This presentation was done as part of marketing management internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.

1. Harvard Case Study
Crescent Pure
“You are what you drink”

2. Crescent Pure : Company History
Unhealthy energy
and performance
enhancing drinks
•Peter Hooper saw opportunity for
healthy energising alternatives.
“Locavore”
movement
•People started supporting
healthy and organic food
choices from local businesses.
Crescent
introduced in
2008
•Grew popular and
sold 1000 cases per
month.

3. PDB : Company Profile

4. Situation
PDB acquires
Crescent with an
aim to maximise
revenue
Want to get
advantage over
other companies by
fast launching in
early 2015.
Sarah Ryan, VP of
PDB has to finalise a
product positioning
strategy for soft
launch.

5. Product Positioning Options
Energy Drink
• $2.99/can
• Age group 18-24
• Top 4 players account 85%
of revenue
• Rising demand for
healthier/ low sugar
beverages
• Negative perception of
health risks
Sports Drink
• $1-2/can
• Age group 12-24
• Top 2 players account 94%
of revenue
• Rising demand for
healthier/ low cost
beverages
• Negative perception as
cause of obesity
Organic Drink
• 25% premium
• All age groups
• New and emerging
market with very less
competition
• Inclination to healthier
organic products
• High risk

6. How does Crescent Pure stand out?

7. “Pure”
 Contains 70% less sugar than energy and sports drinks
 Contains 80 milligram of caffeine in each serving equivalent
to a cup of coffee
 Healthy, Hydrating and Organic

8. Consumer Analysis

9. Crescent Pure Vs. Sports Drinks
Pros
Less sugar
Organic
Refreshing
Healthy and high nutrition
Good taste
Cons
Expensive
Less energy
Less hydrating

10. Crescent Pure Vs. Energy Drinks
Pros
Refreshing
Healthy
Less sugar
Affordable
More hydrating
Less fatigue after
Cons
Less energy
Organic and hence limits the
number of cans produced

11. Consumer Perception
Energy Vs. Hydration
Crescent Pure
falls here and
hence less
competition

12. Consumer Perception
Nutrition Vs. Taste
Crescent Pure
falls here.
Appreciable
position.

13. Demographic of Crescent Pure
Consumers
Male
59%
Female
41%
18-24 25-34 35-44 44-54 55+
44% 36% 15% 3% 2%
Annual household
income : $42,500

14. Profit Margin Analysis
$1.24 $1.65 $2.75
Manufacturer Distributer Retailer
18% 25% 40%
Margin
increases each
level and
hence there
will be no
difficulty in
finding
retailers.

15. Leader Board
0
10
20
30
40
50
60
Energy Drinks
Sports Drinks
Crescent Pure
Shows that Crescent Pure is
an organic energising drink.
It is a healthy alternative
for energy drinks.

16. Breakeven Analysis
Total advertising budget $750,000
Cases sold per month 12,000
Cases sold annually 144,000
Drinks per case 24
Manufacturer’s wholesale price to distributor $29.76
Variable cost to manufacturer per case $24.48
Manufacture margin $5.28
Manufacture margin % 18%
Breakeven number of cases 142,045.45
Overage 1,954.55
Profit to company $10,320

17. Recommendation
• Initially introduce Crescent Pure as healthy, organic,
energy drink.
• Promote in festivals, events, concerts, billboards,
social media etc.
• Make it available in organic & health stores, local
cafes and also in “big box” stores.
• If the response is low then remove the organic part
and continue the soft launch.

18. Created by Anu Abraham, CET, during a marketing management internship
under the guidance of Prof. Sameer Mathur, IIM Lucknow
DISCLAIMER