CRESCENT PURE case study

HISTORY OF CRESCENT PURE•Peter Hooper, a native of crescent, Oregon founded

crescent pure in 2008.•He wanted a drink that would refresh, energize and

enhance mental focus.• In late 2012, Michael Booth, CEO of PDB Beverages

acquired crescent pure

Pricing of crescent pure

• In times of Peter Hooper, a 8 ounce can was retailed for $3.75 .

•when PDB acquired Crescent Pure, the management decided to decrease it to $2.75 to reflect PDB’s pricing strategy - to deliver quality organic products at affordable price

So, What is the problem?

Which positioning strategy should PDB use to maximise crescent’s revenue

•Energy drink positioning

•Sports drink positioning

Let’s see the pros and cons of positioning the drink as sports drink

Pros of sports drink• 42% of sports beverage drinkers considered sports drinks

“anytime beverages” and did not associate them only with exercise.• Attract a wider consumer base• Regular users consume sports drink more often•Market size is $6.3 billion• It is described more often as refreshing, healthy,

affordable,fun and hydrating than energy drinks

Cons of Sports drink

•Market is $2.2 billion less than energy drink market• Crescent’s $2.75 price point for an 8 oz.can is significantly

higher than other competing sports drinks of the same size• Recent govt. mandated guidelines to remove sugary,high

calorie drinks from school vending machines including sports drinks pose a threat

what happens if it is an energy drink?

Energy Drink Pros• It contains much less sugar than competing energy

drink(about 70% less) and the caffeine in the product is delivered from natural herbal stimulates(guarana seed and ginseng) unlike others.•Market is growing for energy drinks.• Consumers viewed “energy” as crescent’s most descriptive

characteristic.• As $2.75 price point of crescent pure,is less than the average

price $2.99 ,it allows PDB an opportunity to possibly raise the price.

Energy drink cons• Regular consumption of energy drinks has fallen due to

negative media attention about health risks.• Competitors-85%not much wiggle room for new.• Some people question the company’s ability to deliver a

quality product with all organic,helathy ingredients for just $2.75.• Some younger consumers think that crescent has less energy

than they had hoped.

Oh, wait…..there might be a third positioning option

An organic beverage!!!!!!!!!

Lets explore the options for positioning it as an organic beverage!

Pros of organic drink• It can capitalize on the growth of the organic food and

beverage industry.• Ability to have more premium price in this market as the

focus is on quality ingredients and target consumers would be willing to pay more.•Would allow for a much wider range of consumers

Cons of organic drink• By focusing on health attributes,PDB might risk excluding

important customer segments.• Timing is critical and the broad approach would complicate

efforts to develop and execute a marketing strategy in time.•With such a wide range of consumers, the $750,000

advertising budget may no longer be feasible•More distributors and retailers would be necessary and

would need to be evaluated.

Our recommendationsThe recommended plan of action for PDB is to market crescent pure as an energy drink.

• Ability to boost energy and mental focus• Health benefits• Pricing advantage• Trending market growth

CREATED BY SHARMILA DEVA,NIT NAGPURUNDER PROF.SAMEER MATHUR DURING MARKETING MANAGEMENT INTERNSHIP