A case study on Crescent Pure

1. CRESCENT PURE
CASE ANALYSIS

2. “ A HEALTHIER ALTERNATIVE”

3. companies involved
crescent pure
portland drake beverages

5.  COMPRISED OF WATER, DAIRY, JUICE, SODA AND FUNCTIONAL BEVERAGES
 ESTIMATED $131 BILLION IN 2013
 PROJECTED TO GROW TO $164 BILLION BY 2018

6.  FOUNDED BY PETER HOOPER IN 2008
 MANUFACTURER OF NON-ALCOHOLIC BEVERAGE
 SAW A MARKET OPPORTUNITY FOR A HEALTHY, ENERGIZING DRINK

7. PORTLAND DRAKE BEVERAGES
MANUFACTURERS OF SPARKLING WATER AND ORGANIC JUICES
LARGE DISTRIBUTION NETWORK
CEO: MICHAEL BOOTH
MARKETING VP: SARAH RYAN

9.  PDB ACQUIRED CRESCENT PURE IN 2013
 ONGOING RESEARCH FOR POSTIONING
STRATEGY
 HAS BOTH CHARACTERISTICS OF
ENERGY AND SPORT DRINKS
 CONFUSION AS TO HOW TO POSITION
CRESCENT PURE

12. 6 MONTHS LEFT FOR SARAH RYAN TO DECIDE ON THE POSITIONING
OF CRESCENT PURE SO THAT BOOTH CAN NEGIOTIATE WITH
DISTRIBUTORS AND RETAILERS

13.  “ ” :
,


,

14. %

15.  Ryan got this idea of a third option
 Organic/Healthy drink
 Began to wonder if this third positioning option focusing on the drink’s
healthy and organic roots would attract the most consumers

16. Even more confused….

18. Product: healthy, energizing drink
Points of differences: increase focus, refresh and energize without backlash
organic components and herbal stimulants
Target market: both males and females that are health conscious and active
ages between 18 – 34
Pricing: Retail price of $2.75 per can or $66 per case

20. 
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21. 



23. 
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“

24. POSITIONING ANALYSIS

25. ENERGY DRINK
: PROS AND CONS

26.  42% consider them as “any time
beverage”
 Market growing at the rate of 40%
 Price of Crescent pure ($2.75) will be
less than industry average of $2.99
 Fierce industry competition
 Publics disapproval of drink on the market
 Potentially stricter government regulation
 Consumption has lowered after negative
media attention

27. SPORTS DRINKS
: PROS AND CONS

28.  Large expected market growth
 Low caffeine content acts as point
of Difference
 Diet and low sugar sports drinks are
growth areas in the industry
 Health risks associated with them
 Fierce competition
 85% of category revenue with big
players
 $2.75 price is higher then industry
average

29. ORGANIC DRINK
: PROS AND CONS

30.  No competition from big firms
 Premium pricing can be done, thus,
large revenues
 Attracts health conscious consumers
 Large advertising budget required
 Larger consumer base, thus, larger
distribution channels needed.

32. 18-24
25-34
35-44
45-54
55+36%
15%
3%
2%
Age Range
44%
Demographics of Crescent Online Customers

33. Energy Drinks Sports Drinks
REFRESHING
HEALTHY
AFFORDABLE
FUNCTIONAL
TOOSWEET
FORTEENS
NATURAL
FUN
HYDRATING
NONEOFTHEABOVE
Word with which consumers describe Energy or Sports drinks

34. PERCEPTUAL MAP
SPORTS DRINKS PERCEIVED AS HIGH
HYDRATION AND
LOWENERGY DRINKS.
ENERGY DRINKS PERCEIVED AS LOW
HYDRATION AND HIGH ENERGY
DRINKS.

35. PERCEPTUAL MAP
SPORTS DRINKS PERCEIVEDAS HIGH
NUTRITION AND GOOD TASTING
DRINKS.
ENERGY DRINKS PERCEIVEDAS LOW
NUTRITION AND GOOD TASTING
DRINKS.

36. RECOMMENDATION

37. break even analysis
Advertising Expenses = $750,000
Variable cost per can = $ 1.02
Variable cost per case = 24*1.02= $24.48
Selling price per case = 24*1.24 = $29.76
Profit per case = $5.28

38. Number to be sold to break even= 142,045.45
Production capacity per month= 12000
Production capacity per year = 12000 * 12 = 144,000
Cases over breakeven to capacity: 1954.44
Profit per case x 5.28
The capacity overage of 144,000- 142,045.45 = 1,954.55.
Profit of over breakeven $10,320.02
The amount of profit that can be produced from the capacity of cases is
$10,320.02.

39. GRACIAS

40. IT’S FINALLY OVER