Detail analysis on the Harvard case on crescent pure

2. WHAT IS CRESCENT PURE?
It is a non-alcoholic organic beverage with refreshing
ingredients to charge your energy up

3. HISTORY
Founded by Peter Hooper in 2008 to cater the market
for healthy and energizing drink with natural ingredients.

4. ACQUISITION BY PDB
PDB acquired Crescent in July 2013; the drink’s combination
of energy-enhancing, hydrating, and all-organic ingredients
made it a natural extension for PDB’s existing organic
product lines.

5. WHY CRESCENT PURE?
1. Made out of all natural and organic products.
2. Refreshing, energizing drink
3. Low caffeine content with high energy.

6. INGREDIENTS AND PRICING
Guarana, a native seed of South America which contains caffeine;
Ginseng, to relieve fatigue and boost concentration;
For flavor lime juice, green tea, a bit of raw cane sugar were added.
The founder of company priced the drink at $3.75 for 8 ounce can
but PDB decided it would be more profitable to price it at $2.75 so
that it would give competition to other products in same segment.

7. PRODUCT POSITIONING
Energy drink due to its energy giving
contents.
Sports drink due to its hydrating nature.
Another possible position organic drink
due to its all organic composition.

8. ENERGY DRINK
PROS:
The market for energy drink in US was
estimated to be $8.5 billion in 2013.
Average price of a 8 ounce can in US is $2.99,
above the $2.75 price point.
Energy drinks targeted men between 18 and 24
years of age.

9. ENERGY DRINK
CONS:
Negative media attention resulted in fallen
consumption.
Due to concerns about health and safety people
decreased their consumption.
High competition among top 4 drinks. They
occupy 85% of the market.

10. SPORTS DRINK
PROS:
The market for sports drink in US was
around $6.3 billion in 2012.
Roughly half of the men drank sports drink
while a third of women did. More popular
among young generation.
The low sugar content of the drink made it a
more healthy choice in the segment.

11. SPORTS DRINK
CONS:
Market is less than what it is for energy drink.
The average $1 to $2 for a 12 to 24 ounce can
which is less than the decided $2.75 for 8 ounce
can.
Due to obesity threats people are refraining from
these drinks.

12. WHAT PEOPLE THINK

14. ANALYSIS OF THE
SITUATION
1. The energy drink positioning at this price point would definitely
profit to the company due to more healthy components used
with same energizing features.
2. To position it as a sports drink company need a more strong
and wide advertisement campaign as their price is slightly more.
3. There is a chance of third position as a organic beverage due to
its all organic composition.
4. There is a positive feedback to the Drink from the consumer
research done.

15. PERCEPTUAL MAP

17. BREAK EVEN ANALYSIS
• Variable cost per can $1.02 . Cost of 24 can case $1.02*24= $24.48.
• Wholesale price to distributor per case= $29.76.
• Profit= $29.76 - $24.48= $5.28
• Amount spend on advertisement= $750000
• Number of cases to be manufactured per month = (75000/5.28)/12
= 11837(approx.)
• Now the amount to be produced is less than maximum capacity
so break even is possible

18. SUMMARY
There are three positioning possibilities :
1. Energy drink
2. Sports drink
3. Organic drink
People’s perception shows that it is ideal for any of the positioning.
Now comes into play the market size and competition.

19. disclaimer
This presentation has been made by Harshit Laddha,
IIT(ISM) Dhanbad during a marketing internship under
prof. Sameer Mathur, IIM Lucknow.