CRESCENT PURE CASE ANALYSIS

PORTLAND DRAKE BEVERAGESOrganic juice and sparkling water makers

$120.5 million Revenue

MICHAEL BOOTH Runs PDB

HIGH QUALITY AT AFFORDABLE PRICES IS THEIR CORE VALUE

Crescent purePeter Hooper founded Crescent Pure in 2008

All natural organic juice delivering 80mg caffeine

Sugar quotient was 70% lesser than sports & energy drinks

retailed for $3.75 apiece

Pdb acquired

crescent pure in july 2013

WHY?

PORTLAND DRAKE BEVERAGES(PDB) ACQUIRED CRESCENT PURE WITH AN AIM OF EXPANDING AND MAXIMIZING REVENUE

soft launch in 3 states in January 2014

With an Advertising budget of $750,000 they wanted to define product positioning by 1st october, 2013

SCENARIOSARAH RYAN, MARKETING VP AT PDB

NEEDS TO FINALIZE PRODUCT POSITIONING STRATEGY FOR

CRESCENT PURE

Positioning optionsENERGY DRINK

SPORTS DRINK

ORGANICDRINK(ALTERNATIVE)

ENERGY DRINK

crescent

MARKET OVERVIEW

● $8.5 billion market growing at 40% YoY● Top 4 brands occupied 85% market share● highest consumers were Men of 18-24 years old● Avg price for 8 ounce can - $2.99● Sales of energy drinks with low caffeine were rising in

demand

COMPETITIONPOINTS OF PARITY

POINTS OF DIFFERENCE

- REFRESHING - IMPROVES MENTAL FOCUS

- CAFFEINE - KILLS FATIGUE

- HEALTHY - $2.75 VS $2.99

- EQUAL TO 1 COFFEE CUP - LOW SUGAR

SPORTS DRINK

MARKET OVERVIEW● $7.5 billion market, Expected to grow to $9.58 billion in

2017● Top 2 brands occupied 94% market share● highest Consumers were aged b/w 18-24 and b/w 12-17● Avg $1 to $2 for 12 & 14 ounce containers respectively● Increasing demand for diet and low sugar sports

drinks.

COMPETITIONPOINTS OF PARITY

POINTS OF DIFFERENCE

- HYDRATING - NUTRITIOUS- PERFORMANCE ENHANCING - GOOD TASTE

- EXPENSIVE - LOW SUGAR

- HEALTHIER - DIET

MARKET ANALYSIS

PERCEPTUAL MAP HYDRATION VS ENERGY

PERCEPTUAL MAP NUTRITION VS TASTE

Percentage of respondents who described Crescent

Refreshing 35% Healthy 22% Affordable 29% Functional 47% Too sweet 9% Suitable for teens 8% Fun 19% Natural 38% Hydrating 29%

Demographics of Crescent Online Customers

36%

15%

44%

3% 2%

ANNUAL INCOME$42,000

ECONOMICS

area AmountWholesale price PER can $1.24

Cost price PER can $1.02Profit PER can $0.22

Number of cans PER case 24Profit PER case $5.28

Production of number of cases PER month 12,000Profit PER month $63,360Profit PER year $760,320

Advertising costs $750,000Net Profit $10,320

HOW SHOULD CRESCENT BE POSITIONED?

ORGANIC ENERGY DRINK● Consumers viewed “Energy” as Crescent’s most descriptive character● Positioning Crescent as energy drink would reinforce existing perceptions

from Oregon● Contains healthy ingredients, low sugar, yet packs a punch – 80mg caffeine● Crescent, as an organic energy drink IS a healthier alternative to OTHER

energy drinks● Energy drink market is growing at 40% ● wOULD MAKE A NATURAL EXTENSION OF WHAT PDB ALREADY STANDS FOR

DISCLAIMERCREATED BY VYSHAK K IYENGAR, RNSIT BANGALORE, DURING A MARKETING INTERNSHIP UNDER

PROF.SAMEER MATHUR, IIM LUCKNOW