Crescent Pure - A Harvard Business School Case Study Created By: Bonny Panchal

2. PDB: Company Profile
Manufacturer of organic juices &
sparkling water
Clocked $120.5m revenues by
2012
Values: Quality & Affordability

3. SITUATION AT HAND
1. PDB acquired Crescent Pure aiming
to maximize and expand its revenues.
2.It is being launched so that PDB
could beat other national beverage
companies is this new segment.
3.Production capacity constraints
prevent PDB from launching nationally
till 2015. So it is going to make a soft
launching 2014.
4.The CEO of PDB has asked Sarah
Ryan, the vice president of marketing
to form a suitable market positioning
strategy for Crescent within days.

4. What are the product positioning options??
Energy drink
VS
sports drink
VS
simple healthy organic drink

5. APPROACH TO THE SITUATION
•U.S. market for Sports and Energy drink
•Consumers response
•Benefits of Crescent Pure over its competitors
•Energy Drink vs Sports Drink vs Simple Organic Drink
•Finalizing verdict and Pricing

6. PRODUCT POSITIONING IN U.S.
MARKET
• Age group with maximum % : 18-24
• Top 6 brands account for 85% of the
revenue
• Negative perception – campaigns
highlights health risks
• $2,99 for an 8 ounce can
1.Energy
Drink
• Age Group with max %: 12-24
• Top 2 brands have 94% market share
• Negative perception – campaigns
highlights
• $1-$2 for 12 to 24 ounce can
2. Sports
Drink

7. 1. Market
opportunity
for healthy,
energizing
drink.
2. Popular
energy and
performance
enhancing
drinks have
seen decline
in markets.
3. Drinks
with low
caffeine and
natural
ingredients
have become
more
popular.
4. People
between age
groups 18-34
prefer energy
drinks, and
those
between 12-
24 prefer
sports drinks.
5. Thus
market
research
shows great
opportunity
for growth
for Crescent.
RECENT TRENDS IN CONSUMER
MARKET

9.  Crescent pure is certified organic so it can choose to
emphasize the health advantages of consuming it.
 Also there is a growing market for organic products.
 Crescent pure also contains almost 70% less sugar
than other energy drinks and sports drinks.
 Crescent’s herbal stimulants (guarana seed and ginseng)
delivered 80 milligrams of caffeine, same amount as a
cup of coffee.

10. CONSUMER REACTIONS ABOUT CRESCENT PURE!!

11. CONSUMER REACTIONS ABOUT CRESCENT PURE!!

12. PROS
• In 2012: Market for sports drink
$6.3 billion.
• 42% sports beverage drinkers have
sports drinks as any “anytime
beverage” and not only for
exercise.
• Attract wider consumer base than
any energy drink and regular
consumer consumes them more
• Hydrating elements+ mental focus+
energy boosters = very attractive
drink.
CONS
• Government mandated guidelines
to remove sports drink from school
vending machines; courtesy high
calories.
• Crescent’s $2.75 is higher than
other competitors.
• Market is $2.2 billion less than
energy drink market.
• Similar drinks are also available in
market.
CRESCENT’S SPORTS DRINK

13. ENERGY DRINK
PROS
• Uniqueness less sugar, more caffeine.
• All natural stimulants for energy booster.
• Consumer viewed “energy “ as Crescent’s
most descriptive characteristics.
• Average price of 8 oz. can of energy
drink: Crescent=$2.75, others=$2.99
CONS
• Negative media attention for health risk.
• Only 32% consumers consumes energy
drink in past six months.
• Doubts on company ability to deliver
healthy organic product for just $2.75.
• Competitors 85% not much wiggle room
for new.

14. SIMPLE HEALTHY ORGANIC DRINK
Emerging
market.
Less
competition
Increasing
demand of a
healthier drink.
PROS
No existing
consumer
base.
No existing
consumer
base.
CONS

15. STATISTICAL COMPETITORS’ ANALYSIS

16. VERDICT
ORGANIC + ENERGY = ORGANIC ENERGY DRINK
1. Crescent Pure should be positioned as a organic and healthier alternative to other energy
drinks
2. Since the diet sports drinks market is also growing at 33%, there is an opportunity of
increasing product line in future through brand extensions.
3. Priced at $2.75 for 8 ounce can it is quite low in the $13.5 billion energy market while it is
premium price in the $6.5 billion sports market.
4. It ‘s target market is the young active male and females in the age group 18-34.
5. Even though the energy market is dominated by large competitors it has the ability to
penetrate this market because of its advantages such as being healthy organic and hydrating.

17. PRODUCT PRICING
Profit Margin Analysis
Manufacturer
18%
Distributor
25%
Retailer
40%
$1.24 $1.65 $2.75

18. BREAKEVEN ANALYSIS

21. CREATED BY BONNY PANCHAL, SVNIT, SURAT DURING A
MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR,
IIM LUCKNOW