Marketing plan for crescent pure

Crescent pure history• Peter Hooper founded crescent in 2008• Non-alcoholic functional beverage• Combination of energy-enhancing ,

hydrating with all organic ingredients• Promoted at farmers’ markets , local

food shows , pursuing local retailers in Oregon , demand grew in Oregon

• Portland drake beverages acquired the product in July of 2013

What made the Demand rise?• Sugar quotient is less than 70%• Contains caffeine equal to a cup of coffee

, Less sweet than juice• Refreshing and an energy boost as it

contains herbal stimulants , guarana seed and ginseng

• Lower price of $2.75 per 8 oz can • Packaged in a sleek , tall silver 8-once

can• Flavour of lime juice , lemon juice , small

amounts of raw cane and green tea

Sarah Ryan , vice president of market must decide on positioning of

crescent pure as ENERGY DRINK POSITIONING OR

SPORTS DRINK POSITIONINGOr

Organic refreshment

ENERGY DRINK POSITIONING

PROS:• Can occupy a unique place as it contains much less

sugar , less caffeine with all organic and herbal ingredients

• Price is $2.99 per 8 once can where the company can rise its price point

•Consumer response: viewed “energy” as most reasonable characteristic

Cons:• Regular consumption of energy

drinks is reduced due to health risks

• 11% of people drink less energy drinks due to health risks

• Some younger consumers think that crescent has less energy than they hoped

• High competition from other energy drinks such as Fright , TORQ , Stellar, Razor

Market consumer data:• Market size :

1) grown by 40% 2)growing between 2010 &2012 3)estimated $8.5 billion in U.S in 2013 4) forecast projected reach $13.5 billion in 2018• Consumer data:1)The largest group consumer males between 18 and 342)Parents are more likely to consume energy drinks3)Highest volume of consumers is households4)Income below $25,000 per year• Competition:together:34%Fright :27%Razor:16%Torque:8%Stellar:15%• Opportunity:1)Sales energy drinks with lower levels of caffeine and purer

ingredients2)To consumer demand for healthier food and beverage choices• Threats:1)The drinks alleged: 32% consumers over 18 indicated drank an

enery drinks in last 6 months2)health risks

Sports drink positioning Pros:• 42% of sports beverage drinkers considered

drinks as “anytime beverages”• Sports drinks are consumed more often • Price of $1-$2

•Consumer Response :refreshing , healthy, affordable , functional , fun and hydrating

1) Market is $2.2 billion less than energy drink market.2)Price is lower than crescent’s $2.75 per 8 once can

Cons:

Market consumer data:• Market size:

1)Increase 9%between 2007&2012 reach $6.3 billion in US2)expected to grow $9.58 billion in 2018• consumer data:1)40% of men and 27% of women2)62% ages 18-243)77% ages 12-17• Competition:1)Gleam : 73%2)Dip: 21% market share3)6% of market share :$378 million 4)20 producers• Oppurtunity:1)Concern rising childhood obesity rates in government

mandated guidelines to remove high calories sugar drinks and snacks

2)Including sports drink from school vending machines.• Threats:1)New diet and low sugar sports drink were growth2)Grown 33% in 2010 and 2012 taking market share

Organic refreshment pros:• Capitalize on the growth of

organic food and beverage industry over the past few years

• Ability to have a more premiunm price in this market as the focus is on quality ingredients and target consumers

• Would alow for a much wider range of consumers

Organic refreshment cons:• By focussing on just health

attributes PDB might not reach all consumer needs

• More distributors and retailers would be necessary

• To satisfy consumer and reach their expectations a company much time

Consumer study:

Perceptual map : Hydration Vs energy

Perceptual map : Nutrition and Taste

Consumer study of Crescent:

Consumer study of Crescent:

Feedback:Retailer feedback:• Levor contacted ten large

Portland area retailers.• Products were sold even

though price increased by 25%

• Popular among 18-30 aged

• Higher percentage of women purchased drink than expected

• Younger often purchaed six or more cans

FOCUS GROUP FEEDBACK:

• Three focus group segments were participated by women aged 25-33,men aged 25-35

• The taste is acceptable to consumers

• Some are happy for lower prices while others questined quality assurance of low price

Recommendation:To position crescent pure as energy drink:• With less caffeine content and oreganic

certification crescent can position itself as a healthier and better alternative

• This can enable PDB to increase the price which assures quality

• Forecast to reach $13.5 billion in 2015• Suitable for targeted markets and both

genders • Market growth 40%between 2010-2012• Can easily compete with different products

using artificial sweeteners and higher caffeine content

Disclaimer:Created by Sushmitha.E,NIT Nagpur

during marketing management internship under Prof. Sameer Mathur , IIM Lucknow.