CRESCENT PURE

A HARVARD BUSINESS SCHOOL CASE STUDY ~SHOAIB ARSHAD KHAN

PDB (PORTLAND DRAKE BEAVERAGES) COMPANY PROFILE1.Manufacturer of Organic Juices.

2. Clocked $120.5m revenues by 2012

3. Values: Health & Affordability

CRESCENT PURE’S HISTORY

as

as

~Founded by Peter Hooper in 2008

~Because he saw a market for healthy , energizing drink

~Non-alcoholic, functional beverage.

CRESCENTS ACQUISITION BY PDB MICHAEL BOOTH (CEO, PDB)

Saw his son’s drinking Crescent pure

They found the drink healthy and refreshing

Consumer demands for organic beverages were increasing

Booth thought Crescent to be perfect match for PDB’s organic Segment hence acquired it

SITUATION :-• as

AS

Soft launch in 2014, due to lesser

Production Capacity

CEO has asked Sarah Ryan (V.P.

Marketing) to form suitable

Marketing Strategy

PRODUCT POSITIONING OPTIONS

• as

ENERGY DRINK1.$2.99 per Can (Avg. Pricing)2.Age Group :- 18-243.Top 6 players account for 85% of

Revenue4.Attracts comparatively lesser

consumer base

SPORTS DRINK1.$1- $2 per Can ( Avg. Pricing )2.Age Group :- 12-243.Top 2 players have 94% market

share4.Attracts higher consumer base

ORGANIC DRINK1.25% premium2.All Ages3.New emerging Market

MARKET TRENDS1. Drinks with low Caffeine & Sugar2. Rising sales of healthier beverages3. Fierce competition amongst both energy

and sports drink4. Organic Drink Industries – emerging and

growing rapidly

CRESCENT PURE Vs

COUNTERPARTS

Contains Organic Juices

HERBAL STIMULANT :- GUARANA SEED (Delivers Caffeine= 80 mg)

RAW CANE SUGAR(70% less sweeter)

GREEN TEA

BEVERAGE DISTRIBUTION SYSTEM IN U.S.

MANUFACTURER

DISTRIBUTORS (Adds 25% margin while selling to retailer)

RETAILERS (Adds 40% margin while selling to customers)

CONSUMER STUDY

CONSUMER STUDY

CONSUMER STUDY

BREAK EVEN ANALYSIS

DISCLAIMERCREATED BY SHOAIB ARSHAD KHAN, SSGI-FET BHILAI, DURING A MARKETING INTERNSHIP BY PROF. SAMEER MATHUR, IIM LUCKNOW