9. Situation Analysis
The other
option being
positioning it
as a sports
drink
..one of the
option is to
position it as
an energy
drink
PDB needs
to finalize a
positioning
strategy for
Crescent
10. • Its advertising strategies
• Where the product would be sold
• Which distributors will PDB select
• And finally, success of the product
12. What are the objectives of this case?
Using quantitative analysis method to evaluate from
two possible positioning strategies for a product
13. “ good positioning, if successful, could shape potential
customers’ opinions about a product or service before
they’d even seen or experienced the product in question “
14. The pricing for the product has already
been set at $2.75, but an appropriate
positioning strategy is yet to be finalized
15. To make an informed decision, Ryan knows that
she needs in-depth research on market sizes,
competitors, and consumer preferences
16. … she has asked Matt Levor, PDB’s
director of market research, for help on
this
28. As it can be observed from the data provided by
Matt, Fun, Functional, Healthy, Refreshing, Natural
and Hydrating will be some of its characteristics which
will be above par with its competitors in this market
29. Energy Drinks Sports Drinks
Refreshing 12% 34%
Healthy 6% 16%
Affordable 5% 11%
Functional 22% 28%
Too sweet 9% 8%
Suitable for Teens 7% 22%
Fun 9% 11%
Natural 4% 6%
Hydrating 11% 49%
None of these 52% 27%
Crescent Pure
Refreshing 35%
Healthy 22%
Affordable 29%
Functional 47%
Too sweet 9%
Suitable for teens 8%
Fun 19%
Natural 38%
Hydrating 29%
30. The drink will be offered at a retail price of $2.75,
which is considerably lesser than the market
average for energy drinks ($2.99). This will enable
the company to sell large volumes with low mark up
31. As observed from the retailer feedback and the
research provided by Levor, the largest consumer
groups of both – energy drinks and Crescent Pure –
coincide with each other (age 18-30)
32. The product has the opportunity to increase its
customer base, as the older customers from the
focus group feedback found it a healthy a healthy
alternative to high calorie, sugary energy drinks
33. Since the retail price of the product is below the
market average of $2.99, profits can be increased in
the future if the product proves to be successful, by
increasing the markup
35. But what are the problems
associated with positioning
the product as a Sports
Drink?
36. The pricing of Crescent Pure is more than
thrice the market average for sports drinks
37. To be successful, the company has to place it as a premium
product and will have to work with lower volumes
38. But the current $2.75 price was decided by the
management team while keeping a low markup,
and anticipating high volumes. Hence, this
positioning is not feasible with the current strategy.
39. Crescent Pure doesn’t have much ‘Hydrating’
effect, whereas, most sports drinks generally
have a ‘High hydrating’ effect
40. Crescent Pure
Refreshing 35%
Healthy 22%
Affordable 29%
Functional 47%
Too sweet 9%
Suitable for teens 8%
Fun 19%
Natural 38%
Hydrating 29%
Sports Drinks
Refreshing 34%
Healthy 16%
Affordable 11%
Functional 28%
Too sweet 8%
Suitable for Teens 22%
Fun 11%
Natural 6%
Hydrating 49%
None of these 27%
41.
42. Most sports drinks’ consumers expect it to be suitable
for teens, on the contrary, consumers of Crescent Pure
don’t perceive the product as suitable for the teens
43. Crescent Pure
Refreshing 35%
Healthy 22%
Affordable 29%
Functional 47%
Too sweet 9%
Suitable for teens 8%
Fun 19%
Natural 38%
Hydrating 29%
Sports Drinks
Refreshing 34%
Healthy 16%
Affordable 11%
Functional 28%
Too sweet 8%
Suitable for Teens 22%
Fun 11%
Natural 6%
Hydrating 49%
None of these 27%
44. The predominance of the major players in the Sport Drink
market is far more than that in the Energy drink market
