Fuse Science Inc (DROP)

[prokopton]

"I can't name a single, damn sponsor of Monster or Rockstar."

So, how do they do so well? Even 5hr didn't have any endorsers until it did hundreds of millions in sales.

The founder of 5hr Energy said that the product has two distinct advantages over its competitors:

1. Convenient/small packaging (small, grab and go, fit in your pocket/purse). Only need to gulp about 60ml and not he usual 355ml to get the same effect.

2. Most important: The ability of the company to place its products at the point of sales (POS) at tens of thousands of convenience stores.

The vast majority of people don't compare shop or go out of their way for products under $10. If they don't see Fuse Drops at the 7-11 they normally frequent, they're not going to another location to look for it.

Because of the nature of the energy drink product, its placement is much more important than who endorses it. Of course, it's better to have both, like Red Bull (product placement and celebrity endorsers).