Containing the analysis of Harvard Business School Case Study of Crescent ( An Organic Energy Drink )

1. Crescent Pure - Case Study
Crescent Pure - Case Study

2. • Crescent Pure
A non alcoholic , energy enhancing and hydrating drink
Why
Crescent
Pure ?
Because it is a non alcoholic,
energy-enhancing and
hydrating drink

3. • Founded in 2008 by Peter Hooper
HISTORY
Founded in 2008
by Peter Hooper

4. • Acquired by Portland Drake Beverages (PDB) in July, 2013
Acquired by Portland Drake Beverages (PDB)

5. Ingredients
• Major Ingredients: Guarana seed, Ginseng
• Clear liquid Taste : Like a fruit
• Deliver 80mg of Caffeine , roughly same amount in a cup of Coffee
• Certified “ Organic”
Major Ingredients: Guarana seed, Ginseng
Clear liquid Taste: Like a fruit
Deliver 80mg of Caffeine , roughly same
amount in a cup of Coffee
Certified “ Organic”
Composition of Crescent Pure

7. Scenario
PDB plans to embark a soft launch of Crescent in three
western states (California, Oregon, Washington)
Advertising Campaign Budget is $750,000
Clashes in Product Positioning Strategy
Classifying it as a Sports Drink, Energy Drink or Organic
Drink

8. • Positioning Options
Three Positioning Options

10. Some Points to Consider
Market Growth : Has Grown 40% over the course
Consumer Data : Mostly between 18 – 34
Competitors : Fright, Razor, Torque accounting for 85% revenue
Opportunity : Rise in sales of Organic Products with purity
Threats : Health Risk

12. Some Points to Consider
Market Growth : Has Grown 12% over the course
Consumer Data : Younger Consumers mostly 12 – 17
Competitors : Gleam and Drip accounts for 73% and 21%
Opportunity : New diet and low-sugar sports drinks were
growth areas
Threats : Removal of vending machines from school due to
health hazards

14. Some Points to Consider
Market Growth : Less Competition and a growing market
Consumer Data : No accurate Consumer base
Competitors : No competition yet any Brand is yet to make its
name
Opportunity : Increasing Demand for a more healthy and pure
drink
Threats: Brand value and Advertising Issue

16. Percentage of respondents who indicated a word that described energy or sports drinks
Energy Drinks Sports Drinks
• Refreshing 12% 34%
• Healthy 6% 16%
• Affordable 5% 11%
• Functional 22% 28%
• Too sweet 9% 8%
• Suitable for Teens 7% 22%
• Fun 9% 11%
• Natural 4% 6%
• Hydrating 11% 49%
• None of these 52% 27%

17. Percentage of respondents who described Crescent Descriptor
• Refreshing 35%
• Healthy 22%
• Affordable 29%
• Functional 47%
• Too sweet 9%
• Suitable for teens 8%
• Fun 19%
• Natural 38%
• Hydrating 29%

18. Demographics of Crescent online consumers
Age ranges
• 18–24 44%
• 25–34 36%
• 35–44 15%
• 45–54 3%
• 55+ 2%
• Male 59%
• Female 41%
• College degree 62%
• Household income (median) $42,500

20. Break Even Analysis
Advertising Budget $750,000
Cans per Case 24
Cans sold per Month 12000
Cans sold Annually 144000
Variable Cost per Can $1.02
Variable Cost per Case $24.48
Manufacturer Price to Distributor per case $29.76
Manufacturer Margin $5.28
Manufacturer Margin per Month $63,360
Manufacturer Margin Annually $760,320
Net Profit $10,320
Break Even No of Cases 142046

24. • It would serve the consumers looking for either Organic
or Energy Drink
• It has a better product positioning as it falls under both
categories
• It caters to a wider consumer base
• Energy market is growing at about 40%
• Organic is usually associated “SAFE”
• Pricing also plays a very important factor and low price
creates large consumer base

26. Created By Saransh Khandelwal, MSIT Delhi during a Marketing
Internship under Prof Sameer Mathur of IIM Lucknow