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Business Analysis: Monster Beverage Corporation

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Monster Beverage was founded in the 1930s by Hubert Hansen and was called Hansen’s Juices, Inc. Over the course of 40 years, the company has changed names and slowly evolved into what it is now. The company officially changed its name from Hansen Natural Corporation to Monster Beverage Corporation in 2012 (Monster Beverage Corporation Annual Report, 2016, p. 6). Monster Beverage’s stock symbol is MNST (Yahoo! Finance, 2016). Monster Beverage’s current CEO is Rodney Sacks and their headquarters is located in Corona, California (The Wall Street Journal, 2016). The reason this company was initially started, according to its annual report, was “…to sell fresh non-pasteurized juices in Los Angles, California” (Monster Beverage Corporation Annual…show more content…
The idea that we should maintain a healthy and active lifestyle is a huge sociocultural trend that affects nearly every industry. Monster Beverage is heavily affected by this. This can be clearly seen by the types of products Monster Beverage has been producing recently. Monster Beverage has slightly drifted away from only producing high-calorie, high-sugar products and are starting to produce “healthier” alternatives. Products like the Monster Ultra line (zero calorie, zero sugar) are a prime example of Monster Beverage adapting to this changing view point of healthiness. People are looking for healthier, more natural products. Monster Beverage has even gone as far to create an energy drink with no caffeine (Monster Unleaded). Connectivity and convergence are another sociocultural trend that affects business (Singh, 2014). Meaning, the ability to communicate with anyone at any time. With the help of the internet, this trend is becoming increasingly popular and businesses should utilize it. Monster Energy does a great job at staying connected. One of the biggest ways they do this is by being one of the biggest sponsors of motor sports. They also sponsor athletes such as Rob Gronkowski and Ronda Rousey. By being sponsors at multiple levels, they are allowing for this trend of connectivity to positively affect them (Monster Energy Sponsored Athletes,…show more content…
Customers are vital to how Monster Beverage conducts business. Millennials are drinking energy drinks more than any other generation. Monster Beverage has molded its marketing strategy based upon that fact (Bailey, Energy Drinks Continue to Thrive despite Controversies, 2015). Customers also play a role in what kind of sponsorships Monster Beverage takes part in. Because millennials are Monster Beverage’s top customer, Monster Beverage sponsors athletes, bands, and personality that they think Millennials will like. According to Sharon Bailey from Market Realist, “Monster Beverage sponsors adventure sports, rock bands, and music concerts primarily to cater to the Millennial consumer.” (Bailey, Energy Drinks Continue to Thrive despite Controversies,
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