International Brand Management Report: Monster Energy Drink Strategies

This report delves into the brand management of Monster Energy drink, examining its product line, brand components (name, logo, symbol, slogan), and marketing mix (product, price, place, promotion). It analyzes the company's competitors, including Red Bull, Rockstar, and Amp, and their respective brand strategies. The report explores the product life cycle of Monster Energy, from its introduction to maturity and decline, and applies the BCG matrix to assess its market position in the UK and China. Furthermore, it investigates the international market presence of Monster Energy and its competitors, providing a market analysis of the energy drink sector. The report concludes with a discussion of product portfolio and potential product gaps, offering a comprehensive overview of Monster Energy's brand management strategies and market dynamics.

INTERNATIONAL
BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Company's product line and brand..............................................................................................1
Brand components of company ..................................................................................................1
Marketing mix of Monster energy drink.....................................................................................2
Research into competitors brand strategies.................................................................................3
Product life cycle ........................................................................................................................4
CONCLUSION ...............................................................................................................................6
RECOMMENDATION...................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Brand management is the process of maintaining, enhancing and raising the name of
brand so that positive outcomes can be achieved. This process of managing brand involves
various aspects such as cost, consumers satisfaction, representation of store etc. Present report
describes about Monsters energy drink's brand management. The company was founded in 2002
by Hansen natural company. Aim of this report to discuss about brand merchandise of Monster
energy drink which involves components of brand. Analysis has been conducted to identify the
company's position in market.
Company's product line and brand
Monster energy drink company was launched by Hansen natural company (MONSTER.
2017). The energy drink company sells natural soda, cola, energy drink, Java monster, rehab
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Illustration 1: Monster Drink
(Source/ Monster energy drink. 2017)

monster, diet soda, drink mixers, fruit juices and juices for children. In the year 2015 the
company has sold its 16.7 percent shares to Coca cola organisation (Balmer and Wang, 2016).
Monster energy drinks can be segregated into two parts which are direct store and ware house
segment. In the year 2011 organisation has earned approximately 93 percent revenue form direct
store and 7 percent from warehouse part.
Brand components of company
Elements of brand are the trademarks that helps in distinguishing one brand from another.
Brand components involves name, logos, characters, brand jingles and symbol indicating brand
value. Brand components of the company is as follows:
Name
Business of the Monster energy drink in 1930 was started with name “The Fresh Juice
Company”. Further in year 1970 company has started selling soda which made the name of firm
as Hansen's label (Christodoulides, Cadogan and Veloutsou, 2015). After that company name has
been replaced with Monster Energy drink in 2002.
Logo
Logo of the company supports in making brand awareness among consumers. Monster's
logo is iconic and resemble the brand name itself.
Symbol
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Illustration 2: monster energy drink
(Source/US monster energy drink. 2017.)

Symbol is used for communication purposes. Symbol of Monster energy drink is used in
promotional campaigns (Dinnie, 2015).
Slogan
Slogan are the catchy words which are used for making memorable motto of the
organisation. Slogan of Monster is “ Unleash the best”.
Jingle
Jingle is term which is use d by firm for advertising purposes. It help in maintaining
striking melody in consumers mind (Farris and et.al, 2017). It is used to create connection with
product users. Company do not have a particular jingle yet.
Packaging
The company 's product packaging is very distinct form other brands. It support in
keeping product safe from contamination.
Marketing mix of Monster energy drink
Marketing mix of companies involves various activities which are product, promotion,
place, price and promotion. Monster can utilize these activities for aiding exchanges.
Product
The original product of the Monster energy drink was monster energy. Further the
company has added more flavours in its drink to provide variety in it products. The organisation
further added chocolate and vanilla flavour drink products in USA to target more consumers.
Overall the company has tried to target various demographics by providing distinct drinks do the
consumer satisfaction could be achieved.
Price
Price of soft and energy drink varies from one brand to another. Monster and Red Bull
are at the high-priced range which are pricing form £2 and £ 1.5 respectively. Red bull
provides 470 ml quantity of energy drink in its can whereas Monster give 500 ml of quantity. It
clearly indicates that Monster offers more quantity in cans that too on lower price that other
brands. In term of market share drinks of Monster are second highly consumed after Red Bull.
Place
Place factor of marketing mix is one of the most important element. Place should be
chosen by company where it can gain more consumer attraction. According to (McCarthy and
et.al, 2014)Monster Beverages do not make and distributes it products instead it does
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outsourcing of its products. By doing this company distributes its product using third party
distributors thereby reducing cost of production. It means that energy drinks are produces where
there is high demand.
Promotion
Promotion is the way by which company make awareness among consumer about their
brand and products. Many of the organisations use TV ads and radio spots and advertising on
social media. Monster energy drink company conducts concerts, tours, quiz competitions for
marketing its product. The company also promotes car racing events for popularizing its brand.
Research into competitors brand strategies
Monster energy drink has large popularity in market but it also has many competitors in
market. Company's competitors are Red bull, Amp energy drink and rock star drinks. Red bull is
a famous brand and it has international recognition (Freeman and et.al, 2014). This company was
first to launch energy drinks in European market. Taste of both Mosnter's drinks and Rd bull's
are same. Cost of Red Bull energy drink is more than monster. The company has strong
competition from Red Bull as it also provides drink in all the flavours like cola, fruit juice in
more than 25 countries.
Rockstar energy drink was set up in 2001 which also have the same market segment as of
Monster. The company has 3rd position after Red Bull in market of USA (Kavaratzis and et.al,
2014). This brand provides same taste drinks as of monster.
On the other hand one of the biggest competitor is Lucozade which has both energy
drink products and sport drink products. This company has given major competition to existing
companies due to which innovation in products is high in demand.
Amp energy drink was also launched in 2001 which initially used to distribute its
products under Mountain Dew Soft Drink. Its product packaging and prices are very attractive
which is giving major competition to existing firms. The company provides it product in more
than 30 countries which is giving competition to the brand Monster. It covers greater market
segment than Monster. Price of it product are also lower than that of Monster.
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International market
International market is defined as availability of company in more than one country.
Monster Energy drink is currently working in more than thirty countries which are China, UK,
Brazil etc.
Product life cycle
Product life cycle is defined as sequence of stages which are introduction, growth,
maturity and decline (Khanna, Jacob and Yadav, 2014). Monster energy drink is required to
make improvements from introduction to growth to maturity and then decline. Products of
Monster has life cycle which is discussed below:
Introduction
Business of Monster was introduced in 1930 by launching fresh juice in market. Then for
making money form products company has launched new range of products apart from fruit
juices. In the start of this business less profit was generated from the sale of products against the
expectation. Dye to case of bankruptcy business of the organisation was shut down in 1988.
However, company has created Monster Beverage in 2002.
Growth
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Monster Red bull Amp energy drink Rockstar
0
2000
4000
6000
8000
10000
12000
14000
Illustration 3: Comparison of Monster's sales with its
competitors in year 2015

Growth of business from Hansen Natural to Monster Beverage was noticeable in 2002.
the brand has launched product which were more attractive as compared to the previous
products. In 2013 the organisation has recorded increased sell of 92 percent (McCarthy and et.al,
2014). In the same year sell of company was increased to 5 percent from previous 2 percent.
As an outcome sell of energy drink was more than fruit juices. Brand awareness among
consumer was increased in that year.
Maturity
In first 3 quarters of 2016 sell of company was less in comparison to the previous year. In
the year 2013 to 2015 was a maturity period of the company. Period from 1930 to 2013 can said
as maturity time for Monsters energy brand (Visram and Hashem, 2016).
Decline
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Illustration 4: monster drink pack
(Source/Ganesh Industries Limited. 2017.)

The period from 2012 to 2013 was decline stage for the company. In that year company
has lose its 12 percent share to coca cola company.
BCG matrix
BCG matrix has four classifications which are star, cash cow dog and question marks.
Stars in the matrix shows market share of the organisation. Cash cow represents rate of growth,
with high market share. Whereas question mark represents little market share. On the other hand
dogs represents low growth market share of the organisation.,
BCG matrix for Monster energy in UK and Chinese market
In the market of United Kingdom BCG matrix of Monster energy drink has position in cash cow
whereas Red bull energy drink is in position of dog which is the major competitor of Monster
(UK trademarks. 2017). In the year 2016 company has experienced a growth of 1.2 percent
(Dinnie, 2015). Company's market share was 11.2 percent and that of Red Bull was 10 percent
in 2016. This outcome was relative share in market of 1.02x for Monster and 0.9x for Red Bull.
Circle size is based on volume of sale of Monster 19 million and that of Red bull was 18 million
US gallons. In short brand popularity of Monster was more than that of Red Bull.
BCG matrix for Monster energy in Chinese market
In the market of China the BCG matrix of Monster energy uncovers a cash cow position
and Red bull is in the position of Dog. The Chinese energy drink market rate of growth in 2016
was 3.3 percent. Monster has 11.7 percent market share. Where as Red Bull in the same country
was having only 7.5 percent market share. This represents the result in relative market share was
1.37x for Monster and 053 x for Red Bull. Circle size is based on volume of sale of Monster
200 million and that of Red bull was 1140 million US gallons. In short brand popularity of
Monster was more than that of Red Bull in China.
In position of cash cow Monster energy drink has more shares in market share as comparison
with competitors (McCarthy and et.al, 2014). Due to negative impact of more concern about
consumer regarding high amount of sugar in drinks both companies has seen slower growth. By
creating maximal gross income with its high marketplace share, Monster gains the maximal
benefit in this position.
Evidence of competitors’ positioning in more than one country
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Major competitor of the Monster is Red Bull which is is operating in 164 countries. The
Monster and Red Bull energy drink company are operating in USA, China, UK , Brazil, western
Europe Austria and many more. Similarly Amp energy drink is also working in the same
countries . This give evidence that many Monster has high competition from rivalry brands
which are positioning in same countries where Monster is operating its business .
Market Analysis
Market selected is energy drink market which involves retail sales numerous energy
drinks. Reason behind this is that Monster energy drink company have high market share and
second leading energy drink brand in UK. In contrast to that soft drink market is termed as a
market which contains retail selling of soft drinks and sport energy drink. Monster energy drink
has moderate level of market share which is 0.7 percent in UK and 1 percent in USA. Company's
growth in energy drink market in both UK and USA has get down in years. There are number
of competitors in are in this market isolated form Lucozade,Amp Red Bull. Supermarkets in the
region are also launching own energy drink products. This intensively increasing competition is
resulting in low market share of Monster. In UK, the absolute majority of customers are young
men aged 16-34 (Mintel 2017). In UK energy drink was not the precedence pick of customers
when they are hungry or during workout to regain, fall behind water choice (Visram and
Hashem, 2016). Thus , it is essential for the energy drink brands to win over consumer by
improving the utilitarian advantage of the product.
Product portfolio and Potential product gaps
Product portfolio of Monsters energy drink can be classified into Monster energy,
Monster fruit juices, Monster rehab, Monster extra strength, Monster Java, Monster Muscle,
which involves energy drink, juices, soda and other products. The energy drink company sells
natural soda, cola, energy drink, Java monster, rehab monster, diet soda, drink mixers, fruit
juices and juices for children. Nevertheless in the year 2015 Monster has converted its non
energy portfolio into energy portfolio.
Monster energy drink is operating its business in more than 100 countries but they do not
provide all of its product in all the countries. For instance the company is providing only it 4
products in the United Kingdom whereas in USA it is producing 8 kind of products of energy
drink. However,Monster energy drink us various ingredients that made the brad image different
form other companies.
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CONCLUSION
Summing up the above report it can be concluded that brand merchandising generally
enclosed in the merchandising campaign of the company that includes profile of chosen brand
components where Monster has a well set up global market and is one of the major name on the
energy drink brand companies. Being the second largest company Monster still has many
competitors that can destroy its market share. The company has strong competition form Red
Bull and Amp energy drink. Though brand loyalty of consumers can beat Red bull which is a
major competitor. Monster has variety of products in energy drink which makes it different from
others. This makes the company more reliable than other firms. Small changes in companies
strategy can make the competitors to react . Competitors like Red Bull and Amp being in the dog
category it still grasp leading marketplace share which is notable that Red Bull has a wide target
market with attractive to the masses whereas Monster refuse to locomote any of the main stream
techniques by maintaining limited market place. It is recommended that each competitor should
make it own strategic plans so that they remain competitive in market. It is clear from the report
that strong brand image in consumers mind can help in achieving advantage of competition.
Further this helps in making brand more adaptable.
RECOMMENDATION
 Monster energy drink company do not posses specific jingles and slogan for their brand
name components. Though, company is using various approaches in promoting their
products. So in future company can make use of sign of horse that will help in
showcasing that drinks are powerful and full of energy as the horse posses.
 Company should sell it energy drinks in small containers which is use by many
companies. It will support Monster in targeting more customers and gaining more
profitability.
 Currently the company is operating in 114 countries but yet its all products are not
available in all countries. So organization should provide all of its products in all places
so that they can earn more profit.
 Currently people are very much conscious about health. So, company can make use of
honey or sugar free in place of sugar in the ingredients of its product. Beside, improving
the nutritional benefit by using more integrated informant like- vegetables or beans of
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green coffee in their present Monster Juice and Monster rehab. They can use syrupy
vegetable like root or sugary potato in the place of sugar in drinks.
 The company should develop a more specialised product for Gym drinking purpose,
those are the most target customers in the energy drink industry.
 Company should focus on entering the range of energy giving bars as many consumers
prefer energy bar for consumption and immediate energy requirements.
 Monster should brand the product through advertising where it is less popular.
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