Best Energy Drink | Monster Energy has grown by 700000% since its IPO launch and is now valued at over $50 billion.
Will they be able to compete with his competition RED BULL in the market share size? let us discuss the Success story of Monster Energy.
Hansen’s fruits and vegetables were introduced in 1935, before they used to make fruit juices only. Red bull energy drinks were introduced in 1997 and by 2000 red bull had also taken 35% market share.
Then Hansen’s decided to launch after the success Red bull, they also launched his product in this field, thus his first drink was launched in the name of Monster Energy with Aggressive branding and logo.
In the very first year, the company sold 10 million cans and Monster became a brand overnight And by 2010, and 2012 the 80% of Hansen’s’ total business was in Monster Energy, then the company decided to change its name, then Hansen’s changed to Monster Energy. Actually the success story of the Monster started only after its name change.
Monster Energy strategy
What did the Monster Energy do in 17 years, which Hansen’s could not do in so many years?
Branding
The branding of the Monster was very attractive and aggressive and the target customer of these was male young in the age group of 18-30 years. Monster branded his product everywhere where he knew he had a customer.
Ufc, motorsports, formula-one, gaming and WWE everywhere monster spent in heavy branding. It is not at all that seeing the increasing market share of the monster, Red Bull did nothing but the way of marketing of both was different.
Red bull where TV advertising was the same Monster moving in the direction of organic marketing. He was giving space to new comers singers and talent to succeed. Monster also made the brand ambassador by targeting the youth. Hardik Pandya in India, formula-1 driver Lewis Hamilton, Valentino Rossi etc. The concept of Monster was absolutely clear according to them, they are not selling the energy drink but they are selling lifestyle in Can.
Distribution
Monster has made its distribution network very strong.
they signed multiyear agreement with Los angles monorail in 2003 from where Monster got its reach and awareness.
But Monster took the actual growth when Monster and Coca-Cola had an agreement, Coco-Cola took a 17% stake in Monster in 2015 for which it acquired Monster for $2.15 billion. With the advent of Coca-Cola, its distribution network became very strong, it was now available everywhere.
Monster only focused on marketing after coming with Coco Cola because he knew distribution would be done by Coco Cola.
Manufacturing
Monster Energy arranges the raw material of their products to their 3rd party manufacturer and looks after bottling and manufacturing Cocoa Cola. After the arrival of Coca-Cola, the growth rate of Monster which was 12% year on year increased to 16%. Monster is never too late to do experiments, they always doing something for the youth, they had more options and opportunity than the red bull because monster never allowed himself to be an energy drink company, he himself Present as a lifestyle brand.
Between 2019-2021, where red bull launched 10 new varieties, monster launched 80 varieties. Monster never miss opportunity, one example where Starbucks had a lot of craze for cappuccino coffee Monster Energy launched his own drink in the same segment called java monster drink.
Marketing
Lots of organic marketing time to time or say in other words everyday to engage the youth target segment done by monster energy across the world.
Monster energy gun
Monster Energy as the brand and its craze across the world is so much that everyday some events and discussions keep going on about the brand.
Monster energy hoodie
Monster energy hat
Will the Monster Energy be able to beat the Red bull?
At present red bull market share this is 42% but monster drink also not far behind but holds 40% market share but behind monster drink is the back of strong distribution company like Coca Cola.
Time is not far away, market share may change but on the other side the competition is also big and very active.
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