Crescent pure case study analysis done as a part of the IIM Lucknow marketing curriculum under Prof. Sameer Mathur .

1. Crescent Pure : Case
Analysis
August 23, 2017

2. Crescent Pure History
- Peter Hooper founded Crescent in 2008
- Demand for product grew locally inn crescent, Oregon
- Michael booth , ceo of PDB(portland drake beverages discovered crescent , and
acquired the product in july 2013

3. Road Map of Events
2000
2008
2012
2014
2014 2015
Popularity of
organic drinks
Crescent Founded
PDB finds crescent
Crescent Acquired
Soft launch
Expansion

4. Factors in favour
Low sugar content
Low calories and Organic
80 gms of caffeine
Affordable

5. Decisions to be made:
PDB marketing team ,
has to decide how they
wish to position the
product

6. Available advertising budget = $750,000
Energy Drink
- Age Group: 18-24
-Top 6 players account for
85% revenue
-Negative perception due
to health risks
Sports Drink
-Age Group: 12-24
-Top 2 players have 94%
market share
-Negative perception due
to increasing obesity rates
Organic Beverage
-Age Group: All ages
-New emerging market
-Inclination from
consumer end to switch to
healthier, organic options

7. Factors
Affecting
Product
Positioning
● Pricing
● Target Age Group
● Market size
● Competitors
● Survey results
● Profit Margins
● Similarity with contemporary
drinks

8. Sports Drink Positioning
The upside !
● Consumption more than energy drinks
● Wider consumer base
● Can be had anytime
The downside
● Smaller market segment
● Pricing is high compared to
competition
● Lesser growth in segment
● 94% market captured by top 2
players

9. Energy Drink Positioning
The upside !
● Bigger market size when compared
with sports drinks
● Pricing of $2.75 for 8 oz can is below
the segment average
● Product has minimal caffeine and is
organic
● Growth is segment is greater
The downside
● Top 4 competitors dominate the
market with 85% stake in the market
● Health risks can hamper sales

10. Organic Drink Positioning
The upside !
● Will be perceived as premium brand in
segment
● Organic drinks segment has a larger
consumer base
The downside
● May not be able to grow above the
organic drink manufacturer image
● Large consumer base implies an
even larger distribution channel ,
which may affect product launch

11. Consumer Insights
Male
59%
Female
41%
Sex
1%
31%
55+18-24
31%
25-34
26%
35-44
11%
45-54

12. Consumer Perception
● Sports drinks generally
perceived as high nutrition and
tasty
● Energy drinks perceived as low
nutrition and good tasting

13. Consumer Perception
● Sports drinks generally
perceived as high hydration and
low energy drinks
● Energy drinks perceived as low
hydration and high energy
drinks

15. Recommendations
● Product should be positioned as an energy drink
● This is because of the larger market size
● Pricing can be increased as currently it falls below the mean industry price
● Better market growth
● Will broaden the current customer base who would prefer energy drinks with
organic ingredients as healthy supplements

16. Disclaimer
Shrinivas Puli Prof. Sameer Mathur
Harvard case study made by Shrinivas Puli as a part of the marketing
internship under Prof. Sameer Mathur