HARVARD BUSINESS CASE ANALYSIS OF CRESCENT PURE

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Transcript of HARVARD BUSINESS CASE ANALYSIS OF CRESCENT PURE

Page 1: HARVARD BUSINESS CASE ANALYSIS OF CRESCENT PURE

ORGANIC BEVERAGE

SPORTS DRINK

POSITIONING

ENERGY DRINK

POSITIONING

CRESCENT PURE

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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

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WHAT MAKES CRESCENT

PURE DRINK UNIQUE ??

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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

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1. ENERGY DRINK POSITIONING

2. SPORTS DRINK POSITIONING

3. ORGANIC BEVERAGE

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SPORTS DRINKS ENERGY DRINKSVs

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$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

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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

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• Fright(34% revenue)• Razor(27% revenue)• Torque(16% revenue)• Stellar(8% revenue)

ENERGY DRINK

• Gleam(73% revenue)• Drip(21% revenue)

SPORTS DRINK

COMPETITORS

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Rising childhood obesity rates due to which energy drinks were removed from schools

Health and safety risks

THREATS

ENERGY DRINK SPORTS DRINK

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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

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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

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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

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DEMOGRAPHICS OF CRESCENT ONLINE CONSUMERS

18-24 years 25-34 years 35-44 years 45-54 years 55+ years

36%

3% 2%

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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

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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

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MARKET SIZE

CONSUMER DATA

COMPETITORS

THREATS

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HH

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DISCLAIMERCreated by Ragini.R,

PSG College of

Technology during a

marketing internship

under Professor

Sameer Mathur, IIM

Lucknow