CRESENT PUREHARVARD CASE STUDY

Companies Involved

CRESCENT

PURE

PDB

People Involved PDB’s CEO

Michael Booth

PDB’s Vice President of Marketing

Sarah Ryan

SITUATION ANALYSIS

PDB acquired Crescent Pure in July

2013

Market Research to decide its

positioning done

Decision about its market positioning need to be taken

OBJECTIVE

CHOOSE A SUITABLE BRAND POSITIONING FOR CRESCENT PURE BY ANALYSING THE AVAILABLE DATA

Brand Positioning Options

1. Energy Drinks

Positioning as Energy drinkPROS CONS

• Fierce industry competition• Publics disapproval of new drink on the market• Potentially stricter government regulation• Consumption has lowered after negative media attention

• 42% consider them as “any time beverage”• Market growing at the rate of 40%• Price of Crescent pure ($2.75) will be less than industry average of $2.99

2. Sports Drink

PROS

CONS

• Health risks associated with them• Fierce competition• 85% of category revenue with big players• $2.75 price is higher then industry average

• Large expected market growth • Low caffeine content acts as point of Difference• Diet and low sugar sports drinks are growth areas in the industry

Positioning as Sports Drink

3. Healthy Organic Beverage

PROS CONS• Large advertising budget required• Larger consumer base, thus, larger distribution channels needed.

• No competition from big firms• Premium pricing can be done, thus, large revenues• Attracts health conscious consumers

Positioning as Organic Beverage

Demographics of Crescent Online Customers

18-2425-3435-4445-5455+36%

15%

3% 2%

Age Range

44%

Requirements of the Case Industry specifics related to each positioning option.

The potential benefits and drawbacks of each option.

Final recommendation.

Matt Levor’s first Market Research Outcomes

Refreshing Healthy Affordable Functional Too sweet Natural Hydrating

12

6 5

22

9

4

11

34

16

11

28

86

49

Percentage of respondents who indicated a word that described energy or sports drinks

Energy Drinks Sports Drinks

Matt Levor’s second Online Market research

18-24 25-34 35-44 45-54

44

36

15

3 2

Demographics of Crescent online consumers

Age Ranges

Refreshing Healthy Affordable Functional Too Sweet Fun Natural Hydrating

35

22

29

47

9

19

38

29

Percentage of respondents who described Crescent

Energy Drinks•Fast Growing

market.•Estimated 8.5 billion consumers by 2013

Major customers are middle aged

men only.

•Increasing demand of

healtier alternative

•Reduction in consumption due to relation with health

related issues.

Sports Drink

•Large consumer base.

•Consumer base is

segmented(Even women consume

this)

•Cheap products of competitor

s

•Requirement of a healthy

alternative.

•Reducing consumer

base due to health related

issues

Healthy Organic Drink

•Emerging market.•Less

competition

•No existing

consumer base.

•Increasing demand of a

healthier drink.

•Less advertising budget may

cause a problem

Organic drinks market is very diverse and hence will require large advertising expenditure

• From Lover’s market research it was clear that a large number of people were associated Crescent Pure with a healthy and functional organic drink.

• Increase in prices by retailers didn’t affect the sales which indicates that costumers were willing to pay the amount set by the company.

• And both sports drink and energy drink consumers are looking for a healthier alternative. And Crescent Pure can attract customers of both these segments by positioning as Healthy Organic drink.

• Break even analysis shown in next slides also verify that the company would be able to stay in there advertising budget limit by selling the product at $2.75.

Break Even

Analysis

Final recommendation by complete case analysis would be to position Crescent Pure as Healthy Organic drink.

Disclaimer

This presentation was created by Tejas Shetty as a part of a assignment given by Prof . Sameer Mathur during the 2017 internship.

Tejas Shetty Prof Mathur