Target Market for the Monster Energy Company - Essay Example

Segmentation and Target Market Paper Introduction The company Monster Energy is introduced by Hansen Natural Corp on April 2002. This organization has its base in California. The main product of this company is different kinds of beverages. It product includes energy drinks, sports drinks, lemonades, fruit beverages, juice, ready to drink carbonated ice tea, different dairy products and coffee. The company holds a leading position in the market. Monster Energy has become second largest energy drink manufacturing company. This organization is doing its business for past 12 years. The company manufactures its energy drink products mainly for sports person, athletes etc. Per year it is selling around 10 billion energy drinks. To increase the profitability of the company and to expand its customer base Monster Energy is presently targeting young adults and teenagers for selling its products. The energy drinks and juices of this company contain different ingredients like caffeine, herbal extracts, taurine, and vitamins B. Monster energy produces such energy drink which falls into the category of functional beverages. The company Monster Energy supports many sports activities and events like BMX, skateboarding, eSports, snowboarding etc. The firm promotes many music brands like The World Alive, Shinedown, Asking Alexandria, Maximum the Hormone etc around the world. Target market Monster Energy drink has become very popular in different countries of the world. In the present time the company has expand its market which helped to expand its customer base and increase its target market. Earlier Monster Energy sold its product only in United States. At that time Athletes were its primary customer. Then all its energy drink was sold to a particular group of people having specific interest. But in the present time lifestyle of people have changed a lot. Many people are consuming different types of energy drinks and health drinks as their daily food products. This is one of the important reasons of expanding the market of Monster energy by targeting new customers. The company is presently targeting young teenagers around 20- 28 years. Both of male and female genders are included in this firm’s target market. The products of Monster Energy drink are previously targeted to male people. But now a day’s its products are also targeted to female customers. The organization’s target market comprises of the customers who are belonging from middle class and upper class of the society. They are having sufficient income to afford the products of Monster Energy Company. Its target market also includes the people who are very enthusiastic and takes part in different sports activities and music events. The people who want to be highly energized for performing different types of sports or any events are the customers of this energy drink company. The company is expanding its target market in the recent years by introducing many new types of products. Health conscious people are becoming important customers of this company. Market segmentation Demographic characteristics The product and the advertisements of Monster Energy drink are targeted towards next generation. It means young adults who are within the age of 18 to 28 are the main targeted customers of these products. The product is sold to both male and female customers by Monster Energy focuses to sell its products mainly to male customers. Demographic characteristics of these energy products influence to sell energy drinks to people of different ethnic backgrounds. For affording Monster energy drink its customers have to belong from middle class and higher middle class family status. This is because the customers should have the ability to bear the cost of the activities of Monster community. In demographic segmentation of its target market Monster Energy also considers about family life of its customers for selling its products. Religion is not playing an important role in targeting its market segment. The company sells its products in a large number of nations. As a result people of different religion purchases its energy drinks products. The firm mainly targets educated people as its customers. The people who can understand the value and benefits of these types of energy drinks are expected to purchase the products of Monster Energy (Kotler and Keller, 2011). The occupation of its customers differs a lot but the company mainly targets the people who are involved in adventure or sports related occupations. Life Stage of people also plays an important role in purchasing Monster Energy drink products. Life stage helps to define major concerned of the people. If a young person is involved in such activities which requires high energy then that person is the potential customer for the company. These life stages help to build various opportunities for the company to sell its product in different market. Psychographic characteristics Psychographic segmentation helps to understand the customers better by knowing their psychology. In this segmentation Monster Energy focuses on the athlete’s edge type. The product is sold to the athletes use fear to motivate themselves, re quires high speed for their performances and want to extend their limits. This energy drinks experiences a large amount of sale from the customers who shares same interest of performing different adventurous activities. The customers of Monster Energy drink have an attitude that they can do anything for the profession or sports they love. Those people believe that their lifestyle does not only depend on a single work for rising to new heights. Person having same demographic group can have different psychological traits. Consumer’s resource and motivation plays an important role in forming its psychological characterizes. The customers of Monster Energy drink are influenced by their ideas, self expression and achievements. These three influential factors play a vital role in for choosing market segment for the company. The people who are highly motivated to maintain good health or to perform well in different sports activities will purchase different energy drink products for fulfilling their objectives. Having sufficient resource helps to change the mind set up of people along with their life style. Therefore for selling the product of monster energy the company considers resources of its target customer for setting up its market. Geographic characteristics Geographic characteristics majorly highlight dividing a market segment into wide array of geographical units. These units are nations, countries, states, cities, neighborhoods or regions. A firm can effectively operate in more than one area so as to gain maximum revenue margins. Local marketing initiatives are implemented by a company along with focus on international markets. It can be stated that this form of strategic implementation enables a company to address demand of wide geographic market segment. Monster Energy is a renowned energy drink and has its grass roots closely knitted to United States. In present scenario there are 34 energy drinks operating under Monster brand name. These drinks possess a strong market position within areas of North America. The company has its business operations spread across the globe. Its operating countries are Afghanistan, Australia, Azerbaijan, Brazil, Canada, Croatia, Czech Republic, Estonia, France, Germany, Hong Kong, India, Italy, Korea, Lebanon, Luxembourg, Netherlands, New Zealand, Peru, Poland, Romania, Serbia, Slovakia, South Africa, Sweden, Turkey, United Arab Emirates, United States, Albania, Austria, Belgium, Bulgaria, Chile, Cyprus, Denmark, Finland, French Polynesia, Greece, Hungary, Ireland, Japan, Latvia, Lithuania, Mexico, New Caledonia, Norway, Philippines, Portugal, Russian Federation, Singapore, Slovenia, Spain, Switzerland, Ukraine and United Kingdom (Monster Energy, 2015). Behavioral characteristics Behavioral characteristics are all about dividing buyers on basis of attitude, knowledge, use, product response, etc. Benefit or need based segmentation is a common approach which is implemented to analyze different market segments as well as marketing implications. There are different kinds of shoppers based on this kind of segmentation like enthusiast, image seekers, savvy shoppers, traditionalist, overwhelmed and satisfied sippers. The particular benefit segment for Monster Energy drinks is image seekers. This particular group is inclined towards following a particular brand that builds up their image. The entire market segment of the organization can be divided into two different parts such as one who tried the brand and other who has not opted for the brand (Pride and Ferrell, 2014). Those who tried a brand have more chances to become brand loyal customers whereas more brand awareness needs to be spread for those who have not tried a particular product. Basically for Monster Energy drinks, decision makers are only observed as their users. For instance young males and females purchase this product for their own consumption. Split loyal customers are witnessed in that market segment where Monster Energy drinks operate. These customers show their loyalty towards more than one brand and hence the company needs to constantly upgrade their marketing strategy. Positioning statement Positioning can be stated as a design of company’s image and offerings in order to occupy a particular space in target market’s mind. The main goal is to locate a brand name in consumer’s mind for maximizing firm’s potential benefit. This kind of positioning statement enriches brand value and enables customers to easily associate themselves with the brand. Positioning statement should be such that it takes into consideration current market scenario as well as provide users with a future outlook. It can be stated that ultimate outcome of positioning is developing a value proposition which is customer focused. Positioning facilitates communicating and defining similarities and differences between other players and own brand. Brand positioning statement of Monster Energy drinks comprise of providing a health drink which shall be beneficial for target market segments. The positioning statement of the company is – “a beverage company that sustains as well as fuels energy throughout a long and busy work schedule.” This type of statement clearly outlines that the product is being manufactured for all hard-working and active individuals located across the globe. The health factor is highlighted well in product characteristics and in all its promotional activities. It can be regarded as a point of difference that strengthens market position of Monster Energy. Brand Strategies Branding strategy of an organization is at times known as brand architecture. This kind of strategy reflects nature and number of distinctive and common brand elements. There are certain choices available to a firm while designing a brand strategy. They are developing new elements for a product’s brand, application of existing brand elements or combination of existing as well as new brand elements. Monster Energy has taken active measures in terms of strengthening their brand name in global market place. This company innovates and launches new products every year so as to attract large base of consumers. It mainly follows line extension strategy since new products or energy drinks are launched under a common brand name. This in turn helps to strengthen position of brand equity. The new product introduced by the company differs in terms of new forms, flavors, package sizes, colors and ingredients. Monster understands the need of energy in one’s life. In earlier days all advertisements of the company was male oriented but in later stage it even shifted towards female market segment. The brand currently addresses demand of both markets and it often highlights a rugged brand identity. Its branding activities even encompass sport related enthusiasm for its target segment. Conclusion As per this study, Monster Energy drinks are focused towards acquiring health conscious market segment. In current scenario, people are inclined towards health or energy drinks. It can be stated that it gives an opportunity to companies in terms of promoting such products. There are innovative strategies implemented by the company in order to sustain their market position. The industry in which Monster Energy operates is intensely competitive and hence proactive measures are undertaken by the firm. These techniques are related to structuring branding strategy, analyzing demographic characteristics, determining behavioral features, etc. In overall context, the target market for the company is those males specifically and even some females who fall in age category between 18 to 28 years. Sports related enthusiasm is also outlined in all forms of promotional activities. The major area of concern for Monster Energy drinks is to provide enthusiasm or energy through their wide array of products. This strategy is adopted by many players operating in similar markets but high frequency of promotional activities enables the brand to be at top of consumer mind. References Kotler, P. and Keller. L.K. (2011). Marketing Management, Fourteenth Edition. New Jersey: Pearson Education, Inc. Monster Energy. (2015). News. Retrieved from: http://www.monsterenergy.com/in/en/news/ Pride, W. and Ferrell, O.C. (2014). Foundations of marketing. UK: Cengage Learning. Read More