Introduction of Monster Energy Drinks into the Australian Market
International Marketing Plan
Introducing Monster Energy Drinks into the Australian Market Background
Monster Energy is an American brand of energy drink created and marketed by Hansen Natural Corporation. Monster calls itself the meanest energy drink on the planet. It’s a big hit in the United States that delivers twice the buzz of a regular energy drink. Monster’s US portfolio includes the flagship Monster and Lo-carb plus specially blended hybrid energy + juice, energy + soda, and coffee + energy products. Monster is the US 16 oz. segment leader, with sales nearly double that of the next closest 16 oz. competitor. The energy drink category to a large extent is image driven. The Monster design is aggressive without being intimidating. Monster’s proprietary energy blend is a combination of the right ingredients in the right proportion to deliver what the energy drink consumer is looking for, the “energy buzz!” For more product information, see Appendix I. Though Monster Energy is not widely advertised in the media, it receives a large amount of recognition from its sponsorship of various sporting events. Market and Competitive Analysis
Energy Drink Market
The energy drink category is one of the fastest growing worldwide. Sales of energy drinks are taking off in Australia, with the energy drink category being the fastest growing category in Australian convenience stores (See Appendix II). The value growth of energy drinks in the Australian convenience channel was up 22.3% from 2006 to 2007. The Australian Market
The Australian energy drink market is dominated by two big players. In 2006, Red Bull and V Energy held a combined 94% share of the Australian energy drinks market (ACNeilson). Recently, these two have been challenged by the relaunch of Mother Energy by Coca Cola Amtail, which claimed to have captured 12.7% of the energy drink category in the grocery and convenience channels in mid 2008. To capture a piece of the rapidly growing industry, many new energy drinks have been introduced in the Australian market. Key competitors include Lucozade, Wild NRG, Naughty Energy, Jugular, and Hype. The competing products include similar ingredients such as caffeine, sucrose, vitamins, taurine, ginseng, and guarana. They target essentially the same group of active young people: V targets ages 18-24 and Red Bull markets to 18-29. The main product differentiation seems to be in taste and marketing. (See Appendix III for detailed competitor information).
1)10% share of Australian energy drink market
2)Distribution of 60% in retail and convenience stores in Area 1 (see Appendix II) 3)Distribution of 50% in bars and fast food in Area 1
1)Capture 5% more market share nationwide
2)Test restaurant concept: Achieve 10% distribution in restaurants in current market 3)Introduce additional flavors of Monster Energy and Monster Java – Achieve placement of new products in 50% of existing customers by year end
Monster represents a lifestyle. Monster is aggressive, cool, sinister, dark, mysterious and fun. Monster is about action sports, punk rock music, partying, girls, and living life on the edge. The Monster name and design are perfectly in-tune with the category’s core consumers. The Monster brand targets 21-35 year-old males and females, who are nonconformists, independently spirited and embrace a non-traditional identity and lifestyle. Product Strategy
In Australia, we will adhere to Monster’s proven image and packaging. We will begin by introducing the two best-selling flavors, the Original green and Low-Carb blue flavors. These products make up ___% of the brand’s domestic sales. The packaging will remain consistent. The cans will be black with the large Monster “M’ logo. We will start by introducing...