Crescent pure

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Crescent Pure - An Analysis

Transcript of Crescent pure

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Crescent Pure -

An Analysis

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▫Sarah Ryan, Vice President, Marketing - PDB▫Michael Booth, CEO, PDB▫Matt Levor, Director,Market Research,PDB

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Decision Makers Involved

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What is the present situation??

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Situation Analysis

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Crescent Pure bought by PDB.

Sarah Ryan has to develop a positioning strategy for

Crescent. She has to choose between Energy drink, Sports

Drink or a healthy organic drink positioning

Crescent is an organic beverage. Its initial market

was in Oregon. Peter Hooper developed the drink.

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▫ Do comprehensive Strength weakness analysis

▫ Identify industry specifics▫ Design Positioning

Strategy▫ Designing parameters for

market research▫ Designing user surveys▫ Data Analysis and

interpretation

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Objectives

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Final Positioning Based on:

1.Break-Even Analysis2.Market Research Data3.User Perception of functionality

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Break Even AnalysisIn order to break even net revenue must be greater than $750,000.

Variable Costs for 1 can = $1.02Selling price for 1 case = $29.76 ($1.24 per case) i.e 24 cans per case

In order to break, 11,837.2 cans per month need to be sold. (<12000 production capacity - therefore break- even to be decided by amount of sale)

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Insights from Market Research??

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Based on Attribute analysis done above following unique propositions are evident

from the chart: Healthy, affordable, functional, natural

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Crescent

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Crescent

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SWOT ANALYSIS

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SWOT Analysis

STRENGTHS WEAKNESSES

● Lower Price than competitors

● Energy viewed as most descriptive characteristic of Crescent.

● Crescent’s organic certification and minimum caffeine

● Some consumers - concerned about energy content

● Lower budget compared to competitors

OPPORTUNITIES THREATS

● Consumer demand for healthier beverage choices - Increasing demand for low caffeine energy drink

● Energy drinks market growing at 40% CAGR

● Huge Market size of the energy drink market - $8.5 billion

● News stories about Energy drinks alleged health risks

● People becoming aware about risks

● Strong and established competitors

● Very low percentage of consumers of energy drinks felt energy drink is affordable.

Energy Drinks Positioning

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SWOT Analysis

STRENGTHS WEAKNESSES

● Some attributes of Crescent such as refreshment provided, taste etc. match that of the other sports drinks

● Crescent’s organic certification and minimum caffeine

● High price compared to competitors forces it to be priced as a premium product

● Typical sports drinks consumers include lot of teens(12-18 year olds) while many people found crescent as unsuitable for teens.

OPPORTUNITIES THREATS

● Huge market for organic sports drinks - $1.4 billion with CAGR 33%.

● Huge market size of sports drinks ($6.3 billion).

● One company has a huge market share leading to space for disruption.

● Low market growth rate● Increasing concerns

relating to child obesity etc. causing it to be banned in schools.

● Mismatch between existing sports drinks buyers and buyers found in survey.

Sports Drinks Positioning

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SWOT Analysis

STRENGTHS WEAKNESSES

● Crescent’s organic certification and minimum caffeine.

● Many attributes match in between that of energy drinks and Sports drinks.

● Very affordable pricing ● PDB’s history and core

competence - matches.

● Lower Budget ($750,000) may not allow enough capital for broad positioning.

● Time left before launch.● May compete with some

of PDB’s existing portfolio.

OPPORTUNITIES THREATS

● Huge market for healthy drinks. Increasing demand for organic drinks.

● General increase in market for beverages.

● Less competition as many competitors gearing for specialised positioning.

● May lead to dilution in customer base in both energy and sports drink markets.

● Consumer confusion about attributes of the drink.

Functional Organic Beverage Positioning

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FINAL RECOMMENDATION

Based on above analysis my recommendation is to position the drink as a broad organic drink having functional attributes. This is based upon the USPs identified, position on perception map, prices, and

SWOT analysis.

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Thanks!