essay

Executive Summary

Strategic Planning Review

PESTLE

Competitive

Consumer

	Sport lovers	Gamers	Extreme sports athletes
Demographics	Adults 18 - 34 years old Males Construction and maintenance $1,000- 3,000	People 18 - 24 years old Males & females College student, Teenagesas $1,000- 2,500	Adults 25 - 44 years old Males & females Athletes $4,600 - 10,000
Psychographics	Active and fast paced lifestyle	Game lovers Pro E-sport athletes	Seek for excitement in life
Motivations	Value wellness Therapeutic value Need for reducing anxiety from work	Enhance gaming performance, refresh minds to be more focused	Challenge themselves for personal satisfaction
Behaviors	Watching sport games and competitions for fun and for self-motivation. Reading sports magazine. Professional athletes who train themselves on a daily basis.	Participating E-gaming competitions Going to bed late Joining social gathering events Watching E-sport tournament on Youtube or Twitch.	Maintain high physical energy level, support muscle functioning, training aids Watching TV/Youtube channel/League Training themselves on daily basis
Technographics	TV Mobile to connected with friends Mobile Applications Ex. Nike Plus Streaming Services Ex. Hulu	Gaming computers Mobile games Ex. PubG Home Video Game Console Ex. PlayStation Streaming Services Ex. Netflix, Twitch	TV Youtube Magazines Radio Podcast Streaming Services Ex. YoutubeTV, Netflix[footnoteRef:0] [0: ]

Internal Function

Monster Beverage Corporation is a holding company that operates through its subsidiaries.The corporation outsourcing its manufacture for Monster’s flavor through company called American Fruits and Flavors product. (Monster also marketing operation). Under the corporation umbrella, Monster Beverage creates diversified products such as Burn through its different subsidiaries. Monster Beverage Corporation profit from three segments, they are Monster Drink brand, other beverages brand that acquired through acquisition from other corporation, and the other business. (The other business relates to the Monster Beverage selling certain American Fruits and Flavors’s product)

Within the three segments, the Monster Beverage brand generate almost 95% of its revenue. The corporation primarily selling ready to drink monster product are sold to three major customer group. They are the bottlers, the full services beverage distributors, or retailers.

Monster Beverage Corporation’s products are continuously being monitored and evaluated in order to improve its existing product line. The company also evaluating potential product lines for complementary existing product or adding depth to its current product variety.

Monsters internal function is cost-efficient for its company sizes. Outsourcing its manufacturer and marketers reduces Monster Corporation’s cost base, and also provides the corporate the flexibility of choosing the most suitable partners . Another advantages through outsourcing is the Monster Corporation can work with professional who have an extensive knowledge about developing the energy drink. Not only Monster is able to develop product align with their positioning statement, but also the professional credits Monster Beverage Brand with a reputation.

Finally, Monster Corporation could also utilizes its other strategic brands or products to create marketing campaigns. (Combine the force)

SWOT Analysis

Strengths

· Have a strong brand identity with a strong brand recognition Monster’s logo is highly recognizable and beneficial to be used for any kinds of marketing tools such as flag sponsorship, ads etc.

· Position No. 2 in the market share Even though Monster is not a top-of-mind brand, its sales in the second largest in the market share.

· Contain ingredients that provide good health and boost of energy Monster Energy Drink has four B vitamins; vitamin B-12, vitamin B-6, riboflavin and niacin which protect the human body from an array of chronic diseases. Also, it contains Caffeine which instantly enhances performance and mood.

· Offer choices of different flavors to satisfy different customer preferences. Monster Energy Drink offers many flavors like original Monster Energy, Monster Energy Absolutely Zero, Monster Mule Ginger Brew, Monster Assault Energy etc.

· Provide a wide range of product lines Brand is processed in many lines or forms such as the Monster Rehab Tea and Monster Energy Zero Ultra, among others.

Weaknesses

· Contain certain unhealthy ingredients Monster Energy Drinks is seen as a product with potentially harmful ingredients. This concern may deter health-oriented customers

· No top-of-mind awareness Monster is not likely to be the first brand in customer’s mind due to its lack of advertisements.

· Aggressive design may deter female consumers The brand colors are not favourable among women.

· Limited distribution model The production for bottles and the distribution relies on third-party producers and bottlers. This may be difficult for Monster Energy Drink to control the distribution process.

Opportunities

· Expand in gamers market Gamers are relatively new for energy drinks market thus Monster should expand into this potential target group.

· Trend of health and fitness People following this trend seem to need a boost of energy, hence Monster can potentially increase sales through its existing health-oriented products, for example, Monster Rehab Tea.

· Interest among athletes Athletes have realized the benefits of energy drinks and have started resorting to them to build their stamina. Monster can reach this target groups promoting messages about its benefit for building muscles.

Threats

· Highly competitive arena Winning over customers is challenging for brands in red ocean. Moreover, Monster Energy Drink has a really strong brand as a major competition, Redbull

· Have negative publicity According to the news, energy drinks were blamed for the death of teenagers from heart and blood pressure..

· Trend of organic ingredients This trend deters customers from canned drinks to a fresh beverage.

· New health regulations worldwide The introduction of new health regulations prevents the sale of energy drinks. In Norway, for example, drinks containing sugar have additional taxes.

Brand Positioning

Objectives

· Increase brand awareness among sports lovers and gamers

· maintain the consumption of product among athletes in order to acquire higher market share.

· Enhance brand loyalty