Monster Beverage Corporation: Cougar Capital Partners (CCP)

Now that the soft drink industry has been analyzed has a whole, an evaluation of a specific soft drink company will be discussed in further detail. Commonly known as Monster Energy, the company that will be assessed is Monster Beverage Corporation. The objective of this research is to determine whether or not the company is a good investment for Cougar Capital Partners (CCP). This in-depth analysis will evaluate Monster Corp.’s business strategy, competitive position, and financial performance relative to those of its competitors.

Originally known as Hansen’s Natural, the company decided to change its name to Monster Beverage Corporation in January of 2012. The company’s headquarters are located in Corona, California, and Rodney Sacks has

Consequently, a company most often takes one of two routes: a cost leadership or product differentiation business strategy. When looking at Monster Energy specifically, product differentiation is the strategy that best fits with its approach to reach its consumers. Product differentiation is a tactic where an organization attempts to stand out from its competition by distinguishing the perceived value of its product or services compared to those of its competitors. Due to the fact the soft drink industry is a highly competitive industry with a variety of choices, it is imperative that Monster develops a business strategy that entices consumers to choose their beverages. Monster Energy attempts to differentiate its products from other soft drink companies in a number of

In order to differentiate itself from its leading competitor, Red Bull, Monster Energy decided to focus their efforts on the size of their cans and their flavors. Compared to the size of Red Bull can, Monster cans hold almost double the amount of volume. The size of a Red Bull can is 8.3oz, whereas the size of a Monster is 16oz. Additionally, Monster offers a variety of beverage options including Monster Lo-Carb drinks, Java Monster Blends, or its traditional fruity flavors. The large product line and the sizes of the cans tend to attract a wide range of consumers.

The second base of product differentiation focuses on the relationship between the company and its consumers, specifically consumer marketing. Through marketing and advertising efforts, the firm can position itself to appeal to current or future customers. As previously stated, Monster Energy’s slogan is “Unleash the Beast.” Staying true to the name, the firm focuses its energy to target young athletes, specifically directing their efforts towards extreme sports. According to Monster Energy’s official