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







 Projected Market-$8,5 billion,
growing at 40% to reach $13.5
billion by 2018
 Rise in sales of energy drinks -
demand for healthier drinks
 42% consider them as “any time
beverage”
 Price of Crescent Pure($2.75) will
be less than industry average of
$2.99
 Competition is high in the
market
 Negative media attention -
associated health risks
 85% market shares already
occupied by top 4 brands
 Past 6 months analysis showed
energy drink consumption by
only 32% consumers
 Revenue of the market $7.5
billion expected to grow to $9.58
billion by 2017
 Market size for diet sports drinks
expected to increase from $1.4 to
$2.97 billion in 2017
 Market grew by 33% in 2years
due to increasing demand for
diet and low sugar sports drinks.
 Low caffeine content increases
demand
 94% market share already
occupied by top 2 brands
 Market growth rate only 9% in
5 years.
 Negative marketing –
childhood obesity
 $2.75 price is higher than
industry average
 Attracts health conscious
consumers
 Lower level of market
competition
 Prices can be kept premium, thus
large revenue
 Wider consumer base
 Larger consumer base, thus
larger retailers and distribution
channels
 $750,000 budget, not feasible
to appeal to wide range of
customers
 Looses other important custom
segments due to sole focus on
health and quality
18-24
25-34
35-44
45-54
55+
AGE RANGE
2%
3%
15%
36%
44%
0
10
20
30
40
50
60
Energy Drinks
Sports Drinks
Refreshing
Healthy
Affordable
Functional
Too sweet
Suitable for Teens
Fun
Natural
Hydrating
35%
22%
29%
47%
9%
8%
19%
38%
29%





 High market growth
rate
 Estimated figure
$13.5 billion by
2018
 Major consumer
base is only
middle aged men
 Increased
demand of
healthier energy
drinks with lower
caffeine and purer
ingredients
 Negative media
attention due to
associated
health risks
 Large consumer base
 Consumer base spans
diverse category of
people
 Market growth
rate is low. Only
9% between 2007
and 2013.
 High demand
for diet and
low-sugar
sports drinks
 Rising childhood
obesity rates has
lead to increased
concerns
 Less competition
 Emerging Market
 No existing
consumer base
 Very high
demand for
drinks with
healthier and
purer ingredients
 Less advertising
budget may
cause a problem
 



 


 Cost per can = $1.02
 Cans per case = 24
 Cost per case= $1.02 * 24 = $24.48
 Selling price per can= $29.76
 Profit per case= $5.28
 Advertising cost= $750,000
 Production Capacity per month = 12000
 Profit per month= $63,360
 Profit per year= $760,320
 Net Profit = Profit per year – Advertising costs
= $750,000-$760,320
= $10,320
Presentation on Crescent pure Case Study

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Presentation on Crescent pure Case Study

  • 1.
  • 2.
  • 4.
  • 6.
  • 7.  Projected Market-$8,5 billion, growing at 40% to reach $13.5 billion by 2018  Rise in sales of energy drinks - demand for healthier drinks  42% consider them as “any time beverage”  Price of Crescent Pure($2.75) will be less than industry average of $2.99  Competition is high in the market  Negative media attention - associated health risks  85% market shares already occupied by top 4 brands  Past 6 months analysis showed energy drink consumption by only 32% consumers
  • 8.  Revenue of the market $7.5 billion expected to grow to $9.58 billion by 2017  Market size for diet sports drinks expected to increase from $1.4 to $2.97 billion in 2017  Market grew by 33% in 2years due to increasing demand for diet and low sugar sports drinks.  Low caffeine content increases demand  94% market share already occupied by top 2 brands  Market growth rate only 9% in 5 years.  Negative marketing – childhood obesity  $2.75 price is higher than industry average
  • 9.  Attracts health conscious consumers  Lower level of market competition  Prices can be kept premium, thus large revenue  Wider consumer base  Larger consumer base, thus larger retailers and distribution channels  $750,000 budget, not feasible to appeal to wide range of customers  Looses other important custom segments due to sole focus on health and quality
  • 10.
  • 11.
  • 12.
  • 15. Refreshing Healthy Affordable Functional Too sweet Suitable for Teens Fun Natural Hydrating 35% 22% 29% 47% 9% 8% 19% 38% 29%
  • 17.
  • 18.  High market growth rate  Estimated figure $13.5 billion by 2018  Major consumer base is only middle aged men  Increased demand of healthier energy drinks with lower caffeine and purer ingredients  Negative media attention due to associated health risks
  • 19.  Large consumer base  Consumer base spans diverse category of people  Market growth rate is low. Only 9% between 2007 and 2013.  High demand for diet and low-sugar sports drinks  Rising childhood obesity rates has lead to increased concerns
  • 20.  Less competition  Emerging Market  No existing consumer base  Very high demand for drinks with healthier and purer ingredients  Less advertising budget may cause a problem
  • 21.
  • 24.  Cost per can = $1.02  Cans per case = 24  Cost per case= $1.02 * 24 = $24.48  Selling price per can= $29.76  Profit per case= $5.28  Advertising cost= $750,000
  • 25.  Production Capacity per month = 12000  Profit per month= $63,360  Profit per year= $760,320
  • 26.  Net Profit = Profit per year – Advertising costs = $750,000-$760,320 = $10,320