Monster Energy’s Pest Analysis:

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  • Topic: Monster Energy, Energy drink, Hansen Natural
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  • Published : August 14, 2012
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Introduction:

Hansen’s Natural Corporation (Now Monster Beverage Corporation) is a US based company located in Corona, California. They have been in the market from the 1930s in the manufacturing of natural sodas and from the early 20th century into caffeinated beverages. They have taken on Red Bull recently to become the top leader in the market of energy drinks. This can be taken as an advantage and a threat to the company as they have been majorly depending on their Monster Energy drink product solely for revenue generation despite having a wide range of natural products in the juice and the soda segments.

Monster Energy’s PEST analysis:

Political: There are numerous ongoing attempts to ban caffeinated beverages in various developed countries. This is evident from widespread surveys that have been performed by various authors on the ban of caffeinated energy drinks due to rising health concerns and the potential side effects of these beverages (Malinauskas et al. 2007; Clauson et al. 2008; Kaminer 2010). The market of monster energy is flourishing in all parts of the world currently. However in future if there is a ban on energy drink consumption, Monster Energy Corporation will collapse as according to the latest product report, 90% of Monster Energy’s profit returns come from the energy drink segment.

Economic: The recent development in Monster Energy Corp is that they have undergone a $250m share repurchasing of the company’s remaining shared stock. The company has overtaken its biggest competitor red bull recently and achieved the number one spot in the energy drink market. There are ongoing plans of numerous new product launches in the Sub-Saharan and Asia-Pacific regions.

Social: The change of name of Hansen Natural to Monster Energy Corp reflects the penetration of the energy drink segment in the company. The name change is being estimated as a measure to aim target energy drink depended population. The inclusion of flavours like sniper and M-80, the change in appearance of the prints on the can i.e. bullet holes, the camouflage design calling upon militarism and the shots being called hitman, they are leaving no stone unturned to attract consumers worldwide especially the young and the adolescent generation.

Technological: There is a big line up of new products in all segments of this beverage company like the low-carb blue, the Rojo Tea + Energy, Green Tea + Energy and non-carbonated protein drink that contains 15 grams of protein per serving. The efforts towards global development of Monster energy is the recent distribution union with Coca-Cola and Comercializadora Eloro, Pepsico ans Schweppes Australia.

Factor Inputs:

Labour market and trade union: The production division has been outsourced by Monster Energy Corp to various third-party bottlers and contract packers. These are done on a monthly basis where the packaging centres are widespread throughout the country to meet rise and fall in demands and reduce shipment related expenditures. The delivery system falls under two distinct sections namely the Direct Store Delivery (or the DSD) and the Warehouse division. The DSD is accountable of all principle products i.e. energy drinks and the Warehouse division look after other sodas and juices. Due to lower sales generation, in 2007 Monster Energy which was then Hansen’s ended their agreement with Anheuser-Busch InBev.

Material and Service: Monster Energy provides a variety of both natural and caffeinated beverage. These majorly constitute Monster Energy Drink, Low-carb Monster Energy Drink, Monster Energy Assault, Monster Energy Khaos, Monster Energy M-80, Monster Energy Sniper, Monster Energy Heavy Metal. Monster Energy MIXXD and Monster Energy Import and Dub Edition energy drinks, Admiral Iced Tea, Blue Sky Shots, X-Presso Monster Coffee Energy drink and Extra Strength Nitrous Technology. Monster Energy generates the majority of its sales...
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