Critical evaluation of international marketing strategies of brands Monster Energy and Red Bull in different countries

1.0 Introduction

As illustrated by Hussain and Khan (2013), International marketing strategy is a vital aspect in the in influencing the growth of many  organizations. Through the adaption of effective strategies and development of the right marketing mix targeting various markets around the globe, the company is better positioned to experience tremendous growth. Often, the designed strategies vary across regions and cultures, which makes it essential in promoting a firm’s operations in the international market. An effective international marketing strategy contributes to the competitive advantage of an organization in the international market. This current paper presents a critical evaluation of the international marketing strategies of two energy drink brands, that is, Monster Energy and Red Bull both in developed and emerging countries. The analysis will be based on relevant theories. The main focus will be on the marketing mix, which will specify the product offered, pricing strategy, as well as a promotion strategy. The analysis will also delve into the aspects of segmentation, targeting, and positioning. Besides, the discussion will explore the entry mode of both brands into both the developed and emerging markets. Further, the analysis highlights the success and failures of the brands both in the developed and emerging markets.

1.1 Brand Overview

Monster Energy is an energy beverage brand manufactured by Monster Beverage Corporation—MNST, located in California. MNST specializes in the manufacturing of alternative beverages, including sports drinks, energy drinks, lemonades, juice cocktails, and fruit and juice beverages. MNST is the world’s largest manufacturer of energy drinks. As of 2015, the company had sold more than 10 billion energy beverages within 12 years. In 2002, the company unveiled its major carbonated energy beverage brand, that is, Monster Energy. The revenue of the company grew up to $2.25billion in 2013 from $92 million in 2002 (Bailey 2015). Overall, MNST’s Monster Energy is the secret to its growth. To date, Monster Energy continuous to establish itself as a strong brand. With MNST advantage of market leadership, the brand’s market continues to grow.

Red Bull is a soft energy drink that was launched in the mid-1980s by Dietrich Mateschitz. Besides founding a new product, Dietrich also used an exceptional marketing idea and introduced the soft drink into the Austria market in 1987 (Redbull.com 2020). Red Bull was launched with the idea of reducing physical and mental stress and enhance alertness, endurance, reaction speed, and concentration. Overall, it is meant to energize the mind and body. The brand has received wide approval by many scientists. Also, it is popular among the globe’s renowned sports drivers and athletes. The drink is recommended for individuals desiring an active lifestyle.

2.0 Marketing Mix

Marketing products/services need a combination of different activities. Companies carry these activities to ensure efficient exchange of business deals. Such activities are associated with the variables of the marketing mix; Product, place, price, as well as promotion. This mix is what is commonly known as the 4Ps of marketing (Khan 2014). Generally, the marketing mix is a combination of the 4Ps integrated into business operations.

2.1 Product

As explained by Bell (2014), Red Bull energy comprises caffeine, B vitamins, taurine, glucose and sucrose. Sportspeople, workaholics, and youths need glucose content. Since there is an obvious trend that takes place among the young generation, the company introduced a sugar-free form of Red Bull, known as RedBull SugarFree. SugarFree contains acesulfame K and aspartame in place of glucose and sucrose. Also, the brand came up with Krating Daeng, which is a non-carbonated form of the beverage. The beverage is packed in tall blue-silver cans with the symbol of two red bulls in the front. The two forms of Red Bull are offered differently and are available in different regions; thus contributing to its worldwide popularity.

Monster Energy packaging is very distinct and attractive. The packaging epitomizes the brand’s lifestyle in the mantra of cans and its slogan of ‘Unleash the Beast.’ Also, the name itself is contagious, which is another aspect of embodying the Monster brand and speaks a lot about the company (Olsson 2016). Monster Energy is highly enriched with caffeine and sugar, which enhances its taste. The consumer can easily recognize Monster based on its unique neon-coloured logo embellishing the lustrous black cans. The unique design makes it appellant to the consumers. Furthermore, the company has added new products, such as Monster Energy Ultra with less sugar content for health-conscious consumers (Pirotin, Becker, and Crawford 2014). It has also introduced Muscle Monster, which is appellant to fitness and health-conscious. These unique features make the brand globally recognizable by its consumers; thus, increasing brand loyalty.

2.2 Place

Strategic location is crucial in increasing sales (Gordon, Tapp, and Spotswood 2013). In 2015, Red Bull successfully sold 5.9 billion cans throughout the world, courtesy of its wide network of distributors across the world. Red Bull is conveniently located at places such as supermarkets, convenience stores, nightclubs, outlets, casinos, and bars. At such locations, consumers find it convenient to purchase the product. Besides, Red Bull is always packed in Red Bull unique refrigerators; thus, attracting customers to purchase the energy beverage while they head to the bar or are on grocery shopping. Besides, Red Bull is available on online platforms either in singles or bulk packs, which makes it easier for the customers to purchase in bulk (Bell 2014). The major drive of selling then Red Bull beverage in bars and at the nightclubs is because individuals wish to mix it with other beverages to add extra flavour. Also, it helps them stay up late as they continue partying with friends. At the convenience stores and supermarkets, the drinks are positioned alongside other competent beverages in the same category, to enable the customer to make a choice.

Monster Beverages distributes the Monster Energy product through outsourcing using third-party packers and bottlers. The strategy is less costly, given the reduction in freight costs. Also, outsourcing minimizes damages that would occur during transportation.  Outsourcing enables the production of the beverage within the market reach. The strategy has enabled Monster to expand its market share in the United States and Europe. Monster is commonly associated with the intensive distribution approach, which has seen a large outlet of the beverage to the international market. The brand has succeeded in this strategy since it does not depend on a single outlet or store (Bailey 2015). Monster has also capitalized on modern technology to promote the beverage through the Internet. Even though the drink is distributed widely, the online marketing tools are used to gain new customers. Online advertising creates more awareness of the brand. The preferable target of online advertising include individuals seeking out a leisure on the Internet.

2. 3 Price

Pricing decisions are usually made after determining the worthiness of the product or services to the consumer (Elmaghraby et al. 2015). Just like Red Bull, Monster is a popular brand; thus, selling relatively expensive. However, whereas Monster provides a 500ml package, Red Bull’s largest can is 473ml. Thus, Monster offers more, yet at a relatively low price.

Even though Red Bull continues to lead in the beverages industry, it still faces the threat of competitors. Thus, the market leader determines the strategy of setting prices, though based on competitor pricing. Since the brand is the market leader, it charges premium prices for its beverages and customers purchase them, given their high quality. Red Bull is the pioneer in the energy drinks industry; thus, enjoys the advantage of brand loyalty. The long-term loyalty means minimal chances for a decline in demand. Most individuals prefer purchasing Red Bull in bulk because it is cheaper as compared to a single purchase. Overall, Red Bull is the most expensive energy beverage as compared to competitors like Monster.

Currently, Monster is the second-largest in the line of energy drinks. The position implies that consumers are ready to pay on premium terms for the energy beverage. This is an underscore to RedBull considering Monster Energy’s content is half that of Red Bull. Since Red Bull is a premium brand within the energy beverages category, it uses a premium pricing approach. However, Monster is limited to use such a strategy; hence, opts for a low pricing strategy.

2.4 Promotion

Red Bull is an energy beverage that mainly targets sports individuals, a philosophy well-articulated in their slogan ‘Red Bull gives you wings.’ Regarding their large client base, the brand organizes many spots activities and sponsor various teams and events. Among key events include BMX, mountain biking, windsurfing, skating, motocross, Formula 1, surfing, Red Bull Cape Fear, Red Bull Battle Grounds, Bull Foxhunt, and Red Bull BC One. Additionally, the company endorses different sports celebrities and athletes (Kunz, Elsässer, and Santomier, 2016). Besides sports, it also has Red Bull House of Art for encouraging artists to showcase their works in a 3-months duration during their exhibitions. Also, it promotes its beverages through the Red Bull T.V, which is available on PCs, laptops, gaming consoles, mobiles, and tablets airing different shows, music festivals,  films, videos, and performances. Moreover, Red Bull uses online magazines and merchandise stores for extreme sports individuals.

Monster chooses to support its brands, the scene, its fans, and its athletes over just describing its products. The brand supports athletes to empower them to make a career out of their talent (Matthews 2013). Also, Monster promotes concert tours to enable its favourite bands to visit different towns; thus, promoting the brand. Moreover, the company celebrates its riders and fans by throwing parties and creating memories through various events. By covering a large market globally, Monster has gained popularity within widely recognized sports events. Hence, sports events have proven to play a significant role in promoting the brand.  In most cases, the Monster logo is decorated in sporting events that speak of its exclusive relationship to such events. Furthermore, Monster has its racing teams participating in the motocross and rally sports.

3. 0 Segmentation, Targeting, and Positioning

3.1 Segmentation

Red Bull’s segmentation is divided into two parts, that is, demographic segmentation and the market is categorized into groups based on gender, age, occupation, and income. Marketers commonly know these demographic variables; hence, usually associated with the needs of consumers. Red Bull’s age segmentation ranges 16-30 years (Brown 2013).  Most people in this age gap are youths, professionals, and nationals. The company mainly focuses on men, though women form a part of its customer base. Based on income, Red Bull is a premium product; thus, only affordable to people receiving good income. In terms of occupation, Red Bull focuses on students, sports enthusiasts, and working professionals.

Monster Beverages offers products in the category of alternative beverages, such as lemonades, single-serve juices, juice cocktails, fruit beverages, sports drinks, dairy products, and coffee. Monster concentrates on providing consumers with enhanced flavours. Currently, it offers 14 flavours like locarb monster energy, monster energy, and absolute zero. Alternative Monster energy forms like ultra-sunrise, ubermonster, ultra-blue, and ultra-citron all contain minerals, vitamins, nutrients, herbs, nutrients, which is combined with an exceptional energy blend plus varying levels of caffeine.

3.2 Targeting

Geographically, Red Bull segments its target countries without or with an eligible market for Red Bull. Demographically, Red Bull targets teens and college students between 13 to 35 years. It also targets young adults aged 21-35 years, which are also working professionals. In terms of psychological segmentation, Red Bull targets socioeconomic class. Behavior-wise, they target first time and regular consumers. The brand targets movie halls, supermarkets, restaurants, and bars to enhance its visibility.

The target market for Monster is made up of millennial men aged between 18and 34 years. Monster’s target consumers lead a very active style of life (Quinlivan et al. 2015). The brand slogan ‘Unleash the best’ is featured in the packaging cans. The slogan is associated with the millennials. Thus, Monster is focused on persons involved in sports with a great focus on motorsports and motocross.

3.3 Positioning

Schlegelmilch (2016) explains that Red Bull is the world’s largest beverage brand within the energy drinks category. It has a 39%market share across the US. Selling over 4.6 billion can annually, red bull products are offered in 164 countries. Its association with the millennials and sports and other events such as music festivals contributes to its widespread global presence. Red Bull is well known for endorsing artists and celebrities of the sporting world. Red Bull utilizes the strategy of progressive marketing as a form of promotion marketing, including sponsoring extreme and inspirational music and sports events characterized by high media coverage.

The energy beverages industry is highly competitive across the globe, with the total yearly revenue declining to almost $50 billion. The industry is particularly very competitive in the United States. For Monster Energy, the positioning of the product is a vital pillar of the related marketing activities and is a significant element of success. Since its establishment, Monster has maintained its value proposition and is the continuous building of its brand recognition in the consumers’ minds. Most consumers find Monster to be offering the best bucks value. Presently, the brand offers 35 different flavours and have higher energy content as opposed to Red Bull. Likewise, Monsters exceptional energy beverage flavours offer 16 consumers several use occasions, and not only an optional source of energy to coffee.

4.0 Entry Mode for both Emerging Market and Developed Market

Racoma (2019) illustrates that Red Bull maintains a constant social media presence. Its media house produces inspirational videos and activities to spark consumer engagement. The company’s images and videos make sure that Red Bull is displayed prominently. Social media marketing introduces the brand to the new market via specific logo exposures and product placements. In addition, Red Bull uses print media to enter new international markets. Through its magazine, the Red Bulletin, it circulates informative content with great emphasis on quality and value. Often, the message targets a specific audience. Red Bull also surveys its prospective market to identify the existing niche. They then embark on the best approach to filling the identified gaps or fulfilling the existing need. Further, the brand holds its breakdancing championship to inform the new customers about the brand. Events such as Soapbox Race and Red Bull Air Race are held around the world.

When entering both the emerging and developed markets, Monster Energy targets the millennial generation as the main consumers. The brand uses the generic approach of focused differentiation based on the number of energy drinks providers in the same marketplace. Monster focuses on a subculture and 2-prolonged millennial marketing technique to attain high recognition. For Monster, effective entry into the developed and emerging markets occurs through a uniform millennial culture strategy of marketing and strategies dependent on subculture to accomplish the long-term goals.

5.0 Success and Failures of the Brands Both In the Developed and Emerging Markets

Based on the discussion, the two brands seem to be in a two-horse race. Sports and other events are core to promoting both brands. Though Red Bull maintains its leadership position in the energy beverage industry through a consistent and effective promotion plan. By using all these promotional approaches, Red Bull ensures customers to remember its brand anytime they hear about to see an energy drink, which goes a long way into increasing the customer base. Also, Red Bull’s worldwide recognition is supported by its strong network of distributors. In marketing, it is essential to offer a certain product or service at the right place and ensuring its supply to the market at the right timing.

Currently, Monster Energy is the second-largest popular and energy drink but is yet to catch up with its major competitor, Red Bull. By offering alternative forms, that is, the Monster Energy Ultra, Monster has built strong brand loyalty among consumers who believe that the brand serves their needs. The consumers feel good to identify with the brand since it cares beyond just promoting its sales and contributes to the well-being of their lives. The introduction of the new energy beverages like Muscle Monster, which appeals to the consumer’s fitness and health consciousness, will give Monster a winning edge over the competition with Red Bull. Considering Monster has introduced these new products within a short lifespan as compared to Red Bull, Monster standards a chance to become the market leader. Also, Red Bull offers its beverages at premium prices as compared to Monster. Even though Monster sells an expensive product, it stands a better chance to take over the market since its price rate is lower than that of Red Bull. Red Bull should emulate on the Monster’s marketing strategy to survive the competition.

6.0 Conclusion

The discussion has delved into the Monster and Red Bull’s international marketing strategies in details. As indicated, a proper product mix, combined with a competitive pricing strategy, strategic location, and an objective promotional plan leads to significant success in the international market. As much as Monster offers an effective brand promotion strategy within its prospective niche-markets, it is yet to catch up with Red Bull. A good winning point would be to focus on social media marketing to reach a larger market

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