It's a Presentation on Havard Business School case study

1. Crescent PureA Harvard Business School case study

2. •Crescent Pure is a non alcoholic beverage with an impending launch in three US
markets .
• PDB ‘s marketing team has to decide the marketing strategy for Crescent Pure
to maximise its revenue.
•PDB has acquired the Crescent Pure with the aim to expand its products line
Situation

3. •Founded in 2008 by Peter Hooper, a native of Crescent Oregon
•The drink was sold in regional grocery chains and small independently
owned grocers and cafes
•The drink priced for $3.75 for 8-ounce can
•After One year, Hooper secured legal protection for his propriety recipe.

4. Energy
Drink
Sports
Drink
Organic
Drink

5. Energy Drinks
•Market for Energy Drink in
2013 is $ 8.5 billion
•The average price of 8oz is $
2.99
•Consumption has fallen owing
to negative media attention
Sports Drinks
•Market for sports Drink in
2013 is $ 6.3 billion
•The average price is $1.00-
$2.00 for 12 and 24 oz
•Consumption has fallen owing
to obesity problems

7. Competition
5 company accounts for 85% of
total revenue.
Opportunities
Demand of energy drinks with
lower caffeine is increasing due
to customers demand for
healthier food
Market Size
Market size for energy drinks
had grown by 40% in 2 years
and estimated to be $13.5
billion by 2018
Threats
New Stories posses that energy
drinks posses health risks and
people are consuming fewer
energy drinks than before.

8. Competition
Gleam and Drip has 73% and 23%
market share
Opportunities
New diet and low Sugar sports
drinks are the growth are for the
industry.
Market Size
Market size for energy drinks
had grown by 9% in 2 years and
estimated to be $9.58 billion by
2017
Threats
Concerned regarding rising
childhood obesity.

9. Drinks with
low caffeine
and sugar
Energy
drink
market up
by 40%
Rising
Sales of
Healthier
drinks
Rivals to
Launch
Products
In 2015
People
Becoming
Health
Conscious

10. Consumer Analysis

11. Demographic of Crescent Customers
18-24 25-34 35-44 45-54 55+
44% 36% 15% 3% 2%
House hold income(median)$42,500

12. Consumer Describe Crescent

13. Perceptual Map Hydration vs. Energy

14. Perceptual Map Nutrition vs. Taste

15. Recommendations
• Position Crescent Pure as an energy drink
• Market growth of energy drink was 40% between 2010-2012
• Crescent Pure has pricing advantage in this segment
• Can act as an healthier alternative in this segments

16. Break Even Analysis
Category Amount
Advertising Budget $750,000
Cases sold per month 12,000
Cases sold annually 144,000
Drinks per case 24
Manufacturer’s wholesale price to Distribution $29.76
Variable cost to manufacturer per case $24.48
Manufacturer Margin $5.28
Break even Cases 142,045.5
Capacity overage 1,954.55
Profit $10,320

17. Disclaimer
This Presentation is created by Divyansh Sharma, NIT Hamirpur, during
a marketing internship under Prof. Sameer Mathur, IIM Lucknow