1 / 17

Monster Beverage

Monster Beverage. Beverages-Soft Drinks. Largest group in the beverage industry 42.5% of the market Globally $440.3 billion Grew 3.1%. Industry Leaders. The Coca Cola Company PepsiCo Inc Dr. Pepper Snapple Group Cott Corp. AriZona Tea Company

yasuo
Download Presentation

Monster Beverage

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Monster Beverage

  2. Beverages-Soft Drinks • Largest group in the beverage industry • 42.5% of the market • Globally • $440.3 billion • Grew 3.1%

  3. Industry Leaders • The Coca Cola Company • PepsiCo Inc • Dr. Pepper Snapple Group • Cott Corp. • AriZona Tea Company • Top 3 Competitors control 88% of the market

  4. Bargaining Power of Buyers • Consumers are highly sensitive to prices • Willing to trade brands for a less expensive one • Industry is very competitive • Switching competitors is easy • Companies compete on price • Companies attempt to differentiate through • Marketing • Various Deals • 20% off to an amusement park

  5. Bargaining Power of Suppliers • Suppliers include • Bottling equipment manufacturers • Packaging suppliers • Low Bargaining Power for suppliers • Companies can easily switch to a supplier with better prices • Firms able to switch between suppliers very quickly and easily

  6. Threat of Substitutes • Many substitutes including • Water, tea, sports drinks • Competitor’s products • Firm’s other products • Consumers would not incur costs in switching to substitutes • Firms compete on price

  7. Low Threat of Entry • Well-known established brand entities • A lot of capital is needed to enter industry • Difficulty in assessing • Difficult to obtain licenses, insurances, FDA approval • Difficult to compete with existing firms’ • Economies of scale • Low prices • Possibility that existing companies will retaliate

  8. Challenges to the Industry • Health Concerns • Artificial sweeteners • Obesity, cavities, type 2 diabetes, low nutrient levels • Global Challenges • Reaching war-torn areas • Slowdown in Growth • 0.9% in 2011 • 3rd straight year

  9. Monster Beverage Corp • Brands include: • Monster Energy • Hansen’s • Peace Tea • Worx Energy • Blue Sky

  10. Energy Drinks • 2002-2007: Energy drink consumption increased 600% • 2011: Energy drink consumption increased 17.2% from 2010 • Large gains but only account for 1% of the beverage industry

  11. Monster’s Marketing • Does not spend money on commercials, billboards, radio spots • Instead, Monster backs athletes, promotes concert tours, and throws parties in order to raise awareness • “A Lifestyle in a Can”

  12. Internal Factors • Strengths • Sales growth • Geographical Expansion • Innovative Products • Strong Brand • Weaknesses • Market Share • Energy Drink Sale Dependence • Distribution Model

  13. External Factors • Opportunities • International Growth • Possible Buyout with Coca Cola • New Products • Hansen’s Coconut Water • Threats • Litigation • Health Concerns • Various Competitors • Red Bull • Starbucks

  14. Life Cycle Stage • Soft Drink Beverage Industry: Mature Stage • Monster Beverage Corp: Shakeout Stage • Intense competition • Slowing growth • Managerial and financial strength is key

  15. Questions?

  16. Sources Cited • http://bi.galegroup.com.proxy.library.nd.edu/essentials/article/GALE%7CI2501600016/acba463cc318645b688ad84cb5198d57?u=nd_ref • http://bi.galegroup.com.proxy.library.nd.edu/essentials/article/GALE%7CRN2501500080/acba463cc318645b688ad84cb5198d57?u=nd_ref • investors.mosterbevcorp.com • Photos from google images

More Related