As Red Bull plans its U.S. invasion, an unlikely upstart vies to beat it to market. Led by branding guru Mark Hall, the wholesome Hansen Beverage Company launches Monster, a grungy, all-American alternative to its yuppie European competitor. Not only does Hall intend to pull Hansen back from the verge of bankruptcy, his plans will position Monster to take a massive bite out of Red Bull’s multi-billion dollar industry.
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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
It's late, one thousand nine hundred and ninety six and fair haired marketing visionary Mark Hall is lossed
lossed on a desolate palm tree line ST in the southern Californian City of Corona,
call pulls over and checks his map
street, but where's the building.
All he sees or windowless white Lego, brick offices, nodes
change, know people anywhere,
not a good omen he's.
This is rental car again and cruises the street. Eventually he finds what he thinks is the right building.
He had through a set of reflective brown glass doors are receptionist,
sits behind a desk filing your nails Hall walks over
is this handsome beverages?
You must be Mister Hall. Mister Sax is waiting for you, Rodney
is the ceo of Hanson beverages and he desperately needs halls. Help Hollis
fresh from helping Arizona, iced tea blow away the competition with its eye catching large pastel. Can sacs of old south African once hauled to work the same marketing magic on his ailing diet, soda and fruit juice company
he's been trying to get haul out to corona for weeks,
but halls got bad news for Saks. The reason
just leads hall to a meeting room as plain as the building's exterior inside
is a man in a suit with graying hair. He stands
been greets Hall warmly
hello mark very good to meet you at last, I'm Rodney Sex. Have you considered our job offer
I have, but, but I'm still not convinced sax looks crestfallen
needs hall,
Hansens, a minor league soda maker with a wholesome image.
I've been having a hard time, none of it
drinks or wowing consumers.
Two years ago it narrowly avoided bankruptcy
MAX needs someone with spark envision who can get Hanson out of its Rudd. Ok,
what's putting you off no offense,
but I can't work with what you got.
Your branch, they're kind of blah
I can't do anything with them. Ouch
Saks fields heard,
but he brushes it off. He bought
this generations old family company for years ago,
and he won't admit defeat. Not yet
maybe giving hall free Reign is the answer: how about
How about we give you your own team, and you just do new products that might work
Saks fields, an adrenaline rush he's?
close the deal he decides to clinch. It
with a big incentive
I'll also give you stock options, but one hundred and fifty thousand shares hold
math in his head.
Add many shares. All he needs to do is get Hanson stock up from about two cents, a share to five dollars a share
It will be made for life. Ok, now, I'm in sex smiles
good, any thoughts on what kind of product you might start with yeah
sort of red bull.
This massive in Europe it sold as an energy booster. I think a similar drink would do well in the US too, but we gotta move fast.
I've heard red bulls about to expand into the US, but if we get in quick
we can steal the market from them.
Facts are dreaming big there
now thinking they can stop red bull in its tracks, but their first attempt to top the energy drink business is going to fail badly. So
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From wondering I'm David Brown- and this is business
you're listening to episode, two in our series, red bull versus monster, enerji, be
Gore's bull. In the last episode, austrian marketing, Whiz Dietrich Matter shakes turned at Ienergy drink into red bull. In conquered Europe. Now he's bringing red Bull to America, he saw
with millions of dollars and a battle tested guerrilla marketing strategy, but matter shakes
is about to run up against a formidable foe.
It's late, one thousand nine hundred and ninety seven in LOS Angelus
salesman for the: U S: red bull team places, a silver and blue can in front
buyer for a grocery store chain, the buyer stares at it. The salesman leans forward
go on, try it, the buyer
grab the cannon pools the tab. He
raises the drink to his lips and sips.
He gives the salesman a puzzled glance and takes
Bushwick
it's better on the second taste.
It wasn't sure at first, but you know it
not so bad,
not great either though maybe but but your stores will make more money from this than Coke Pepsi and 7Up combined, and that's that's a bold claim
when you figure that you've only just launched in the US it'll be
big here is in Europe and what's more, it sells it
dollars a can. What
two dollars for that skinny? Can your kid?
No, no! I'm not
will pay for the massive energy boost Red Bull delivered the buyer
figure out this guy. Is he over confident or is he arrogant?
Can this weird drink really sell that well
will try it give me a couple of free cases and we'll see how it sells. Nope huh,
we don't do free cases,
I have to buy them and
before you ask we're not going to pay you to put it into your stores either. The buyer
can't believe what he's hearing.
He's heard enough.
Look here buddy, I don't know how things work in Europe, but in this
market we get some free cases and if it sells well, we start stocking it.
You need us, we don't need you, I'm the one holding all the cards. The salesman shrugs
see you're, not ready for Red Bull, who that's ok, so
stores prefer to play it safe I'll, get that
I'll come back another time,
leaving yeah
no big deal when the time is right. You bye,
open, stands up, shakes
doctor buyers, hand and heads for the door
feels like he's about to miss out on something something that could
the big
wait. Okay,
I'll buy a couple of cases.
Red bulls only just arrived in America, but its sales strategy is leaving US store buyers stunned. No one has heard of red bull, and yet it salesman ACT like buyers or losers if they don't get that it's the hottest drink around. But for the moment
red Bull isn't worrying about winning over grocery stores. Instead, the company
targeting America's most fashionable bars and nightclubs red
full, wants to replicate its european strategy, make itself a fixture on the party scene and build a reputation as a cool mysterious, underground drink. Officially
red bull presents itself to bars as a standalone drink,
but everyone knows the real story from the
New York clubs to most happening bars in LA red bull is seen as the ideal mixer with alcohol. If you want to party late into the night,
kitchen, an energizer so good that hip consumers will pay eighteen dollars for a vodka red bull, soon,
red Bull, Sweeping America's big cities,
I'll claim circulate about it's invigorating ingredients,
phone claim. It's made with the semen of bulls, others
reckon it contains amphetamines,
but rather than address the rumors red bull
jokes, as matter shakes, tells his US team. Our biggest threat is a lack of interest.
Mystery and a hint of danger are important.
These rumors make Redbull more interesting.
Red bull is not the only enerji drink fighting for America's attention in ape:
one thousand nine hundred and ninety. Seven. Four months after recruiting Mark Hall Hanson launches its answer to red bull. The company calls its competitor drink. Hansens, Energi,
it's not a drink that will win prizes for innovation,
like red, Bull, Hanson, Zenergy, comes in eight ounce cans and pushes its caffeine and taurine content
aided by Hanson's existing relationships with retailers. Hanson Zenergy rapidly tops Americas embryonic enerji drink market,
but it's rain barely lasts a year as
Google expands its US distribution and steps up its marketing, Hansens energies, marketshare crumbles.
My two thousand and one red
grab two slash three of the energy drink market with its nightclub strategy
and is now moving into stores in a big way
and Hansen's energy. Well, it's fading fast.
It's not only losing ground red bull,
but also to a rush of new energy drinks
and among these new challengers is
brash tonic from LAS Vegas.
It's summer, two thousand and one and a limousine is prowling the streets of San Francisco heads turn as the limo heads down market street blasting rock music. But
history in stop and stare the sides of the limo are painted with an unfamiliar logo. The word rock star in big yellow capital letters with a star replacing VA. Suddenly a man with a shock of gel carrot, red hair burst from the limo sunroof. He strikes a crucifix pose while holding two large cans of rockstar in his hands
start yelling at startled San Franciscans
party, like a rockstar, drink, rockstar, enerji, double the strength, double the size,
redheaded thirty, something is Russell Weiner. The son of conservative talk show host Michael Savage Whiners. The founder of rockstar he's only just launched his drink, but he's thinking big literally
instead of the eight ounce cans used by other Enerji drinks, why
energy booster is sold in black. Sixteen ounce cans, emblazoned with a yellow star and for the
name, two dollars price tag as red bull spend the same yet twice the Energi
whiners double for your money. Ploy works rock star
selling fast
within a year, wiener sells nearly three million dollars worth of rock star
by two thousand and four rock stars grabbed seven percent of the energy drink market, making it America's number. Two enerji drink
red, bold still way out in front. It's got
fifty nine percent of what's becoming a fast growing five billion dollar year market for Hanson
Rockstar's arrival on the energy drink scene is
the killer blow
with sales of Hansen's energy in free fall.
Calls Hanson, chief Rodney sacks into a crisis meeting at the company's headquarters in Corona Hog
straight to the heart of the problem. Rodney
Hanson Zenergy is hemorrhaging market share, the prob
is the handsome brand it.
This is too wholesome
people associate Hanson with natural sodas smoothies juices
that doesn't work for enerji drinks. We need our enerji drink to break away from the handsome brand. Sax is horrified
away absolutely no way, I'm building a wider beverage brand here and that brand is handsome. I'm not just throwing that away, because one product struggling which
and killed out there
look at the image of red bull look at rockstar.
Our brand is so out of step with them and the people who drink energy drinks. We need a brand that says action,
adrenaline and fire
energy drinks are punk rock, not the friggin eagles. The two
and glare at each other's axe is
wedded to a strategy of applying the Hanson brand. Every beverages company makes
but halls not backing down love.
You hired me for my marketing expertise and I'm telling you
that unless we create a new brand for our Enerji drink
finished in that market,
let me do my job
tie my hands
Jack says nothing for a moment. He
it's the idea of dropping the Hanson brand
holes. Logic ring
true
fine, but
let me be very clear.
I hate this idea, but you
I did hire you for your expertise. So
what do you have in mind? I knew
attitude more aggressive and rebellious brand and Enerji drink for party hard, blue collar, guys with tattoos red bulls for yuppies and snooty new Yorkers. I want our enerji drink to be sold in big. Sixteen ounce cans like rockstar, be grungy in all american you gotta name.
I've got a few ideas: hammerhead fat boy, Deuce igniter,
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It's October, two
in two and hundreds of people are heading into the LAS Vegas Convention Center
here, for the National Association of Convenience stores show among them
is a store owner from Denver as
enters the building. He spa
a friend he hasn't seen for years.
He Tom it's been years. You still in Memphis Ray yeah, I'm still
Memphis. She hadn't did the exhibition floor. She ran I'll walk with you.
The bear head toward the exhibition hall there
expecting the usual brands and stayed boots,
but as they enter the hall, a blast of Jimi Hendrix Voodoo child grabs their attention. They turned to see where the music is coming from
and their jaws drop before is a huge decked out in speakers are pumping out. Hendrix's guitar shredding, the
full of young models gyrating to the music in black leather bras, mini skirts and over the knee boots. What the hell the
smack pair stare at the boots giant logo of huge green him. That looks like it's been torn into the black wall by the claws of an enormous beast. I
the logo are the words monster energy,
monster energy, never heard of it. One
leather clad women shimmies towards them, she's cheese,
watching two big black shield. Sixteen ounce cans of monster
you guys need a boost,
then you'll need these. Who are you? People
monster energy, that new energy drink from Hanson
store owners can't believe it hands
the guys who make those nicey nice, sodas, yeah
monsters, one heck of a curveball for Hanson
New Drink is far from sunny.
It's mean it's moody, a hyper
caffeinated blend of taurine B vitamins, Jin Ginseng and the amino acid l carnitine. The
splash in Vegas is only the beginning for monster marketing Chief Mark Hall. In the months that follow halls team hits the road
they are on a mission to win over stores one by one. For a month
they toured the sunbelt racking up the miles as they build monsters presence coast to coast and to help them with their mission hall rage, the red bull playbook it's summer, two thousand and three and the uh
ESPN sponsored X games. The annual extreme sports competition is underway in LOS Angelus halls here too, and he's come prepared, he's packing
fifty five thousand dollars in cash and he's going to use it to get
x, games athletes backing monster final. He heads to the locker rooms
flashes his cash at wide eyed, skateboarders, Bmx, bikers and freestyle motocross riders within
hours. The x games are full of competitors wearing monster. Branded helmets tops
it's the start of an action: sports arms race between energy, drink makers, hall pumps, millions of dollars into sponsoring the extreme sports elite and with each new daredevil he signs.
Awareness of monster grows
a few years monster spending fifteen million dollars a year on its roster of action, sports stars.
Next to the hundreds of millions Red bull spending, it's peanuts.
The austrian enerji drink giants already got five hundred athletes on its books and now red bulls about to take the battle to a new level. In November, two thousand
for Red Bull buys the Jaguar racing formula, one team and renames it
red bull racing
the following year: red Bull, snaps up an austrian soccer club and rebrands it Red Bull Salzburg
in two thousand and six Red Bull buys a NASCAR team and also reboots major League soccer squad. Metro stars
is the New York Red Bulls. Keeping this port.
Only of sports teams is going to cost the company hundreds of millions,
but it's worth it. Each one
puts the red bull brand in front of millions of people each day, bye,
not enough,
no matter how much Redbull spends it just can't
seem to stop monsters advance
with its rebel image in super sized can monsters winning over legions of Americans by two
five monster,
replaced rockstars the number two enerji drink and
is closing in on red bull, and
that's when Anheuser Busch comes calling.
Bush is the brewery giant behind Budweiser and it's
Zion. In
early two thousand and six, a senior executive from Anheuser Busch heads
two corona
like a deal with Hanson CEO Rodney. Sacks.
We want to get more non alcoholic drinks into our distribution network where
best buy monster an we want to distribute it.
We're doing just fine thanks. Why would we do this? Well, we've noticed that you're selling monster directly to stores.
That's very labor intensive and it limits how fast you can grow.
Our network can get you into more stores, bars and clubs much faster than you can alone, also we're global
or we could help you take monster beyond the US
Now that's an appealing offer it's a
next to make monster grow even faster.
Ten sacks knows it in
two thousand and six Hanson and Anheuser Busch strike a distribution deal turn
the heat on red bull. The alliance also gives Hansen stock. Another boost thanks to monster
in share prices, jumped more than one thousand percent in just a few years. Hello
is now one of the hottest stocks of the 2000s right up there with
likes of Apple Amazon
and Google and
sisters not done yet.
Two thousand and seven begins hands and starts releasing more and more monster branded drinks. It launch
new flavors, bigger cans and even a monster branded chilled coffee to take on Starbucks Frappuccino, all of which help
blow away even more market share from red, bull.
In November, two thousand and eight months
inches ahead of red Bull to become America's leading energy drink.
It's grim news for Red Bull boss matter shakes for you
he's refused to expand the red bull range beyond the original formula and it
companion sugar free version. Now
there are six knows he can no longer sit back, it's
time for a refresh it's
time for red Bull
to slay the monster here.
The next and final episode, red bull heads to extremes of the earth
former Hindu monk delivers a small but powerful punch to the energy drink. Kings and monster is accused of having blood on its hands. What the experience.
Driving a luxury vehicle wasn't just limited to inside your car
brown and I'm back with Gretchen Sour, the brand manager of Lincoln's new in Kc. With a few more burning questions, you know the classic features I love about. Lincoln's are all there in the new in Kc, but there were some things that I guess pleasantly surprised me like a terrific turbocharged engine and if you order it special, it has a towing capacity. As I understand it up too, what is it three thousand pounds? Yeah that's correct, so we have to really awesome turbocharged engines on or am Casey the first one is our two leader which has two hundred and forty five horsepower and two hundred and seventy five pound feet of torque. And then we have our optional two point: three liter turbocharged engine, which has two hundred and eighty five horsepower, and three hundred and five pound feet of torque. In fact we're one of the only vehicles in the segment to have a step up engine and then, as you mentioned, if you pair it with our class to trailer tow package, you can get up to three thousand pounds of tell
capacity, which is just amazing and in this segment it. It is when you say in this segment, because, technically speaking, I guess people think of the Mkc as a compact suv. But in so many ways it has all the features of a completely full size s. U V and tons of space to yeah. It's funny. You mention that, because
you know internally and and then some of our reporting structures, we have segments and contacts premium and small premium. But really our clients tell us how important this vehicle is and how many that that overall they're willing to buy? What's it like working at Lincoln these days? It's you know it. It must be pretty exciting, especially as these new doors open to places like China and the Far EAST I mean once upon a time it was like. The asian market place was invading America it now. It seems that Lincoln is exporting
american luxury abroad. That must be pretty fun. It's really interesting. You mentioned that I joined Lincoln back in twenty sixteen and June. I was fresh out of Texas as a
one of our territory wraps and it was given the opportunity to join this brand.
We are doing so much here, we're piloting new technologies, piloting new services, testing things out
learning failing and trying again, we almost Harkin
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From wondering this is business worse, we hope you enjoyed this episode and we hope you'll subscribe on Apple podcasts, Spotify, Google, podcasts, Stitcher Iheartradio or wherever you listen to podcasts. There's a link on the episode notes. All you have to do is tap or swipe over the cover. Art and you'll also see some offers from our sponsors. We hope you can support our show by supporting them now, if you like what you've heard, we'd love it, if you could give us a five star rating and while you're at it tell your friends how to subscribe. Another way you can support us is to answer a short survey in one tree, dot com survey and don't forget to tell us what business war stories you'd like to hear. Just a quick note about the conversations you've been hearing, we can't know exactly what was said, but this dialogue is based on our best research. I'm your host David Brown, Tristan Donovan, wrote this story edited by Emily Frost.
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Transcript generated on 2019-10-24.