Before Portland Drake Beverages can launch Crescent Pure, a positioning strategy must be chosen to maximize revenues.

2. Overview
PDB
Crescent
Pure
Market
Positioning
of
Crescent ??

3. People Involved
• Vice President of
marketing for (PDB)Sarah Ryan
• PDB’s CEOMichael
Booth
• PDB’s director of
market research
Matt Levor

4. Situation Analysis
PDB acquired Crescent after which there is
disagreement over two viable positioning
strategies that would maximize Crescent’s
revenues.
Big Launch in 2015 due to large competitors
planning to launch all natural versions of their
beverages
Soft Launch in 2014 due to production capacity
restraints and to test the positioning before
nationalizing
If 2014 profits met or exceeded the goal, PDB
would fund Crescent’s national expansion in 2015.
The CEO of PDB has asked Sarah Ryan to give her
Final recommendation

5. Positioning
Energy
Drinks Sports
Drinks
Or if there is a third positioning option focusing
on the drink’s healthy and organic roots ???

6. Approach
Study and evaluation
of Industry specifics
related to each of the
two positioning
options.
Potential benefits
and drawbacks of
each option
If the Profits met or
exceed the budget

7. 70% less sugar content
than leading energy &
sports drinks.
Same energy effect as a
cup of coffee ,80
milligram of caffeine per
serving
Guarana, whose seeds
contained roughly
double the
concentration of caffeine
found in coffee beans.
For flavor, Crescent
contained lime juice,
lemon juice, and small
amounts of raw cane
sugar and green tea.
Insight Into Crescent

8. Market
Consumer
data
Competition Threats
Opportunities
Market Research

9. • $8.5 billion in the United States
in 2013; forecasts projected figure
to reach $13.5 billion by 2018
Market
• The largest group of energy-drink
consumers were males between
ages 18 and 34.
Consumer
• Together, Fright, Razor, Torque,
and Stellar accounted for 85% of
category revenue
Competiton
Energy Drink

10. • News stories were highlighting
the drinks’ alleged health risksThreats
• Energy drinks with lower levels of
caffeine and purer ingredients
were in demand for healthier
food and beverage choices
Opportunities
Energy Drink

11. • In 2012, the market for sports drinks
reached $6.3 billion in the US and was
expected to grow to $9.58 billion by 2017
Market
• Sports drinks appealed to younger
consumers—62% of those between ages 18
and 24,roughly half of men drank sports
drinks
Consumer
• Gleam and Drip had 94% market share
together, only 6 % was split fairly evenly
among roughly 20 producers.
Competiton
Sports Drink

12. • Concern regarding rising childhood
obesity rates ,government asked
schools to remove high-calorie sugary
drinks and snacks
Threats
• New diet and low-sugar sports drinks
were growth areas for the industry
Opportunities
Sports Drink

13. Retail Price of Crescent is 2.75/ can
Energy Drink
Costs 2.99/can
Sports Drink
Costs 1-2 $/can
Pricing

14. As Energy Drink:
Cheaper
Low sugar
Healthy
As Sports Drink :
Expensive
Healthier
Points of Difference

15. Consumer studies
Crescent is seen in the category of sports drink
as far as the consumers are concerned.

16. Market Trends
Negative Campaigns
have rendered
consumers to look for
healthier alternatives.
Fierce competition in
Energy and Sports
drinks market.
Huge potential of Organic
drinks market as
competitors are going to
launch in 2015
Energy market is growing at
faster rate than Sports
Drinks market

17. Crescent Pure’s prime target
market is between ages of 18
and 34. These consumers
are young and health
conscious
An Early mover advantage is
there in organic energy
drink market as compared
to the saturated Energy and
sports drink market.
They can launch Crescent
Pure as a healthier
alternative to energy drinks,
but still at a very affordable
price of $2.75
These consumers are
looking for local products
that have natural or organic
inputs that contribute to a
well-balanced diet.
Target Market

18. • The final option that PDB has for Crescent
Pure is to position it as an Organic Energy
Drink.
• Consumer perception about Crescent aligns
well with an alternate healthier choice of a
energy drink
• Higher Profits due to higher pricing when
positioned as organic energy drink than sports
drinks.
Positioning

20. Advert .Budget
$
750,000.00
Production per
month
cases 12000
Production per
year
cases 144000
Wholesale price to
distributors
per case 29.76 $
Variable Cost per case 24.48 $
Drinks Per case 24
Margin Per case 5.28 $
To Break Even Cases 142045
Surplus cases 1955
Profit $ 10320
Break Even Analysis

21. Disclaimer
Created by Nikhil Agrawal, NIT- Jaipur, during a Marketing Internship,
by Prof. Sameer Mathur, IIM Lucknow.