ad campaign for monster energy drink

Download Ad Campaign for Monster Energy Drink

Post on 11-Aug-2014

620 views

Category:

Career

1 download

Embed Size (px)

DESCRIPTION

I worked with a group to research about Monster Energy, discover consumer insights and create a strategy for the brand campaign.

TRANSCRIPT

  • Lucy Ye Noah Yastrow Jennifer Owens Keagan McDonnell M O N S T E R E N E R G Y
  • The Monster Beverage Corporation was established on April 25, 1990 and is currently based in Corona, California. The company develops, markets, sells and distributes alternative beverages, including but not limited to non-carbonated iced teas, juice cocktails, fruit beverages, dairy drinks, coffee drinks, sports drinks and energy drinks. The Monster Beverage Corporation started its line of energy drinks in 2001 and is one of the leading brands in this category.1 The corporation is a division of the Hansen Beverage Company. According to Hansen, its mission statement and goal is to satisfy consumers' needs for superior quality and great tasting, healthy, natural and functional beverages. [The] beverages will be positioned as an upscale brand and will often be marketed at a premium to competitive mainstream products2 Marketing Problem: While Monsters primary competitors are targeting multiple segments of people, Monster only appeals to a narrow target audience, specifically to males interested in extreme sports and video games. Marketing Objective: Monster can expand its target audience by appealing to women 18-34 with busy lifestyles, while maintaining its current target audience of males. This can be done by changing the extreme and grungy perception of Monster to generate a more positive mainstream image. Additionally, Monsters low- calorie and sugar-free drink options should be highlighted in hope of attracting more females, many of which are a part of the health-conscious trend. Introduction
  • Situation Analysis Product Category Definition Sales: Monster Beverage Corporations sales have increased $86 million dollars from 2012- 2013.4 The forecast of energy drink popularity shows consistent increase in sales growth from 2008 to 2018, despite concerns about the safetiness of consuming the beverages.3 Competitors:4 Monsters primary competitor is Red Bull North America Inc. which holds nearly half of the market share, while Monster holds just over a third of the market share. Monsters secondary competitor is Rockstar International, followed by Amp, which is owned by PepsiCo Inc. Rockstar has less than 10% of the market share and Amp has 3%. Rockstar and Amps sales have gone down in the past year, while Red Bulls has continued to increase by nearly 10%. Issues Facing Category:5 60% of users are concerned about the safety of energy drinks and a majority of non- users avoid these beverages because they believe that it is bad for them.
  • Health Consciousness: Consumers are dissuaded from buying energy drinks because of the excessive caffeine levels in them.6 There is a overall sentiment that energy drinks are bad for your health.7 People recognize the dangers of mixing energy drinks with alcohol.8 Naturality:7,9 Consumers are either unaware of all the ingredients found in energy drinks or unfamiliar with what exactly the ingredients are; thus, energy drinks appear to be unnatural. Instead of drinking energy drinks, many people prefer healthier ways to be alert such as working out or getting proper sleep. Work Ethic:9 Students and working professionals often need to complete inordinate amounts of work in order to be successful. Energy drinks are used to help the individual finish his or her work. Energy drinks help with sustainability throughout the day. Ex: All nighters, final exams, etc. Situation Analysis Key Category/Brand Trends
  • Brand Overview10 : Monster Energy earned $620.4 million in 2012 and $705.4 million in 2013. Monster Energy alone has a 26.3% market share, while Red Bull has 41.3%.. 4 Ps of Marketing: Energy Products:11 Monster Energy: Unleash the Beast Ultra Blue: Based on Epic Snow Mountains/Towns (Zero Calories; Zero Sugar - Less sweet than regular Monster) Ultra Red: Homage to the Coming of Age in America (Zero Calories; Zero Sugar - Change is good) Lo-Carb: Low calories Zero Ultra: No calories for the Monster Girls Cuba Lima: Based on the Cuba Lima Cocktail Absolutely Zero: Helps fight fatigue, improve mental performance and focus and motivates you to work (No calories) Ubermonster: Declare war on the ordinary; We put the camo pattern on our new Monster Assault can because we think it looks cool. Plus it helps fire us up to fight the big multi-national companies who dominate the beverage business. Assault: Same as Ubermonster, Viva la Revolution but different look Khaos: Energy: Energy and juice in one M-80: Inspired by surf in Oahu Import: Cool, re-sealable can M3: Packs 16 oz. into 5 oz. (Not a shot) Price:12 Approximately $1.99 per can (16 fl oz.) Distribution:13 Monster is a distributor partner with Anheuser-Busch, since 2006. Communication (Promotion):14 Call of Duty (Sweepstakes) Java Monster: Win a North Shore Surf Trip (Sweepstakes) Great American NightMare (LA) Monster Girls (Meet the Models) Skate Park Situation Analysis Brand Assessment
  • Strengths:16,17,18,19 Monster is the second largest brand in the energy drink category. Revenue is expected to reach $2.5 billion by 2014 ($200 million in 2005). Featured personalities and endorsements include Don Jamieson, Paul Thacker, The Dingo and Tiny Lister. Monster appeals to its current target audience of males 18-34 very well. Monsters no-calorie product sold nearly $21 million in measured multi-outlet channels up until May 2013. Monsters low-calorie line had the second-highest growth in energy drink sales; it made $19.4 million in sales. Weaknesses:20,21,22 Consumers are intimidated by Monsters brand personality, which is aggressive and masculine. Monster has a narrow target audience and attracts primarily men who are into video games and extreme sports. Many consumers are unaware of the variety of flavors that are available. Opportunities:22,23 People know that energy drinks can wake them up, so we can emphasize this in terms of making consumers more productive throughout their busy days. Consumers are living on-the-go lifestyles. In a poor economy, Monster has the opportunity to utilize its cheaper price to gain a competitive advantage. Threats:24,25 Red Bull dominates the market as the leading energy drink brand by appealing to a widespread audience. Societal trends towards health and the all-natural jeopardize the market for energy drinks. There are concerns about product safety, leading to many lawsuits.26,27 Huffington Post reported that a 14-year-old girl died in 2012 from drinking two Monster Energies Chairman and chief executive officer of Monster Beverage Corp., Rodney Sacks, said, Inaccurate, speculative and biased articles continue to be published regarding energy drinks and, in particular, the caffeine levels therein, Situation Analysis SWOT15
  • Situation Analysis Primary Competitors
  • Competitive Analysis Red Bull (4 Ps) Price:28 Red Bulls USD sales are $2,824,141,147. Approximately $2.99 per can (8.3 fl oz.) Place: Red Bull is sold in drugstores, convenience stores and global distributors. Products:29,30,31 Red Bull targets the athlete, worker and socialite. The company is headquartered in Austria. Slogan: Wings when you need them. All cans are 100% recyclable Energy Products: Red Bull Cola Red Bull Sugar-Free Red Bull Zero Calories Markets Quality Ingredients: Caffeine + Taurine + B-Group Vitamins + Sucrose & Glucose + Alpine Spring Water Promotions:32 Red Bull TV Athletes: U.S.: Travis Rice; Australia: Sally Fitzgibbons; Germany: Sebastian Vettel Events: F1 Racing: Sebastian Vettel (2013 Champion); Red Bull Cliff Diving Sports: Motorsports, Bike, Surfing, Snowboarding, Games, Music, Adventure, Skateboarding
  • Price:33 Approximately $3.00 per can (8 fl oz.) Place:34 Rockstar is sold in drugstores, convenience stores and grocery outlets in 30 different countries. Products:34 Rockstar targets those who have active lifestyles from athletes to rockstars. Original Slogan: Party like a Rockstar 20 different flavors Energy Products: Rockstar Coffee Rockstar Recovery Rockstar Energy Juice Promotions:35 Action Sports: BMX, Snowboard, Ski, Snowmobile, Surf, and Wake Boarding Motor Moto-Sports: Nascar, Rally and Snowcross. Live Music: House Party Tour and Breath Carolina Competitive Analysis Rockstar (4 Ps)
  • Price:36 Approximately $1.50 per can (8 fl oz.) Place: Amp is sold in drugstores, convenience stores and global grocery distributors. Products:37 Amp targets the athletes who play hard but also those working hard. Amp is a subsidiary of PepsiCo. looking to rethink energy and experience evolution. For those looking to fuel life, career, and anything else that matters to you. Energy Products: AMP Focus AMP Active AMP Boost Promotions:38,39 Sponsors Dale Earnhart Jr. from Nascar Sponsors UFC Fighters, Chad Mendes and Urijah Faber Sponsors snowboarding events across the U.S. Competitive Analysis Amp (4 Ps)
  • Competitive Analysis Price/Location Comparison 40,41,42 Red Bull Monster Rockstar Amp Shaws 3.69 2.19 2.29 2.29 CityCo. 3.99 2.99 2.99 2.99 Target 3.69 1.79 1.59 N/A Stop 3.68 2.19 2.29 2.29 &Shop Red Bull Monster Rockstar Amp Shaws 7.99 7.99 N/A N/A Target 5.99 5.99 5.99 N/A Stop 7.99 7.99 N/A N/A &Shop Per Can (16oz.) 4-Pack (Red Bu

Recommended

View more >