Crescent Pure- Harvard business case study

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Crescent Pure A Harvard Business School Case Study -Nidhi Ahuja

Transcript of Crescent Pure- Harvard business case study

Page 1: Crescent Pure- Harvard business case study

Crescent

Pure

A Harvard Business

School Case Study

-Nidhi Ahuja

Page 2: Crescent Pure- Harvard business case study

The companies

Manufacturer of organic juices and sparkling waters

Values: health & affordability

PDB Non alcoholic functional beverage company

Crescent Pure

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Overview

PDB (Portland Drake

Beverages)

Crescent Pure

The acquisition requires a new

market positioning of Crescent so it aligns with PDB’s brand

values

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What’s the big plan?

• Large competitors were planning to launch all natural versions of their beverages

Fast launch:

• Due to production capacity restraints

• To test the positioning before nationalizing

Soft launch:

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situation at hand

The CEO of PDB has asked Sarah Ryan, the vice president of marketing to form a suitable market positioning strategy for Crescent within days

What are the

positioning

options?

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Or as simply an healthy organic drink?

Energy drink

Soft drink

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Approach

• Benefits and

• Drawbacks of positioning choices

State

• Positioning

• Price

Finalize • if the profits

met or exceeded the goal

Expand

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Crescent- About the drink To come to a conclusion about the drink’s positioning, it needs to be known what it is about

• All natural beverage lightly infused with organic

juices, herbal stimulants and enhanced mental

focus

• Same energy effect as a cup of coffee

• 70% less sugar content than leading energy &

sports drinks

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Factors that affect the decision

1. Alignment of Crescent with

the PDB’s brand image

2. Consumer choices/survey

results

3. Price that can be offered

4. Market size

5. Differentiators of the different

offerings

6. Competition

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Alignment of Crescent with PDB’s brand image:

As energy drink: combat fatigue, promote mental focus

As sports drink:

Hydrating, mental focus and energy boost

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Consumer choices & survey results:

As energy drink:

Most descriptive character of Crescent as per consumers is ‘energetic’

As sports drink:

-There’s a growing demand for diet and low sugar sports drink in the market

-They can seek health conscious consumers

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One word description for the two types of

drinks: consumer survey

• According to the

data, positioning

Crescent as a sports

drink is suitable

because many of its

characteristics align

with it

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Pricing that can be done

As energy drink:

Average price is $2.95 for 8 oz. They can offer a lower price of $2.75

As sports drink:

Average price is $1 to $2 for 12 oz and 24 oz. The positioning will have to push the case

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4. Market size:

• $8.5 billion sales till 2013

• Forecast prediction: $13.5 billion sales till 2018

As energy drink

• Only 4% rise from 2007 to 2012

• $6.3 billion sales till 2012

• Prediction: $9.58 billion till 2017 As sports drink

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5. Points of difference

As energy drink:

Due to Crescent’s organic certification and minimal

caffeine content; they have a competitive advantage here

As sports drink:

42% consumers consider sports drink as ‘anytime beverage’

And so, health conscious consumers could be targeted

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Competition

As energy drink:

85% of the total category revenue goes to Together, Fright, Razor, Torque, Steller

As sports drink:

Major competitors are Gleam and Drip

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Competition analysis Consumers’ perception of the various drinks is as shown

• Crescent could be positioned as a sports drink because consumers think of Crescent as highly hydrating and energetic (as in the previous slides)

• And hence, they can position themselves in high-hydration & high-energy region and face just one competition

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Some conclusive thoughts • Crescent pure, on positioning as

a energy drink can turn out to produce a whooping success as:

– Consumer perception about Crescent aligns well with an alternate choice of a energy

drink

– There are lesser leading competitors with similar drink

characteristics

– They have strong points of difference as a energy drink due

to their organic certification

– They can position it at $2.75 which is lower in comparison to

the average price of energy drinks

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DISCLAIMER As a part of internship under Prof. Sameer Mathur, IIML

by Nidhi Ahuja