- Crescent Pure was founded in 2008 and was acquired by Portland Drake Beverages in 2013 to expand distribution. - It is an organic beverage with caffeine equivalent to coffee but 70% less sugar. - Michael Booth asked Ryan to evaluate positioning options for Crescent and recommend a strategy. The options considered were energy drink, sports drink, and organic beverage. - An analysis of the energy drink market showed it was growing rapidly and Crescent could position itself as a healthier organic energy drink alternative, capitalizing on existing perceptions from its origins.

2. • Peter Hooper founded Crescent in 2008
• A hobby turned into a business
• Demand for product grew locally in Crescent,
Oregon

3. • Content of caffeine equivalent to a cup of
coffee.
• 70% less sugar content.
• Drink contained mainly organic products.

4. REFRESH!
ENHANCE MENTAL
CONCENTRATION !
ENERGIZE !

5. PDB acquired crescent pure in
July 2013

6. VISION OF PDB
• PORTLAND DRAKE BEVERAGES(PDB)
ACQUIRED CRESCENT PURE WITH AN AIM OF
EXPANDING AND MAXIMIZING REVENUE.
• SOFT LAUNCH IN 3 STATES IN JANUARY 2014.
• WITH AN ADVERTISING BUDGET OF $750000
THEY WANTED TO DEFINE PRODUCT
POSITIONING STRATEGY BY 1st , OCTOBER,
2013.

7. TASK TO DO !
Michael Booth asked Ryan to evaluate the
positioning opportunities available for
Crescent in the market and recommend a
strategy to the executive team.

8. BRAND POSITIONING OPTIONS AVAILABLE

9. ENERGY DRINK

10. MARKET OVERVIEW
● $8.5 billion market growing at 40% per year
● Top 4 brands occupied 85% market share
● highest consumers were Men of 18-24 years old
● Avg price for 8 ounce can - $2.99
● Sales of energy drinks with low caffeine were rising in
demand

11. COMPETITION
POINTS OF PARITY
• REFRESHING
• IMPROVES MENTAL
FOCUS
• CAFFEINE
• KILLS FATIGUE
POINTS OF DIFFERENCE
• HEALTHY
• $2.75 VS $2.99
• EQUAL TO 1 COFFEE CUP
• LOW SUGAR

12. SPORTS DRINK

13. MARKET OVERVIEW
● $7.5 billion market, Expected to grow to $9.58
billion in 2017
● Top 2 brands occupied 94% market share
● highest Consumers were aged b/w 18-24 and b/w 12-
17
● Avg $1 to $2 for 12 & 14 ounce containers
respectively
● Increasing demand for diet and low sugar sports
drinks.

14. COMPETITION
POINTS OF PARITY
-HYDRATING
-NUTRITIOUS
-PERFORMANCE
ENHANCING
-GOOD TASTE
POINTS OF
DIFFERENCE
-EXPENSIVE
-LOW SUGAR
-HEALTHIER
-DIET

15. ORGANIC BEVERAGE

20. ENERGY DRINK

21. SPORTS DRINK

22. ORGANIC BEVERAGES

24. BREAK EVEN ANALYSIS
• IN ORDER TO BREAK-EVEN NET REVENUE
FROM THE SALES MUST BE GREATER THAN
$750000.
• VARIABLE COST FOR 1 CAN = $1.02
• SELLING PRICE FOR 1 CAN = $1.24
• IN ORDER TO BREAK-EVEN 11837.2 CANS PER
MONTH NEEDS TO BE SOLD.

26. HOW SHOULD CRESCENT BE POSITIONED?
ORGANIC ENERGY DRINK
● Consumers viewed “Energy” as Crescent’s most descriptive
character
● Positioning Crescent as energy drink would reinforce
existing perceptions from Oregon
● Contains healthy ingredients, low sugar, yet packs a punch – 80mg
caffeine
● Crescent, as an organic energy drink is a healthier alternative to
other energy drinks
● Energy drink market is growing at 40%
● Would make a natural extension of what PDB already stands for.

28. THIS PRESENTATION IS CREATED BY MOHIT SARIN, NIT RAIPUR
DURING A MARKETING INTERNSHIP UNDER PROF. SAMEER
MATHUR, IIM LUCKNOW