Abstract

The case, “Monster: Reinventing the Energy Drink Market,” traces the rise of Monster Beverage Corp. (Monster) to becoming the second leading player in the global energy drinks market. The case starts out by providing the history of the company and explains how it had experienced market failure with its earlier energy drink brand. The case then documents the way in which the company then went about creating a new brand identity for its energy drinks to create a strong appeal for its target customer — the young American male. In addition, the case mentions Monster’s innovation efforts and brand positioning strategy that served as the pillars of its market success. The deal with The Coca-Cola Company that was expected to enhance the company’s distribution capability and international presence is also explained in detail. The case also provides a glimpse into the challenges posed to the company due to the rising evidence about the ill-effects of consuming too many caffeine-laden energy drinks. The case ends with a look into the future prospects of the company and its efforts at expanding its market through new product development and penetration of new market segments.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Design a brand strategy that helps develop a successful brand
• Analyze the role played by innovation and new product development in attaining market leadership
• Explore the impact of a strategic distribution deal on the prospects of a beverage company

Keywords

Monster, Incremental Innovation, New Product Development, Distribution, Regulation, Brand Identity, Brand Resonance, Customer-Based Brand Equity, Brand Building, Piggyback Marketing, Targeting, Hansen, International Expansion, Coca-Cola, Energy Drinks