1Running Header Monster Beverage Corporation3.docx

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Running Header: Monster Beverage Corporation 3
Contents
Executive Summary 3
1.0 Organization Background 4
1.1 Product profile 5
2.0 Industry Analysis 5
2.1 Size 5
2.2 Environmental influence 6
2.3 Trends 6
3.0 Competitive analysis 6
3.1 Market approach6
3.2 Customer evaluation 7

4.0 Financial analysis 8
5.0 SWOT Analysis 9
5.1 Strengths 9
5.2 Weaknesses 10
5.3 Opportunities 10
5.4 Threats 11
6.0 Strategic Objectives 11
6.1 Short term growth goals 11
6.2 Long term growth goals 12
6.3 Communication objectives 13
7.0 Strategies 14
7.1 Use of Quick Response codes Advertisement 14
7.2 Use of Print Advertisement 15
8.0 Strategies Implementation 16
9.0 Review and Evaluation Strategies 17
Reference 18
Executive Summary
This is a company analysis project that examines the
company profile of the Monster
Energy Company. The Monster energy drink brand is the
second largest seller of energy
drinks in the world with Monster Energy, Java Energy, Rehab,
and Killer Flavor as their leading
brands. The continued desire of Monster Energy to dominate
the world energy drink market is
driven by their continued effort to unleash new energy in the
teens and the youths. Monster
Energy has targeted advertisements to the 18 to 26-year male
consumer group. This has
seen Monster Energy control over 27.9% of the energy drink
market in just over half a decade
since Hansen Beverage Corporation introduced it to the world.
Attributed to its growth is its competitive ability in market

approach and diverse product development that increase and
presents the initiating flavors of the drink in the market. The
firm has developed a great team of experts and continues to
grow the great relationship with its customer who offers great
and new opportunities to the attainment of the monster energy
brand short and long term goals. Monster Energy uses short,
targeted advertisements to attract their young users and keep
them engaged on their product. In this regard, the paper
provides the organizational background, industry analysis,
competitive analysis, financial analysis, a detailed SWOT
Analysis, strategic objectives, strategies, strategies
implementation, plan, review and evaluation strategies. This
evaluation of the monster energy brand culminates in realizing
the firm's objectives.
Strategic Plan Monster Beverage Corporation1.0 Organization
Background
Monster Beverage Corporation is a subsidiary company of
the Hansen Natural Corporation. It produces 34 different energy
drinks Monster Energy, Java energy, Rehab, and Killer flavor as
the leading brands. The monster energy drinks was introduced
in April 2002 to the American market becoming the leading
brand in America and second leading brand in the world
(Hansen’s Natural Corporation). The energy brand comes with a
natural black flavor that is characterized with a neon green claw
that forms the letter M as its logo. The caffeine content of most
Monster Energy drinks is approximately 10 mg/oz
(33.81 mg/100ml), or 160 mg for a 16 oz can. The packaging
usually contains a warning label advising consumers against
drinking more than 48 oz per day (16 oz per day in Australia).
Europe does not have these warning labels. The drinks are not
recommended for pregnant women or people sensitive to
caffeine. Monster Energy is advertised mainly through

sponsorship of sporting events, including motocross, BMX,
mountain biking, snowboarding, skateboarding, car racing,
speedway, and also through sponsorship of eSports events.
Monster Energy promotes a number of music bands around the
world, like Asking Alexandria, The Word Alive, Maximum the
Hormone and Five Finger Death Punch. (What’s Hot, 2013)
A mission statement should explain to stakeholders why
they need to support the organization by making clear what
important role or purpose the organization plays in society.
(Mastering Strategic Management, 2014) Monster’s energy
divisions' mission statement: "The mission of Hansen Beverage
Corporation is to satisfy consumer's needs for superior quality
and great tasting, healthy, natural and functional beverages. Our
beverages will be positioned as an upscale brand and will often
be marketed at a premium to competitive mainstream products."
further, the firm has a vision that implies that the company
wants to dominate the energy drink industry. According to
Adrian Hunter, the Australian Monster Energy manager, the
company is aiming to dominate the market and not only the top
seller, "success to us is dominion." In their attempt to do so, the
monster energy targets extreme action sports and music as a
way of promoting its products. (Hansen’s Natural Corporation).
Monster energy vision statement articulates the organizations
aspirations which are to dominate the market of energy drinks.
As stated in chapter 2 of the course book, an organizations
vision needs to describe what the company desires to become in
the future. (Mastering Strategic Management, 2014)
As Monster Energy continues to taste the success of its
products, it has developed a plan that enables its expansion to
the 120 countries where the brand is sold. This indicates that a
proper analysis of the competition, industry, financial and legal
perspectives has been put in place with continuous success. The
achievements that have been accomplished by the energy drink
company in the last fourteen years is a significant milestone
that has been made possible by having a goal oriented and
innovative team.

1.1 Product profile
Monster Beverage Corporation, through its subsidiaries,
develops, markets, sells, and distributes energy drink beverages
in the United States and internationally. The company provides
carbonated energy, and non-carbonated dairy based coffee and
energy drinks to full service beverage distributors, retail
grocery and specialty chains, wholesalers, club stores, drug
chains, mass merchandisers, convenience chains, health food
distributors, food service customers, and the military; and
concentrates and/or beverage bases to authorized bottling and
canning operations. (Yahoo Finance.com, 2016) The monster
energy drink is in the growth stage compared to its rival brands.
The brand is new in the market even though it has been on the
market for more than a decade. The continued strive to create
specialty products and sponsors along with celebrities in the
diverse fields of extreme sports BMX, motor cross, skate, and
ski to mention a few and has proven to be successful and
continue to build customer product preference. The organization
is competitive and the vision and mission statement is ambitious
wanting to be number one energy drink in the world. 2.0
Industry Analysis 2.1 Size
Since it was introduced in the market, Monster Energy has
created a vast base of consumers that have been loyal for years.
It has grown tremendously especially in the American market to
be the second largest seller in the world. The firm controls
27.9% of the American market after red bull which had control
of 31.6% by 2010. This has been contributed to the engaged
partnership in the music, sporting, and celebrities as indicated
in the social media activities (Monster annual report, 2015).
Notably, the partnership has also increased the popularity
of the brand through the increased activities to support the sport
and lifestyle activities. Monster energy has more than four
million fans on social media that facilitates the public
popularity. The energy brand feels that it's their obligation to
continue offering encouragement to the community for the

outstanding achievement thus increasing its publicity which in
return expands its market size. One example of the
organizations strategic partnership is with the company of Coca
Cola and it has become Monster’s preferred global distribution
partner with new international distribution commitments already
in place with bottlers in Germany and Norway. In connection
with the closing, The Coca-Cola Company made a net cash
payment of approximately $2.15 billion to Monster. (The Coca-
Cola Company, 2014) 2.2 Environmental influence
The monster energy drink logo of neon green is symbolic
that the firm acknowledges the importance of the green nature.
It was an indicator that the environment is important and can be
further maintained through recycling. The Monster Super-cross
tour that was conducted in 2009 teamed up and highlighted the
importance of maintaining a green environment it allowed
consumers to collect the monster energy can and drop off at
designated areas for recycling. The company in return gave pit
passes equivalent to a free racing ticket. These types of actions
important in expanding its activities across the globe by using
the green initiative.2.3 Trends
In their attempt to keep the monster brand trending, the
organization has taken challenges to sponsor events in the
United States. The monster energy drink has continued to set up
events aimed at "Unleashing the beast" through celebrities,
modeling activities and sponsoring athletic affairs. This has
increased their interaction with their customers all over the
world. Furthermore, the monster energy drink logo is visible on
jeeps, trucks, and other vehicles. Also, the firm has been giving
away tickets to their events creating a trend for their target
market. This has made the brand more popular among young
consumers (Monster annual report, 2015).3.0 Competitive
analysis3.1 Market approach
In every industry, competition is evident as firms aim at
grabbing the next available opportunity to publicize their
product. Monster energy competes, with its leading competitors
Red Bull, Rock Star, and Full Throttle being at the top of the

list. The competition is extended not only in the energy drinks
brand but also in the beverage arena as well as athletic drinks.
Even though, these competitors have similar characteristics
while attracting their target customers. The firms also use
product size and prices as an approach towards creating added
advantages in the market.
Red bull and Monster have a similar approach for its target
market focusing on extreme sports, music, and younger crowds.
However, Red Bull has an added advantage of high pricing
power over the Monster brand due to the weighing of their
product. For example, while the Monster brand weighs 6.0oz,
Red Bull product weighs 8.3oz. On the other hand, the
competition between the Monster and the Rock Star product is
quite limited. The Rock Star brand targets the music industry
while the Monster is quite diversified. This gives the Monster
brand an added advantage over Rock Star.3.2 Customer
evaluation
Monster energy targets advertisements in the male
population between the ages of 18 to 26 years. It products goal
is to get the young generation excited about a drink that brings
energy and motivation. However, the cost of the product is
made to be so small to increase affordability among the young
generation which are youth that are often engaged in extreme
sporting activities. The sponsorship of these events makes the
brand popular thus winning the heart of the young generation
over its competitors. Additionally, athletes use fear and need for
speed as their motivation towards success. This shows their
ability to commit all their resources towards their profession by
building a lifestyle around energy drinks. It has increased its
loyalty across all ages and races of athletes creating a monster
army of more than one million athletes. Which gives the firms
an added advantage to further grow in the industry of energy
drinks.
Often, the Monster energy drink events are remarkably
memorable in the minds of the consumers. They have continued
to keep their customer happy, fresh and sweet with new brands,

an action that builds curiosity and desire to keep on opening
another can of Monster energy drink. The energy drink
continues to quench the consumers' thirst and provide them with
new energy that keeps them full of life during extreme
activities. The advertisement and association with extreme
sports activities continues to trigger excitement among their
products. The company has continued to get stylish celebrities
in the media to be their brand ambassadors. Stars are popular
among the people and makes it simple to spike product sales in
the market. For example, the brand has established Tom
McGovern as the media contact for the Kawasaki team, Monster
Energy drink. As expected, the young generation who is their
target market follows these media personalities and celebrities
on Facebook and Twitter pages. In this regard, the technique
sounds quite viable for the monster energy to continue
expanding in the market compared to other industry
participants.4.0 Financial analysis
In accordance to the market statistics, the Hansen
Company which is the parent company of the Monster beverage
company has a market capitalization if $7.54 billion with an
outstanding share base of 88.6 million. The attest closing share
price was $ 85.49 but this was far much below the expected
price of $103.53. The Monster energy recorded net sale worth of
$2,722.6 million in2015 and they are expected to increase with
at least 10%% on additional basis from 2015. This amounted to
42% net sales compared to the 26% net sales recorded in 2013.
In 2011, the firm emerged first with 19% increase in sales
compared to its rival Red Bull brand that had 11% increase in
sales (Monster annual report, 2015). The tremendous
performance was attributed to the increase in use of
technological innovations in marketing and advertisement.
Consequently, the firm has the best growth rate of 2.40%
annually compare to Red bull which has a 2.21%. The firm also
enjoys a weighted cost of capital of 6.20% with a variation of
0.62. The statistics puts the firm in a better position for
expansion of its activities while competing with its rival firms.

Moreover, in 2015, the firm recorded the best gross profit
margin with 21.8% that was far much higher than its
competitors. The operating income for the year 2015 increased
by $174.6 million, 30.5% higher compared to $572.9 million in
2014 (Monster annual report, 2015). This indicated that the
firm’s effort to dominate the market was effective given the
above figures.5.0 SWOT Analysis
SWOT analysis is a tool that considers a firm’s strengths and
weaknesses along with the opportunities and threats that exist in
the firm’s environment. A SWOT analysis compare these
internal and external factors to generate ideas about how their
firm might become more successful. (Mastering Strategic
Management, 2014) Below is a summarized SWOT analysis for
Monster energy were strengths, weaknesses, threats and
opportunities are identified. 5.1 Strengths
Over the last decade, Monster energy drink has built its
brand to greater heights. This implies that the brand did not
come up overnight, but it has been developed over time. The
goal oriented team at Monster Energy realized the need of the
firm to engage in their customer activities and such unleashing
the hidden potential for the community in return for their
market size growth. The Monster beverage corporation invested
heavily in the community-based activities to increase its
popularity and build healthy relationships. For example, the
business has developed good relationships with athletes,
celebrities and extreme sports events that require extra energy
and focus for success. This makes the firm's slogan that
"success is dominion" while approaching these activities.
Furthermore, the Hansen Corporation has given the brand a high
percentage of the target customers given the wide range of
products it produces. In an attempt to differentiate the product
in the market, the Monster energy brand has the best and most
appealing cans that are stylish in nature. This continues to offer
the brand an upper hand to acquire the high percentage of the
market size and sales.5.2 Weaknesses
Despite having a great market approach, the Monster

energy brand has limited access to the industry. The beverage
industry is vast enough that firms occupy the market to its
capacity. The fact that there is aggressive competition in the
industry does not guarantee full coverage of the market as the
consumers have several options to choose from the energy
drinks. Additionally, having too many flavors in the industry
also creates the weakness for the monster brand. Customers
create loyalty with at least two flavors that often lead to high
sales in the business. Besides, the energy drinks are associated
with health problems and have been sued as primary causes of
death. This constrains the business action to cover the diverse
beverage market with energy drinks alone fully. It also has
negative comments from the society especially the elder
generation.5.3 Opportunities
The target population for the energy drink offers
opportunities for the brand all around the globe. Considering
the support the business offers to the sporting community, the
brand gathers more than enough clientele based for their
products. The popularity also increases with such activities.
This implies that the Monster brand opportunities lie within the
community. It is, therefore, most important for the firm to
engage in these activities to provide new energy for
participants. The Monster energy shows their ability to engage
in huge sponsorship events that revive the underlying potential
as their product through the brand's images. It creates
opportunities for their fans besides new target customers for
their sales. Every new event brings a new opportunity for the
Monster energy across the globe.5.4 Threats
Maintaining a public image is a threat the business faces in
the industry. The firm has greatly capitalized in the social
media and sponsorship activities area that continue to build its
popularity and reputation. For this reason, the firm has to
maintain its earned reputation by avoiding any mistakes at all
cost. For example, if something weird happens to a participant
in an extreme activity, the breaking news is likely to go viral
through social media tarnishing the reputation of the firm.

Further, failure of events held by the business is also likely to
influence the popularity and trend of the business. Often the
organizers of the events together with the sponsors have a bad
light in the case of the misfortune of an event. This is likely to
cost the organization slowly affecting the sales and market size
of the firms. Death cases example
Secondly, the loss of customer loyalty is also a great threat
to the firm. The increased introduction of flavors of the Monster
energy drink if poorly managed can cost the business. Often
customers are loyal to a flavor that have consumer popular
demand. In different markets, it is likely to be a difficult task to
convince the customer the originality of the brand. This can
lead to customers switching to another brand which relates to
their competitors. Therefore, the business should maintain
individual flavors to specific consumers to avoid the confusion.
Even though, the firm may continue to increase new flavors in
the market to offer their customers a new taste of the same
Monster energy drink. 6.0 Strategic Objectives6.1 Short term
growth goals
The Monster energy brand needs to aim at increasing its
sales within the next six months this is target is geared towards
attracting a 10% in their clientele base while retaining the
existing customers. This is likely to increase their market size
tremendously and thus the size of the profits (Monster annual
report, 2015). The objective will be assigned to the marketing
and advertising departments on creating new approaches to
increase sales and consumer preference. The event and
sponsorship organizers of activities must also be put under
consideration to ensure objectives set in place are met. It is
likely to give the brand an upper hand over its competitors and
thus the continued increase in future sales.
This is likely to enhance the desire of the company to continue
its domination of the market over its competitors. In achieving
it, the advertisement and improving of marketing strategies, the
sales of the firm are likely to improve tremendously over the
second half of the year and in future. It is expected that the

sales of the year will increase by over $250 million dollars this
year over the previous financial years (Monster annual report,
2015). Such growth is quite remarkable and promising of
continued growth of monster energy brand worldwide.6.2 Long
term growth goals
First, the Monster brand of "success is dominion" is the
driving long term goal to the success of the business. The firm
is aiming to overtake the leading energy drink brand, Red Bull
to occupy the energy drink market, the firm has to lay out
proper strategies to outdo the rival brand. Having a difference
of less than 5% in the market share, the continued realization of
the short term objective can easily facilitate the realization of
this long-term goal. However, as the firm aims at reducing the
rival superiority in the market, it should also realizes that the
competing brand is making an effort to continue dominating the
market. Therefore, critical implementation strategies have to
establish to ensure the brand achieves the set goal.
Additionally, the business continues the desires to increase
their sales level at the minimum cost over the coming years.
The latest result is that the firm increases its sales by 2% per
month in the world. This figure is quite significant as it set a
good pace for the business to realize the dominion vision. It is
likely to continue increasing the need to occupy the market by
ruling out the current participants but rather by squeezing their
market possession. To realize this, the business has to continue
increasing their brands in the market with different flavors. It is
likely to attract more customers by providing an alternative
option to the already existing brands in the market. In this way,
the set increase in sales target towards market domination will
be easily met.6.3 Communication objectives
The Monster energy brand has to continue maintaining its
appealing growth trend in association to the growth objectives.
It will facilitate the firm's performance to remain at the industry
top. The firm has stayed popular among its target customer and
rival firm customer there is a market to continue to develop
those appealing brands which increase sales. This is not aimed

at completely changing the view of the Monster brand but rather
to improve its appealing look to their consumers.
Since the release of the brand, the customer response has
been quite positive towards the satisfaction of their clients. This
is evident as the firm bypassed most of the existed energy drink
brands in the industry. The simplicity of the brand's logo makes
it more visible and easy to identify among the consumers. The
popularity of the athletes and the sporting activities among the
fans make it easy and fast to identify among other energy drinks
on the shelf. In this regard, the business must engage more
communication of their brands to consumers with intensified
advertisement in gas stations, sporting events as well as in the
motocross areas. This will increase the visibility of the brand
among the fans and participants thus growing popularity.
Monster establishes new approaches to meet its
communication objectives. Considering the firm's target of the
young generation, the company uses the website to boost the
rock videos and "hot chicks" contests that it runs often. Further,
the business uses initiative language that is prevalent among the
youth and drives customers to purchase more drinks. The goal
of bringing in a drink that is meant to move a new generation
limits the business from using the traditional advertisement
methods such as the television commercial and billboard.
Therefore, it needs to narrow down avenue of advertisement and
focus on the targeted customers. These may include sponsoring
events, concerts and partnering with celebrities by also
increasing social media interaction which promotes consumer
interaction.7.0 Strategies7.1 Use of Quick Response codes
Advertisement
QR codes are technologically developed encrypted website
links that facilitate online advertisement. The Monster brand
has a QR code that has a picture of its logo within it. A
smartphone takes pictures of the QR code, and the phone
generates the link of the Monster website. The web browser will
then direct the user to the link, for example,
http://www.monsterenergy.com/coupons. This technology is

useful as it facilitates the users to view information that is not
in the print advertisement. For example, the link may contain
information on discounts and coupons on the purchase of a
Monster drink. It drives the consumer to explore the Monster
brand website learning the benefit and no sooner than later it
will influence the consumption decision of the user. The codes
are free of cost to customers therefore its likely to initiate an
excitement among the young generation. The fun of using this
Monster brand code logo will intensify the popularity and create
the associated clientele base.7.2 Use of Print Advertisement
The business is further expected to continue the print
advertisement. This is likely to boost the sales of the Monster
energy drink to the non-technical ignorant population. For
example, using the "unleashing the beast" advertisement has
significantly lead to increased consumption of the energy drink.
The backgrounded Monster logo with wide green eyes creates
the excitement among the youth. The Monster slogan
"unleashing the beast" further, attracts the young people to
purchase the print media to earn more on the unleashing process
or where the unleashed beast went. The advert is simple and
very precise to the user and famous as the youth desires
something to get them energized every day. Notably, the adverts
will be stationed at the selling points, the sports magazine, and
extreme sports activities.
The advertisement presents an artistic impression that is
quite attractive to consumer’s youth rarely pay attention to
spans and long advertisements. This ad, therefore, is short and
straightforward enough to grab the attention of the target
consumer’s young people. The Adobe impression figures the
colors of the advertisement with preciseness to reflect the logo
in unleashing the desire of the viewer and such more attention is
paid to the advertisement. In this regard, the Monster brand
team is capable of attracting a larger market size compared to
the traditional sales gimmick.8.0 Strategies Implementation
The print publication is expected to run for the next six
months as a two on one basis campaign. The sporting magazines

and the sales outlets will target avenues to promote print
advertise. The print materials are also to be distributed in
strategic designations for the youth such as campuses and social
places. This will facilitate the sales sensitization. The
advertisements aimed at creating an image of the Monster
energy in the mind of the target population and build the
intuition of the unleashing beast. On the other hand, the QR
coded advert will be a continuous advertisement that will viable
and improved with improvement with technology. Since the QR
poster is a guide to the Monster website, it is an ongoing
activity that will be sensitized to the youths to gather
knowledge consumer advantages associated with the brand
consumption. With this advertisement, Monster brand will take
advantage of the social media sites to continue its
communication objective to the consumers. These include
Facebook, Twitter and the blogging sites with the print media
advertisement. This is likely created and increases the
popularity of the energy drink brand. Further, the advertisement
is likely to increase the partnership relationship with the
sporting activities as they make the adverts practical with their
followers. Merely, the advert will be implemented towards the
realization of the set growth objectives. The print
advertisements aimed at reaching all subscribers of the print
media and magazines the QR coded advertisement is aimed to
reach the vast majority uses of the Monster energy drink.
Moreover, the effectiveness of the ad is positively correlated to
the number of magazine subscription and frequency of the
Monster energy drink consumption although the use does not
limit the access of the Monster website.9.0 Review and
Evaluation Strategies
The print media is the most critical when it comes to
analysis and evaluation. The impact of the print advertisement
will be subjected to the pilot study with the material to be used
for placing the ad. This is expected to review how the viewer's
respond when the advertisements introduced to them. Artistic
impressions are known for catching the viewers' attention. This

may be applied to the dramatic monster logo to determine how
effective is to influence the sales of the firm.
The effectiveness of the print advertisement will be further
evaluated at the end of financial year. The increase or decrease
in the level of sales before and after the advertisement will be
determined when the sales values are consolidated. However,
interim figures can be evaluated to establish the direction of the
sales. This is because it is not easy to monitor the viewership of
the print media. Also, the attention paid to the advert cannot be
measured with the print material sold as the material has other
exciting features. Conversely, the firm can often conduct social
media surveys to determine the extent of viewership of the print
advertisement.
On the other hand, the use of Quick Response is quite
efficient in the online domain. The QR adverts review is easy
and can be tracked through the website. The Monster team can
examine the number of times the link has been accessed in a
day. It is also likely for the business to track the consumption
trend as the QR codes are available on the energy drink cans
only. Additionally, the parties and sponsorship events can be
used by the Monster team to conduct surveys and increase sale.
The participants of the events can be used evaluate the use of
the QR codes by entering the digits of the cans online to receive
a gift. This will facilitate the introduction of the advert to the
target population. Moreover, the effectiveness of the QR codes
will be further evaluated from the monster website by tracking
the online users, and the kind of information searched on the
websites through further tabs opening by the users.
Reference
Hansen’s Natural Corporation,
http://analystreports.som.yale.edu/reports/HANS.pdf

Monster annual report (2015)
http://files.shareholder.com/downloads/HANS/2931576608x0x8
95901/DCE4ACE4-F0AC-4870-97CC-
105A6375EF58/Monster_Annual_Report_2015.pdf
What's Hot: Hansen Natural". Businessweek.com. June 5, 2005.
Archived from the original on June 25, 2012. Retrieved
November 4, 2013.
http://time.com/3854658/these-are-the-top-5-energy-drinks/
https://finance.yahoo.com/quote/MNST/profile?ltr=1
http://www.coca-colacompany.com/press-center/press-
releases/the-coca-cola-company-and-monster-beverage-
corporation-close-on-previously-announced-strategic-
partnershipStrategic
Management(2014).Washington, D.C.: The Saylor
Foundation
19. What is the relationship between reimbursement cuts and
cost shifting? How do hospitals react in different markets to
cuts in reimbursement?
20. Summarize the provisions under HIPAA and the ACA as
they apply to fraud and abuse.

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