LINK 1

1. Congratulations to Monster for ripping the competition a new one and taking a ferocious bite out of the energy drink market. You’ve clawed to #2. But we know we can help you unleash the beast in you to take top spot.

2. LINK 1 Situational Analysis

3. Category Size & Trends • $3.6 Billion in sales for 2006 • Energy drink sales in convenience stores increased by 46.0% from • 06/06-06/07 • Energy drink sales in mass merchandisers increased by 34.0% from • 06/06-06/07 • Aggressive product creation to reach unique demographics Market Composition

4. Product Distribution cont • Product manufactured through third-party bottlers and contract • Packers in the US and Canada • Most co-packaging agreements are on a month-to-month basis • Convenience store sales represent the largest source of revenue • For monster.

5. Package form and size trends • Monster has always been distributed in aluminum cans. • Size of cans has increased overtime.

6. Package form and size trends • Top ten energy drinks are packaged in cans • Industry moving towards bigger cans. • Red Bull still leads with the smallest can 8.3 oz • Monster sells largest cans • Mega Energy Screw Top - 24 oz • ‘BFC’ 32 oz

7. Brand Share

8. Monster vs. The Competition Red Bull Benefits Monster Benefits • Improves performance • Increases concentration and • reaction speed • Increases Endurance • Stimulates Metabolism • Twice the buzz of a regular • energy drink • Smooth flavor • Diversity of Flavors • More drink for your money

9. Primary Target Group • Demographics: • 18-24 year old males; • Youth sports market. • Avg. annual income: • $15-19K. • Behavioral: • Extreme sports enthusiasts • (snowboard, surf, motorcycle, • skateboard, ATV, BMX, snowmobile, body board, Kart, MTB). • They are active, “racy”, raw, and edgy. • They believe that is a little is good, more is a lot better. CONSUMER

10. Lifestyle: • These people smoke cigarettes. They are rebellious and are workaholics. • Customers have fast paced lifestyles. • Heavy users: typically 4-5 cans a week, 10 or more within 30 days. • Light users: 4-5 cans a month.

11. Potential of non-user conversion: • High potential conversion rate with people already consuming from the alternative beverage category. • Vitality in untapped target of blue collar males 25 to 34 looking for a better combination of refreshment and energy boost. Benefits: • Monster users are looking for energy, more bang for the buck, and an association with other “extremists”.

12. advertising AND Promotion Advertising: Print Advertising in Niche Magazines (Motocross, Cycle News, Racer, MX), National and Spot advertising, Posters, Radio Direct Marketing: Sweepstakes, Giveaways Interactive: Website (ability to sign up and enter sweepstakes) Sales Promotion: Point of Purchase, Samples PR: Creating buzz with their Guerilla advertising methods. Monster hooked up with Anheiser-Bush. Monster not only sponsors athletes but they sponsor to raise money for cancer research and the SPCA.

13. Competitive Frame Direct Competitors (in order of market share) Red Bull Rockstar Energy Drink Full Throttle Indirect Competition Coffee Vitamin Water Power Bars Caffeine Pills Energy Shots

14. Weakness: • (Negative perceptions) • Dehydrates • People realizing harsh side effects • Sugars and other unhealthy additives • The packaging doesn’t always show the Monster logo when drinking. • Opportunities: • Extreme Sports is on the rise • Signed partnership with Anheiser -Busch • New audience segment (males 25-34) • Threats: • Increasing Energy Drink Clutter • Coffee and Stimulants • Rockstar Energy Drink • Unregulated Labeling S W O T Strength: Innovation Largest growing energy drink #2 in market share Well known logo Different sizes, flavors, carbs Larger Cans (Emphasis on large size)

15. LINK 2 Marketing Strategy

16. Business & Marketing Objectives Increase market share by 5% Convert consumers of other stimulants outside of the energy drink category to Monster Use offensive strategy to market and distribute in large cities, targeting the blue collar market ages 25-34. Increase Push-Pull advertising during Spring and Summer on the East Coast. Make Monster logo always visible to others while being consumed

17. Source of Business OFFENSIVE STRATEGY • Pull in non-users to try our brand (25-34 blue collar workers) • Light and undecided consumers of our brand (create brand loyalty)

18. Target Groups PRIMARY 18-24 adults that are “extreme” and/or extreme affiliates

19. NEW TARGET -25-34 blue-collar males -Production, Transport, and Material movers -Protective services/Food Preparation -Building and ground maintenance/construction

20. LINK 3 Communications Strategies

21. Current Positioning Statement • Who? Monster Energy Drink • What? The meanest energy supplement on the planet. • For whom? Designed specifically for those who want more energy for their dollar. For people who don’t want to slow down; who believe in living by the minute, not the day. • What’s different? A wicked mega-hit that delivers twice the buzz of a regular energy drink. • So what? Monster supplements extreme lifestyles with smooth kick ass flavors that pack a vicious punch.

22. Promise Monster’s smooth flavored drinks are infused with natural energy boasting ingredients providing twice the buzz of regular energy drinks at less cost, unleashing unleash the beast and help you tear it up. Continual sponsorship of extreme, anti-establishment sports and their wicked athletes that made Monster so popular and potent amongst its audience

23. Sketch of Prototype • Meet Ronnie Ray • 31 years old • Career: Production • High School Grad • Earns $30-40k / year • When Ray gets off work he lights up a cig, hops in his truck, cranks the heavy metal and drives to his buddies house to watch the UFC live on the big screen plasma. In his bathroom he has Penthouse, FHM, and Sports Illustrated. • His leisurely relaxation consists of going off-road in his 4x4 or ATV. He spends what he earns and lives in a one-story house. Ironically, has a kitten named mittens.

24. Tone/Manner • Visually based • Little to no body copy • Active • Edgy • Conveys excitement and energy • Monster must have sole/strong presence

25. Mandatories Monolithic: Monster logo must be unaltered Anthropogenic : Extreme athletes or attractive females

26. Desired Brand Personality • Monster smooth flavored drinks are infused with energy boasting ingredients like Ginsing and Taurine will Unleash the beast in you and will help you set the half-pipe on fire. • But it isn’t for the health nut; it’s for real athletes that rather count back-flips than calories • Innovative • Credible • Anti-establishment • Alternative

27. Reach & Frequency Objectives Media • Reach - 60% • Frequency - At least 3.3 • Monster strives to create a simple but bold message: • Twice the buzz • Product is not seasonal. • Media most compatible with creative - Magazines: • Automotive, Men’s, Music, and Sports. • Media Needs/Constraints • Media needs to represent anti-establishment, extreme sport • Counter culture. • Television will not be used as it is traditional.

28. Wear-out Monster should not be concerned about media wear-out. Wear-out will be delayed through creative executions that will share a number of similar elements such as product name, logo, tag line, layout, while other features such as headline, copy and graphic elements are varied.

29. TheUltimate FightingComponent Expand our brand presence to blue-collar sports, whilst not turning-off our core customers. Ideally, we want to find sports that currently lack energy drink presence and are share a common-ground between current target (“extreme” crowd) and new target (blue-collar).

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