5 HOUR ENERGYIrini Bua, Ciara Burke, Mercedes Rodriguez, and Beau Sotardi

Company Overview Introduced and manufactured by Living

Essential, LLC in 2004Leading product in “energy shot” category

in America today – owns more than 75% of market

Mercedes:-Sources: http://www.usatoday.com/story/news/2012/11/20/5-hour-energy-counterfeit-operation/1718391/http://www.webmd.com/food-recipes/features/energy-shots-review

The company reports annual sales of a $1 billion dollars and sells over 9 million bottles a week

Product comes in 2-ounce bottle with a variety of flavors and in original, extra, and decaf formulas

Product Info Ingredients:

Vitamins – B6, B12, Niacin (B3), Folic Acid (B9)Energy Blend- Citicoline, Tyrosine, Phenylalanine,

Taurine, Malic acid, Glucuronolactone, CaffeineAmount of Caffeine: Original (200mg), Extra (230

mg), Decaf (<6mg)Recommended use:

Take one half the bottle for moderate energy – whole thing for maximum energy

DO NOT EXCEED TWO BOTTLESUse or discard any remained within 72 hours

MercedesSources: 5hourenergy.com

SWOT ANALYSIS

Strength Leader in it’s category Variety of flavors Price

Weakness Health risk - deaths linked to

product Deceptive advertising Not approved by FDA

Opportunities Category keeps growing Transparency from the

company

Threats Various lawsuits against the

company Increase competition

Mercedes

COMPETITOR – Stacker/6 Hour Power

MercedesSources: http://www.caffeineinformer.com/the-15-top-energy-drink-brandshttp://www.stacker2.com/about-us.asp

Direct competitor of 5 Hour Energy – only $47 million dollar is sales

Owned and developed by NVE Pharmaceuticals

Marketed as an “effective herbal alternative” to diet/energy supplement for bodybuilders and fitness gurus

Company represents and endorses a high profile of athletes and celebrities – WWE personalities, Nascar drivers, musicians and actors

Run print, radio, and television advertisings – Pawn Stars, History Channel, American Pickers

COMPETITOR – Red Bull

MercedesSource: http://www.caffeineinformer.com/the-15-top-energy-drink-brandshttp://guayaki.com/images/uploads/pages/File/ENERGY%20DRINKS%20UI.pdf

Energy drink sold by Austrian company Red Bull Gmbh – Main demographic 18-34 males

Owns 43% of energy drink market – over $10.9 billion dollars in worldwide sales

“It Gives You Wings”

Recent advertisement targets young men with extreme sports – sponsors and endorses a variety of sports events and athletes

Owns association football (soccer) teams in Austria, Germany, and Brazil

Host various events and art shows

Strong social media presence

COMPETITOR - Starbucks

MercedesSources: http://www.quora.com/What-is-starbucks-market-share-globally-and-in-the-UShttp://www.starbucks.com/about-us/company-information

•One of the leading and largest coffee companies in the world

•Coffee has always been viewed as way to maintain and increase energy

•Distribution channels are through their store chains, online, and grocery stores

•Company owns 29% of coffee market in the United States – total QSR, coffee shop, and convenience store coffee cups.

Target MarketAdults Who Consumer 5 Hour Energy

Index

18-34 15118-49 13635-49 120

Maintain our lead within demographic 18-34 – represents 23% of US population

Continue to build stronger relationship with older demographic – gain consumer confidence

MercedesSources:Simmons http://marketreportfinder.com/report/government_public_sector/demographics/spending_power_of_young_adults_usde0_17_36.html

Marketing StrategyLaunch of (insert name here) campaign

Reposition brand as a lifestyle and athleticism brandUse of celebrity athletes to help promote brand – show how these celebrities use Five Hour to reach a level of strength and energy in their training and careers

Highlight recommended use of ½ bottle for moderate energy

• Use a media mix that will help reach selected target audience and support new campaign throughout the year – via outdoor, digital, and print media

•Launch of #fuelyouradventure social media campaign•Use of top social media celebrities who will help launch campaign via sponsored social media post•Special gifting for our social media personalities •Incorporate 5 Hour Energy into their every day and how it help “fuel their adventure”•Use of #fuelyouradventure hashtag

Mercedes

Budget Allocation

Cost

Spokespeople 5,000,000Print Media 4,000,000Digital 4,000,000Outdoor Media 5,500,000Special Events/Event Sponsorship 5,000,000#fuelyouradventure campaign $500,000Total Cost $25,000,000

Mercedes

#FuelYourAdventure Launch of social media campaign #fuelyouradventure

launched through various social media platforms Instagram, Twitter, YouTube, Facebook Sponsored Content using top social media personalities

Integrated into other channels of our media mix – Print, Digital, Outdoor, TV – use of hashtag #fuelyouradventure

Encourages a healthy living by keeping an active lifestyle

Highlights a recommended usage of ½ of bottle to increase energy

Mercedes

#FuelYourAdventure Use of 6 different celebrities who will be picked to represent brand

troughout the campaign – must have strong social media presence

Each candidate will post a minimum of three social media post

Must incorporate product to everyday life while show casting how they use 5 Hour to fuel their adventure

Consumer engagement via hashtag #fuelyouradventure

Each celebrity will be gifted a gym bag with special brand merchandise to be incorporate in social media post – towels, tank top, water bottle, and yoga mat

Mercedes

Example of a Social Media postGoes here

Selected Media PersonalitiesTone It Up girls, Karena and Katrina- fitness and lifestyle trainers who run a Youtube channel with fitness videos and lifestyle tips. Also have their own reality TV show on Bravo. They have over 40k+ Twitter followers, 430k+ Instagram followers, 370k+ Facebook likes, 30M+ Youtube Views

Danny Garcia- American professional boxer of Puerto Rican descent. He is the reigning champion in his weight class and has a record of 29-0. His social media stats are: 97k+ Facebook likes, 122k+ Twitter Followers, 3k+ Youtube followers

Mercedes

Selected Media Personalities

Yani Tseng- a Taiwanese professional golfer who is the youngest player to win 5 major championships and is ranked #1 in the Women’s World Golf Rankings. Social media stats: 18k+ Twitter followers and 94k+ Facebook likes.

Mercedes

Gina Harney- a military wife, Zumba instructor, certified personal trainer, and nutritional adviser who run her own blog, Fitnessista. Social media stats: 24k+ Twitter followers, 29k+ Facebook likes, 636k+ Youtube followers, 12k+ Instagram followers

Selected Media PersonalitiesCasey Ho- a pilates and fitness instructor, creater of POP Pilates and founder of Blogilates.com. She holds various certifications and was honored as Youtube’s Next Trainers. Social media stats: 13M+ Youtube views, 269k+ Facebook Likes, 82k+ Pinterest followers, 648k+ Instagram followers

Jessica Smith- A certified coach and fitness lifestyle expert, helping clients, health professionals and wellness-related companies. Has various excerisce DVD’s and has worked with Shape Magazine, Exercise TV, Self, and Wall Street Journal. Social media stats: 8k+ Twitter followers, 1k+ Facebook likes, 10M+ Youtube views, 1.8K+ Pinterest followers, 3.8K+ Instagram followersMercedes

Breakdown of Budget Allocation for #Fuelyouradventure Campaign

CostSponsorship Fee $350,000Gifting $10,000 Total Cost $360,000