Crescent pure
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kunal-aggarwal -
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Transcript of Crescent pure
Crescent Pure -
An Analysis
▫Sarah Ryan, Vice President, Marketing - PDB▫Michael Booth, CEO, PDB▫Matt Levor, Director,Market Research,PDB
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Decision Makers Involved
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.
▫ 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
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
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!