A Harvard Business Case Study.

1. Crescent Pure
A Harvard Case Study

2. Companies involved
*Crescent Pure
*PDB

3.  Manufacturer of organic juice
and sparkling water.
 Wanted to expand into
functional beverage sector
through acquisition.
 Acquired Crescent in July 2013.

4. Crescent Pure
Founded by Peter Hooper in 2008 when he
an opportunity in the local market.
All natural organic juice infused with herbal
stimulants delivered 80mg caffeine.
Good reception among both men and
women.

5.  Michael booth- CEO Portland Drake
Beverages.
 Sarah Ryan- Vice President of Marketing
Portland Drake Beverages.
 Matt Levor- PDB’s Director of market research.
 Peter Hooper- Founder of Crescent Pure

6.  PDB acquired Crescent Pure to expand into the
growing functional drink industry.
 The task of figuring out the right marketing
approach falls in the hands of Vice President of
Marketing – Sarah Ryan.
 She has two options
 Energy drink
 Sports drink

7. Industry specifics related to each
marketing option
The potential benefits and drawbacks
of each option
Final Recommendation.

8. OPTIONS
Energy drink Sports drink

9. PROS CONS
 Heavy market growth
projection in the coming
years
 Average price of can
$3.
 People are starting to
favor healthier drinks
which works in favor.
 Health risks area major
concern.
 Entry into market is
difficult.
 People have reduced
drinking energy drinks
due to health concerns.

10. PROS CONS
 Attracts wider customer
base than energy drinks
 Increased number of
young drinkers.
 Markey grew 33% in 2
years .
 Market size expected to
double in 4 years.
 Child obesity is a major
concern.
 Top Brands dominate
the market space.
 Price less than that
touted by crescent Pure.
 Only 27% consumers
women.

11. A THIRD POSITIONING OPTION?
Ryan upon analysis of the
market research found
out that she had a third
positioning option.
Organic beverage

13. My Recommendation would be to market
Crescent Pure as an Organic beverage.

15. HOW IS CRESCENT PURE
DIFFERENT FROM THE CROWD?
* CRESCENT PURE

16. 0
10
20
30
40
50
60
energy drink
sports drink
crescent pure
Crescent pure has a clear advantage over
both energy drinks and sports drinks.

18. BREAK EVEN ANALYSIS
Advertising Budget $750,000
Cases sold every month 12000
Cases sold annually 144,000
Bottles per case 24
Price to wholesalers $29.76
Variable cost $24.48
Profit per case $5.28
No of cases to breakeven. 142,045.45
Extra cases sold 1954.55
Overall profit. $10,320

19. Companies involved
*Crescent Pure
*PDB
OPTIONS
Energy drink Sports drink

20. Created by S.T Vigneshwaran SSN college of
engineering under the esteemed guidance of
Prof. Sameer Mathur, IIM Lucknow.