...December of 2011, 14 year old Anais Fournier purchased and consumed two 24 oz Monster Energy drinks within one 24 hour period. This is the equivalent of 6 servings for an adult. She went into cardiac arrest the night of December 17th and died the evening of December 18th. Her parents sue Monster for damages on the basis of Strict Liability and Negligence. Monster is sold as dietary supplements instead of food item, so it is not as strictly regulated. It is marketed as a supplement that increases energy, promotes focus, and helps with weight loss. The drink contains an excessive amount of caffeine and other drugs that combine to increase heart rate, body temperature, and neural stimulation. Two 24 oz servings of Monster is above a safe dose of caffeine for most bodily demographics. Within 15 minutes of consumption the effects of the caffeine kick in. Due to increased neural sensitivity and dehydration, painful headaches are very common. 24 oz of Monster is also a lot of liquid to drink. Drinking 12 oz causes most people discomfort and would cause a reasonable person to stop drinking. The body naturally feels the danger because it is under a lot of stress from the beverage. For most reasonable people this bodily danger is obvious. Despite this physical discomfort, many people continue to abuse Monster. Thousands have ended up in the ER, and tragically there have been over 5 fatalities involving Monster. Comparison to McDonald's Hot Coffee Case In the McDonald’s Hot Coffee case...
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...February 2011 The Fame of Energy Drinks As far as I know, Energy drinks have been around forever. They are in other words meant for boosting up your energy and in my opinion the worst sugary drinks I’ve tasted. I see a couple being bought when I take trips to the grocery store. Of course there is always competition though. For example the most popular ones; Monster and Red Bull. These are the most competitive because they share being the same product and their taste yet are different because one’s advertisement is better exposed and the other is tagged more towards men. Monster and Redbull Energy Drinks both share being the same product: therefore making the same effect towards the body. They are meant to boost the energy in a person’s system during extremely lousy or lazy days. All energy drinks are made up mostly of the same ingredients especially sugar……………. Secondly, both Redbull and Monster Energy drinks taste nearly the same, sugary. I’ve come across tasting both of them and man do they taste awful. For a second there I though I was drinking a kool-aid with an enormous amount of sugar. They were nasty. Well, at least for me……………………… Though they share many common factors, Monster Energy Drink is more and better advertised than Redbull Energy Drink. While shopping at the mall I come across many sweaters, hats, t-shirts, etc . with the Monster Energy Drink logo. As a matter of fact, my husband and I bought the exact same t-shirt of Monster. Even though I’m not...
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...automatic shelf space in most stores and wholesale clubs. The weakest of the five competitive forces was the bargaining power and leverage of suppliers. The reason is that the packaging from different suppliers was similar, thus it was easy to substitute the packaging from most suppliers, and thus they had weak bargaining power. The competitive force that seems to have the greatest effect on industry attractiveness is competition from substitutes. This is why there were many substitutes to alternative beverages that were sold at lower prices. The competitive force with the greatest effect on profitability of new entrants is a threat of entry. Question three The market for energy drinks, sports drinks and vitamin-enhanced drinks is changing in several ways. There is innovation of products with the rise of drinks containing...
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...| Product Analysis: Monster Energy Drink | Bill ClymerWednesday August 14, 2013Written by: Maira Khalid | PART A Situation Analysis Monster Beverage Corporation The Hansen Beverage company (recently changing their name to Monster Beverage Corporation on January 5th of 2012), was a family owned and operated company in the 1930’s, selling freshly squeezed juices to local film studios. In the 1970’s, one of the Hansen brothers decided to transition their beverage business into marketing ‘natural sodas’. This was the upturn of the company that led them to where they are today. Today, Monster Beverage Corp. has transformed into the largest energy drink company in Canada with sales of more than $ 2.1 billion in 2012. Monster beverages have always been, and still claim to be free of preservatives, caffeine, sodium, artificial flavours and colours. Although many people believe that all energy drinks contain high levels of caffeine and are not healthy, the company’s mission statement which has not changed since Jan 5th, 2012 when the company changed its name, states otherwise. The Mission Statement The mission of Monster Beverage Corp. is to satisfy consumers' needs for superior quality and great tasting, healthy, natural and functional beverages. Our beverages will be positioned as an upscale brand and will often be marketed at a premium to competitive mainstream products. This mission statement provides Monster Beverage Corp. with the information needed for...
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...company’s present situation? What should the company’s future direction be and what performance targets should we set?” (Thompson, 2012) The development of a strategy for the companies involve in the alternative beverage arena is a daunting one. There are pressing internal and external environmental factors that present significant challenges in the gaining and maintaining of market share with in the industry. The obstacles faced by these organizations include global economic slow downs, dynamic distribution channels, negative press and fickle customer tastes. These companies, however, must remain focused and vigilant to attract customers to their brands. The case study presented by John E. Gamble, Competition in Energy drinks, Sport Drinks, and Vitamin-Enhanced Beverages, outlines the boons and challenges faced by the four leading distributers of alternative beverages around the world. The industry leaders (PepsiCo, Coca-Cola, Red Bull and Hansen Natural Company) in the alternative beverage market are what is know as a strategic group. “A strategic group is a cluster of industry rivals that employ similar competitive approaches, have product offerings that appeal to similar types of buyers, and thus occupy similar market positions.” (Thomas, 2012) The four industry leaders all have various strategies to remain competitive in the alternative beverage industry. These strategies span the spectrum of the five competitive strategies. Each has a different vantage...
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...Fiscal Policy Paper Learning Team B ECO/372 November 30, 2015 DON OLSEN Fiscal Policy of the U.S.A People of a country are influenced by the economic conditions of the country in several ways. There were different phases faced by the U.S economy in different period of times from shortage of funds and budget and excess of funds and budget to huge debts. These economic situations influence the lives of the people in many ways. In this paper the United States economy’s surplus, debts and deficits as well as the ways it influences the lives of normal taxpayers of the US, social security situation in the coming years and Medicare beneficiaries, people with no employment, Students of University of Phoenix, the status and repute of the financial position of the US in the world, a local self-propelled production exporter, an importer of Italian Company Clothes, and the GDP of the US, will be discussed. Taxpayers Taxpayers in the US are impacted very much by the US surplus, deficits, and debts etc. There would be definitely low money available in the country when there is deficit in the budget of the country that would affect the taxpayers. The government takes the help to improve the money situation in the country. A surplus in the country impacts the taxpayers as although there is excess of money in the country and there are fewer taxes, but they are there. Despite of excess of money, people in the country have to pay taxes. The people in the country paying taxes are affected...
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...Practice Case 1: Dr Pepper Snapple Group, Inc: Energy Beverages 1. How would you characterise the energy beverage category, competitors, consumers, channels, and DPSG’s category participation in late 2007? Energy Beverage Category: Energy drinks provide consumers with a boost of energy and they fall under the category of functional drinks. Functional drinks are non-alcoholic drinks which include ingredients such as herbs, vitamins, minerals, amino acids or other nutritional ingredients. Other functional drinks include sport drinks, teas, fruit drinks and enhanced water drink. DPSG participation → In the US and Canada, Dr Pepper Snapple Group participated primarily in the flavoured carbonated soft drink (CSD) market segment Competitor: The largest non-alcoholic beverage category, after carbonated soft drinks, sport drinks, and bottled water, but the fastest growing one. DPSG participation → their major competitors include Red Bull, Monster Energy, and Coca Cola. Consumers: Average US per capita consumption of energy beverage drinkers increased by 14% since 2004. Predominantly consumed by males aged between 12- 34 during the afternoon or morning. The reasons for consumption include energy boost, mental alertness and taste. Most limit their options to 1.4 different brands which sheds light on strong brand loyalty. DPSG participation → DPSG have an attractive positioning within a large, growing, and profitable market. Channels: Distribution channels include convenience...
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...Patrick Davis Red Bull 11/1/2012 Executive Summary Red Bull makes a premium energy drink for students, drivers, clubbers, business people, and athletes around the world to revitalize their bodies and minds. Problem: Red Bull, the leader in the energy drink sector of the soft drinks market, has seen its market share drop from 75% in 1998 to 47% in 2005. For the first time in the young energy drink sector, competitors have developed a legitimate share of the market: Hansen Natural’s Monster with an18% share and Rock Star with a 16% share. What actions need to be taken in order for Red Bull to solidify its market leader position? Answer: Red Bull should create a line extension offering either a diet drink to appeal to the recent trend of health conscious consumers or a new flavor while also changing their price point to be more sensitive to the consumer. By doing this, it will allow Red Bull to fight its competition in a very similar fashion to how they began to lose their market share (competitive pricing and a variety of options). Rationale: Red Bull has the strongest brand awareness in the energy drink segment which provides instant credibility to any line extension they may come out with. Red Bull has the extensive distribution network to make sure the product reaches the consumer no matter where they are. Market trends are currently in Red Bull’s favor as they show the customer wants options; giving Red Bull the perfect opportunity to develop a new product. Red...
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...RED BULL GMBH IN SOFT DRINKS (WORLD) April 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. Disclaimer All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Carbonates 169.5 billion litres Fruit/Vegetable Juice 62.0 billion litres Concentrates 43.7 billion litres © Euromonitor International Bottled Water 192 billion litres Sports and Bottled and Energy Drinks Sports Energy Water 15 billion litres Drinks 205.1 billion 16.2 billion litres Concentrates litres 43 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres SOFT DRINKS: RED BULL GMBH While Red Bull remains...
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...时间线，以及收入影响并没有那么大 COLD VAULT Beer + Wine + CSDs + Energy + Water + Sports + Juice + Dairy Energy drink sales are soaring despite negative press and government scrutiny It would be difficult to find someone who has never heard of energy drinks or their explosive growth over the last several years. You would essentially need to find a person who has never set foot inside a store that sells beverages and, as of late, you'd also need someone who doesn't watch or read the news. That's because energy drinks have been garnering some negative publicity in recent months. "While these alternative beverages have always been met with some concern since coming onto the market years ago, hints at more intense scrutiny began last April when Sen. Dick Durbin (D-I11.) sent a letter to the commissioner of the Food and Drug Administration (FDA) calling for an investigation into energy-drinks after learning that a 14-year-old Maryland girl died of a cardiac arrhythmia due to caffeine toxicity after drinking two 24-ounce energy drinks in a one-day period. Four months later, the FDA responded that the level of caffeine found in the beverages did not set off any warning bells. Concerns, however, were raised once again in October when FDA incident reports revealed that five people had died in the past three years after drinking Monster Energy beverages from Monster Beverage Corp. The reports did not prove a direct link between the deaths and the caffeinated energy drinks, nor did they state if alcohol or drugs...
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...retail shelf. More and more consumers are moving away from traditional soft drinks to healthier alternative drinks. Demand is expected to grow worldwide as consumer purchasing power increases. PepsiCo was the worldwide leader of alternative beverages with a global market share of 26.5% and a 47.8% share of the U.S. market in 2009. Coca-Cola held a global market share of 11.5%. Although Coca-Cola was the worldwide leader in carbonated soft drink sales, they trailed PepsiCo in alternative beverage sales. Fast on the heels of the larger marketers are Red Bull, Monster, and “other” mainly consisting of privately held bottlers. Red Bull was the world’s number one seller of energy drinks which made it the third-largest producer of alternative beverages worldwide and the number two seller of alternative beverages in the U.S. and Europe. In 2009, Monster was the second-best-selling energy drink brand in the U.S. with revenues growing to more than $1.3 billion. There are hundreds of regional and specialty brands of energy drinks, sports drinks, and enhanced beverages in the U.S. and internationally. Of these, Rockstar was the most noteworthy privately held alternative beverage company. Which of the five competitive forces is strongest? Competitive pressure from rival sellers is high in the alternative beverage industry. The number of brands competing in sports drinks, energy drinks, and vitamin-enhanced beverage segments of the alternative beverage industry...
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...Giving Wings to the Red Bull Market Executive Summary Red Bull has become a long-term leader in the energy drinks market. It has achieved a worldwide expansion, being part of the top brands in the sports and energy drinks industry. Moreover, its brand is one of the most recognized in the world. Consumers immediately relate their logo and slogan to extreme sports and other adrenaline-filled activities. Their brand image is powerful and stronger than brands like Nike and Apple. However, the company has been failing in targeting international consumer behaviors. It has been losing consumers due to the rise of competitors, lingering in new product development, and to its specific target market of 16-year-old youngsters. The company is now behind Monsters Energy in the United States and, in the worldwide sports drinks market, behind Gatorade (Pepsi) and PowerAde (Coca-Cola). Moreover, it has been missing large market opportunities such as Latin American countries that have a large consumption of soft drinks. Their approach to consumers needs to change in order to recover their position as the leader energy and sports drinks brand. It is highly suggested that Red Bull invests more in their Research and Development department in order to further understand their costumers’ needs and desires. For instance, they could develop products with more nutrients or with natural energy boosters that reduce the negative impact of their product on human’s health. This would also help target...
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...Natural Vitality Energy Drink Sole purpose is to help increase the energy level of busy and athletic individuals in today’s society. With the busy lives of most people, we are all looking for a quick boost of energy to help get us through those last couple of hours at work or those late nights of cramming for a test, but we should take consider a healthy alternative to the popular energy drinks on the market today. Natural Vitality Energy Drink is for the health conscious individuals who are concerned with the ingredients that they consume. Natural Vitality Energy Drink, that is manufactured by Starrs to the Skye Manufacturing Company, is a unique blend of green tea, ginseng, B vitamins, and taurine, all natural ingredients that aides in boosting energy for several hours. Starrs to the Skye Manufacturing Company is a start-up company that will be specializing in all natural NAB. Natural Vitality Energy Drink is the first product on the market with this company for now; however, other products are being formulated and patented and will be available for the public in 2016. The strategic position that is going to help the success of Natural Vitality Energy Drink will be Differentiation Strategy. For small businesses, a product differentiation strategy may provide a competitive advantage in a market dominated by larger companies. The price point of Natural Vitality will be in the range of $2.89-$2.99 for a 10oz can depending on the location. Natural Vitality Energy Drink (NVED) does...
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...overview .......................................................................... 2 Market-based view: market positioning .......................................... 3 Resource-based view: business system analysis .......................... 4 Current business strategy and competitive advantages ................. 5 3 Strategy analysis of Red Bull energy drink business .................................... 3 4 Recommendation proposal for Red Bull ....................................................... 6 5 Conclusion..................................................................................................... 8 Appendices ......................................................................................................... 9 Bibliography ........................................................................................................ V II List of figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 Figure 7 Market shares on the global energy market for 2011 ........................ 2 Financial performance of Red Bull from 2011 to 2013 ...................... 2 Market positioning on the German energy drink market ................... 3 Solution sheet...
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...Case Study 11.1 Red Bull: The global market leader in energy drinks is considering further market expansion November 16th, 2015 Executive Summary Red Bull, an original in the energy drink market, was founded in 1984 by marketing guru Dietrich Mateschitz and formula developer Chaleo Yoovidhya. The product is often used for boosting energy, increasing focus, and as a mixer for alcoholic drinks. Red Bull is well recognised for its extreme marketing strategies. For example, Red Bull has a “Mobile Energy Team,” which is largely made up of university students. The Mobile Energy Team regularly travels from University to University to promote Red Bull and provide samples of the product. A second example of Red Bull’s marketing strategy is their support for extreme sporting events, for example; Nascar driving. However, with the increase of new entrants in the functional drink market, Red Bull’s market share has decreased. This decrease leads straight into the problem statement; What strategy(ies) can Red Bull, the global market leader, use to further expand into current and emerging markets within the next three years in order to increase market share and sales? Several symptoms from the case where used to create an Industry Competitive analysis, a Fishbone analysis, and a SWOT analysis. Ultimately, after evaluating the Industry Competitive analysis, the Fishbone analysis, and the SWOT analysis, three alternatives were chosen to be further explored. These three alternatives...
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