Title LayoutSUBTITLE

Crescent Pure:Case Analysis

Companies Involved

CRESCENTPURE

PDB

01CEO : PETER HOOPER

02

03

MANUFACTURES OF NON ALCOHOLIC ORGANIC BEVERAGE

FOUNDED IN 2008

Crescent Pure

01 CEO : MICHAEL BOOTHMARKETING VP : SARAH RYAN

02

03

MANUFACTURES OF ORGANIC JUICES AND SPARKLING WATER

LARGE PRODUCT DISTRIBUTION NETWORK

PORTLAND DRAKE BEVERAGES

SITUATION ANALYSIS

• PDB acquired Crescent Pure in July 2013

OBJECTIVEChoose a suitable brand positioning for Crescent Pure by analysing the

available data

Word with which consumers describe Energy or Sports drinks

Refreshing Healthy Affordable Functional Too sweet For teens Functional Natural Hydrating None0

10

20

30

40

50

60

Energy Drinks Sports Drinks

perc

enta

ge

Demographics of Crescent Online Customers

18-2425-3435-4445-5455+36%

15%

3% 2%

Age Range

44%

Add a Slide Title - 3INCOME: $42500

Demographics of Crescent Pure Consumers

Gender

Male41%

59%

Product Positioning Options

1. •Energy Drink

2. •Sports Drink

3. •Organic Drink

• SPORTS DRINKS PERCEIVED AS HIGH HYDRATION AND LOW ENERGY DRINKS.

• ENERGY DRINKS PERCEIVED AS LOW HYDRATION AND HIGH ENERGY DRINKS.

PERCEPTUAL MAP

• SPORTS DRINKS PERCEIVED AS HIGH NUTRITION AND GOOD TASTING DRINKS.

• ENERGY DRINKS PERCEIVED AS LOW NUTRITION AND GOOD TASTING DRINKS.

PERCEPTUAL MAP

ENERGY DRINKS

Positioning as Energy drinkPROS CONS

• Fierce industry competition• Publics disapproval of new drink on the market• Potentially stricter government regulation• Consumption has lowered after negative media attention

• 42% consider them as “any time beverage”• Market growing at the rate of 40%• Price of Crescent pure ($2.75) will be less than industry average of $2.99

Sports Drinks

Positioning as Sports drinkPROS

CONS

• Health risks associated with them• Fierce competition• 85% of category revenue with big players• $2.75 price is higher then industry average

• Large expected market growth • Low caffeine content acts as point of Difference• Diet and low sugar sports drinks are growth areas in the industry

ORGANIC DRINKS

Positioning as Organic drinkPROS CONS

• Large advertising budget required• Larger consumer base, thus, larger distribution channels needed.

• No competition from big firms• Premium pricing can be done, thus, large revenues• Attracts health conscious consumers

Hypothesis

Organic drinks market is very diverse and hence will require large advertising expenditure

Average price for 12 and 24 Oz can is $1 and $2 respectively. Thus this positioning will not be very lucrative.

Crescent should be positioned as healthy energy drink

Crescent’s organic certification and minimum caffeine provide strong differentiators in energy drinks market

Analysis

Advertising Expenses = $750000Variable cost per can = $ 1.02Variable cost per case = 24*1.02

= $24.48Selling price per case = 24*1.24

= $29.76

Profit per case = $5.28

Analysis (1/3)

Number to be sold to break even= 142046 Cases to be sold per month= 11838 Production capacity per month= 12000

Analysis (2/3)

Profit per month = $(12000-11838)* 5.28

= $ 855.36

Annual Profit = $855.36*12 = $ 10264.32

Analysis (3/3)

This presentation was created by Ramji Binnani, SGSITS, Indore during a marketing internship under the guidance of Prof. Sameer Mathur, IIM

Lucknow.