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Elaborated SWOT Analysis of Monster – The Second Best Selling Energy Drink

Updated on: Dec 29, 2021
SWOT Analysis of Monster - Featured Image

In the previous blog, we had done elaborated research on the SWOT analysis of Gatorade – a sports-themed beverage & snack company. In this blog, we are going to discuss a detailed SWOT Analysis of Monster – The Second Best Selling Energy Drink.

You must have heard “Unleash the Beast”. What comes to mind after listening to this? You are correct. It’s a Monster’s Tagline. Monster is the only particular energy drink that is different with its 34 flavours in the market as it stands as the second best-selling energy drink in the world. 

One of the factors that made Monster popular in the market is its marketing strategies. In this digital era where almost every business is going online, digital marketing has become very important in today’s world and if you want to learn and gain more knowledge about it, go over to our Free MasterClass On Digital Marketing 101 by Karan Shah, the CEO and Founder of IIDE. 

In this case study, we will learn about the SWOT Analysis of Monster. But first, let us know about the company and the product better.

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About Monster

SWOT Analysis of Monster - Black Monster Energy Can

Originally founded with the name Hansen’s in 1935 in Corona, California and later renamed itself as Monster Beverage Corporation in 2012. Monster Beverage Corporation is one of the well-known manufacturers of non-energy and energy drinks which starts from producing natural soda goes to the production of energy drinks and many more.

After getting popular in the market with its Monster products, it started producing drinks under different brand names. Later in 2015, Hansen sold 19.3% of stake and ownership of juices, sodas and other non-energy drinks brands that were under Monster Beverage Corporation to the Coca-Cola company, keeping its product Monster Energy ownership among itself. Currently, Monster Beverage is a leading brand in the FMCG sector.

Quick Stats on Monster
Founder Hubert Hansen
Year Founded 1935
Origin Corona, California, US
No. of Employees 3666+
Company Type Public
Market Cap $ 50.16 Billion (2021)
Annual Revenue $ 4.6 Billion (2020)
Net Income/ Profit $ 1.06 Billion (2020)

 

SWOT Analysis of Monster - Monster Beverage Corp Product Portfolio
(Monster Beverage Corp Product Portfolio, Source: Worldkings)


Products of Monster

Monster has been manufacturing energy drinks since 1935 and has a variety of them:-

  • Energy drinks
  • Natural soda
  • Diet soda
  • Drink mixers
  • Fruit juices
  • Juices for children
  • Smoothies
  • Signature Soda
  • Natural and diet tea sodas


Competitors of Monster

  • Frucor
  • AJE
  • Red Bull
  • PepsiCo
  • National Beverage

As now we have a better understanding of Monster, let’s look into the SWOT Analysis of Monster.


SWOT Analysis of Monster

Carrying out a detailed SWOT Analysis of Monster helps in finding its strengths, weaknesses, opportunities and threats. Understanding internal strengths and weaknesses and external opportunities and threats. SWOT analysis helps in forming correct objectives and plans for the future. 

To better understand the SWOT analysis of Monster, refer to the infographics below:

SWOT Analysis of Monster - SWOT Infographics of Monster

So let us go ahead and first have a glance at the strengths of Monster from the SWOT analysis of Monster.

Strengths of Monster

Strengths represent everything that an organization is good at and why it sets them apart from the competition. They are the internal and positive attributes of any company. Monster’s strengths are: 

  • Range of Products: Monster deals in producing and distributing a range of soda products including natural & diet soda, energy drink, fruit juices, and many more in different flavours which makes Monster one of the most strong competitors in terms of selling diversified products.
  • Strong Hold on Market: The company has distribution channels in more than 100 countries and especially their Monster energy has created almost a monopoly in the United States controlling around 39% of the $5.7 billion US energy drink market.
  • Coca-Cola as Owner: Having a stable and strong company Coca-Cola as an owner gives a boost to the brand Monster and helps in development.

SWOT Analysis of Monster - Monster Sponsoring MotorBike Sport

  • Sponsor of Extreme Sports: Monster gets publicity by sponsoring and supporting extreme sports which include boxing, F1 race, BMX, Motorsports, Esports and many more. These sponsorships give a boost to the sales within the customers who follow extreme sports. 
  • Appealing Packaging: The Monster’s ripping “M” design on cans, dark coloured packaging, and oversized cans creates an impactful persona in the developing energy drink market. The packaging and design gives it a solid look and appeals to customers to purchase it.
  • Brand Portfolio: Monster Beverage Corporation’s Monster Energy drink is the second-highest selling drink after RedBull which in itself tells that Monster has invested time and efforts to build a strong brand portfolio over the years.
  • Profit Making Company: Monster Beverage Corporation has been a success at generating good returns on expenditure by almost sustaining $1.06 Billion income from $1.38 Billion operating income. 


Weaknesses of Monster

Weaknesses pull an organization back from performing at its best. They are the negative internal factors that weaken business strengths. A few drawbacks or weaknesses of Monster are:

  • Limiting its Reach: Monster focuses on the proportion of the market who follow extreme sports which in itself limit the market coverage and impose self restriction to grab other markets. 
  • Traditional Marketing: In traditional advertising channels, Monster only focuses on sponsoring sports events which telecasts only on sports channels, other than this Monster is not shredding lights on advertising its products on other entertainment channels, roadside billboards and to other customer base which ultimately limits its products reach to everyone.   
  • Only One Gender Monopoly: The aggressive designs of cans create an impact on males to purchase Monster but when it comes to female market acquisition, Monster somehow lacks in that.   
  • Common USP: Eventually the products are a great success in terms of sales, but when the question occurs what is the USP (unique selling proposition) of the product then the answer is undefined because most competitors like RedBull and Frucor are already selling the same category which makes Monster’s USP common in the market.
  • Variety of Products Creating Confusion: The huge variety of products Monster has to offer has somewhat held them back as it has been seen to confuse the customers who are only looking for a narrow segment of sports energy drinks. So many flavours and types of products have left the customers not knowing what to choose which has only resulted in the loss of market shares to the other competitors.  


Opportunities for Monster

Opportunities are the factors that provide an organization with a chance to edge over others. They are the external factors that can contribute to the success of any company. Certain opportunities that Monster has:

  • Exploring Markets: There are a great number of opportunities for entering new markets for Monster Beverage Corporation. Monster has already a great strength in entering new markets and generating new revenue streams.
  • New Combinations: Monster Beverage Corporation has greater opportunities in searching for appropriate and innovative beverage combinations such as one of its competitors Red Bull is doing.
  • Social Media Presence: Monster has a strong social media presence with more than 7.5 million followers on Monster energy and up to 35k on its girls’ page. They promote their product by uploading video clips of sports achievements that were sponsored by Monster and Monster is getting sales through this strategy. This is why Monster should continue increasing its social media presence.

Monster is achieving huge success in the market because of its appealing social media presence. Not only Monster but most of the other sports energy drink brands generate half of the sales from social media & e-commerce. Achieving this is only possible by learning and implementing various digital marketing skills. You can also achieve success by learning the same and it is important to learn these skills in today’s digital world. So, make sure you check it out for your benefit…

  • Product Innovation: Monster Beverage Corporation has several opportunities for expansion outside energy drinks or to expand their menu. They could give a try to manufacture other innovative products other than energy drinks and make them successful.
  • Healthy Drinks: Monster must grab the opportunity to produce a healthy section for fitness inspired people. As the world is moving towards a healthy lifestyle, this will help the business to grow.


Threats to Monster

Threats are the factors that can affect an organization in a harmful way. These are the external factors over which no company has control. A couple of Monster’s threats are:

  • Changing Lifestyle: After all the world is moving towards a healthy lifestyle, some brands try to get more monetary advantage out of it and this leads to a decrease in people who trust the energy drink’s brand. It becomes difficult for brands like Monster to get more customer retention by making people understand that the brand is trustworthy.
  • More Fruit Juice in Demand: The shift of customers towards fruit juices instead of energy drinks sets a real threat for Monster Energy. Although Monster Beverage Corporation has a variety of fruit juices, people prefer handmade fruit juices from brands that are solely into manufacturing fruit juices.
  • Tough Competition: Even Though Monster has built a strong brand image and has power over the market, new competitors like Sting Energy – a product of the biggest rival, PepsiCo. The company cannot be neglected. Within the narrow segment, the competition is cutthroat and tough.
  • Government’s Regulation: Enhancing regulation by the government for the energy drink market can adversely affect the business of Monster.
  • Employee Engagement Activities – One of the real competitors, Red Bull, provides regular campus activities for employees and this is the area where Monster somehow lags.


This ends our elaborated SWOT analysis of Monster. Let us conclude our learning below.

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To Conclude

In the growing era of the digital world, every individual is going online to connect with others. Be it a business or an individual person, an online presence is a must nowadays. The shopkeepers, salespeople all have shifted to online platforms, so as customers.

Traditional marketing techniques are now setting backseat while digital marketing is taking over. You must have been through the SWOT analysis of Monster, it does it all but Monster Energy avoids traditional marketing to connect with the 18-30 age group as it focuses more on connecting with customers directly. Their target audience is the one found on online social media platforms.

Digital marketing may seem a little difficult initially but with the right guidance and mentorship, it can be very simple. There’s nothing like learning digital marketing from practising professionals, and IIDE’s IIDE’s 3 Month Advanced Online Digital Marketing Course provides you with the masterclasses, supersessions and short time courses directly from the professionals.

We hope this blog on the SWOT analysis of Monster has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Monster, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Monster in the comments section below.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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