Strategic Marketing Plan for Los Angeles

Strategic Marketing Plan –
Los Angeles

VERSION: 2007 | DRAFT #1
UPDATED: 7/23/2007

The ideas contained within are the confidential intellectual property of Juntae DeLane. Any use of these concepts is prohibited without
the express written permission. By further reading this document you are acknowledging acceptance of these terms.

http:www.drinknos.com

Table of Contents
Executive Summary ................................................................................... 4

Introduction............................................................................................ 4

Marketing Goals ...................................................................................... 4

Scope ...................................................................................................... 4

Summary of Approach ............................................................................. 4

Organization .............................................................................................. 5

Marketing Roles and Responsibilities ...................................................... 5

Organizational Chart ............................................................................... 5

Los Angeles Market Research and Analysis ................................................ 6

Our Customer Perspective ...................................................................... 7

The Competitive Perspective ................................................................... 7

The Industry Perspective ........................................................................ 7

Product Identity ........................................................................................ 9

Brand Positioning ................................................................................... 9

Fucntional Benefits ................................................................................. 9

The Product ............................................................................................. 10

Product Description .............................................................................. 10

Target Markets ........................................................................................ 10

Market 1: Car Shows ............................................................................. 10

Market 2: Car Clubs ............................................................................... 11

Market 2: Auto Performance Race Shops .............................................. 11

Market 2: High Schools ......................................................................... 11

Strategic Marketing Plan for Los Angeles Prepared by: jdelane@fuzebev.com

Juntae Delane – Market Manager, Fuze Beverage, LLC 2


Market 2: Colleges ................................................................................ 12

Market 2: Night Clubs ........................................................................... 13

Marketing Plan......................................................................................... 14

Marketing Budget .................................................................................... 14




Executive Summary

Introduction
Before I begin my duties as the Los Angeles Market Manager for NOS Energy Drink I have written a
marketing plan that will ensure my success and organization. This plan will be reviewed and
amended as needed throughout the duration for the campaign. I welcome all those who can
contribute to this document in hopes that additional ideas can add to the success.

Marketing Goals
The primary goal of this plan is to define a marketing framework for supporting the company’s
strategic business goals in Los Angeles, including:
Achieving a significant increase on NOS Energy Drink sales
Achieving a significant “buzz” in the Los Angeles Market
Positioning the brand with more events within the core demographic

Summary of Approach
The marketing team will seek to meet our strategic marketing goals through:

Car Shows
Car Clubs
Performance Shops

High School Events
Night Club




Organization
Marketing Roles and Responsibilities
The marketing team will be comprised of the following roles:

Marketing Staff Role Responsibilities

Market Manager – Will oversee all marketing, advertising and promotional staff and
Juntae Delane activities. They establish marketing strategies to meet organizational
objectives. Evaluate customer research, market conditions, competitor
data and implement marketing plan changes as needed.

Asst. Market Manager Will assist market manager with the aforementioned duties. Is
responsible for maintaining all sub-committees.

Life Style Manager Will be a liaison between the marketing team and the “underground”
tuner culture. This person will also serve as a consultant to the
marketing team.

High School Manager Will be a liaison between the marketing team and the high schools in
Los Angeles. This person will also serve as a consultant to the
marketing team.

College Manager Will be a liaison between the marketing team and the colleges in Los
Angeles. This person will also serve as a consultant to the marketing
team.

Sampler/Street Team This will be our army of promotional models and street team members.

Organizational Chart




Los Angeles Market Research and Analysis

People Quick Facts Los Angeles County
Population, 2006 estimate 9,948,081
Population, percent change, April 1, 2000 to July 1, 2006 4.5%
Population, 2000 9,519,338
Persons under 5 years old, percent, 2005 7.6%
Persons under 18 years old, percent, 2005 27.6%
Persons 65 years old and over, percent, 2005 10.1%
Female persons, percent, 2005 50.6%

White persons, percent, 2005 (a) 74.1%
Black persons, percent, 2005 (a) 9.7%
American Indian and Alaska Native persons, percent, 2005 (a) 1.1%
Asian persons, percent, 2005 (a) 13.1%
Native Hawaiian and Other Pacific Islander, percent, 2005 (a) 0.3%
Persons reporting two or more races, percent, 2005 1.7%
Persons of Hispanic or Latino origin, percent, 2005 (b) 46.8%
White persons not Hispanic, percent, 2005 29.5%

Living in same house in 1995 and 2000, pct 5 yrs old & over 52.0%
Foreign born persons, percent, 2000 36.2%
Language other than English spoken at home, pct age 5+, 2000 54.1%
High school graduates, percent of persons age 25+, 2000 69.9%
Bachelor's degree or higher, pct of persons age 25+, 2000 24.9%
Persons with a disability, age 5+, 2000 1,775,009
Mean travel time to work (minutes), workers age 16+, 2000

Housing units, 2005 3,339,763
Homeownership rate, 2000 47.9%
Housing units in multi-unit structures, percent, 2000 42.2%
Median value of owner-occupied housing units, 2000 $209,300

Households, 2000 3,133,774
Persons per household, 2000
Median household income, 2004 $43,518
Per capita money income, 1999 $20,683
Persons below poverty, percent, 2004 16.7%

Business Quick Facts Los Angeles County
Private nonfarm establishments, 2004 239,571
Private nonfarm employment, 2004 3,883,777
Private nonfarm employment, percent change 2000-2004 0.5%
Nonemployer establishments, 2004 777,103

Total number of firms, 2002 901,948




Black-owned firms, percent, 2002 5.8%
American Indian and Alaska Native owned firms, percent, 2002 1.4%
Asian-owned firms, percent, 2002 15.6%
Native Hawaiian and Other Pacific Islander owned firms, percent,
2002 S
Hispanic-owned firms, percent, 2002 20.9%
Women-owned firms, percent, 2002 29.5%

Manufacturers’ shipments, 2002 ($1000) 108,052,135
Wholesale trade sales, 2002 ($1000) 198,703,926
Retail sales, 2002 ($1000) 92,100,128
Retail sales per capita, 2002 $9,433
Accommodation and foodservices sales, 2002 ($1000) 14,211,642
Building permits, 2005 23,498
Federal spending, 2004 ($1000) 59,186,337

Geography Quick Facts Los Angeles County
Land area, 2000 (square miles) 4,060.87
Persons per square mile, 2000 2,344.1
FIPS Code
Metropolitan or Metropolitan Statistical Area Los Angeles-Long Beach-Santa Ana, CA Metro Area

*(a) Includes persons reporting only one race.
(b) Hispanics may be of any race, so also are included in applicable
race categories.
FN: Footnote on this item for this area in place of data
NA: Not available
D: Suppressed to avoid disclosure of confidential information
X: Not applicable
S: Suppressed; does not meet publication standards
Z: Value greater than zero but less than half unit of measure shown
F: Fewer than 100 firms
Source: US Census Bureau State & County Quick Facts

Our Customer Perspective
We plan to stay in “tune” with customers in the Los Angeles area. By using customer response
cards, we will be able to analyze and evaluate brand positioning, target market, product
messaging, etc. Below are example questions:
Rate the taste and effectiveness of the product.
Have you ever heard or seen NOS Energy Drink before? If so, where?
How does the drink stand up against the competition?




The Competitive Perspective
These are the methods used to gather competitive intelligence:
Use the other energy drink websites to see what events they are sponsoring to aid our
attempts to tromp them!
Check beverage industry websites bi-weekly to see what the competition is doing.
Google search competition

The Industry Perspective
These are the resources used to gather industry data and trends:
Action Pursuit Group Media – the leading provider of events and online media
properties serving the tuner and sports compact performance market. Websites include:
hotimportnights.com, hincity.com and carandmodel.com.
CarDomain.com - The CarDomain.com community offers auto enthusiasts a friendly
home, tools to exchange ideas and information, and suggestions on how to modify and
enhance their vehicles. Through a variety of advertising and sponsorship opportunities,
marketers reach a highly targeted, hard-to-reach young male audience. Marketers also
benefit from the unique insights that CarDomain InsideTrack research offers into the
thoughts and behavior of the CarDomain user base.
ImportTuner.com - Step inside the Import Tuner Magazine Community to interact with
other import car enthusiasts in our blogs and forums, ask questions, help other
members, and much more.
BevNet.com - BevNET is a beverage-oriented media company operating a Web site that
reviews non-alcoholic, ready-to-drink beverages and provides comprehensive, up-to-
the-minute information about the beverage industry. It also provides information to
beverage retailers via Beverage Spectrum magazine, the only trade magazine in the
country aimed directly at the beverage retailing business.
PriMedia - PRIMEDIA is the leading targeted media company in the United States. With
2006 revenue from continuing operations of $849 million, its properties comprise over
100 brands that connect buyers and sellers through print publications, Internet, events,
merchandise and video programs in two market segments: including; Enthusiast Media
is America’s #1 special interest media company, with more than 70 magazines, 90
websites, over 65 events, two television programs, 400 branded products, and such
well-known brands as Motor Trend, Automobile, Automotive.com, Equine.com, Power &
Motoryacht, Hot Rod, Snowboarder, Stereophile, Surfer, and Wavewatch.com




Product Identity

Brand Positioning
The positioning of our company is as follows:

Description 1:
NOS is Human Horsepower

Description 2:

NOS allows you to tun-it-on and go faster…no matter what your racing for.

Description 3:

What Nitrous Oxide does for the car, NOS Energy Drink does for the driver

Brand Functional Benefits
Great mango passion fruit flavor

No medicinal aftertaste
Loaded with the highest levels of powerful ingredients
Almost twice the caffeine of leading energy drinks (125mg per 8oz serving vs. 80mg)

Maximum levels of B-Vitamins – 100% B6 and B12
1000mg of Taurine




The Product
Product Description

NOS 22oz Bottle
BevNET Review:
This 16 oz drink has a pleasantly-tangy passion fruit flavor, which is a nice break from the Red
Bull-style formulas so often used in energy drinks. The co-branding with the NOS brand of nitrous
will definitely appeal to automotive buffs. And the obvious analogy of nitrous oxide is to cars as
energy drinks are to humans is brilliant. We like this brand and expect it will have good success
with the male auto-enthusiast demographic.

Features and Benefits

FEATURES BENEFITS

First PET energy drink of its size True resealability

Fits in a 20oz glide True portability

Target Markets
Our target markets, in priority order to meeting our overall business goals include:

Market 1: Car Shows

Examples:
Hot Import Nights, SEMA, Formula Drift

Market Size/Count:
At least one car show per month in this market

Characteristics:
Heavily attended by our core demographic: 16-24 males

Ability to tap into the events promotional networks.
Will have lasting residual effects.




Market 2: Car Clubs

Examples:

Street Rods Unlimited, KRUSHAL, JDM high performance engines club

Market Size/Count:
Approx. 1,000 car clubs

Characteristics:
Apart of our extended core demographic: 12-34 males
Ability to tap into the each member.

Market 3: Auto Performance Race Shops

Examples:

A & A Auto Performance Inc, Protech Performance, P S Racing Inc

Market Size/Count:
Approx. 700 Auto Performance Race & Sport Equipment shops.

Characteristics:
Attracts our core demographics
Can assist in our retail promotional programs

Market 4: High Schools

Examples:
Hollywood High, Vince High, Westchester High.

Market Size/Count:
Approx. 1,200 high schools (LAUSD)




Characteristics:
Within our core demographic 16-24
Great place to begin a life time brand loyalty

Market 5: Colleges

Examples:
UCLA, USC, Santa Monica College

Market Size/Count:
Approx. 100 colleges and universities

Characteristics:
Within our core demographic 16-24

Market 6: Night Clubs

Examples:
Avalon, Circus Disco, Cabana Club

Market Size/Count:
Approx. 2,500 nightclubs and entertainment venues

Characteristics:
Within the core demographic

Ability to implement sampling programs with the bar
Ability to have residual promotions




Marketing Plan
The Marketing programs planned in the coming months comprise the following areas:
Marketing Communications Goals
Email blasts to all industry people that influence the promotion of the brand

Telemarketing efforts to local event promoters
Public Relations Goals
Tastemaker servicing – deliver product directly to the industry’s influencers.
Product Placement – induce product placement in T.V. and Film productions.
Media – keep the local media informed of sponsorships, and brand updates
Promotions Goals

Pit Stops – “crash” all events where our core demographic can be found.
Sampling – sample at retail and consumer event locations
Sponsorships – Sponsor all events within our core demographic

The following sections list and describe at a high level, the tactics we will use to achieve these
goals. Separate plans for each major marketing area will provide precise execution details.




Marketing Budget

NOS FM Budget Unit Cost Quantity Total Los Angeles
Staff $1,000.00 4 $8,000.00 $8,000.00
T&E $1,800.00 4 $7,200.00 $7,200.00

Total $15,200.00 $15,200.00

Events
Event Fees $1,500.00 4 $ 6,000.00 $ 6,000.00
Equipment $ 250.00 1 $ 250.00 $ 1,250.00
Total $ 6,250.00 $ 7,250.00

Internet $ 60.00 4 $ 240.00 $ 240.00
Cell $ 100.00 4 $ 400.00 $ 400.00
Storage $ 150.00 4 $ 600.00 $ 600.00

Total $ 1,240.00 $ 1,240.00

POS Unit Cost Quantity
NOS Event Tent $ 800.00 1 $ 800.00 $ 800.00
Table Skirts $ 200.00 1 $ 200.00 $ 200.00
Tables $ 50.00 2 $ 100.00 $ 100.00
Firehawk Barrels $ 49.00 5 $ 245.00 $ 245.00
Banners $ 16.00 5 $ 80.00 $ 80.00

Sample Cups (2500) $ 77.00 10 $ 770.00 $ 770.00
Pole Hugger (25) $ 100.00 5 $ 500.00 $ 500.00
NOS Sticker Sheets
(50) $ 32.50 50 $ 1,625.00 $ 1,625.00
NOS Pit Shirts $ 20.00 10 $ 200.00 $ 200.00
NOS T-shirts $ 3.00 1000 $ 3,000.00 $ 3,000.00
NOS Lanyards $ 12.50 200 $ 2,500.00 $ 2,500.00
NOS Hats $ 5.00 200 $ 1,000.00 $ 1,000.00
Web Cards (100) $ 5.00 100 $ 500.00 $ 500.00




NOS Brochures $ 7.50 200 $ 1,500.00 $ 1,500.00
Total $13,020.00 $ 13,020.00

Product $ 16.00 1,000 $32,000.00 $ 32,000.00

Vehicles

Upgrades $ 2,500.00 $ 2,500.00

Salary ( 4 Mo) $15,417 $15,417
Bonus $1,542 $1,542
Benefits $3,854 $3,854
Total $19,271 $19,271

Total Per Market $91,023.25 $92,023.25



Strategic Marketing Plan for Los Angeles

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