Team Monster Unleash The Beast

Brought to you by: Richard Brown, Rachel Lichtman, Reesa Arshoff, Noah Diamond, Sarah D`ambrosio

ObjectiveTo determine and develop strategies for Monster Energy Drink to improve its position in the energy drink market

What You Will Learn Tonight...Secondary Research:• Market size• Segments• Growth rate• Per capital consumption• Channels of distribution• Product pricing in Canada• Major competitors

What You Will Learn Tonight...

Primary Research• Main purchasing criteria • Monster versus Competitors

Market Segments

Demographics males and females, children,

students adults and seniors

Psychographics - boost of energy

- health hazards - Nutritional

content

Market and Market Size

Energy drinks increase energy levels and alertness.200+ companies and 300+ brands in North AmericaThe volume market size in 2009 was 40 million LitersThe dollar market size in 2009 was $319.4 million, a 14% increase from 2008

http://www.youtube.com/watch?v=6tCZkFzQoVI&feature=related

Market Growth Rate and Per Capita Consumption

Forecasted to grow by $72.5 million or 22.7% from 2009 to 2014.

In 2009 consumed 1.2 liters of energy drinks per person, In 2014 predicted to reach 1.3 liters per person by 2014

1 2 3 4 50

10

20

30

40

50

60

70

Distribution ChannelsDistributed by Coca Cola. 83.5% independent retailers, supermarkets, and on-trade establishments 17.5% specialty retailers, convenience stores, vending machines, drugstores, service stations, and department stores

Competition

Red Bull 32%

Monster 28%

Rockstar10%

Other 31%

Market Leaders

Year Market Leader2008 Red Bull2009 Monster2010 Red Bull

Versus

Quarter Total Market Monster Red Bull

Q4 2009 +3.7% +12.2% +9.4%

Q1 2010 +7.5% +8.8% +13.3%

Q2 2010 - +12.7% +15%

Competitive Positions• Sponsor/participate in sports and music events (specially in the

rock genre). • target market gets to immediately see effects of Monster Monster

• “It gives you wings”• Sponsor sports activities, art shows, music, and video games • promote "cool" public image and raise brand power. • the slender container suggests "sexier" image

Red Bull

• "twice the size” for “hard core people” • Sponsors metal and rock festival touring the US and the “Taste

Of Chaos” (AKA "Winter Warped Tour“)Rockstar

Target Markets

Male High School and University students aged 17-30. •Increase alertness when:• studying, •playing sports, •video games •and other activities.

•Promotional material heavy focus on this segment.

Target Markets Lo- Carb -Female high school and University ages 17-30

Females care more about weight gain than men

Khaos - Mature clientele looking for a boost to keep up with increasingly active lifestyles and careers.

energy drink that has at least 50 percent real or fresh juice content.

PriceRed Bull - $2.49, $3.49, $3.99, and $9.49 for a 4 pack. (price varies with size)

Monster - $2.99

Rockstar - $3.50, $2.79, $2.99. Extra $0.69 more for the diet form of their 444ml drinks. (Prices vary by place)

And Now ...The MOMENT WE

(PROFESSOR GORDON) HAVE ALL BEEN WAITING

FOR..........

Decision Making CriteriaRanking of Importance

Rating of Performance (1=very poor, 5=excellent)

(Adding to 100

points) Monster Redbull AmpTaste 23 3.28 3.7 3.01Energy Boost 16 3.36 3.61 3.24Sugar Levels 13 2.93 3 2.94Crash Effect 11 3.31 3.72 3.05Priced Fairly 11 2.87 2.48 2.87Attractiveness of can 9 3.55 3.76 3.19Convenience 8 3.75 4.14 3.54Product Size 7 2.61 2.64 3.37Promotion Influence 3 2.69 2.67 2.58Weighted Total 100 304 321 295

Value of Monster compared to Redbull and Amp

--5.30% 2.96%

Next Steps

• Research on Red Bull’s taste, energy boost, sugar levels, and crash effect

• Reality versus perceptions • Nutritional value• Monster will not only match Red Bull’s

performance, but also it will surpass Red Bull

Any Questions?