LINK 1
-
Upload
raya-chaney -
Category
Documents
-
view
23 -
download
0
description
Transcript of LINK 1
Situational Analysis
Category Size & Trends
•$3.6 Billion in sales for 2006
•Energy drink sales in convenience stores increased by 46.0% from 06/06-06/07
• Energy drink sales in mass merchandisers increased by 34.0% from 06/06-06/07
• Aggressive product creation to reach unique demographics
Product Distribution
• Product manufactured through third-party bottlers and contractPackers in the US and Canada
• Most co-packaging agreements are on a month-to-month basis
• Convenience store sales represent the largest source of revenueFor monster.
Package form and size trends
• Monster has always been distributed in aluminum cans. • Size of cans has increased overtime.
Package form and size trends
• Top ten energy drinks are packaged in cans•Industry moving towards bigger cans.• Red Bull still leads with the smallest can 8.3 oz• Monster sells largest cans
• Mega Energy Screw Top - 24 oz • ‘BFC’ 32 oz
Brand Share
Monster vs. The Competition
Red Bull Benefits
• Improves performance• Increases concentration and reaction speed• Increases Endurance• Stimulates Metabolism
Monster Benefits
• Twice the buzz of a regular energy drink• Smooth flavor• Diversity of Flavors• More drink for your money
Demographics:• 18-24 year old males; • Youth sports market.
• Avg. annual income: • $15-19K.
Behavioral: • Extreme sports enthusiasts • (snowboard, surf, motorcycle, skateboard, ATV, BMX, snowmobile, body board,
Kart, MTB).
• They are active, “racy”, raw, and edgy.
• They believe that is a little is good, more is a lot better.
Primary Target Group
Lifestyle:
• These people smoke cigarettes. They are rebellious and are workaholics.
• Customers have fast paced lifestyles.
• Heavy users: typically 4-5 cans a week, 10 or more within 30 days.
• Light users: 4-5 cans a month.
Potential of non-user conversion:
• High potential conversion rate with people already consuming from the alternative beverage category.
• Vitality in untapped target of blue collar males 25 to 34 looking for a better combination of refreshment and energy boost.
Benefits:
• Monster users are looking for energy, more bang for the buck, and an association with other “extremists”.
Advertising: Print Advertising in Niche Magazines (Motocross, Cycle News, Racer, MX), National and Spot advertising, Posters, Radio
Direct Marketing: Sweepstakes, Giveaways
Interactive: Website (ability to sign up and enter sweepstakes)
Sales Promotion: Point of Purchase, Samples
PR: Creating buzz with their Guerilla advertising methods. Monster hooked up with Anheiser-Bush. Monster not only sponsors athletes but they sponsor to raise money for cancer research and the SPCA.
Direct Competitors (in order of market share)•Red Bull•Rockstar Energy Drink•Full Throttle
Indirect Competition•Coffee•Vitamin Water•Power Bars•Caffeine Pills•Energy Shots
Strength:•Innovation•Largest growing energy drink•#2 in market share•Well known logo•Different sizes, flavors, carbs•Larger Cans (Emphasis on large size)
Weakness:(Negative perceptions) • Dehydrates• People realizing
harsh side effects• Sugars and other
unhealthy additives
• The packaging doesn’t always show the Monster logo when drinking.
Opportunities:•Extreme Sports is on the rise•Signed partnership with Anheiser -Busch•New audience segment (males 25-34)
Threats:•Increasing Energy Drink Clutter•Coffee and Stimulants•Rockstar Energy Drink•Unregulated Labeling
Communications Strategies
• Who? Monster Energy Drink
• What? The meanest energy supplement on the planet.
• For whom? Designed specifically for those who want more energy for their dollar. For people who don’t want to slow down; who believe in living by the minute, not the day.
• What’s different? A wicked mega-hit that delivers twice the buzz of a regular energy drink.
• So what? Monster supplements extreme lifestyles with smooth kick ass flavors that pack a vicious punch.
Monster’s smooth flavored drinks are infused with natural energy boasting ingredients providing twice the buzz of regular energy drinks at less cost, unleashing unleash the beast and help you tear it up.
Continual sponsorship of extreme, anti-establishment sports and their wicked athletes that made Monster so popular and potent amongst its audience
• Meet Ronnie Ray
• 31 years old• Career: Production• High School Grad• Earns $30-40k / year
• When Ray gets off work he lights up a cig, hops in his truck, cranks the heavy metal and drives to his buddies house to watch the UFC live on the big screen plasma. In his bathroom he has Penthouse, FHM, and Sports Illustrated.
• His leisurely relaxation consists of going off-road in his 4x4 or ATV. He spends what he earns and lives in a one-story house. Ironically, has a kitten named mittens.
• Visually based• Little to no body copy• Active• Edgy• Conveys excitement and energy• Monster must have sole/strong
presence
Monolithic:Monster logo must be unaltered
Anthropogenic :Extreme athletes or attractive
females
• Monster smooth flavored drinks are infused with energy boasting ingredients like Ginsing and Taurine will Unleash the beast in you and will help you set the half-pipe on fire.
• But it isn’t for the health nut; it’s for real athletes that rather count back-flips than calories
• Innovative
• Credible
• Anti-establishment
• Alternative
• Reach - 60%• Frequency - At least 3.3
Reach & Frequency Objectives
• Monster strives to create a simple but bold message: Twice the buzz• Product is not seasonal.• Media most compatible with creative - Magazines: Automotive, Men’s, Music, and Sports.• Media Needs/Constraints
• Media needs to represent anti-establishment, extreme sportCounter culture.• Television will not be used as it is traditional.
Wear-out
Monster should not be concerned about media wear-out. Wear-out will be delayed through creative executions that will share a number of similar elements such as product name, logo, tag line, layout, while other features such as headline, copy and graphic elements are varied.
Expand our brand presence to blue-collar sports, whilst not turning-off our core customers. Ideally, we want to find sports that currently lack energy drink presence and are share a common-ground between current target (“extreme” crowd) and new target (blue-collar).