Harvard business case analysis

1. CRESCENT PURE
Harvard Business Case
Analysis

2. Portland Drake Beverages Overview
• Manufacturer of organic juices and sparling
water.
• VALUES: Quality and Affordability.
• Present CEO Michael Booth.

3. History of Crescent pure
• Peter Hooper, a native of Crescent, Oregon founded
Crescent Pure in 2008.
• Crescent was a non-alcoholic functional beverage.
• In July, 2013 Michael Booth PDB’s CEO acquired
Crescent pure.

4. Situation
What positioning strategy should be used to maximize the
Crescent’s revenue ?

5. Objective of this case
To analyse the consumer behaviour and by market
research choose proper positioning strategy .

6. Brand positioning options
1. Energy Drink
2. Sports Drink
3. Healthy Organic Beverage

7. Energy drink
Pros
• Contains less sugar and caffeine content comes
from natural herbs making the product unique.
• Growth in market for energy drinks (About 40%
growth in 2012-2013).
Cons
• Concerns about health and safety.
• Only 32% customers claim that they have
consumed an energy drink in the last 6 months.

8. Sports Drink
Pros
• Fast growing market.
• Market share is 6.3 billion in 2012.
• Regular users consumes sports drink more often.
Cons
• Rising childhood obesity rates resulted in government
mandated guidelines to remove high-calorie sugary drinks and
snacks.
• Market is $2.2 billion less than energy drink.

9. Healthy Organic Beverage
Pros
• Crescent’s taste appeals to most consumers.
• Increasing demand of healthier drink.
• Premium price (on average 25%) over conventional beverages
of the same variety.
Cons
• By focusing on health attributes, PDB might risk excluding
additional, lucrative customer segments.
• Advertising budget of $750,000 may no longer be feasible.

10. Perceptual Map
Hydration vs. Energy Nutrition vs. Taste

12. Percentages of respondents who felt a specific
word was reflective of energy and sports drinks in
2013.
12%
6%
5%
22%
9%
7%
9%
4%
11%
52%
34%
16%
11%
28%
8%
22%
11%
6%
41%
27%
35%
22%
29%
47%
9%
8%
19%
28%
39%
0
REFRESHING HEALTHY AFFORDABLE FUNCTIONAL TOO SWEET SUITABLE FOR
TEENS
FUN NTURAL HYDRATING NONE OF
THESE
Energy drink Sports drink Organic drink

13. Demographics of Crescent online consumers.
44%
36%
15%
3%2%
Age ranges
18-24
25-34
35-44
45-54
55+
Male- 59%
Female- 41%

14. My recommendation to Sarah Ryan,
vice president of marketing for
Portland Drake Beverages, is to
strategise for an Organic healthy
drink.

15. Points of Parity
• Hydrating .
• Good Taste.
• Not too sweet.
• Performance Enhancing.
• Nutritious.

16. Points of Difference
• Low sugar.
• Healthier.
• 35% of consumers found Crescent pure more
refreshing drink.
• Diet.
• Expansive than Sports drink but less than Energy
drink.

17. Profit Margin Analysis
Manufacturer Distributor Retailer
18% 25% 40%
$1.24 $1.64 $2.75

18. DISCLAIMER
Created by Amit Kumar Singh,MNIT Jaipur during
a Marketing Internship by Prof. Sameer Mathur,
IIM Lucknow.