CRESCENT PURE

Background CasePortland Drake Beverages (PDB) is a Manufacturing of Organic Juice and sparkling water

Product positioning strategy for crescent pure (recent product acquisition)

Crescent PureA non alcoholic functional beverage combination of energy enhancing, hydrating, and all organic ingredient made it a natural extension

Which positioning strategy would maximize Crescent Pure’s revenue?

Energy Drink Positioning Or

A Sports Drink Positioning

What PDB do?• Soft launch (Jan 2014) in 3 western state California, Oregon, Washington DC.

Because those state represent 15% of consumer.• Negotiate with beverage distributor & retailer.• Hire Advertisers to develop and campaign • Spend $ 750,000 on advertising

What PDB want?• Industry Specifics related to each of the two positioning option.• The potential benefits and drawbacks of each option.• Final Recommendation

P.S Based on market research, Third positioning option focusing on the drink’s healthy & organic roots would attract most consumer

USA beverage industry

2013• Water• Dairy Juice• Soda• Functional Beverages

Estimated - $131 Billion

Projected - $164 Billion

Beverage Distributions in USABig box retailers (largest us retailers) Medium & Small Size f&b

Have Their own product distribution system• Purchasing• Transportation• Stocking

• Was not straight Forward • Typically retained distributor to

facilitate the process of getting their product from expansive catalog

• After Retailer agree then followed by transport & delivered to sell individual product by distributor

• Distributer responsibility include shelving & displaying products

Crescent Pure History• Founded in 2008• Peter Hooper, a native of Crescent saw a market

opportunity for healthy, energizing drink• 2 months after launching, Hooper secured legal protection

for his recipe• He manufactured and distributed the drink from a rented

Portland, Oregon• After Hooper promoted his drinks at farmers markets and

local food shows and pursuing local retailers in Oregon, demand grew in the Portland area for Crescent

Crescent Acquisition by PDB BeveragesMichael Booth (CEO of PDB Beverages)

Cons drinking Crescent

Drink refreshing, energizing and healthier then other mainstream

beverages

WORD OF MOUTH

Increase of demand for organic food and beverages products

PDB’s revenue increased to $120 Billion (2012)

PDB acquired Crescent

Ingrediants and Packaging• Packaged : in a sleek, tall silver 8-once can• Logo : crescent logo ang lime green and orange accents• Taste : fruit and less sweet than most fruit juice, cola,

sports drink, and energy drink• Flavor : lime juice, lemon juice, small amounts of raw cane

sugar and green tea• Ingredients : certified organic (during farming, harvesting,

and production, no chemicals were used or applied to alter or enhance the ingredients natural state)

Product Positioning?ENERGY DRINKS VS SPORTS DRINKS

• Sports beverages drinkers considered sport drinks "anytime beverages" did not associate them only exercise

• Price = $1 -$2

• Positioning as an energy enhancing beverage would reinforce existing perceptions from Oregon

• Consumer survey conducted at an outdoor music festival indicated consumer viewed "energy“

• Price = $2 - $5 per can• Target advertising market: men 18 -

24 years old

Market ResearchDrawing from a state of the industry, it’s published by beverage industry trade association, and 3 consumers surveys conducted by a private research firm, several academic reports, and industry media coverage

Consumer DataBelow is consumer study that examined how consumers perceived energy drinks and sports drink.

Below is perceptual map of consumer perception of leading energy drinks and sport drinks according to :

1. Energy and Hydration

Below is perceptual map of consumer perception of leading energy drinks and sport drinks according to :

2. Nutrition and Taste

Consumer Study of Crescent

Consumer Study of Crescent

Consumer Study of Crescent

Recommendation

I would recommend to position Crescent Pure as Energy Drink, in consideration of :

1. Market growth 40% between 2010 – 2012

2. Pricing advantage3. Health benefit (consumers demand) 4. Forecast to reach $13.5 billion in 20185. Suitable for targeted market based on

age, and both gender.

DisclaimerThis is a Harvard Business Case Study presentation by Karingula Satya Shanker from IIT Madras during Marketing Internship Under Professor Sameer Mathur.

K. Satya ShankerIIT Madras

Professor Sameer MathurIIM Lucknow