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Table Of Contents Executive Summary …………………………………………………………………….......1 Background Information……………………………………………………………………..3 Situation Analysis…………………………………………………………………………..37 SWOT Analysis……………………………………………………………………35 Market Share…………………………………………………………………….......5 SWOT Conclusion………………………………………………………………...67 Target Market Profile…………………………………………………………………….......8 Past Marketing Strategies and Campaigns…………………………………………....910 Marketing Objectives…………………………………………………………………….....11 Advertising Objectives……………………………………………………………….....1112 Positioning Statement…………………………………………………………………..…..12 Media Mix Objective…………………………………………………………………..…….12 Media Mix Selection……………………………………………………………………...…12 Budget Allocation……………………………………………………………………………13 Media Mix Rationale and Strategy………………………………………………...…..1421 Campaign Theme…………………………………………………………………………...22 Creative Explanation……………………………………………………..……………..2223 Media Planning and Buying……………………………………………………………2325 Geographic Allocation………………………………………………………….2324 Media Scheduling…………………………………………………………………..25 Media Calendar……………………………………………………………………..25 Share of Voice……………………………………………………………………………….26 Campaign Measurement…………………………………………………………………...27 Sources…………………………………………………………………………………...….28 Appendix Media Plan…………………………………………………………………………..29 Reach and Frequency/Year at a Glance…………………………………………30 1

Media Plan Monster Energy

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Page 1: Media Plan Monster Energy

Table Of Contents Executive Summary …………………………………………………………………….......1 Background Information……………………………………………………………………..3 Situation Analysis…………………………………………………………………………..3­7

SWOT Analysis……………………………………………………………………3­5 Market Share…………………………………………………………………….......5 SWOT Conclusion………………………………………………………………...6­7

Target Market Profile…………………………………………………………………….......8 Past Marketing Strategies and Campaigns…………………………………………....9­10 Marketing Objectives…………………………………………………………………….....11 Advertising Objectives……………………………………………………………….....11­12 Positioning Statement…………………………………………………………………..…..12 Media Mix Objective…………………………………………………………………..…….12 Media Mix Selection……………………………………………………………………...…12 Budget Allocation……………………………………………………………………………13 Media Mix Rationale and Strategy………………………………………………...…..14­21 Campaign Theme…………………………………………………………………………...22 Creative Explanation……………………………………………………..……………..22­23 Media Planning and Buying……………………………………………………………23­25

Geographic Allocation………………………………………………………….23­24 Media Scheduling…………………………………………………………………..25 Media Calendar……………………………………………………………………..25

Share of Voice……………………………………………………………………………….26 Campaign Measurement…………………………………………………………………...27 Sources…………………………………………………………………………………...….28 Appendix

Media Plan…………………………………………………………………………..29 Reach and Frequency/Year at a Glance…………………………………………30

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Executive Summary

Target MarketResearch has shown that Monster’s most profitable target market is:1. Primary: Hispanic Males, age 18­24.2. Secondary: Asian Males, age 25­34.

GeographyThis will be a national and spot advertising campaign. Our spot campaign will focus on the top

50 DMAs which reaches over 60% of the USA. Our opportunity markets will be the DMAs whoseCDI is larger than BDI. Research has shown that our target audience is populating most of theSouthwest of the nation.

Media UtilizedAccording to our research data, our target market will be utilizing the following media and

therefore we will use these platforms during our campaign: Network TV Spot TV Cable TV Spanish Language TV Spot Radio Magazines Internet Out­of­home

SchedulingDuring our advertising campaign we will utilize a pulsing schedule, with heavier advertising

during months of higher product sales.

Reach/FrequencyOur reach during our higher advertising months will be 90% and our frequency during our higher

advertising months will be 10.

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Background InformationOriginally, the company’s formal name was Hansen’s Natural Corporation and was formed in

1930’s. Based in Corona California, Hubert Hansen and his sons squeezed natural juices, which werethen sold to local film studios and retailers. Revolutionary at the time, Hansen created delicious juicesfree from preservatives, caffeine, sodium, and artificial flavors and colors. In 2008, the companyradically eliminated high fructose corn syrup from their ingredients and welcomed real cane sugar. InJanuary 2012, the company split their common stock and changed their name from Hansen’s NaturalCorporation to Monster Beverage Corporation. Consequently, their ticker name was changed fromHANS to MNST. The change doubled the number of outstanding shares and the company’s new focuswas the Monster brand.

Monster Beverage Corporation produces the number two leading energy drink behind RedBull. Sales are generally within the United States and Canada to grocery and drugstore chains, andwholesale clubs. The company works aggressively to satisfy its trendy, niche market by creating newproducts. Their marketing efforts are strong in order to bring brand awareness with a total of $165million spent on advertising in 2012.

SWOT Analysis

StrengthsFinancial Performance

Monster Beverage Corporation is doing exceptionally well in revenues and earning profits. Theyhave had a compound annual growth rate of 19% in revenues from the fiscal year ending in 2008, whererevenues totaled $1,182.9 million, to the fiscal year ending in 2012, where revenues totaled $2,060.7million (MarketLine 2013). Monster Beverage Corporation had a compound annual growth rate in netprofits of 33% from fiscal year 2008, where profits totaled $108 million, to fiscal year 2012, whereprofits totaled $340 million (MarketLine 2013).

Despite the economic situations that presented many businesses and corporations with adownturn in their operations Monster Beverage Corporation continued to remain effective in theirbusiness operations.

Energy Drink Market SuccessMonster Beverage Corporation has devoted a great amount of their efforts strictly to the energy

drink market. Such devotion and dedication has indeed paid off. The energy drink segment of MonsterBeverage Corporation accounts for 92% of the company’s total revenues (MarketLine 2013).

Monster Beverages improves their energy drink product lines by targeting different consumerssuch as calorie conscious consumers with zero calorie and zero sugar energy drinks. Monster also owns38% of the market share for energy drink market (MarketLine 2013).

The revenues for energy drinks alone increased 23.3% from fiscal year 2011 to fiscal year 2012

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(MarketLine 2013).

WeaknessesCustomer Database

Monster Beverage Corporation relies heavily on Direct Store Delivery (DSD) for sales revenue.DSD accounted for 95% of total sales in fiscal year 2012 (Hoovers 2013). The other 5% of salescomes from Warehouses. Because Monster Beverage Corporation does not have brick and mortarstores or a way to sell directly to the consumer, their channels relationships must remain strong. Forexample, Monster Beverage sells to Coca­Cola Refreshments, which accounted for 28% of salesrevenue in fiscal year 2012 (MarketLine 2013). In compliance with the customer relationships, Monstercannot fully control their pricing, and product shelf placing strategies.

No Direct to Consumer SalesBecause monster Beverage Corporation participates in selling their products through DSD sales

and warehouse sales, they do not have a direct channel to reach their target market.

OpportunitiesInternational Markets

Monster Beverage Corporation has the opportunity to expand their markets internationally.They are currently in the process of signing distribution agreements with companies such as Coca­ColaHellenic to distribute in markets outside of the United States (MarketLine 2013).Expanding our markets internationally not only benefits Monster by expanding its reach of products, butit could potentially benefit Monster by increasing profits.

Rising interest in Energy DrinksThe energy drinks and shots market grew at a rate of 60% between 2008 and 2012

(MarketLine 2013). In 2012, total U.S. sales for the energy drinks and shots market was worth morethan $12.5 billion (Packaged Facts 2013). This is promising to Monster Beverage Corporation becauseit means we have an audience that wants our product. Seeing that Monster Beverage Corporationreceives a great portion of its profits from energy drink sales, we have the opportunity to grow ourprofits in the near future because of a growing market.

ThreatsGovernment Regulations

Monster Beverage Corporation operations have to be in code with the Federal Food, Drug and

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Cosmetic Act, the Dietary Supplement Health and Education Act, the Occupational Safety and HealthAct, various environmental statutes and various other federal, state and local statutes and regulationsapplicable to the production, transportation, sale, safety, advertising, labeling and ingredients of suchproducts (MarketLine 2013). There are also certain markets, such as Canada and Chicago, U.S, arepassing legislation on the amount of caffeine that can be in beverages. Certain markets within the UnitedStates are also proposing legislations on where energy drinks can be sold. With all the legislationsaffecting the energy drinks and shots industry, Monster Beverages has to be in compliance with all ofthem or it could greatly impact it’s business and operations.

Consumer ConcernsConsumer attitudes toward carbonated drinks are growing. The concerns that arise are mainly

health concerns. These concerns eventually cause consumers to run away from this industry of energydrinks and shots. This could impact Monster Beverage Corporation’s sales and revenues.

Raw Material CostsMonster Beverage's business is subject to price risk on commodities such as aluminum, PET

resin (a petroleum­based product), sugar, juice concentrates, sucralose, dietary supplements, milk andcream. The prices of these raw materials increased significantly in 2012 and are continuing to increase in2013. (MarketLine 2013). There has also been notes on rising costs of certain juice concentrations andother ingredients. The rise in prices of raw ingredients will increase the cost of production for MonsterBeverage Corporation. An increase in production could negatively affect the company’s productioncosts and profit margins.

Market ShareThe total sales for energy drinks in 2012 came to an amount of $1,155,655 which is an

increase of 13.1% from the previous year equaling $134,103. The top six brands in 2012 were RedBull, Monster, Rockstar International, AMP Energy, NOS Energy, and Full Throttle. Of these brandsthe big three were Red Bull, Rockstar, and Monster. Red Bull dominated the market, maintaining amarket share of 45.3%. Monster came in a very solid second holding 30.3% with Rockstar trailing inthird with 12.4% market share. While Red Bull had the highest market share in 2012, Monster was thefastest growing brand with a 19.4% increase in sales. This is 4% more than the increase in Red Bull’ssales. and 7% more than Rockstar’s sales growth. This shows that as of 2012 Monster held the fastestgrowing brand.

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SWOT ConclusionGiven the data, it is entirely possible for Monster to capture enough market share to be on par with RedBull. This would require combination of two strategies, the first of which is to broaden the consumerbase by attracting new consumers to increase the number of energy drink consumers in the market.Monster will need to maintain as many of these new consumers as possible without alienating any of theold consumer base. This creates a greater growth potential in the market. The second strategy is to try

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and convert small percentages of the consumer bases from other competitors. The goal is to captureanother 10% of market share from competitors while capturing anywhere from 1%­5% from Red Bull.This would lower Red Bull’s market share while raising Monster’s putting Monster and Red Bull eitheron par with one another or putting Monster just ahead of Red Bull.

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Target Market Profile: Primary and Secondary

Age Gender Race Education Income Satus Occupation

Primary 18­24 Male Hispanic Somecollege

$25,001­ $49,999 Married Transportation/production

Secondary 25­34 Male Asian Collegegrad

$50,000 ­ $74,999 Married NaturalResources/ConstructionManagement

According to the MRI data our primary consumer target is :18­24 year oldMaleMarriedHispanicHave some collegeHousehold Income between $25,001­ $49,999Transportation/production

Secondary consumer target:25­34 year oldMaleMarriedAsianCollege gradHousehold Income between $50,000 ­ $74,999Natural Resources/Construction Management

Our current consumer is 18­24 year old males who mostly are of the Hispanic descent. He is a hardworker, always striving to better himself and the environment around him. He is good with hands andenjoys fixing things himself. He probably didn't continue his education past the undergraduate levelbecause he was eager to get into the workforce. He likes to keep busy and is always on the go whetherit be with his job or just his active lifestyle in general. This is why he needs a quick, accessible source ofenergy to help him keep performing at his optimum level. If time allows in the morning, he enjoys a nicestrong cup of coffee, but during the day his go to source is energy drinks. After a long day at work filledwith adrenaline and caffeine he unwinds with a cold beer.

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Past Marketing Strategies and Campaigns:

“Our sales and marketing strategy for all our beverages is to focus our efforts on developing brandawareness through image enhancing programs and product sampling. We use our branded vehicles andother promotional vehicles at events where we offer samples of our products to consumers. We utilize“push­pull” methods to enhance shelf and display space exposure in sales outlets (including advertising,in­store promotions and in­store placement of point­of­sale materials, racks, coolers and barrel coolers)to increase demand from consumers for our products. We also support our brands with prizepromotions, price promotions, competitions, endorsements from selected public and extreme sportsfigures, personality endorsements (including from television and other well known sports personalities),coupons, sampling and sponsorship of selected causes, events, athletes and teams. In­store posters,outdoor posters, print, radio and television exposure (directly and through our sponsorships andendorsements) and coupons may also be used to promote our brands.”

We believe that one of the keys to success in the beverage industry is differentiation, making our brandsand products visually distinctive from other beverages on the shelves of retailers. We review ourproducts and packaging on an ongoing basis and, where practical, endeavor to make them different,better and unique. The labels and graphics for many of our products are redesigned from time to time tomaximize their visibility and identification, wherever they may be placed in stores, which we will continueto reevaluate from time to time. Where appropriate, we partner with retailers to assist our marketingefforts.

Guerrilla and Event marketing are integral parts of Monster’s marketing strategy. Strong promotionstrategies include teams of “Monster ambassadors” who constantly give out samples of the productsthroughout cities and at events nationwide including concerts and sporting events. “Monster vanssupplement the company’s network of 300 independent distributors by assembling store displays andrestocking specially designed racks in convenience store coolers.”

Monster is very active in the sporting world and sponsors motocross, surfing and skateboardingcompetitions, where they heavily promote Monster products. Monster also uses extreme­sportprofessionals to endorse their products. Concentrated marketing strategies such as these areadvantageous because it enables the concentration of resources, better meeting the needs of the targetaudience and strong positioning.

Monster’s green claw logo is aimed to resemble adrenaline, power and testosterone, accompanied byits motto, “unleash the monster within”.

Monster Energy increased expenditures for their sales and marketing programs byapproximately 11.9% in 2012 compared to 2011. As of December 31, 2012, we employed 1,786

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employees in sales and marketing activities, of which 826 were employed on a full­time basis.

Operating ExpensesTotal operating expenses were $515.0 million for the year ended December 31, 2012, an increase ofapproximately $77.1 million, or 17.6% higher than total operating expenses of $437.9 million for theyear ended December 31, 2011.

The increase in operating expenses was partially offset by decreased expenditures of $9.6 million foradvertising.

Total Annual Ad Spending (According to Redbooks): $86,700,000

Monster has one of the largest budgets for advertising and promotional ventures among its competitors.

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Marketing ObjectivesBy the end of the campaign Monster Beverage Corporation will reach two marketing

objectives.The following objectives to be reached are:

1. Monster Beverage Corporations will increase their energy drink sales by 20% MonsterBeverage Corporation relies heavily on their energy drink sales, accounting for over 90% of totalrevenues. Energy Drinks and shots from Monster Beverage totaled $1648.6 million in FY 2012. (92%of total profits of $2060.7million). Since this such a profitable section of the corporation, we want torely on it more to help increase our total sales and total profits.

2. Monster Beverage Corporation will increase market share in the energy drink andshots market by 10%.Red Bull is leading the industry with a market share 43% and Monster has a market share of 39%. Ourobjective is to increase our market share to 47% by trying to take away consumers from the lower levelbrands within the energy drinks and shots market such as Throttle and Xyeince Xenergy, who has 1%of market share.

Advertising ObjectivesTo achieve the marketing objectives stated above we must achieve the following advertising

objectives:

1. Increase brand resonance and brand recall.Monster Energy drinks has been around since the 1930s. We want to encourage our target audience toremember that when they need energy to grab a Monster over competing brands. We also want toencourage Word­of­Mouth advertising and brand involvement to increase brand resonance amongstour target audience.

a) Rationale: Monster has heavily focused on event marketing and in order for the targetaudience to come in contact with Monster, they must have the interest to go out and be involved withMonster sponsored events.

2. Increase brand awarenessAfter the 12 month campaign period, 80% of the target audience will recognize Monster Energy drinkswherever they are distributed. In order to buy Monster Energy drinks the target consumer must be ableto recognize the brand.

Our objective is to have approximately 10% of the competitor’s consumer market, focusing oncurrent Red Bull and Rockstar consumers, to switch to Monster Energy drinks. Convenience storeshold 59% market share in retail distribution of energy drinks and shots because they cater to the samedemographic of young adult Hispanic men.

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a) Rationale: Justified by research, our target audience population is continually growing in theU.S., meaning it is likely there will constantly be new individuals being exposed to our brand. Throughcreating a meaningful campaign that appeals to our growing target audience, we conclude that we canachieve brand switching from current competitors products to the Monster brand.

3. Encourage responsible useOur ads will include two­sided messages that will state the consumer perceptions on energy drinks ingeneral and then will state our beliefs on energy drinks.

a) Rationale: Consumer perceptions on the effects of energy drinks are keeping them frompurchasing from this industry.

Positioning StatementTo 18­24 year old Hispanic males, Monster is the brand of extreme adrenaline, providing quick andaccessible energy that lasts with your choice from a variety of drinks to fit your lifestyle.

a) Rationale: Monster Energy has a variety of energy drinks and flavors that focuses on so manydifferent personalities and lifestyles. This is our point of difference because our biggest competitor RedBull only offers 6 varieties to their energy drink. We want to focus on extreme adrenaline because ourtarget audience is hard working and wants to keep performing at their optimum level.

Media Objectives

a. Our reachDuring our months of heavy advertising, we will reach 90% of the population living within the UnitedStates. During our periods of low advertising weight, our reach will be 50% of the population, living inthe United States.

b. Our frequencyDuring the months of heavy advertising our frequency objective will be set at 10. During the months oflow advertising weight, our frequency objective will be 2.

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Budget AllocationMonster Beverage will set aside $50,000,000 for a 12­month campaign. Each medium will be

designated a portion of the advertising budget.

Spot Radio will be allocated 3.5% of the advertising budget ($1,744,800) Network Television will be allocated 10.1% of the budget. ($5,056,200) Spot Television will be allocated 28.4% of the advertising budget. ($14,187,000) Magazines will be allocated 1.9% of the advertising budget. ($963,000) Internet will be allocated 17% of the advertising budget. ($8,514,000) Out­of­Home will be allocated 38.8% of the advertising budget. ($19,422,900)

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Media Mix Rationale and Strategy

Televisiona. Rationale

Television is still a medium where advertisers place most of their dollars. The quality od theadvertisement in television will be high. Television also is a medium where we can receive a high numberof viewers. Television is also an intrusive medium; our advertisements will be forced onto our targetaudience.

Network Television will allow us to advertise on a few of the top rated shows on broadcast TV.Our target audience, according to 2007 Simmons Ratings, is watching Prime Time television for RealityShows and Sitcom Comedies. Spot Television will allow us to focus our advertising dollars on theareas where majority of our population lives and our opportunity markets within the top 50 DMAs.

b. StrategyOur strategy will be to do a continuous media schedule in the locations of high hispanic

populations.Network television will only be used as a medium during months of high sales for energy drinks.

We will choose PrimeTime and Late Night/News to place our advertisements as well as Sports shows,specifically soccer.

Spot television will be used as a medium through the entire 12 month campaign, with heavieradvertising during months of high sales. We will utilize Daytime, PrimeTime, and Late Night/Fringe toplace our advertisements.

Spanish Language Televisiona. Rationale

Our target audience is Hispanic males. Spanish Language television is similar to a Spanishmagazine; we gain selectivity with whom we are placing our message in front of. Spanish LanguageTelevision allows us to directly communicate to our target audience without other viewers who we donot intend to target.

b. StrategyWe will choose a few of the top rated shows on Spanish­Language TV and advertise on these

shows. We will advertise two weeks out of every month on Spanish Language Television during monthsof low sales and every week during months of high sales.

Spot Radioa. Rationale

Radio is a culturally compatible and effective medium to reach the Hispanic population because

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it allows us to reach the consumers on a personal level with a particular message. Research shows thatradio’s reach among U.S. Hispanics is increasingly strong on both Spanish and English radio stations.According to a 2013 Arbitron study, about 95% of Hispanic consumers tune into the radio in anaverage week. The same study also found that Hispanics in almost every demographic and age groupover­indexed in radio consumption compared to non Hispanics, spending nearly 14.5 hours a weeklistening to radio. Given this information, it is evident that radio advertisements should be used to marketour product. Considering that radio is a cost­efficient medium, high frequency can also be attainable atan affordable cost. In addition, competitors such as Rockstar and Red Bull do not compete in thismarket, giving Monster an opportunity to gain majority market share.

b. StrategyGiven the vast number of Spanish­language Radio stations across the United States (over 600),

many of which are ranked number one in their market, Spot Radio will be allocated 3.5% of theadvertising budget ($1,744,800). To increase frequency, we will use attention­grabbing messages with afocus on our “Monster Energy. Monster Results.” brand positioning tagline. Given that MexicanRegional is the most popular Hispanic radio station with 19.2% market share, we will use this station aswell as other bilingual stations including Spanish Contemporary, Top 40, Rhythmic Top 40 and PopContemporary Hit Radio in our target regions to market our products.

Magazinesa. Rationale

Magazines are sold in places that Energy drinks are sold, in convenience and grocery stores.Normally in the check out line there are racks filled with magazines and mini fridges stocked with energydrinks. As our target consumer waits in line to check out, he uses this time flip through a magazine,something that his busy lifestyle wouldn’t normally allow him to do. As he scans the magazine he may

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see the Ad for Monster Energy Drink and feel compelled to add it to his purchases.Consumers are more receptive to advertising in magazines than in any other medium. Magazines

are purchased because the information they contain interests the reader and ads provide additionalinformation that may be of value in making a purchase decision. Advertising in magazines have the abilityto engage readers and hold their attention­­ they aren’t as intrusive as tv commercials. Multi­MediaEngagement study conducted by Simmons showed Magazines score more favorably than TV or theinternet in consumer engagement (p.416).

A large part of Monster's current advertising involves sponsoring extreme sports events. Theonly way this strategy is successful is if people know about the event. An advantage of print advertisingis its ability to communicate high information content such as event times, dates, and locations (p. 356).

All of the ads will be in color. According to Advertising and Promotion An IMC Perspective,“the ‘noted’ scores (the percentage of readers who remember seeing the ad in a publication they read)are anywhere from 6­59 percent higher for a color ads than for a black and white ad.” (p.422).

GfK MRI provides media usage of energy drink users:Dirt Rider Index 210ESPN the magazine Index 206p.343

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b. Strategy

The ad would be placed in magazines that contain information that appeals to our targetaudience. Examples of the magazines we would utilize would be Sports Illustrated, DUB, ESPN theMagazine, Dirt Rider and spanish extreme sports magazines like Moto Verde. This would helpassociate Monster Energy with the interests and lifestyle of the consumer. If you want to do extremeactivities you need a source of extreme energy. Along with product promotional advertisements, therewould also be event promotion that contains details of their upcoming sponsored events.

Interneta. Rationale

The internet will be used because it is the number two advertising medium behind broadcastmedia. Moreover, internet advertising revenue has a tremendous growth rate. In nearly ten years, themediums advertising revenue has increased by close to $30 billion. According to Pew Research, 91%of hispanics who have some college education use the internet regularly (Gonzalez­Barrera, Lopez, andPatten). Below is a statistical breakdown of hispanic and latino internet usage in 2012.

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The chart determines that 51% of hispanic internet users are male. Users that earn less than$30,000 a year make up 50% of all hispanic internet users. Pew Research also determined that hispanicinternet users are 35% more likely to be between the ages of 18­29. These statistics confirm thatinternet will be an effective method to reach our target audience.

b. StrategySmartphones are extremely common today and serve as another outlet for internet use. Pew

Research conducted studies on mobile device usage to access the internet and found that 53% ofhispanic internet users that access the internet on a mobile device are males, 41% are ages 18­29, and45% have some college education (Gonzalez­Barrera, Lopez, and Patten). Therefore, our strategy isnot only to utilize internet advertising, but also mobile internet advertising as well. Fox News reportedthat in March of this year, 32% of Hispanics logged onto internet radio websites such as Pandora.com,IHeartRadio.com, Radio.com, and Slackers.com (“Pandora Fuels Major Increase in Internet RadioUse Among Latinos”). Consequently, we will advertise for Monster on these sites and their mobileversions. Social media sites such as Facebook, Instagram, and Twitter will also be utilized considering80% of Hispanics in the US utilize social media sites regularly (Brenner and Smith 3). Keywordsearches will also be purchased on both Bing! and Google. Our plan for the internet portion asillustrated in the flow chart will be continuity. A continuous schedule will take place because of thepotential reach Internet has for our target audience.

Out­Of­Homea. Rationale

Out­Of Home advertising, especially in urban areas, is rather ubiquitous. Billboards are seen bymany on a daily basis and for those consumers who are local, these same messages are seen almostdaily. Billboards are an excellent and cost effective method of maintaining a high frequency due to thenature of their placement.. This is also true for venues such as bus stops and train stops, which are apart of the daily work routine for many people. Bus wraps have also proven to be effective since themoving vehicle creates more visual interest for a viewer than a still advertisement. Bus wraps in urbanareas also serve frequency goals since many of these buses stick to the same predetermined routes on adaily basis. Those passengers who use these routes for travel to their places of work, school, etc. willlikely view the ads multiple times through the course of the advertisment’s lifespan. These predeterminedroutes also give another advantage to bus routes. Not only are the moving ads more interesting but withthe predetermined route systems, it becomes easier for the advertisement to reach the target markets,utilizing local demographic information and adjusting the Out­Of­Home strategy accordingly. Due to thegreat visibility and relatively low cost, posting an ad on bus displays on the outside of city buses or onbus shelters produces high impressions at a low CPM. The use of Out­of­Home also supports the

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brand image. The beverage is meant to give its consumers the energy they need to support theiron­the­go, and active lifestyles. There are few better ways to appeal to these consumers than exposingthem to these advertisements in the midst of their daily activity. Out­Of­Home is also appealing in termsof SOV.

Red Bull currently dominates the medium with NOS Energy in second and Monster Energy in third. Byincreasing spending in this media Monster can begin to at least overtake NOS. At this point beating outRed Bull for SOV in the media would require diverting more money and may be an unrealistic goal atthis point. However, the medium has somewhat less clutter than the other major media and therefore itshould be less difficult for the message to reach the appropriate audiences and while Monster may notbe able to overpower Red Bull in this media, having the second most share is still very beneficial,especially given the capabilities of Out­Of­Home advertisement. Combined with the other chosen mediait should help to achieve the desired impressions.

b. StrategyBased on the United States census data from the year 2010, the main target demographic

seems to be mostly centered in the Western part of the United States with a few small exceptionsscattered about the rest of the map. There is also a noticeable population in Florida. As for the majorcities in which these advertisements will be used, the focus will be primarily on the Western andSouthwestern United States. For California the campaign will focus on San Diego, San Jose and theeastern part of Los Angeles. These cities are all in the top 10 most populated urban areas according tocensus data from 2012. They also have large Hispanic populations ranging from 33%­97%. In Texasthe campaign will focus on the cities of San Antonio, Houston, and Dallas. These are also very populouscities with massive Hispanic populations. They are also noted as possible destinations for business and

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tourism. Miami, Florida is the next target city due to its large size, enormous Hispanic population and itsstatus as a tourist destination. This increases the chances of not only reaching the target demographicaudience but also reaching other potential consumers as well. New Mexico, while having a populationthat is largely Hispanic, is lacking on major metropolitan areas with large populations. The city ofAlbuquerque is probably the most solid for advertising in this state. It has a population of over 500,000and 46% of that is made up of the target demographic. All of the data on these cities and populationswas collected by the United States Census.

The Out­of­Home campaign itself will utilize the same elements as the other print media. Theseelements are detailed in the “Creative Explanation” section. These ads will be placed on billboards andtransit stations as well as on bus wraps in the selected cities and will run from May through September.These months were chosen for a multitude of reasons, the first being that category sales tend to peak inthe Summer months and decline closer to the end of Fall and during Winter. The second is that there aremore people out and about during the Summer so the ads will have more opportunities to make andimpression. Some outdoor advertising can also be used in months of high travel, specifically Decemberdue to the increase in travel from the holiday season.

Media Not Utilizeda. Rationale

During our advertising campaign we have decided to not utilize newspapers and national radio.These media will not help us in reaching our target audience. Their readership and target audiencesdoes not fit into our target audience. We have chosen to not use these national media to conserve ourbudget for spot markets where our target audience are populated and for our opportunity marketswithin the top 50 DMAs.

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Campaign ThemeOur campaign theme is “Monster Energy. Monster Results.” This campaign is simple for our

target audience to understand, making it easy to comprehend. Repetition is also a part of our campaigntheme. We are constantly saying Monster, which will hopefully make it easy to recall the brand at thepoint of purchase. We are also telling our target audience what Monster can do for them by associatingMonster energy with achievement and increased performance.

Creative ExplanationTelevision

Our television ads will be translated into English and Spanish to suit our different media formats.We will make the advertisements adapt to the part of day it is being advertised in and the show it isplaced in. For example if it is a sports game, the scene will be a sports scene and an athlete needingenergy to perfect his performance. The athlete will then take a drink of Monster, with the logo facingtowards the camera. Our campaign tagline will then appear, “DRINK Monster Energy, GET Monsterresults.

Magazine, Internet, Out­of­HomeOur ads will be consistent throughout print, internet, and out of home media. Monster's color

scheme of black and neon green will be used. This also helps the ad stand out, it is proven that colorads are more effective, and a black background with neon green print and graphics would be evenharder to ignore when flipping through a magazine. It would include our new tagline in bold lettering thatmimics the font Monster uses. The can would also be featured in the ad so when the consumer reachesthe purchasing stage, they can recognize the can, and would more likely choose Monster over otherenergy drinks.

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Spot RadioOur radio advertisements will incorporate our tagline, “Monster Energy. Monster Results.” as

our focus in order to quickly grab the attention of the listeners. Similar to our print ad creative, we willalso use the straightforward “Warning­ Drink Monster Energy, Get Monster Results”, making the adstand out as an important warning message while getting our ‘big idea’ across to the consumers. Ourradio ads will also be translated into English and Spanish to suit the different English­dominant andSpanish­dominant radio stations.

Media Planning and Buying

Geographic Positioning

We will be focusing our advertising campaign in the South­ West of the United States.

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Our spot campaign will focus on the top 50 DMA markets, specifically focusing our advertising effortson the opportunity markets where CDI numbers are larger than BDI numbers or where the CDI numberfalls below 100. The highlighted rows in the chart below indicates the opportunity markets out of the top50 DMAs.

The top 50 DMA markets will reach 66.5% of the population in the United States.

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Media Scheduling

We will be implementing a pulsing media schedule. The campaign will begin May 2014 and will endApril 2015. We will have an increase in advertising efforts during the months of June, July, and Augustdue to the percentage of sales in 2012. The advertising efforts during the remaining months will beconsistent from month to month.

Media Calendar

The following calendar will be a guide for our media planning and execution. The calendar explains indetail when we will be advertising using each media.

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Share of Voice

a. The graph below shows the share of voice analysis for the top three brands in the industry of energydrinks and shots. Monster has

b. The graph below indicates Monster’s Share of Voice in their media mix in 2012 compared to theprojections of Share of Voice in the media of our 12­month advertising campaign.

Campaign

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Measurement

Our campaign will be measured by an increase in sales in the opportunity markets that we willbe focusing advertising effort on. We will check the BDI quarterly in these markets.

We will also construct a survey for feedback. Our surveys will include questions like, “How didyou hear about Monster,” “What was the latest advertisement you’ve seen/heard,” “Whatcaught your attention about the advertisement,” “How did the advertisement make you feel,”“What is Monster’s slogan?” These questions will indicate whether our target audience is beingreached and if the media we are using is effective. It will also give us feedback on if we choose the rightmedia vehicles and if changes should be made for the next year.

The surveys will be distributed monthly beginning June 2014. We will sponsor events which willgive us the opportunity to have surveys filled out. We will also use internet advertising expenditures tolink to our surveys.

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Sources:

Belch, George E., and Michael A. Belch. "Media Planning and Strategy." Advertising andPromotion: An Integrated Marketing Communications Perspective. New York:McGraw­Hill/Irwin, 2012. 343­56. Print.

Belch, George E., and Michael A. Belch. "Evaluation of Print Media." Advertising and Promotion: AnIntegrated Marketing Communications Perspective. New York: McGraw­Hill/Irwin, 2012.416­422. Print.

Brenner, Joanna and Smith, Aaron. “72% of Online Adults are Social Networking Site Users”. PewResearch Center, 5 Aug. 2013. PDF. 27 Nov. 2013.

Gonzalez­Barrera, Ana, Lopez, Mark Hugo, and Patten, Eileen. “Closing the Digital Divide: Lations andTechnology Adoption”. PewHispanic.org, 7 Mar. 2013. Web. 27 Nov. 2013.

“Monster Beverage Corporation”. Hoovers, 2013. Web. 7 Nov. 2013.

“Pandora Fuels Major Increase in Internet Radio Use Among Latinos”. Fox News Latino, 23 Apr.2013. Web. 27 Nov. 2013.

“The Hansen Story”. Hansen’s Beverage Corporation, 2013. Web. 7 Nov. 2013.

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Appendix:

A. 2014 Media Plan

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B. Reach and Frequency/Year at a Glance

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