4. Product Line of Crescent
• Energy Enhancing drink
• Hydrating drink
• All organic Ingredients
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11. Market research
For Energy Drink :
• Market size: between 2010 and 2012, the market for energy drinks had
grown by 40%. It was estimated to be $8.5 billion in the US in 2013;
forecasts projected that figure to reach $13.5 billion by 2018.
• Consumer data: The largest group of energy-drink consumers were males
between ages 18 and 34.Parents of children were also more likely to
consume energy drinks.The highest volume of energy drinks consumed was
by respondents with a household income below $25,000 per year.
• Competition: Together, Fright, Razor, Torque, and Stellar accounted for 85%
of category revenue (34%, 27%, 16%, and 8%, respectively). The remaining
15% was split between roughly thirty independent regional and national
producers
12. Market research
For Sports Drink :
• Consumer data: Roughly half of men drank sports drinks, while only a
third of women did. Although 40% of men found sports drinks
refreshing, only 27% of females did.16 Sports drinks appealed to
younger consumers—62% of those between ages 18 and 24, and 77%
of those ages 12 to 17.
• Competition: Gleam and Drip had 73% and 21% market share,
respectively. The remaining 6% of market share ($378 million) was
split fairly evenly among roughly 20 producers.
13. Break Even Analysis
• Targets 12,000 cases per month in 2014
• Price of one can is $2.75 or below 27% of selling price
• Price of one can $1.02
• Price of one can at Distributors is $1.24
• Ad budget $750,000
14. Break Even Analysis
• Finding marginal profit of one year :
(1.24-1.02) x 24 x 12000 = $63,360
12,000 Cases/ month
24 cans in each case
Hence for entire year :
$63,360 x 12 = $760,320
15. Break Even Analysis
• Hence Break even analysis would be :
Profit – Ad budget = Net Income
$760,320 - $750,000 = $10,320
Hence Crescent will face Break even situation.
16. My Verdict
Crescent should adopt Energy Drink positioning because :
• Its pricing strategy is good as compare to sports drink.($2.75)
• It is also affordable at lower price as compare to competitors in market.
• This can lead to good mix of product line alongside organic mix of
products.
17. Recap
• History
• Timeline of Events
• Product Line of Crescent
• Situation Analysis
• Brand Positioning options
• Energy Drink Market
• Sports Drink Positioning
• Feedback on Crescent
• Market Research
• Break Even Analysis
• My Verdict
18. Disclaimer
CREATED BY ANAND KHISMATRAO, KJSCE Mumbai DURING A
MARKETING INTERNSHIP WITH PROF. SAMEER MATHUR, IIM
LUCKNOW.
