Media Plan - FINAL

I. Executive Summary

Herron & Associates presents this brand communications campaign with the primary objective of establishing Monster Energy as the number one energy drink in top of mind awareness, number one in lifestyle promotion, and number one in the eyes of energy drink consumers everywhere. It is our duty to spread the message of “Everyone is a Solider” to the hearts and mouths of consumers across the United States.

Since its humble beginnings in the 1930s, Hansen’s has come leaps and bounds in terms of drink choices, brand positioning, and consumer loyalty. With Monster Energy’s introduction into the rapidly growing energy drink market in 2002, Hansen’s has catapulted itself into millions of American households and filled what was once a void with an energy drink that not only promotes its taste, but also its own lifestyle. Currently, Monster is number two in market shares behind Red Bull, but with our extensive media campaign we hope to change that in as little as five years.

In seeking to not only maintain its strong connection with the current Monster Army followers, Herron & Associates has developed the following comprehensive plan to position Monster within the mainstream energy drink culture as well as readily secure Monster’s hold on the 28 percent market share they currently hold. In such a tough a market as the energy drink sector, taste and positioning are everything.

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II. Situation Analysis

A. Energy Drink Industry OverviewMonster Energy, a line of energy drinks produced by Monster Beverage Company, is part of the $6.6

billion annually energy drink industry. The industry has grown exponentially since 2002 when the energy drink industry pulled in $1.2 billion annually. The energy drink industry is seeing a tremendous surge in growth and new competitors are entering the market on a daily basis. Between 2001 and 2006 there was a 516 percent growth of the market. Major competitors include the industry leader Red Bull, Lost Energy, Rockstar, Full Throttle, Amp and many others. Of the very large industry, Monster currently owns a 28 percent share of the market.

Energy drinks are a very volatile industry in terms of variables. Rising fuel and food costs as well as new market entrants all have an economic impact on all energy drink companies. Changing consumer taste preferences as well as brand positioning (Red Bull “gives you wings” and Monster’s “Unleash the Beast” images) all add up to social influences. Increased marketing of many energy drinks as mixers for alcoholic drinks has opened up an entirely different aspect of social marketing.

B. Company & Brand BackgroundMonster is owned by the natural soft drink and juice producer Hansen’s Natural. In the 1930's, Hubert

Hansen and his three sons began selling fresh, non-pasteurized juices to film studios and retailers in Southern California under the Hansen's name.

In the 1970’s, Tim Hansen, the grandson of Hubert Hansen, began developing and marketing a variety of different natural sodas and pasteurized self-stable 100 percent juices. The sodas and juices were sold under the Hansen’s name. Hansen's is a leading producer of all natural alternative as well as functional beverages ranging from natural energy drinks, both brewed and bagged teas, and unique natural sodas including green

tea soda. The company is currently based out of Corona, California.The mission of Hansen’s Beverage Company is to satisfy consumer’s needs for superior quality and great

tasting, healthy, natural and functional beverages. Hansen’s beverages are positioned as an upscale brand and are often marketed at a premium to competitive mainstream products. While fulfilling their mission statement, Hansen’s is guided by the values of superior quality, natural beverages, commitment to customers, uncompromising integrity, and continuous growth.

Introduced in 2002, Monster Energy is an integral part of the Hansen’s family of products, bringing in over 85 percent of the company’s sales and pushing profits over the $2.7 billion market cap. Monster also catapulted Hansen’s to the number two spot on Fortune’s fastest growing companies of 2007.

Monster Energy is not widely advertised within the mainstream media, but has garnered much of its support through sponsorships of various sporting events and athletes. There are currently seven flavors of Monster Energy: (Original, Lo-Carb, Hitman, Khaos, M-80, Mixxd, and Assault) and eight flavors of Java Monster (Nut-Up, Loca Moca, Originale, Mean Bean, Lo-Ball, Irish Blend, Russian, and Chai Hai), Monster’s answer to Starbucks and their bottled Frappuccinos and Double Shots.

Marketing and Promotions

ProductMonster currently has fifteen flavor variations with one more, known simply as “C-4,” on the way in

early 2009. Flavors span not only the typical energy drink category, but coffee and energy “shot” markets as well. Can sizes range from 500ml for the energy “shot” all the way up to 32 ounces.

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Flavor Variations:•Monster Energy – Distinguished by the green format of the can; citrus/berry taste; available in 8.4, 16, 24, and 32 oz cans.•Lo-Carb – Distinguished by the blue coloration of the can; lo-carb variation of the original Monster; berry taste; available in 8.4, 16, 24, and 32 oz cans.•Assault – Distinguished by the red can format; cola-flavored drink; available in 8.4, 16, 24, and 32 oz cans.•Khaos – Distinguished by the orange coloration of the can; tangerine juice blend; available in 8.4, 16, and 24 oz cans.•M-80 – Also branded as “Ripper” in the UK; yellow cans; pineapple passionfruit juice energy blend; available in 8.4, 16, 24, and 32 oz cans.•Mixxd – Distinguished by the purple can format; red grape and apple juice energy blend; available in 8.4, 16, 24, and 32 oz cans.•Hitman – Energy shooter; distinguished by smaller bottle and crosshairs directly pointed at the “M” Monster logo; 89 ml bottle size.

•Java Monster Originale – Coffee latte flavor; 8 oz cans.•Loca Moca – Mocha flavored coffee beverage; 15 oz cans.•Mean Bean – Vanilla latte coffee flavor; 15 oz cans.•Russian – White Russian flavored coffee beverage; 15 oz cans.•Nut-Up – Hazelnut flavored coffee beverage; 15 oz cans.•Lo-Ball – Lo-carb version of “Mean Bean”; 15 oz cans.•Chai Hai – Chai Tea flavor beverage; 15 oz cans.•Irish Blend – Irish cream flavored coffee drink; 15 oz cans.

PriceMonster has always been fiercely competitive in terms of pricing within the energy drink market. Red

Bull has always been the most expensive of the energy drinks, yet offers the smallest can sizes. Monster’s drinks have been seen to range anywhere from $1.50 all the way up to close to $3.00 depending on the placement and geographical location of the seller.

Place/PromotionsRather than solely targeting the typical energy drink market, Monster has branched out with its

“Monster Army,” a grassroots marketing team composed primarily of its target audience of 14-30 year olds, and has positioned itself more toward the extreme sports scene. Rather than go the traditional route of print and electronic media advertising, Monster relies solely on its sponsorship of events such as the Winter X Games, various professional athletes and most recently a partnership with Kawasaki. Monster Energy is set to sponsor the 2008-09 MotoGP World Championships and is poised to catapult itself to the forefront of the European energy drink market. Monster is also marketed more like a lifestyle and less like an energy drink. However, a problem the company may run into in the near future is their lack of traditional media, which currently limits its product reach past those involved in the extreme sports scene.

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C. Brand Characteristics/Product Evaluation•3 Ways Monster differs from its competition:

1. Unique color schemes for each different flavor.2. Different taste characteristics – very different from Red Bull and other competitors.3. Higher caffeine content.

•3 Ways Monster is promoted:1. Athlete sponsorships2. Partnership events3. The “Monster Army”

•3 Brand Strengths:1. Name and graphics create a very cool image.2. Each drink variety has a different color scheme to differentiate between types.3. Lots of opportunities to expand their reach and recognition through partnerships and

events.•3 Brand Weaknesses:

1. Patrons must limit their intake of the product due to high caffeine content.2. It still has that “energy drink taste.”3. Lack of mainstream advertising limits their reach to mainstream audiences.

D. Competitive AnalysisThe three major competitors that Monster Energy Drink faces are Red Bull, Rockstar and Amp. The best

way to compete against this competition is by determining their promotion vehicles, slogans/campaign themes, brand positions, strengths and weaknesses.

Red Bull, Rockstar and Amp all sponsor action sports for their promotional activities. This works for them because they are able to get their brand out there by putting logos and advertisements at the events. These brands also sponsor a lot of amateur and professional athletes, some of which could be used in marketing campaigns. Red Bull uses professional snowboarder Shaun White to help promote their product. Rockstar sponsors extreme sports athletes such as their current spokespersons BMX rider Ryan Nyquist and Skateboarder Bucky Lasek. They sponsor outside the sports world with celebrities like Snoop Dogg and Rod Stewart. Amp sponsors NASCAR driver Dale Earnhardt Jr.

The slogans and campaigns each competitor uses seemed to have worked well. “Red Bull Gives You Wings!” “Party Like A Rockstar” and “Amp Yourself.” Red Bull’s television ads have been very successful in establishing them as the most well-known energy drink due to their clever yet incredibly simple design and execution.

The brand position is a vital part of any company because bad position and strategy can ruin the business and its holdings. Red Bull was the first energy drink to hit the shelves and they are the leader in action sports sponsorship by energy drinks. Rockstar gives its audience the feeling that if they drink Rockstar, they can or will party like one.

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Strengths and Weaknesses

•Red Bull’s strength is how well known their product is and their strength of promotions. They have created their own extreme sporting event, Flugtag, which combines human ingenuity and Red Bull’s “Gives You Wings” tagline. Contestants design human powered contraptions in an attempt to fly the furthest off of a ramp leading into a lake or river. Past entrants’ designs have resembled ducks, motorhomes, and oversized “Big Wheels” toy trikes. Red Bull’s weakness is lack of variety with its drink flavors. Most other major energy drinks have more than two flavors, whereas Red Bull only has regular and sugar-free varieties.

•Rockstar’s strength could be construed as a weakness as well. The image Rockstar has built for their brand is one of “I want to be a rockstar and party like a rockstar, so I will drink Rockstar!” The party scene is not for everyone, so this image limits their audience, but at the same time keeping hold on their rockstar audience. One of Rockstar’s other weaknesses is the size of their can, which is much larger than Red Bull’s. This is also a weakness of Amp and Monster, mostly because most consumers do not want to drink such a large amount of energy drink for fear of the dreaded caffeine crash. Rockstar, as well as Monster, must find a happy medium of energy and size in order to fully capture the energy drink market.

•Amp’s strength is having the help of its parent company and their vast amounts of disposable marketing dollars, Mountain Dew. Amp’s innovation in energy drink taste has set it apart from the rest of the field. Essentially, Amp is Mountain Dew with an extra energy kick. Amp also sponsors NASCAR driver Dale Earnhardt, Jr. and the number 88 car. The can’s large size and its newcomer status into the energy drink world are Amp’s weaknesses at this time.

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S.W.O.T. AnalysisStrengths

•Monster Energy has gained a lot of ground in the US energy drink market since its launch in 2002. Its owner, Hansen’s Natural, has been producing popular refreshments since the 1930s. Hansen’s Natural provides Monster with strong ideas and marketing. This is one of Monster’s strengths. •Monster Energy has its own website to differentiate it from other Hansen’s products as well as other energy drinks; providing strong brand identity for Monster. •The Monster Army marketing initiatives have helped build brand interest with consumers. No other energy drink has any sort of business-to-consumer group like Monster Army.•The variety of flavors that Monster Energy has gives consumers a wide selection depending on what their taste preference is. With 15 different options the consumer can tackle their need for energy in many different ways. •The Monster logo is hip and cool; it provides high brand recognition among consumers.

Weaknesses•Because Monster Energy contains ingredients that speed up the heart rate, consumers need to limit their intake of the drink. Studies show that energy drinks are not harmful when consumed in moderation.•The taste of an energy drink is still there with some Monster Energy drinks, which can cause some problems. But, with the addition of new coffee flavors the “energy drink taste” is less noticeable.•The energy drink market, like almost everything in the economy today, is becoming extremely competitive. This makes it difficult to keep up and stay on top.

Opportunities•Fresh marketing has been Monster’s key to success. Using professional extreme sports athletes as their platform has been very effective for Monster Energy. Sponsoring and partnering with athletes, the X-games, and various other events provides a great deal of opportunity for expansion in the energy drink market.•Vending machines are just about as popular as trashcans. By placing Monster products in these, Monster can reach those consumers “on-the-go.” May it be taking a quick break at the office or hanging out at the mall with friends a Monster will be there to get you through.•The Monster Army and promotions like, “Tabs for Troops” open up more platforms for Monster. •Donating to a cause that most can relate to can be very successful for a company.

Threats•Trying to cover the “energy drink taste” can be dangerous. Adding to much or not enough of an ingredient can ruin the taste for consumers. •The large can size may give you more energy, but too much can be damaging to your health.•With the rise of so many new and different energy drink brands making it difficult for Monster to stand out the Monster voice could fade out. Monster has to think of different ways to be different than all the other brands.

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III. Meet the Monster ArmyA. Demographics

Monster is targeted at male and female amateur extreme sports fans aged 14-30 with annual incomes under $40,000 and MotoGP World Championship fans 18-45, professionally educated, with an annual income of $25,000+.

B. Geographics Monster uses an underground grassroots-style promotional method combined with new media partnerships to connect consumers worldwide and expand the European market through a partnership with Kawasaki.

United States – AST Dew Tour Market Stops1. Baltimore, MD – Panasonic Open2. Cleveland, OH – Right Guard Open3. Portland, OR – Wendy’s invitational4. Salt Lake City, UT – Toyota Challenge5. Orlando, FL - Playstation Pro

Europe – MotoGP World Championship Circuit Stops1. Spain2. Italy3. Great Britain4. Germany5. Netherland6. Czech Republic

C. PsychographicsThe Values And LifeStyles (VALS) profiles that pertain most to our consumer segment are (in order of importance):

•Experiencers•Strivers•Innovators

Energy drinkers are experiencers who want a product that will help them maintain their high paced and impulsive lifestyle. This product will supply them with the energy they need to participate in sports, outdoor recreation, and various other social activities.

D. LoyaltyThe best loyalty segment for this campaign is BRAND SWITCHERS.

Brand switchers come in two varieties, favorable (FBS) and unfavorable (UBS). Both are influenced by cost and price promotions in making their brand decision. We target these groups with promotions in hopes they will become brand loyal to Monster. If we can win over our consumer with price and they enjoy the taste, hopefully they will become brand loyal. Price will ultimately lure college students in first.

E. UsageOur primary target market (experiencers, innovators) can be categorized as regular or light users of

Monster Energy drinks. Again, Monster relies on brand switchers and our ability to sway these individuals’ taste and image preferences to benefit our company.

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F. Benefits SegmentThere are several benefits within the energy drink market segment. Below is a table of those benefits

and the brands that have them (in no particular order):

Brand category benefit: Brand that has it:Packaging Red Bull, MonsterBranding (image) Monster, Rockstar EnergyTaste/quality MonsterPrice Rockstar, Monster, Lost Energy

Generally speaking, our consumer segment prefers the branding (image benefit). With drink names like “Assault” and “Khaos,” many of our patrons buy into the “tough” image that Monster has carefully built.

G. Media ContactsOur target market is primarily reached through Monster-sponsored events, celebrity and athlete

endorsements, as well as promotion from the Monster Army. Our brand’s message also includes these places:1. Internet advertising2. Extreme sports “games” (like the X-Games)3. Sponsorships/endorsements

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IV. Goals &and ObjectivesA. Marketing Objectives Sales

Herron & Associates’ campaign goal is to make a national impact on Monster Energy’s sales dollars by taking away from the competition and increasing sales by 15 percent within the first year. In doing so, Monster will have to branch out into the mainstream media far more than they ever have before, all while keeping the “tough” image. The Monster Army will enable Monster to expand their reach to the mainstream culture while still promoting a somewhat “elitist” and “tough” feel.

Market ShareWe will increase Monster Energy’s market share by five percent within the first year of the campaign

and ten percent within a long term timeframe of five years. Our goal is to draw consumers away from Red Bull and their 48 percent market share (as of 2007) and secure them as Monster Energy consumers. As of the end of the 2007 fiscal year, Monster holds 28 percent of the energy drinks market.

No Fear2% Full Throttle

5%

Monster28%

Amp8%

NOS3%Adrenaline Rush

1%

Red Bull35%

Rockstar11%

Other8%

Market Share as of September 2008

B. Communications Objectives Category Need

Herron & Associates’ campaign goal is to expand the market reach of Monster Energy and provide an appropriate outlet for those individuals who live the extreme sports lifestyle and need an energy drink to keep up with their busy lives. We will create the need for Monster Energy drinks among an additional five percent within the first year of the campaign.Awareness

We propose to increase the awareness of the Monster Army. The consumer’s share of mind will increase substantially with the inclusion of the tagline “Everyone is a Soldier.” We believe that with that kind of mindset, we will be able to draw awareness to Monster’s partnership with the Wounded Warriors Project and garner more support for troops around the world.Attitude

The proposed campaign will create excitement about the Monster Army and the new “Everyone is a Soldier” tagline as well as develop a positive attitude toward Monster’s “tough” image. Purchase Intention

The campaign will push Monster to become the first choice in energy drinks for the consumer.

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V. BudgetHerron & Associates have requested a campaign budget of 7.6 Million dollars or ten percent of net sales

to promote Monster energy. Three different entities will be receiving money from the budget: media buying, promotion and merchandise and public relations budgets. Promotions and merchandise will be given 60 percent of the budget (approximately $4.56); public relations will be allotted seven percent of the budget (approximately $540,000); and media buying will receive the remaining 33 percent (approximately $2.5 million) of the overall campaign budget.

Promotions and Merchandise

60%

Public Re-lations

7%

Media Buying33%

Budget

Media Buying ($2.5 Million)We propose to use 33 percent of the budget for media buying, as we will be branching out in the media

world for Monster’s promotion. Twenty percent of the budget will be set aside for non-traditional media, mainly for the redesign and upkeep of the Monster Energy and the Monster Army website. Part of the non-traditional budget will be directed toward point-of-purchase displays as well. An additional 20 percent has been set aside for simply internet advertising alone like banner ads and sponsored websites.

As we will be branching out into the uncharted waters of television and magazine advertising, these two mediums will receive 30 percent each of the media budget. Several different commercials will be put together and a mock-up design for a magazine ad promoting the Monster/Wounded Warriors Project partnership.

Television30%

Magazine30%

Internet20%

Non-Tradi-tional20%

Media Buying ($2.5 Million)

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Promotions and Marketing ($4.56 Million) We believe that promotions and marketing deserves the largest portion of the budget at $4.56 million

because Monster has relied so heavily on event and athlete sponsorship thus far and such events are not cheap to sponsor. Monster will continue to sponsor events such as the Winter and Summer X-Games, Major League Baseball, and various athletes within the target market demographics. We have designated 50 percent of the promotions budget to such sponsorships, as they have made a huge impact on Monster’s market share to date. Thirty percent of the budget will be appropriated for contest prizes such as all-expense paid trips to Monster-sponsored events and prize packages for the winners of the Monster Can Creations design contest. Ten percent will be reserved for giving out free Monster merchandise such as stickers, t-shirts and drinks while the remaining ten percent of the budget will be held for miscellaneous promotional/marketing activities.

Event/Athlete Spon-sorship

50%

Contests30%

Free promo merchandise

/ drinks10%

Miscelaneous10%

Promotion and Marketing ($4.56 Million)

Public Relations Budget ($540,000)The public relations budget will be broken down into five different sections. The largest portion, at 60

percent, goes to promoting Monster’s involvement with the Wounded Warriors project and their donation of up to $2.5, depending upon how many “grenade” can tabs are collected at various drop spots. We believe that the majority of the PR budget should go toward promoting Monster’s charity contributions. This campaign will help promote the message that “everyone can be a soldier” and by just taking a few minutes of the individual’s own time, they can help impact the lives of many men and women who have served in the United States Military.

Eight percent of the public relations budget has been set aside for the “Ultimate Monster Fan” and “Monster Can Creation” promotional activities. Further details of both events are detailed further in Section 8: Public Relations Recommendations.

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Monster Can Creations4%

Ultimate Monster Fan4%

Event Press Kits16%

Partnership Announce-

ments16%

Wounded Warriors Promotion

60%

PR Budget ($540,000)

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VI. Creative Brief

What is the opportunity and/or problem the advertising must address?

Opportunities:•Targeted television advertising on FUEL TV and during the summer and winter X-Games•Expand advertising to include individuals within our targets that are outside our current advertising promotions

Who are we talking about?

• The undecided consumers – those that aren’t necessarily absolutely 100 percent devoted to Monster but follow that type of lifestyle.

What is the key response we want?

•Reaffirm the lifestyle and promote the image more than the actual taste.

What information/attributes might help produce this response?

• Partnerships with other businesses that share the same lifestyle aspirations/followings•Targeted television (cable) advertising on specific networks and during specific events

What aspect of brand personality should advertising express?

• Monster’s carefully crafted “tough” and “extreme” image as well as the Monster Army family vibe. •Monster’s slogan will be changed to “Everyone is a Soldier.”

Are there media or budget considerations?

•None for the consumer – considerations in doing cross promotions and teaming up with similar companies (Billabong, Quicksilver, Fox, etc.)•Co-op ads with the partner companies and within the X-Games, motocross events, etc.

What other information might affect the creative direction?

•Will taking the “Monster Army” into promotions and can designs offend branches of the U.S. Military?•Changing taste preferences of target market•Keeping the “underground” feel and lifestyle image of the brand while attempting to go mainstream with the product.

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VII. Media PlanA. Media objectives Continuity:

Herron & Associates suggests a pulsing strategy which combines low-level advertising year-round, with a provision for heavy advertising during peak promotional events. Monster will capitalize on this strategy by coupling its promotion and merchandising budget with bursting during the peak summer and winter events.

Reach: We estimate advertising for Monster will obtain an average reach of 95 percent of its target market

during the first year, specifically during the seasonal months. When the desired reach is met Monster will maintain top of mind awareness and increase its overall market share.

Frequency: An average frequency of 2.14 will maximize the guerrilla marketing efforts of "The Monster Army" and

meet the necessary numbers to increase market share in the energy drink industry. This will help the marketing mix by providing a steady flow of advertising with seasonal floods to increase product awareness.

B. Media Strategy Target:

Our target market is 14-30 year-olds who are preferably involved in or enjoy extreme sports. This is Monster’s current target market and to attempt to change it would be a waste of time and money. This target has proven very lucrative thus far and we would like to keep pursuing and expanding within. We also suggest Monster take their advertising and marketing in a slightly more mainstream direction while still trying to maintain the grassroots feel that currently exists.

Media Classes:Monster does not currently advertise through traditional mediums such as television and magazines. We

have decided to expand advertising by slowly moving into these mediums, but only in a way that would appropriately represent Monster. For television ads, we will only be showing them during the Summer & Winter X-Games and then periodically on Fuel TV, an extreme sports network. Magazine advertising would only appear in extreme sports magazines such as Alliance, Surfer, Transworld, Thrasher, and Motocross Action. We will also be advertising on the internet on websites geared towards college students, such as collegehumor.com. Another site is facebook.com, where ads can be targeted to specific ages and interests so only our target market will see the ads. We will also advertise on websites for extreme sports, including those of the magazines we advertise in.

Winter X-Games: January 22-25, 2009Summer X-Games: July 31 – August 3, 2009

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Mini Olympics: Nov. 24-29

Summer X-games: July 31- Aug. 3

Maloof Money Cup: July 11-13

West Coast Championships: May 14-18

King of Wake: April 24-27

Winter X-games: Jan. 22-25

Projected 2009 Media Launch Schedule:

Internet Print Television

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VIII. Sales Promotions RecommendationsA. Sales Promotions

In order to retain and expand Monster’s reach in the energy drink world, a sales promotion plan has been created by Herron & Associates to entice casual energy drink consumers as well as our hardcore following within the Monster Army. With these goals in mind, the agency has set objectives to effectively capture those remaining consumers of energy drinks and build their confidence in the Monster lifestyle. The main message we are looking to promote is “Everyone is a Soldier.” The sales promotional plan will include the following items:

•Product Demonstrations: Much like the old Coke vs. Pepsi argument, Monster will turn to the soldiers of the Monster Army to set in motion a guerilla-style taste test promotion between our biggest competitor, Red Bull, and the various flavors and styles of Monster. Street taste-testing will take place as well as several promotional demonstrations within a bar-like atmosphere. It is rather well known that Red Bull is widely used as an alcoholic mixer and Monster is no different.

• Cooperative Advertising: In conjunction with some of the biggest names in “extreme” sports, Monster will team up with companies such as Billabong, Fox, Kawasaki, Reef, Oakley, and many others in an effort to promote Monster’s hand-in-hand pairing with extreme sports and Monster’s energy drinks.

•Contests: Monster will continue to host the “Are You The Ultimate Monster Fan?” contest in which the winner will win a selected sponsored athlete’s gear used from one of their events. As well as the “Ultimate Fan” contest, Monster will also host a contest in which the winner(s) will win an all-expense paid trip to the Winter/Summer X-Games and will get VIP passes to the Monster Energy after party.

B. SponsorshipsMonster has been a proud sponsor of Major League Baseball, the Summer and Winter X-Games, the

Kawasaki Supercross and many other events. Herron & Associates suggests keeping all of these sponsorships alive and well within the next phase of Monster Energy’s media campaign. All selected sponsorship events positively promote Monster’s alternative lifestyle image and are a healthy representation of everything that the company supports and stands for.

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IX. Public Relations RecommendationsPress coverage will be available through interviews, press releases, and a press kit. News releases will be

sent to announce the following:

•Monster Energy will be teaming up with the Wounded Warrior project in order to raise awareness of the thousands of military personnel that are injured every day around the world and the amount of medical attention they need in order to rehabilitate their injuries. With the “Tabs for Troops” campaign, Monster Energy will donate 15 cents per can pull tab (up to $2.5 million) to the Wounded Warrior Project to honor those brave men and women who put themselves in harms way every day to protect our freedom. Tabs will be collected at various point-of-purchase displays and at large displays at Monster-sponsored events.

•Monster Can Creations – An event/contest in which contestants are challenged to redesign the Monster Energy cans to in any way, shape, or form. The only rules are that the cans must convey Monster’s “tough” image and the nutritional value along with ingredients and company information must be able to fit somewhere on the can itself. One grand prize winner will receive a Monster Energy gift pack and a limited edition run of their can design will be released. First, second and third place winner’s can designs will be available for viewing on the Monster Army website.

•Monster Energy’s new partnerships with various companies that support the “Monster lifestyle” within the extreme sports industry and beyond.

X. Database Marketing RecommendationsHerron & Associates suggests that Monster retain all registration information associated with the

Monster Army and perhaps keep all contest entrants information within some sort of regulated database. Of course, there must be some sort of checkbox for contestants and members of the Monster Army to check in order for them to receive special promotional material after the fact.

XI. Campaign EvaluationWithin the first year of the launch of Monster Energy’s new media campaign, Herron & Associates will

measure the success of the campaign primarily by assessing the growth of the Monster Army as well as market share/sales dollars. Other evaluation measures include:

•Web site hits and promotional sign-ups

•Taste test evaluations coupled with sales revenue increases

•Pre & post surveys regarding frequency and use of Monster Energy

•Brand purchase intention – how likely was the consumer to purchase Monster before and after the campaign promotions were implemented?

•Market share and sales gains (ultimate goal of ten percent and 15 percent long-term)

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Xii. AppendixSources•Monster Energy www.monsterenergy.com •Research and Markets http://www.researchandmarkets.com/research/3cb5ac/monster_energy_cas •Energy Fiend http://www.energyfiend.com/2007/04/the-15-top-energy-drink-brands •CNN Money http://money.cnn.com/magazines/fortune/fortune_archive/2006/12/25/8396769/index.htm •Hansen’s Natural www.hansens.com •Seeking Alpha http://seekingalpha.com/article/97184-hansen-natural-mid-quarter-update • Google Finance http://finance.google.com/finance?q=HANS • Food Navigator USA http://www.foodnavigator-usa.com/Financial-Industry/Report-reveals-keys-to-energy-drink-success

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Monster Energy Survey & Results1. If you participate in an extreme sport, please mark an X on the line: _________

Out of 112 survey participants, 38 said that they are involved in extreme sports.

2. Please circle your gender: Male FemaleOut of the 112 participants, 55 were male and 57 were female.

49%51%

Participants GenderMale Female

3. Please circle your age group: 18-21 22-25 26-30 31+

85 participants were in the 18-21 age group and the remaining 27 participants were in the 22-25 age group. There were no participants in the 26-30 or 31+ age groups.

76%

24%

Age Groups18-21 22-25

4. When you think of energy drinks, which brand do you think of first?

The most popular answer to this question was Red Bull, with 62 responses. 35 of those answers were from males and 27 were from females. The next popular answer was Monster with 21. 9 of those responses came from males and 12 of the responses came from females. The next most popular answer was Amp with 12 responses. 4 of those answers came from males, 8 came from females. The last popular answer was Rockstar with 11 responses. 5 of the responses came from males, and the other 6 came from females. The remaining 6 answers were categorized as other because they were little known brands or uncommon answers.

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19%

10%

11%55%

5%

Energy Drink Brand PopularityMonster Rockstar Amp Red Bull Other

5. On average, how many energy drinks do you consume each week?Of the 112 participants, 47 said they consume 0 energy drinks each week. 13 of those responses came from males and 34 came from females. 44 participants said they consumed 1-2 a week. 27 of these responses came from males and 17 came from females. 16 participants said they consumed 3 or more per week, 13 of which were male and 3 female. The remaining 3 participants said they consumed energy drinks once or twice a month instead of each week.

43%

40%

15%2%

Energy Drink Consumption0 Per Week 1 to 2 Per Week3+ Per Week Once or twice a month

6. Please circle why you consume energy drinks:

I like the taste for energy I don’t consume energy drinks

Out of the 112 participants, 42 said they consumed energy drinks for energy (23 males and 19 females). 37 participants said they didn’t consume energy drinks, 11 of which were male and 26 female. 19 said they consumed them for the taste, 12 of which were male and 7 female. The remaining 9 males and 5 females said they consumed energy drinks for both taste and energy.

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7. Are you loyal to a particular brand of energy drinks?73 participants, 37 of which were male and 36 of which were female, said that they didn’t have a loyalty to

any brand of energy drinks. 7 males and 7 females said they had a loyalty to Red Bull. 4 of the males and 9 of the females said they had a loyalty to a lesser-known brand or said they did have a loyalty, but not to which brand. 2 males and 3 females said they had a loyalty to Monster and 4 males and one female had a loyalty to Rockstar. The remaining male and female said their loyalty was with Amp.

4% 4%2%13%

12%65%

Brand LoyaltyMonster Rockstar AmpRedbull Other No Loyalty

8. Does price determine which energy drinks you purchase?33 males and 40 females said that price did not influence their decisions, while only 22 males and 17

females said price did influence that decision.

9. Does the brand’s image/reputation influence which drinks you purchase?31 males and 38 females said that image or reputation did not influence their choices, while only 24

males and 19 females said it did influence their decision.

10. Please circle how often you consume Monster Energy: Daily A couple times a week A couple times a month Every few months Never

Out of the 112 participants, 0 said that they consumed Monster on a daily basis. 17 males and 36 females said that they never consumed Monster. Fourteen males and 13 females said they consumed Monster every few months. 19 males and 5 females said they consumed Monster a couple times a month, and only 5 males and 3 females said they consumed Monster a couple times a week.

Daily Couple Times A

Week

A Couple Times A Month

Every Few Months

Never0%

10%20%30%40%50%

Consumption Frequency

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11. What do you like about Monster?People who knew about the other varieties of Monster seemed to like those more than the original.

People also mentioned that it goes well with alcohol or that they only drank it for the energy.

12. What do you dislike about Monster?One of the most common dislikes of our participants was the size of the can, which many thought was

too big. The taste was also a concern or dislike for a lot of people.

13. If you would choose another energy drink over Monster, what influences that decision?One common answer was that people would choose Red Bull or other brands that had smaller cans. If

another brand tasted better, people said they would choose that as well. One other thing is that people were looking for sugar free, diet, or juice options of energy drinks, which Monster offers but a lot of people must not know about.

14. Please circle how you normally consume Monster:

By itself with alcohol I don’t drink Monster

14 males and 34 females said that they never consume Monster. Both 14 males and females said they normally consumed Monster with alcohol, 20 males and 5 females said they consumed it by itself, and 7 males and 4 females said they consumed it both by itself and with alcohol.

25%

22%10%

43%

Monster Consumption StyleWith Alcohol By ItselfBy Itself and Mixed I Don't Drink Monster

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Creative materials descriptions:TV storyboards:

The concept for our advertisements is that everyone who lives the Monster lifestyle is part of the Monster Army, regardless of their level of athletic ability. To illustrate this, we featured a variety of professional and amateur athletes. We tried to use a broad spectrum of sports to represent everything that Monster is a part of. One of our spots featured three professional athletes, two young amateur athletes, and one older amateur athlete who is also part of the U.S. Army. The other spot features the same mix of athletes, but all female.

Magazine ad:

The concept for our magazine ad is to be simple yet eye-catching. For our ad we created an image of Monster Army dog tags that takes up the whole page. When the flaps of the dog tags are lifted up, they reveal the copy: “Monster is a proud supporter of Wounded Warriors. To find out how you can help go to woundedwarriors.org”

Can tabs:

To benefit the charity we are supporting, Wounded Warriors, we are collecting can tabs. To make our can tabs stand out more to consumers so they will participate in helping this charity, we have decided to change the style of our can tabs. We have made them into a solid piece that is shaped like a grenade. Each can tab is also color coordinated with the color of the Monster can, depending on the variety.

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Grenade Can Tab Designs/Colors

Lo-Carb Original

Khaos Mixxd

24

Assault M-80

Java Monster

25