MONSTER ENERGY DRINK SITUATION ANALYSIS REPORT

CARLY SMITH ADV 459

TABLE OF CONTENTS
Product Overview: Energy Drink....1-2 Energy Drink Market Share and Sales..3 Company: Monster Beverage Corporation.4-5 Product: Monster Energy Drink6 Consumer Base7-9 Attitudes of Non-Consumers..10 Competition Overview....11 Competition: Red Bull.12 Competition: 5-Hour Energy13 Competition: Rockstar Energy.14 Monster Advertising Efforts..15-17 Competition Advertising Efforts.18 Problems and Opportunities.19 Strategic Directions20 Campaign Concepts21

ENERGY DRINKS
Beverages that claim to provide energy or stimulation boost Typically include caffeine, glucose, taurine, ginseng, and other vitamins and minerals Labeled as beverages or dietary supplements Newer lines include zero-calorie, juice, tea and various new flavors
Source: Mintel Oxygen, 2013

ENERGY DRINKS
Newer products include electrolytes, lower sugar content and natural flavors
Restorative branding

High caffeine levels in drinks could potentially pose risks for consumers
Cardiac arrhythmia Caffeine toxicity Insomnia

New reports show link between energy drink consumption and drug and alcohol use
Source: Mintel Oxygen, 2013 nytimes,com, 2012 dailymail.co.uk, 2014

ENERGY DRINK MARKET SHARE AND SALES

Energy drinks hold 75.3% of the total market share currently and had an estimated $8.5 billion in sales in 2013. Sales projected to reach $13.5 billion by 2018.
Source: Mintel Oxygen, 2013

MONSTER BEVERAGE CORPORATION

Began as Hansen Natural Corporation in 1930s
Company changed its name in 2012

Based in Corona, California Focused on all natural alternative beverages and branched into functional and energy beverages

Transitioned to Monster Beverage Corp. after the success of the energy drink
Source: hansens.com, 2014 Monsterbevcorp.com, 2014

MONSTER BEVERAGE CORPORATION

Monster Beverage Corp. markets and distributes energy drinks and alternative beverages
Monster Energy and Monster Energy Extra Strength Nitrous energy drinks Java Monster and X-presso Monster espresso & coffee energy drinks M3 superconcentrated energy drinks Monster Rehab rehydration energy drinks Muscle Monster energy shakes Worx energy shots Peace Tea iced teas Hansens Natural sodas and juices
Source: monsterbevcorp.com, 2014

MONSTER ENERGY DRINK

Introduced in 2002 Market share increasing, currently at 28.3% $705 million in sales in 2013 Second most popular energy drink in the industry Zero-calorie and Rehab lines growing in popularity
Source: Mintel Oxygen, 2013

CONSUMER BASE
Men are more likely than women to consume energy drinks
Men 18-34 have the highest volume consumption 4.8 servings in the last 30 days

Men consumed fewer energy drinks in 2013 than in 2012 More than half of men who consumed energy drinks consumed in the afternoon hours
Source: Mintel Oxygen, 2013

CONSUMER BASE
56% of men and women respondents consume energy drinks
More effective for energy than other beverages

4 out of 10 women ages 18-34 consume energy drinks because of convenience

Energy drinks are favored by 43% of women 18-34

Source: Mintel Oxygen, 2013

CONSUMER BASE
28% of teenagers ages 12-17 consume energy drinks Consumption in teens highest in males 15-17 65% of teens more likely to consume energy drinks for a boost instead of any other food or drink Energy drink usage more common as teens get older and balance jobs, school and other activities Household income of less than $25k consumed 5 servings of energy beverages within last 30 days
Source: Mintel Oxygen, 2013

ATTITUDES OF NON-CONSUMERS
Half of respondents who do not use energy drinks do not consume them because they feel they do not need them

Source: Mintel Oxygen, 2013

COMPETITION OVERVIEW
Red Bull is the top-selling company in the industry
$849 million in sales last year Recently released Editions, flavored energy drinks

5-hour energy maker Living Essentials ranks third in the industry

$356.4 million in sales last year

Rockstar International is fourth in the industry

$178.7 million in sales last year

Source: Mintel Oxygen, 2013

COMPETITION: RED BULL

Red Bull Energy Drink, Red Bull Sugarfree, Red Bull Zero Calorie, Red Bull Editions, Red Bull Cola Caffeine, taurine, sucrose, glucose, B-group vitamins, alpine spring water All natural Vitalizes body and mind $2.19 for 8.4 fl oz can
Source: redbull.com, 2014 Walgreens.com, 2014

COMPETITION: 5 HOUR ENERGY

Original, Decaf and Extra Strength
Berry, Grape, Sour Apple, Pink Lemonade, Lemon-Lime, Pomegranate, Orange

Caffeine, B-vitamins, amino acids, no sugar, 4 calories Energy shot

Portability, no crash
$2.99 each for one shot
Source: 5hourenergy.com, 2014

COMPETITION: ROCKSTAR
Rockstar Original, Sugarfree, Zero Carb, Pure Zero, Punched, Sparkling, Recovery, SuperSours, Xdurance, Roasted, Juiced

Caffeine, energy blend, juices, electrolytes, hydration, various flavors

Around $2.99 for 16 fl oz can

Source: rockstarenergy.com, 2014

MONSTER ADVERTISING EFFORTS

Mostly non-traditional advertising
Multi-faceted approach Does not only give promotional material to those on payroll

Motorsports
Arenacross, Monster Truck, Formula 1 Racing, Rock Crawling

Action sports
BMX, Surfing, Snowboarding

Athletes
Feature athletes, Monster Roster

Models
Monster Girls used to promote brand

Music
Sponsoring bands or musicians and concert events

Video games
Call of Duty Code Redemption
Source: monsterenergy.com, 2014

MONSTER ADVERTISING EFFORTS

Monsters Facebook Page:
Most companies spend their money on ad agencies, TV commercials, radio spots, and billboards to tell you how good their products are. Instead, we support the scene, our bands, our athletes and our fans.

Emphasizes non-traditional nature of the energy drink industry

Source: Facebook, 2014

MONSTER ADVERTISING EFFORTS

Monster is the most popular energy drink brand on social media.

Source: Mintel Oxygen, 2013

COMPETITION ADVERTISING EFFORTS

Mostly non-traditional Red Bull
Red Bull gives you wiiiings Television spots, some print ads Events such as Red Bull Flutag and Stratos Jump

5-hour energy
2:30 feeling, No crash Television spots, YouTube

Rockstar
Music Models Action sports and motorsports
Source: redbull.com, 2014 5hourenergy.com, 2014 YouTube, 2014 Rockstarenergy.com, 2014

PROBLEMS AND OPPORTUNITIES

Problems
Monster typically advertises towards men, basing their efforts on sports, music and models. Monster has an extensive product line and does not seem to campaign differently for each product.

Opportunities
Women are an untapped market in energy drinks. Many brands directly target men, the main consumers. Teens and college students are frequent users, but no specific energy drink campaign has yet to directly target them.

STRATEGIC DIRECTIONS
Monster should develop a marketing communications theme to target the untapped market of female consumers, specifically busy females or mothers.

Monster should develop a marketing communications theme focused specifically on one of their many products, differentiating themselves from other brands.

CAMPAIGN CONCEPTS
Concept A: The Monster in Your Morning
Directly target females aged 25-45 Specifically use Monster Java product line to promote convenience Main campaign idea is drink Monster Java to defeat the monster in your morning Main campaign image is the Monster Java can in a coffeemaker, shadow of a monster behind it

Concept B: Like It Never Happened

Directly target male and females aged 17-25 Specifically use Monster Rehab product line to promote its usefulness and the necessity as an morning-after aide Main campaign idea is to rehab whatever happened last night like it never happened at all