Based on Harvard Case study on Crescent Pure

1. Crescent Pure -
An Analysis

2. ▫ Sarah Ryan, Vice President, Marketing - PDB
▫ Michael Booth, CEO, PDB
▫ Matt Levor, Director,Market Research,PDB
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Decision Makers Involved

3. What is the present
situation??
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4. Situation Analysis
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Crescent Pure bought by PDB.
Sarah Ryan has to develop a
positioning strategy for Crescent.
She has to choose between
Energy drink, Sports Drink or a
healthy organic drink positioning
Crescent is an organic beverage. Its
initial market was in Oregon. Peter
Hooper developed the drink.

5. ▫ Do comprehensive Strength
weakness analysis
▫ Identify industry specifics
▫ Design Positioning Strategy
▫ Designing parameters for
market research
▫ Designing user surveys
▫ Data Analysis and
interpretation
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Objectives

6. “
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Final Positioning Based on:
1.Break-Even Analysis
2.Market Research Data
3.User Perception of
functionality

7. Break Even Analysis
In order to break even net revenue
must be greater than $750,000.
Variable Costs for 1 can = $1.02
Selling price for 1 case = $29.76 ($1.24
per case) i.e 24 cans per case
In order to break, 11,837.2 cans per
month need to be sold. (<12000
production capacity - therefore break-
even to be decided by amount of sale)
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8. Insights from Market
Research??
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Based on Attribute analysis done above
following unique propositions are evident
from the chart: Healthy, affordable,
functional, natural

11. 11
Crescent

12. 12
Crescent

13. SWOT ANALYSIS
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SWOT Analysis
STRENGTHS WEAKNESSES
● Lower Price than
competitors
● Energy viewed as most
descriptive characteristic
of Crescent.
● Crescent’s organic
certification and minimum
caffeine
● Some consumers -
concerned about energy
content
● Lower budget compared
to competitors
OPPORTUNITIES THREATS
● Consumer demand for
healthier beverage
choices - Increasing
demand for low caffeine
energy drink
● Energy drinks market
growing at 40% CAGR
● Huge Market size of the
energy drink market - $8.5
billion
● News stories about Energy
drinks alleged health risks
● People becoming aware
about risks
● Strong and established
competitors
● Very low percentage of
consumers of energy drinks
felt energy drink is
affordable.
Energy Drinks
Positioning

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SWOT Analysis
STRENGTHS WEAKNESSES
● Some attributes of
Crescent such as
refreshment provided,
taste etc. match that of
the other sports drinks
● Crescent’s organic
certification and minimum
caffeine
● High price compared to
competitors forces it to be
priced as a premium
product
● Typical sports drinks
consumers include lot of
teens(12-18 year olds)
while many people found
crescent as unsuitable for
teens.
OPPORTUNITIES THREATS
● Huge market for organic
sports drinks - $1.4 billion
with CAGR 33%.
● Huge market size of
sports drinks ($6.3 billion).
● One company has a huge
market share leading to
space for disruption.
● Low market growth rate
● Increasing concerns
relating to child obesity etc.
causing it to be banned in
schools.
● Mismatch between existing
sports drinks buyers and
buyers found in survey.
Sports Drinks
Positioning

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SWOT Analysis
STRENGTHS WEAKNESSES
● Crescent’s organic
certification and minimum
caffeine.
● Many attributes match in
between that of energy
drinks and Sports drinks.
● Very affordable pricing
● PDB’s history and core
competence - matches.
● Lower Budget ($750,000)
may not allow enough
capital for broad
positioning.
● Time left before launch.
● May compete with some
of PDB’s existing portfolio.
OPPORTUNITIES THREATS
● Huge market for healthy
drinks. Increasing
demand for organic
drinks.
● General increase in
market for beverages.
● Less competition as many
competitors gearing for
specialised positioning.
● May lead to dilution in
customer base in both
energy and sports drink
markets.
● Consumer confusion about
attributes of the drink.
Functional Organic
Beverage Positioning

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FINAL RECOMMENDATION
Based on above analysis my recommendation is to
position the drink as a broad organic drink having
functional attributes. This is based upon the USPs
identified, position on perception map, prices, and
SWOT analysis.

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Thanks!