HARVARD BUSINESS CASE ANALYSIS OF CRESCENT PURE
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Transcript of HARVARD BUSINESS CASE ANALYSIS OF CRESCENT PURE
ORGANIC BEVERAGE
SPORTS DRINK
POSITIONING
ENERGY DRINK
POSITIONING
CRESCENT PURE
CRESCENT PURE WAS FOUNDED IN
2008 BY PETER HOOPER
PORTLAND DRAKE BEVERAGES(PDB)
ACQUIRED CRESCENT PURE IN JULY
2013
PDB PLANNED A SOFT LAUNCH OF
CRESCENT IN THREE WESTERN STATES
IN JANUARY 2014 BECAUSE THESE
STATES REPRESENTED 15% OF
NATIONAL FUNCTIONAL BEVERAGE
INCOME
PDB KEPT A BENCHMARK OF $750,000
FOR ADVERTISING OF CRESCENT PURE
WHAT MAKES CRESCENT
PURE DRINK UNIQUE ??
INGREDIENTS
• Lime Juice
• Lemon Juice
• Raw Cane Sugar
• Green Tea
• Ginseng (herbal supplement which
relieves fatigue and boosts
concentration)
• Guarana (gives concentration double to
that of caffeine)
• Electrolytes
1. ENERGY DRINK POSITIONING
2. SPORTS DRINK POSITIONING
3. ORGANIC BEVERAGE
SPORTS DRINKS ENERGY DRINKSVs
$8.5 billion in 2013, and
expected to grow up to
$13.5 billion by 2016
$6.3 billion in
2012,$9.58 billion by
2017
MARKET SIZE
ENERGY DRINK
SPORTS DRINK
Age group :18-24 (62% consumers)12-17(77% consumers)
Age group of 18-34 forms largest group of energy drink consumers
CONSUMER DATA
ENERGY DRINK
SPORTS DRINK
• Fright(34% revenue)• Razor(27% revenue)• Torque(16% revenue)• Stellar(8% revenue)
ENERGY DRINK
• Gleam(73% revenue)• Drip(21% revenue)
SPORTS DRINK
COMPETITORS
Rising childhood obesity rates due to which energy drinks were removed from schools
Health and safety risks
THREATS
ENERGY DRINK SPORTS DRINK
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
REFRESHING HEALTHY AFFORDABLE FUNCTIONAL TOO SWEET SUITABLE FOR TEENS
FUN NATURAL HYDRATING
ENERGY DRINKS VS SPORTS DRINKS
Energy Drinks Sports Drinks
ORGANIC
BEVERAGES
A third broad appeal was
to put Crescent into
“Organic Beverages”
section
In 2013, Organic
beverages acquired a price
premium of 25%
compared to conventional
beverages
Refreshing35%
Healthy29%
Affordable29%
Functional47%
Too Sweet9%
Suitable For Teens8%
Fun 19%
Natural38%
Hydrating29%
DESCRIPTION OF CRESCENT DRINK
Refreshing Healthy Affordable Functional Too Sweet Suitable For Teens Fun Natural Hydrating
Online Crescent Consumer Survey
DEMOGRAPHICS OF CRESCENT ONLINE CONSUMERS
18-24 years 25-34 years 35-44 years 45-54 years 55+ years
36%
3% 2%
Taste is appealing
Quality Organic Ingredients at just $2.75
ENERGY
CONTENT
Healthy alternative to high calorie sugary,energy drinks
Customers find Crescent healthy, good taste and slight pick-me-up.
CUSTOMER PROFILE
PRICE
CRESCENT PURE AS A SPORTS DRINK
REASONS WHY CRESCENT PURE IS BEST AS A SPORTS
DRINK
Crescent Pure is considered as healthy by most
consumers which suggests it is best suited for
sportspersons
It has high refreshing and hydrating properties
Though it has slow increase in revenue compared to
energy drinks in terms of market, definitely sports
drinks are going to be in the market due to steady
growth and increased consumption
MARKET SIZE
CONSUMER DATA
COMPETITORS
THREATS
HH
DISCLAIMERCreated by Ragini.R,
PSG College of
Technology during a
marketing internship
under Professor
Sameer Mathur, IIM
Lucknow