BUSN- 310-8Monster Beverage Company PPT
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MONSTER AND ITS INDUSTRY ENVIRONMENT
The company that I have chosen is Monster Beverage Corporation. The industry is known to be having several factors in the midterm of its environment, and Monster energy drink is not an exception. The state of the climate is usually determined by analyzing the characteristics and customers, collaborators, and the company itself.
Monster has approximately 25% of the market share for energy drinks in the US for 2012 – the second largest of a single company in the energy drink industry. Their biggest competitor, Red Bull, is the only firm larger than them, with a 37% market share.
The energy drink industry, as previously noted, is increasing, despite the hold-ups that come around as a result of political regulation and health concerns. The industry is generally considered an oligopoly, with over 50% of the market share belonging to the top 3 firms. The low price-point that the products have helps them to remain in demand through both good and bad economies.
The socio-demographics of the industry revolve around a younger male crowd, generally. The target consumer is aged 18 to 29-years-olds and is in a busy urban environment (Yahoo, 2021). This target often manifests itself in active college students and young professionals deprived of sleep when balancing work with a busy social life. Apart from those trying to balance responsibilities with personal enjoyment, many of these companies aim their products at "adrenaline junkies" that need a rush of caffeine to get them to their next big stunt.
Global Environment
As stated earlier, Monster beverage Corporation falls under a booming energy drink industry. The global energy drink industry was valued at $56.67 billion in 20022, and there is a significant growth percentage expected of it(Bernard, 2014). This growth is driven by the ever-increasing population and the increasing demand for energy-boosting drinks. The Indian market is one of the fastest frowning markets for energy drinks.
Characteristics of a Global Country Environment
This industry's first characteristic is that India's population is growing day in and day out. Another characteristic of the Indian market is the increase in income levels among the Indian generations (Bernard, 2014). The other issue to consider is that the Indian market is highly competitive. This is because Red Bull energy drink came second in 2020, posing a significant threat to the market share.
Barriers
It is very for a company entering into a new market to face some barriers, in the case of monster energy. One of the barriers was the regulation given by India's food safety and regulatory authority (Tewari, 2021). This kept an immediate stop in the manufacturing, sale and distribution, and import.
Overcome Those Barriers
After the ban in 2015, Monster energy did not wholly withdraw its operation in India, but instead, it decided to renegotiate its defense. After sometimes everything was sorted as of today. Monster beverage corporation is going strong in India and has ventured into new flavors that are liked by the Indian markets (Tewari, 2021).
Although Monster did run into the barriers, it has mastered the art of overcoming obstacles. The easiest solution for them was to alter some ingredients to align with the existing food and standards of Authority of India guidelines.
Reference
Tewari, A. (2021). India's food safety authority halts sale of Monster Energy drinks. Down To Earth. https://www.downtoearth.org.in/news/indias-food-safety-authority-halts-sale-ofmonster-energy-drinks-49752
Yahoo! (2021). Global Energy Drink Market (2020 to 2026) - by Product Type, Target Customer, Distribution Channel and Region. Yahoo! Finance. https://finance.yahoo.com/news/global-energy-drink-market-2020-110000857.html.
Bernard, M. E. (Ed.). (2014). The strength of self-acceptance: Theory, practice and research. Springer Science & Business Media.
