Situational
Analysis
Category Size & Trends
•$3.6 Billion in sales for 2006
•Energy drink sales in convenience stores increased by 46.0% from
06/06-06/07
• Energy drink sales in mass merchandisers increased by 34.0% from
06/06-06/07
• Aggressive product creation to reach unique demographics
Product Distribution
• Product manufactured through third-party bottlers and contract
Packers in the US and Canada
• Most co-packaging agreements are on a month-to-month basis
• Convenience store sales represent the largest source of revenue
For monster.
Package form and size trends
• Monster has always been distributed in aluminum cans.
• Size of cans has increased overtime.
Package form and size trends
• Top ten energy drinks are packaged in cans
•Industry moving towards bigger cans.
• Red Bull still leads with the smallest can 8.3 oz
• Monster sells largest cans
• Mega Energy Screw Top - 24 oz
• ‘BFC’ 32 oz
Brand Share
Monster vs. The Competition
Red Bull Benefits
• Improves performance
• Increases concentration and
reaction speed
• Increases Endurance
• Stimulates Metabolism
Monster Benefits
• Twice the buzz of a regular
energy drink
• Smooth flavor
• Diversity of Flavors
• More drink for your money
Primary Target Group
Demographics:
• 18-24 year old males;
• Youth sports market.
• Avg. annual income:
• $15-19K.
Behavioral:
• Extreme sports enthusiasts
• (snowboard, surf, motorcycle,
skateboard, ATV, BMX, snowmobile, body board, Kart,
MTB).
• They are active, “racy”, raw, and edgy.
• They believe that is a little is good, more is a lot better.
Lifestyle:
•These people smoke cigarettes. They are
rebellious and are workaholics.
•Customers have fast paced lifestyles.
•Heavy users: typically 4-5 cans a week, 10 or
more within 30 days.
•Light users: 4-5 cans a month.
Potential of non-user conversion:
•High potential conversion rate with people already
consuming from the alternative beverage
category.
•Vitality in untapped target of blue collar males 25
to 34 looking for a better combination of
refreshment and energy boost.
Benefits:
•Monster users are looking for energy, more bang
for the buck, and an association with other
“extremists”.
Advertising: Print Advertising in Niche Magazines (Motocross, Cycle
News, Racer, MX), National and Spot advertising, Posters, Radio
Direct Marketing: Sweepstakes, Giveaways
Interactive: Website (ability to sign up and enter sweepstakes)
Sales Promotion: Point of Purchase, Samples
PR: Creating buzz with their Guerilla advertising methods. Monster
hooked up with Anheiser-Bush. Monster not only sponsors
athletes but they sponsor to raise money for cancer research
and the SPCA.
Direct Competitors (in order of market share)
•Red Bull
•Rockstar Energy Drink
•Full Throttle
Indirect Competition
•Coffee
•Vitamin Water
•Power Bars
•Caffeine Pills
•Energy Shots
Strength:
•Innovation
•Largest growing
energy drink
•#2 in market share
•Well known logo
•Different sizes,
flavors, carbs
•Larger Cans
(Emphasis on large
size)
Weakness:
(Negative perceptions)
• Dehydrates
• People realizing
harsh side effects
• Sugars and other
unhealthy additives
• The packaging
doesn’t always
show the Monster
logo when drinking.
Opportunities:
•Extreme Sports is
on the rise
•Signed
partnership with
Anheiser -Busch
•New audience
segment (males 2534)
Threats:
•Increasing Energy
Drink Clutter
•Coffee and
Stimulants
•Rockstar Energy
Drink
•Unregulated
Labeling
•
Convert consumers of other stimulants outside of the
energy drink category to Monster
•
Use offensive strategy to market and distribute in large
cities, targeting the blue collar market ages 25-34.
•
Increase Push-Pull advertising during Spring and Summer
on the East Coast.
•
Make Monster logo always visible to others while being
consumed
– Pull in non-users to try our brand (25-34 blue
collar workers)
– Light and undecided consumers of our brand
(create brand loyalty)
18-24 adults that are
“extreme” and/or
extreme affiliates
-25-34 blue-collar males
-Production, Transport, and Material movers
-Protective services/Food Preparation
-Building and ground maintenance/construction
Communications
Strategies
• Who? Monster Energy Drink
• What? The meanest energy supplement on the planet.
• For whom? Designed specifically for those who want
more energy for their dollar. For people who don’t want
to slow down; who believe in living by the minute, not
the day.
• What’s different? A wicked mega-hit that delivers twice
the buzz of a regular energy drink.
• So what? Monster supplements extreme lifestyles with
smooth kick ass flavors that pack a vicious punch.
Monster’s smooth flavored drinks are infused with
natural energy boasting ingredients providing twice the
buzz of regular energy drinks at less cost, unleashing
unleash the beast and help you tear it up.
Continual sponsorship of extreme, anti-establishment
sports and their wicked athletes that made Monster so
popular and potent amongst its audience
• Meet Ronnie Ray
•
•
•
•
31 years old
Career: Production
High School Grad
Earns $30-40k / year
• When Ray gets off work he lights up a
cig, hops in his truck, cranks the heavy
metal and drives to his buddies house to
watch the UFC live on the big screen
plasma. In his bathroom he has
Penthouse, FHM, and Sports Illustrated.
• His leisurely relaxation consists of going
off-road in his 4x4 or ATV. He spends
what he earns and lives in a one-story
house. Ironically, has a kitten named
mittens.
• Visually based
• Little to no body copy
• Active
• Edgy
• Conveys excitement and energy
• Monster must have sole/strong presence
Monolithic:
Monster logo must be unaltered
Anthropogenic :
Extreme athletes or attractive females
• Monster smooth flavored drinks are infused with energy boasting
ingredients like Ginsing and Taurine will Unleash the beast in you
and will help you set the half-pipe on fire.
• But it isn’t for the health nut; it’s for real athletes that rather count
back-flips than calories
• Innovative
• Credible
• Anti-establishment
• Alternative
Reach & Frequency Objectives
• Reach - 60%
• Frequency - At least 3.3
• Monster strives to create a simple but bold message:
Twice the buzz
• Product is not seasonal.
• Media most compatible with creative - Magazines:
Automotive, Men’s, Music, and Sports.
• Media Needs/Constraints
• Media needs to represent anti-establishment, extreme sport
Counter culture.
• Television will not be used as it is traditional.
Wear-out
Monster should not be concerned about media
wear-out. Wear-out will be delayed through creative
executions that will share a number of similar
elements such as product name, logo, tag line,
layout, while other features
such as headline, copy and graphic elements are
varied.
Expand our brand presence to blue-collar sports,
whilst not turning-off our core customers.
Ideally, we want to find sports that currently lack
energy drink presence and are share a commonground between current target (“extreme”
crowd) and new target (blue-collar).