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Monster's marketing schema in China

In  North American energy drink market, another big market player is arouse up, its market share reached 39% in 2014, which is almost approaching market share of Red Bull (approximately 43%）. By 2015, Monster's share of the US market has reached 52.8%, surpassed Red Bull.

Monster has became the leader which belongs to Red bull before. and then they moved their step to China.

The monster has been determined to be the brand name of “Magic Claw”in Chinese market. It's the first step which has some benefits with a localization name. It has entered China in September 2016 and the products have appeared in supermarket  in some cities such as Beijing and Shanghai.

According to Nielsen's annual data, sales of energy drink market in China increased by 6.9% in 2015. And the contribution from new products reached 90% ,which means the Chinese energy drink market is rapid growing period. By leveraging of the  distribution channels of Coca-Cola, the monsters are determined to win the success in the growing Chinese energy drink market.

the pattern of Chinese energy drink market shows a multi-brand, multi-price trend. Specially, from packaging options and price positioning side, it have several trends: First, sports drinks, such as pulsating,most of time they are bottle-based, while energy drink, like Red bull, is more can-based. Second, the price range coverage has been really complete in the different price market and low price, middle price and high price energy drink market have corresponding products. Besides, due to cost and product positioning and other factors. the price of can-based energy drink is higher than bottle-based one. Third,  The price of energy drinks is very common for 6~7 yuan which represented by Red Bull.

At present, the main products of energy drinks in Chinese market. Expect Red Bull, there are Dongpeng Special Drink, Kaili, Rijia, Lehu, Black Card and so on. For the market share of various brands from 2010 to the present, Red Bull has always occupied the top position in energy drink market and maintained at around 80%. Dongpeng special drink ranks second, but the market share is only about 10%. Kaili has occupied a certain share since 2012, but it has fallen sharply since 2014. For the market situation in 2015, Red Bull accounted for as much as 75.18% which accounted for almost three-quarters of the total share of energy drink market. The market share of Dongpeng special drink  was 10.91%, up 9% year-on-year. However, most of Chinese brand suffered from distribution problem. Even for the market leader, Red bull,also has to face the law suit because of trademark right. it means Monster has a huge chance to acquire market shares from their competitors

The three major development trends cannot be ignored in Chinese market.

First, The professional and large-scale health concept can no longer to meet people's needs, and only products with specific ingredients which are truly healthy will be accepted by the market. Consumers have became more purposeful, more subdivided. Furthermore, energy drink with specific functions will gain a lot of room from development.

Second, The flavour. The trend of traditional drinks such as juice, tea and carbonated beverages is turning to be weak, the market is gradually turning to new drinks which has background of healthy and good quality. The "near water drink" represented by Pulse has shown a good sale in recent years, especially in summer. Therefore, Pepsi, Kang Shifu, Jianlibao and other soft drink players have also increased their layout, and launched a variety of products, such as Wei Power, Haizhiyan.

Third, The channel of distribution. The urban consumer market has gradually become saturated. So channel sinking has become an inevitable choice which means develop lower-tied market. The companies such as Coca-Cola and Yili have already laid out third-tier cities and townships, which enjoy the incremental space brought by sinking and building more perfect distribution channels. Although energy drinks as a recently emerging beverage category have not  fully saturated yet, the layout of the market with low initial penetration and high consumption potential as soon as possible will help open market share and seize opportunities . At the same time, as the market leader of Red Bull, it also put forward the slogan of "terminal sinking, service sinking, developing village market, and having Red Bull in the village", consolidating its position through deep distribution mode，which has shown a successful trend in countryside of Guangdong province.


                                                                                                                       -lingyu hu-
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