Advertising Media Plan

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Overview

In mid-December, the Hansen's Natural Corporation's (HNC) Monster Energy sector awarded the communications firm Peak Advertising an opportunity to plan a comprehensive awareness media campaign. The plan that Peak Advertising is developing will provide HNC with a semi-broad, comprehensive, cost-effective media strategy along with additional strategies for extending and multiplying the penetration of the media campaign messages. In an intense planning cycle, Peak Advertising is designing this national media strategy based on a comprehensive social marketing model with input from the public, private, and academic sectors.

The media strategy will be used to structure and guide HNC's paid media advertising campaign. A concurrently produced plan will also identify and recommend non-advertising components in an integrated communication mix (such as media outreach, Internet and other types of new media, and partnerships) to effectively reach, motivate, and enable members of the target audiences to consume Monster Energy beverages. Where appropriate these components will link existing demand reduction programs at the national and community levels.

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Communications Strategy Statement

The communication strategy statement will clearly define the target audiences for the campaign, the communication objectives for each target audience (i.e., what we hope to accomplish through communication), and the most promising message strategies to affect each objective (i.e., how we plan to communicate). Concurrently, existing sources will be assessed by review and target audience research already performed to identify those that are consistent with the communication strategy. This review will also determine whether there are gaps in the existing inventory of media that eventually must be filled with new ad productions.

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For the purpose of this campaign, the target audience will be predominantly male, non-students ages 16 to 34 in the middle upper class (regarding age, this information was gathered from the HNC Annual Report). With such a broad target audience and large amount of media markets come into play. To reach the target audience a national media source will be used. Radio, newspaper, and magazine advertisements will be put into circulation at the highest cost-effective strategy as possible.

The current market and sales strategy seems to be working. At the end of December 31, 2004, net sales had increased 63.4% to $180.3 million compared to $110.4 million in 2003. Although this maybe be partially because of volume due to the introduction of low carbohydrate Monster Energy drink in 2003, and Lost energy drink at the beginning of 2004, apple juice and apple grape juice, and Energade energy sports drinks. There was a slight decrease in net sales in 8.3-ounce cans. In our survey, a larger can proved more worthy of purchase. The current strategy must be increasing awareness if such a large increase in sales has occurred.

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Prototype Paid Advertising Media Strategy

The prototype paid advertising media plan will be developed by Peak Advertising. The media plan will be a blueprint to guide the cost-effective, paid placements of selective Monster Energy ads. The plan will specify, for a given level of total advertising expenditure, the recommended media mix (i.e., the proportion of media weight given to, radio, print, outdoor, and Internet advertising) and placement within each medium nationally and locally to achieve maximum reach and frequency with all target audiences. It will also discuss recommendations for obtaining donated media as a match for paid media placements.

National Circulation:

On a national circulation Peak Advertising has chosen USA Today, New York Times, Transworld Snowboarding, and Google Adwords as the main media. Here is a list of costs per media:

-- Print Media --

USA Today

Circulation Demographics: 5,227,000 total readers; 62% between ages of 18-49; 66% men; 77% attended college or beyond; 75% within middle to upper class

Display Ad: 1/16 of page color Fridays for 6 weeks

Total Costs:$24, 000 per/display ad X 6 weeks = $144,000

New York Times

Circulation Demographics: est 5,118,000 total readers, 67% between ages of 18-49; 64% men; 72% attended college or beyond; 74% within middle to upper class

Display Ad: 5 pgs each w/ one (6 7/16" x10") ad; daily circulation(Mon-Thurs)

for 6 weeks

Total Costs: $34,114.50/wk (reserves 5 pgs/week) x 6 weeks = $204, 687

Transworld Media

Circulation Demographics: 571,115 total circulation; 87% male; age range 15-27;

Display Ad: $6,500/full page for 12 weeks

Total Costs: $78,000

-- Internet Media --

Google Adwords Advertising

Ad type: Adwords (the little bold blue words that show up on right column of searches) - Ad shows up when similar searches are performed (can be linked to product website)

Total Costs: $30/day for 5 ads x