Crescent Pure - Harvard Case Study. Prepared during marketing internship under Prof. Sameer Mathur, IIM Lucknow.

2. Company History
• Peter Hooper, founded Crescent, a healthy,
energizing drink in 2008.
• An organic beverage infused with organic
juices, herbal stimulants & electrolytes
• Due to the “locavore” movement, local demand
for Crescent grew, as other sports & energy
drinks were unhealthy or too sweet and
artificial.

3. • Organic – Refreshing – Energizing
• Herbal stimulants like guarana seed and ginseng
• Contained 80 mg of caffeine – equivalent to 1 cup
of coffee
• Sugar quotient less than 70% of leading sports &
energy drinks

4. Present Situation
• Michael Booth, CEO of PDB acquired Crescent in July 2013
• “Soft - launch” in Jan 2014 domestically, but if profits
exceed expenses – National launch in 2015
• Advertising budget – 750,000$
• Sarah Ryan, VP Marketing has to develop a positioning
strategy for Crescent
• Options : Sports Drink vs Energy Drink

5. Energy Drink Positioning
• Energizing & refreshing
• Combat fatigue and
promote mental focus
• Reinforces existing
perceptions
Points of
parity Points of
Difference
• Healthy & Organic
• Price – 2.75$ vs
2.99$
• High caffeine
• Low sugar

6. Market Research
Market size Threats
Drinks’ alleged health risks: 32%
consumers over 18 drank an energy
drink in the last six months, 11% were
drinking fewer energy drinks , due to
concerns about health and safety
Consumer data Opportunity
Sales of energy drinks with lower
caffeine and purer ingredients - rising
due to consumer demand for healthier
food and beverage choices
• Market size growth by 40% between
2012 to 2014
•$8.5 billion in the year 2013
•To reach 13.5 billion by 2018
• Largest group of consumers – males
between 18 – 24.
•Highest consumption by household
with income less than $25000 p.a.

7. Sports Drink Positioning
• Hydrating and nutrition
• Enhances performance
• Healthy anytime-
beverage
Points of
parity Points of
Difference
• Low sugar & all –
natural
ingredients
• Premium pricing

8. Market Research
Market size Threats
Concern regarding rising childhood
obesity rates resulted in government-
mandated guidelines to remove high-
calorie sugary drinks and snacks,
including sports drinks, from school
vending machines beginning in 2014.
Consumer data Opportunity
Diet and low-sugar sports beverages,
had grown by 33% between 2010 -
2012. The market size expected to
increase from $1.4 billion in 2012 to
$2.97 billion in 2017.
Increased 9% between 2007 and 2012.
In 2012, the market for sports drinks
reached $6.3 billion in the United
States and was expected to grow to
$9.58 billion by 2017
• 40% of men found sports drinks
refreshing, only 27% of females
did.
• Sports drinks appealed to younger
consumers—62% between ages 18
- 24, 77% between ages 12 - 17.

12. Organic Drink
• A broader positioning strategy. Organic beverages
included carbonated soft drinks, coffee, soy, milk,
juices .etc.
• Prospects included health-conscious consumers
who regularly consumed energy or sports beverages
• Organic beverages claimed a price premium (on
average 25%) over conventional beverages of the
same variety

13. Organic Energy Drink

14. Why?
• Healthier alternative to Energy Drinks.
• Growth opportunity as 40% growth of market
previously
• Also priced $2.75, it is low for energy drinks as
well as organic beverages market.
• PDB could exploit Crescent’s broad appeal
with positioning focused on health, wellness,
and natural ingredients

15. Break Even Analysis

16. Disclaimer
Created by Abhishek
Srinivas, COEP during
Marketing Internship under
Prof. Sameer Mathur, IIM
Lucknow