The large can concept has already been proven in this market by the success of the new Mother energy drink 500mL can. Because most energy drinks in Australia are sold in small 250mL cans, the 16-ounce can will be a “Monster” of a product.
We feel that the market would better accept this size than the even larger 24-ounce cans or the huge 32-ounce “BFC” cans that are also sold domestically. We will start by introducing the 16-ounce aluminum cans only. The cans will be black with the large Monster “M’ logo. These products make up _% of the brand’s domestic sales. We will begin by introducing the two best-selling flavors, the Original green and Low-Carb blue flavors. Product Strategy In Australia, we will adhere to Monster’s proven image and packaging. The Monster brand targets 21-35 year-old males and females, who are nonconformists, independently spirited and embrace a non-traditional identity and lifestyle. The Monster name and design are perfectly in-tune with the category’s core consumers. Monster is about action sports, punk rock music, partying, girls, and living life on the edge. Monster is aggressive, cool, sinister, dark, mysterious and fun. Marketing Objectives First Year 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 Second Year 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 Marketing Strategy Positioning Monster represents a lifestyle. (See Appendix III for detailed competitor information).
The main product differentiation seems to be in taste and marketing. They target essentially the same group of active young people: V targets ages 18-24 and Red Bull markets to 18-29.
The competing products include similar ingredients such as caffeine, sucrose, vitamins, taurine, ginseng, and guarana. Key competitors include Lucozade, Wild NRG, Naughty Energy, Jugular, and Hype. To capture a piece of the rapidly growing industry, many new energy drinks have been introduced in the Australian market. Recently, these two have been challenged by the relaunch of Mother Energy by Coca Cola Amtail, which claimed to have captured 12.ħ% of the energy drink category in the grocery and convenience channels in mid 2008.