it's a HBR case ( Crescent pure ) analysed by raviraj nehra {NITW} created during marketing management internship under professor sameer mathur {IIM lucknow}.

1. Crescent pure
A HBR case analysis

2. The problem
stated

4. The situation
analysis

5. Portland drake beverages(PDB)
acquired crescent pure
2013
To leverage its manufacturing facility, organic suppliers, and
distributor relationships to expand Crescent’s presence in states
geographically adjacent to Oregon in 2014

7. Values – healthy and affordable beverages

9. The plan
• PDB planned to embark on a “soft launch”
of Crescent in 3 western states
(California, Oregon, & Washington) by
Jan 2014
• Reasons –
1. production capacity constraints
2. test positioning effectiveness before
nationalising

15. we

16. Energy drink

17. sports drink

18. the

22. Alignment with PDB’s brand image
both equally favoured
◍Refreshing, energizing
◍Combat fatigue
◍Promote mental focus
◍Good energy content
(almost equal to 1 coffee)
◍Hydrating
◍All natural ingredients
◍Energy boost
◍Healthier - Sugar
quotient 70% lesser
(as compared to leading
sports beverages)
Energy drink sports drink

23. Pricing strategy
PDB wanted Crescent to reflect PDB’s pricing strategy
favoured positioning as energy drinks
◍The average price for 8
oz. of energy drink is
$2.99, above our $2.75
price point.
◍Crescent’s $2.75 price
point for an 8-oz. can
will be significantly
higher than competitors
◍positioning and
advertising will have to
build the case for its
premium price, which don’t
resonate with PDB’s
pricing strategy
Energy drink sports drink

24. Market size and opportunities
favoured positioning as energy drink
◍between 2010 and 2012,
the market for energy
drinks had grown by 40%.
It was estimated to be
$8.5 billion in the United
States in 2013; forecasts
projected that figure to
reach $13.5 billion by
2018
◍market increased only 9%
between 2007 and 2012. In
2012, the market for
sports drinks reached$6.3
billion in the United
States and was expected to
grow to $9.58 billion by
2017
Energy drink sports drink

25. Consumer surveys
favoured positioning as sports drink
◍Most descriptive
character of
crescent as per
consumer survey
was “energetic”
◍Growing demand for
diet and low sugar
sports drink in
market as per survey
◍Attracts health
conscious consumer
market
Energy drink sports drink

26. Demographics of Crescent online consumers
favoured positioning as energy drinks
◍Mostly males of age group 18
& 34, household income below
$25,000 per year
◍ Opportunity: energy drinks
with lower levels of caffeine
and purer ingredients were in
demand due to consumer demand
for healthier food and
beverage choices
◍appealed to younger consumers
— age group of 18 to 24 & 12
to 17
◍ Opportunity: New diet and
low-sugar sports drinks were
growth areas for the industry
Energy drink sports drink

27. Competition & competencies
favoured positioning as energy drinks
◍Fright, Razor, Torque, and
Stellar accounted for 85% of
category revenue (34%, 27%,
16%, and 8%, respectively)
◍ Gleam and Drip had 73% and
21% market share, respectively
Energy drink sports drink

28. Retailers feedback
favoured positioning as sports drinks
◍Crescent appeared to be most popular among consumers aged 18
to 30, and retailers indicated that a higher percentage of
women purchased Crescent than they expected. Younger men
often purchased six or more cans at a time
Energy drink sports drink

29. Focus group feedback
favoured positioning as sports drinks
◍Crescent’s taste appeals to most consumers
◍Satisfied with its energy content
◍Price- Most were happily surprised
◍Several consumers said that Crescent was exactly what they
wanted in a beverage: healthy ingredients, good taste, and a
slight pick-me-up
Energy drink sports drink

31. Energy drink Sports drink

33. What do we do now ?

34. Is there a way out ?

35. yes
Contemplating a
broader
positioning
strategy:
Organic beverage

36. What if ?
Crescent positions itself as
an organic refreshment
and capitalized on the
growth of the organic food
and beverage industry

37. the

38. Sarah Ryan finally
decides to go for
the broader
approach despite
complications
involved & begin to
build her breakeven
projections

39. Party is over?
Thanks for coming.

40. Credits
Raviraj Nehra (NITW)

41. Thanks!Know more about me
Just google me or scan the QR code given
👍