Coursework 1
Monster Beverage Corp.
Module: International Sales Management
Matriculation Number: 40218166
10-22-2015
Monster Beverage Corporation produces energy drinks and alternative beverages, which the company develops, distributes, sells and markets as well. According to Forbes.com (2015), the Monster Beverage ranks 13th in the list of The World’s 100 Most Innovative Companies. In the global energy drink market, Monster Beverage holds a second place with 39% market share, right after Red Bull with 43% (Euromonitor International, 2014 cited in Mitchell, 2015). Despite the number of media scandals concerning health risks of the consumers, this public company has been growing rapidly, increasing their sales consecutively every year
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In their report (2015), the company states four key value drivers: International Growth, Profitable Growth, Cost Management and Efficient Capital Structure. As their annual report explains (2015), when it comes to the International Growth, the Monster Energy brand energy drinks are the main focus, as it represents around 93% of company’s net sales. Currently, the products are sold in 116 countries, with further plans for expansion in the near future. With tailor branding, packaging, pricing and distribution channel strategies, the company strives to achieve profitable growth. To lower the costs, the company will continue to reduce production costs (material and packaging costs), along with decrease promotional budget, including sponsorships, sampling, etc. In 2014, the company decreased its sales and marketing programs by 6.3% compared to 2013. Further in their report, the Monster states that costs of sales include costs of raw materials, co-packing and repacking costs, warehouse expenses, international transfer costs and certain quality control costs. Raw materials (including bottles, cans, containers, ingredients, flavours and packaging) account for the largest portion of the sales costs. To be able to continue expanding and follow their fourth value, the capital structure is intended to optimize the working capital to …show more content…
Monster sold 16.5% of their equity stake for $2 billion, and received ownership of Coke’s existing energy drinks (including the Burn and Relentless brands) (Investopedia, 2015). In return, Coca-Cola received ownership of Monster’s non-energy drinks and brought 10 of its members to Monster’s board (Zacks Equity Research, 2015). Moreover, Coca-Cola has become Monster’s preferred distributor, allowing to access to Coca-Cola’s extensive global distribution network (Investopedia, 2015). The CEO Rodney C. Sacks stated (2015), “the Coca-Cola Company transaction presents a unique opportunity for us. We anticipate that this relationship will provide us with complementary product offerings in many countries as well as access to many new geographies.” Not only will this increase the distribution in existing markets, but it will also open new door into emerging markets. Even though Monster uses distributors and retailers, they are still responsible for the marketing of their products themselves, and even partner with their retailers and wholesalers to assist their marketing
Address the following questions in a 4-5 page write-up of the Boston Beer Company Case to explore the issue of Initial Public Offerings.
Dr Pepper Snapple Group has been the oldest manufacturer of soft drink syrups and concentrates in the United States since 1885. Dr Pepper’s commercial was marked by the well-known ‘Be a Pepper’ campaign, followed by ‘Be You’. The latest slogan is ‘There’s just more to it’, which coordinates with the emphasis on the 23 fruit flavors that give the brand loyal customer base (Dr Pepper 2016).
Samuel Adams has long been one of America’s most popular beer companies. The Boston Beer company prides itself on great tasting beer for the consumer, and profitable growth for the company. Although Samuel Adams beer is a popular beer in New England, it only holds just over 1% of the market share of the beer industry. Overwhelmed by popular brews such as Bud, Coors and Corona, Samuel Adams struggles to gain market share. Even with their low market share, they are still a profitable business. Their mission statement reads:
Molson Coors is a thriving international brewing company that has nine Signature Brew drinks and 123 Special Brew drinks that ranges from non-alcoholic to alcoholic (Molson Coors Brewing Company, 2016b). They have multiple markets around the world which contributes to the success of the company in the brewing industry. This report analyzes Molson Coors’ internal and external environments which determines their position in the brewing industry. It also discusses strategies the company uses in order to be successful in their industry. Molson Coors shares the industry with its main competitors but has its own uniqueness that makes its business stand out. Molson Coors is a successful business that presents opportunities for economic growth.
According to the census this number is around 80 million (US Census Bureau, 2007). Hansen 's Monster Energy drinks offer giant doses of caffeine and sugar in big black cans adorned with neon-colored claw marks. The scary packaging, plus a bevy of extreme-sports sponsorships, positions Monster as an edgy alternative to Red Bull in the fast-growing, $2 billion a year energy-drink market. Monster 's slogan: Unleash the beast. ' ' Monster has certainly energized Hansen. The company has seen its sales more than double since it introduced the brand in April, 2002. Last year, Hansen earned $20 million on sales of $180 million, up from just $3 million of profits on sales of $80 million in 2001. Sales nearly doubled, while profits quadrupled, in this year 's first quarter. Those results helped Hansen earn the No. 26 spot on BusinessWeek 's annual ranking of Hot Growth Companies.
Exchange rate gains or losses are brought to account in determining the net profit or loss in the period in which they arise, as are exchange gains or losses relating to cross currency swap transactions on monetary items. Exchange differences relating to hedges of specific transactions in respect of the cost of inventories or other assets, to the extent that they occur before the date of receipt, are deferred and included in the measurement of the transaction. Exchange differences relating to other hedge transactions are brought to account in determining the net profit or loss in the period in which they arise. Foreign controlled entities are considered self-sustaining. Assets and liabilities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. Exchange rate differences are taken to the foreign currency translation reserve.
A slow growing market is a great way to characterize the energy beverage category in late 2007. This industry was increasing in profits still but was not increasing in profits as quickly due to factors such as market maturity, increasing in prices, competition and new hybrid products (Kerin & Peterson, 2010). The market was still very small but was dominated by Red Bull due to it being one of the first energy drinks, which caused it to dictate the market and have more of an advantage than the other energy beverages. So in late 2007 the market for energy drinks was still
Introduction, growth, maturity and decline are the four stages of a product’s life cycle. Energy drink manufacturers are seeing increased sales and market share for their products in the larger non-alcoholic beverage marketplace. The energy drink industry, as a collection of drink and smaller energy shot products, also is fighting lawsuits related to adverse effects, Food and Drug Administration
The Seesaw of Ambition Finding the balance of a seesaw is easy is easy when it comes to one's mind, but hard to find the balance with different weights. Understanding the right amount of ambition is ideal to either being rewarded or punished in a handful of ways. One need to know a good amount of ambition, the bad amount of ambition, rewards of having the right amount of ambition, and lastly the punishments of having too much ambition.
Illegal immigration is a burden on Americas society because illegal immigrants work here, which is good for them, but they send that money back to the country they are from, which takes money from our economy.
In the present society, people’s schedules tend to be extremely hectic due to either strenuous work schedules or keeping up with school and families. Due to this, numerous individuals do not obtain the recommended eight hours of sleep. On top of not getting enough sleep, they do not eat the proper foods to nourish their bodies. In return, they have a substantial lack of energy. Usually people who do not take care of themselves tend to eventually get more tired by mid-day and as their day goes on. A simple solution would be to go to bed earlier and eat better foods. However, our society has become very lazy, obese, and have started to take the easy way out over the years. Instead of eating better and trying to get more sleep, people drink
The Coca-Cola Company leads the world in manufacturing, marketing and distributing soft drinks. The company is styled as unstoppable due to its universal appeal ranging from Minute Maid orange juice, Dasani purified water to PowerAde sports drinks and Fuze vitamin-enhanced water. Indeed, despite the fact that Coca-Cola has ruled the drink market for the twenty years, however, "the soft-drink giant is struggling as per-capita consumption of soda has hit multi-decade lows."
1. Consider Coca-Cola’s advertising throughout its history. Identify as many commonalities as possible for its various ads and campaigns. (For a list of Coca-Cola slogans over the years, check out http://en.wikipedia.org/wiki/Coca-Colaslogans.)
2016 is a very sensitive year for China and U.S. relationship. Should China and the United States cooperation or friction became a really important question between the two biggest economic countries in the global market, China is a newly growth young age economic developing country, and the U.S. as the head of the global market for years, two of them check and balance each other, but actually they should be work more compactness. The United States had been interested in China since 1784, at the end of World war II America “kept China from fragmenting and limited foreign exploitation.” (heritage.org), American and China had an intricacy history which also is a key point of the relationship between this two country. (heritage.org), As the presidential election underway, China’s relationship with America because a campaign issue for decades, both Donald Trump and Hillary Clinton indicate their point of view between the relationship with China, Donald Trump now as the newly president of the U.S. who will take over the office on Jan 20 of 2017, some of his positons on the future trades’ plan with China will significantly affect the relationship with China. (uschina). According large among of research, easily shows that China and the U.S. owns many factories and power on the global effect. They both are the permanent member of the United Nations which row a higher level of stands at the United Nations.
There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion