- A monk walks in to a trade show…
- He tries an energy drink from one of the stands…
- Feels great after trying the energy drink…
- He buys the product…
- Sell’s it… and …
Turns over $1 billion in retail sales in a very short period.
This is the story of Manoj Bhargava and a drink called 5-hour energy. Manoj Bhargava is also known as the monk as he spent his 20’s travelling between Hanslok monasteries.
I am always reluctant to site larger business success as an example to smaller businesses. Usually, because a lot of money gets thrown in to branding exercises and buying market share, which small businesses cannot afford to do.
However, small business can learn some lessons from this monk who took an obscure energy drink and turned it in to household name in the US.
- He really believed in his product. He is a fan of these energy bottles packed with functional nutrients, B vitamins and amino acids. He also believed that a person need not be thirsty to get an energy shot.
- He created his own product category. In a world of energy drinks dominated by Red Bull, Manoj decided to invent his own product category: Energy Shot! Did it work? $1 billion in retail sales proof enough?
- No fancy or clever names. The name of the product said it all. 5 Hour energy. The name also described the end result of using the product. Customers understood exactly what it is supposed to deliver.
- He proactively defended his brand. Following his success, imitators and lawsuits started pouring in. Even the likes of Coke and Pepsi try to derail him. He took them all on by launching some aggressive ad campaigns including uncomfortable interviews defending his brand. He did not wait for crisis to escalate. Instead, he took it head on and turned it to his advantage.
- Relentlessly pursued retailers to display his product. These 2oz bottles are strategically designed to be placed at the checkout counters and at easy point-of-sale locations. Health chain GNC was the first major retailer to display them in its 1200 stores. Eventually Wal-Mart started displaying it near its cash registers and it now accounts for 15% of ‘5 Hour Energy’s $1 Billion sales a year. Samples even get distributed to doctor’s surgeries to be given to patients who lack energy!
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