Monster Energy

Monster Energy was introduced in the market in the year 2002 by Hansen Natural Corporation. It is manufactured by Monster Beverage Company of Corona, California (Boyle, 2006). Hansen Natural Corporation is a beverage company founded in 1935. At the time, the company made juices and natural sodas but was virtually unknown outside California (Boyle, 2006). In the 1930’s, Hubert Hansen and his sons started to sell fresh, non-pasteurized juices to retailers in Southern California including some film studios under the Hansen’s name. Later in the following years, the grandson of Hubert, Tim Hansen, developed numerous Natural sodas and 100% juices also under the Hansen’s brand. (The Hansens Story, 2011)

Product Description

The name “Monster” was thought up by Mark Hall, a salesman at the moment, who joined Hansen in 1997 and was decided by a poll (Boyle, 2006). It is one of the first drinks launched in the market in a 16-oz can, which is almost double the size of the standard “bullet” size can of many other energy drinks such as Red Bull, but for the same price. It is obtainable at most supermarkets and convenience stores in the U.S. and Canada. The regular Monster Energy comes in a 16 oz black can with a distinct green “M” symbol. The pull tabs are also distinctive from typical pull tabs because the Monster Energy pulls with an “M” instead of a round or oval hole (Monster Energy, 2007). Currently, there are 30 different flavors of Monster Energy drinks sold worldwide with most popularity in the United States. The caffeine content of most Monster energy drinks is approximately 10mg/oz (33.81mg/100mls) or 160 mg for a 16 oz can (Caffeine Content of Drinks, 2011).

Marketing Strategy

Marketing Strategy simply means setting the right product in the right place, at the right price, at the right time. Hansen Natural Corporation adopts the Guerrilla marketing strategy to place the Monster Energy is the market. The Monster Energy drinks are mostly directed towards males in the 18-30 age groups. “Unleash the Beast”, the slogan for Monster Energy drinks encourages its potentials customers to grab a can of Monster Energy and unleash the energy within to live life to the fullest. Monster Energy sponsors extreme sporting events like Motocross. “Motocross has been a key component of our marketing mix from the inception of the Monster brand,” said Monster Energy President Mr. Mark Hall. “We believe our ongoing support of Motocross has been good for the sport and, in return, the fans of the sport have been loyal to us…” (Rizzi, 2010)

Marketing Mix

1.Product

The world is moving in a fast pace. Everybody is in a hurry to do something but do not have the time and energy to do it all on time. Consumers need something that can keep them in track of all their ‘to do things’ and have energy and focus to do so. Monster Energy is able to fulfill that purpose and meets that need for the customers. Every can of monster is filled with energy for the consumers to get up and go. The 30 different flavors that monster provides is able to meet the needs and wants of its customers.

2.Price

Monster provides value to its customers in comparison to its competitors like Red Bull, Amp, Rockstar, and others. Since day one, Monster has been selling its 16 oz cans for the same price as most of its competitors 8oz bullet size cans. In comparison to its competitors, Monster provides numerous price promotions to its customer such as “Buy 2 and Get $1 off” deals. On top of that Monster provides volume discounts and attractive incentive to the retailers in order to lower the retail price in the market (Boyle, 2006).

3.Place/distribution

Monster energy drink is sold in almost each and every convenience store, gas station, and super market. It can also be found in vending machines at schools, shopping malls, gyms, and other public places where people are in need of some energy boost. Although Coca-Cola, for a while, was given some rights to distribute Monster in some parts on the Unite States, Hansen Natural Corporation, the parent company, announced that Anheuser-Busch would be the official distributor in the United States (Boyle, 2006).

4.Promotion

Hansen does not follow the traditional advertisement and promotional strategies such as advertisements in television, radio or newspaper. The company is reaching to its target market by sponsoring extreme sports events, athletes competing in extreme sports, sponsoring video games, and out-there advertisement strategies. The males in the 18-30 age groups would be the target market for Monster Energy drink (Jordan, 2009). Research and studies have proven that the males in this age group are more interested in extreme sports and video games. Research also shows that this target market hardly reacts to traditional advertisement strategies like television, radio, or newspapers (Jordan, 2009). The strategy that Hansen Company uses in order to market Monster Energy creates sincerity in the eyes of the target demographic. Many of the sporting events that Monster Energy sponsors are webcasted and telecasted through the media to the outside market as well which opens a wider market for further expansion of Monster Energy brand.

Conclusion

The relationship selling falls in more than one category in the marketing mix for Monster Energy drink. It falls in both Product as well as Promotion. The product identifies itself as a part of extreme sports and video games. It is very important to do so in order to appeal to the target market. This creates loyal customers who are loyal to such sporting events and games. Likewise, Monster Energy provides such a large variety of flavors that the target market will definitely find something that they like and can adjust to. On top of that Monster Energy drinks are known to be the best tasting energy drinks in the market.