinks, in inflation-adjusted terms, 2005-15
Competitive Analysis
Direct competitors:
Red Bull: “It Gives You Wings” – the most popular energy drink in the world based on market share; aggressively marketed through advertising, tournament sponsorship, and celebrity endorsements  its sleek design displays its positioning as a quick and efficient way to gain energy
Sold on Amazon in 8 ounce cans in a 24-pack for $41.33
Monster: “Unleash the Beast” -- not widely advertised in the media but receives publicity through sponsoring various sporting events; variety of flavors – positioned as getting double the size for the same price (compared to Red Bull)
Sold on Amazon in 16 ounce cans in a 24-pack for $39.20
Rockstar: one of the leading energy drinks by sales; available in a variety of flavors – positioned as being the world’s most powerful energy drink
Indirect competitors: coffee, tea, and soda brands
Market Share of Energy Drinks (in 2009)
Red Bull: 37.78
Monster: 28.94%
Rockstar: 10.83%
Amp: 6.91 %
amp Energy Drink Consumer Analysis: Prominent Demographics/Location
Gender: men
Potential consumer: working women
Age: 18-24
Potential consumer: 25-34
Education: some college
Potential consumer: 12 th grade or less
Employment Status: employed part time
Potential consumer: employed
Occupation: military specific occupations
Potential consumer: food preparation surveying related occupations
Household Income: $50,000 to 74,999
Potential consumer: $20,000 to 29,999
Marital Status: single
Potential consumer: windowed/ divorced/ seperated
Race: Black
Potential consumer: White
Region: West Central
Potential consumer: East Central
amp Energy Drink Consumer Analysis: Prominent Psychographics
Number of children in household: 4 children in HH
Potential consumer has: 1 child in HH
Age of children in HH: children 2-5 years
Potential consumer has: children under 2
Home ownership status: rents home
Potential consumer: lives rent free
Retailers where consumers shopped: Finish Line
Potential consumer shopped at: Body Shop
Most common beverage consumed: Energy drinks
Potential consumer drinks: Malt Liquor Drank
Pet ownership: other pets in HH
Potential consumer: cats under 1-year-old in HH
Leisure activities: Other activities engaged in
Potential consumer: video gaming
Sports participated in: skateboarding
Potential consumer participated in: rock climbing
Sporting events attended: college basketball games
Potential consumer attended: Monday night professional football games
Political Outlook: usually think of self as middle-of-the-road
Potential consumer outlook: very liberal
Organizations/Clubs Membership: school or college board
Potential consumer: country club
amp Energy Drink Consumer Analysis: Prominent Media Habits
Radio format: Alternative
Potential consumer: Rock
Newspaper type: Chicago Tribune
Potential consumer type: U.S. News and World Report
Magazine type: video games/PC and console
Potential consumer: music
Television program types: prime time situation comedies
Potential consumer: late talk variety shows
Internet usage: connected to Internet with mobile device in the past 30 days
Potential consumer Internet usage: uses Internet 2+ times per day
Environmental Analysis
Current state of the U.S. economy
Economy has improved since the recession that began in 2008
Technological advances
Social media’s influence on consumers’ lives
Online advertisement personalization
Smartphone interactive applications
PepsiCo’s strict corporate standard for marketing
Responsible marketing: As a major advertiser, the company tries to help parents teach children sensible eating habits at an early age. In countries that their products are sold, PepsiCo ensures that channels geared toward children carry advertisements for only certain products—products that meet nutrition criteria.
In a Social Context
Due to high stress levels and time constraints, energy drinks are socially acceptable, but nutritional awareness may soon change its acceptance.
An increasing number of public schools have already removed all caffeinated products from vending machines and cafeterias.
Conclusion amp Brand’s Weakness
amp Energy Drink has the potential to increase its share in the market based on the performance of its competitors.
The first major problem is its lack of differentiation.
Other energy drink brands promote their brands through sports-related sponsorships and provide two servings in one can; however, amp is differentiated only by its Mountain Dew taste and its consumer incentives.
Conclusion amp Brand’s Ability for Opportunity
amp Energy Drink has the opportunity to improve the promotion element of their marketing strategy, which is the main communication element.
Amp’s slogan, “ amp up,” gives the brand the potential to gain more attention, but it is not advertised enough to the right consumers.
Based on our research, we have discovered the specialized submarkets, based on demographics, psychographics, and media usage, that are ideal for being targeted by the amp brand. One major submarket is the college market, especially college students who are interested in sports.
Conclusion amp Brand’s Potential Customer
Energy drinks have enjoyed significant popularity since their inception during the late 1990s. The growth appears to have cooled off during 2007-09. The current economic upheaval has negatively influenced the category.
amp’s higher-than-average population growth for Hispanics and blacks make them key targets for growth. Marketers will benefit from including specific product messages aimed at these two groups.

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