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Market analysis  Objective: Monster energy drink will provide the needed energy boost you need for you on-the-go young teens.  Strategy Statement:

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Presentation on theme: "Market analysis  Objective: Monster energy drink will provide the needed energy boost you need for you on-the-go young teens.  Strategy Statement:"— Presentation transcript:


2 Market analysis

3  Objective: Monster energy drink will provide the needed energy boost you need for you on-the-go young teens.  Strategy Statement: Active young male adults from the age of 14-28 will choose Monster energy drink, a caffeinated boost of energy. Monster values your energy levels and will boost the demands of your everyday life.  Key Planning Assumptions:  90% of Americans consume caffeine daily.  Monster energy drinks will be consumed five days a week  Monster energy drinks will be distributed through All High schools in American and All college campus in America.  Continue the low cost of advertising with sales at sporting events, and posters on campuses.  Goals:  By placing monster drink dispensers in high schools and colleges we will increase sales by 25% ach year.

4 ProductPricePlacePromotion With the competitive market and our current economy we will strive to give our consumers what they are looking for. We are focused on a small target for sales. We target male Teens by selling the energy drink with attractive young women. The product is also focused on making you feel as though you could do any sport you put your mind to. We pride our sales on convenience to our consumers with the ease of buying in just about any connivance store, with the value of the energy you will get out of your drink. We will try to stay as competitive as possible with the competitive market. We will however with supply and demand keep cost as low as possible. With our price of $1.75 and the highest of our competitors being $2.99 we will continue to appeal to what our drinkers want. The place for sales will be focused with the target market. We will put Monster energy drink machines in all high schools for the high school athlete or teacher trying to keep up with active kids. College campuses for athletes and nights that take a monster drink to cram for finals. Large business buildings for the completive work environment that requires the late night business proposals. Finally airports for the nonstop country to country travel. The research shows that the major sporting events like, motor cross, X-games, and word of mouth is showing easy low cost marketing strategies are working. We will advertise all year with posters and banners around the high schools with school in session nine months out of the year and sports training during the summer. The same will go for the college year. The Business work place will be all year also, but the airport will be stepped up during summer season as travel is heavy then. Monster energy drink mission statement is to give the world monster strength.

5 StrengthsWeaknesses Low cost for advertising 16 different energy flavors Strong brand identity Specific target market Easy consumption Competitive price Limited marketplace reach No use of main stream media Product is not easily differentiated Minimal nutritional benefits and an increasingly health concern. ThreatsOpportunities Very competitive market Other competitors-coffee, and soda Health concerns of too much caffeine. Product loyalty Organic movement Sales predicted to increase in the next five years. More products for more exposure. More athletes’ sponsorships for more exposure. Worldwide sales Daily demand

6 Energy drink all work to appeal to the ideal consumer crowd. Energy drinks, unlike other beverages, are traditionally marketed to a specific consumer group. For example, some energy drink brands focus on extreme sports, others cater to students and their energy needs, and others try to attract the video game crowd. Top energy drinks by brand are Red bull in first place, followed by Monster and Rockstar. The target market for energy drinks is mostly male teenagers and young adults.


8 BrandsDollar Sales 2011 Dollar Sales 2012 Price per can Monster Energy 1.9 Billion2.6 Billion$1.75 16oz Red Bull2.3 Billion2.95 Billion$2.99 8.3oz Rock Star660 Million780 Million$1.75 16oz Amp330 Million300 Million$1.50 8.4oz Full Throttle130 Million140 Million$2.30 16oz energy-drinks/

9  Appeals to very specialized market segments  Overworked executives/businessmen  People “on the go”  Truck drivers  “Hip”, younger generation ◦ 65% of US teenagers (7.6 million teens) say they drink energy drinks ◦ Number of teenage consumers has increased by 3 million over the past 3 years

10  Currently thought to be the second highest growth sector of the soft drink industry  Total Equity (net worth) 2011 is 930 million  Gross sales in 2009 $168 Million  Gross sales in 2010 $240.6 Million  Gross sales in 2011 $ 381.0 Million  Revenue 2011 $1.703 Billion  Total Assets 1.362 Billion  Number of cases sold in 2009 110.0 Million  Number of cases sold in 2010 129.0 Million  Number of cases sold in 2011 164.6 Million  Statistic Verification Source:

11  Energy drinks contain a variety of ingredients, primarily caffeine or guarana and vitamins  Industry is driven by health and wellness trends  No scientific evidence to prove energy drink claims  Energy drinks are primarily consumed by the younger generation, people who are “on-the-go  Energy drinks moved forward faster than all other segments with a 14.3% volume increase in 2012

12  A Drink for Today: History of the Energy Craze  Vemma Verve  Marketing Profs Knowledge Exchange : Energy Drink Markets  Sports Energy Drink-Makers    U.S. Department of Education, National Center for Education Statistics. (2012). Digest of Education Statistics, 2011 (NCES 2012-001), Chapter 2.Chapter 2   

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