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Crescent Pure
1.
2. A Harvard Business School Case Study
By Ishani Patni
Executives from Portland Drake Beverages (PDB) are
meeting to determine the appropriate product
positioning and advertising campaign for the launch of
Crescent Pure, a specialty organic beverage. They have
3 options for positioning: should Crescent Pure be
positioned as an energy drink, a sports drink, or should
it adopt broader positioning as an "organic health and
wellness" beverage? Students studying this case explore
customer segmentation, product differentiation
analysis, and the evaluation of perceptual maps as a
market research technique.
Executives from Portland Drake Beverages (PDB) are
meeting to determine the appropriate product
positioning and advertising campaign for the launch of
Crescent Pure, a specialty organic beverage. They
have 3 options for positioning: should Crescent Pure
be positioned as an energy drink, a sports drink, or
should it adopt broader positioning as an "organic
health and wellness" beverage? Students studying this
case explore customer segmentation, product
differentiation analysis, and the evaluation of
perceptual maps as a market research technique.
Executives from Portland Drake Beverages (PDB) are
meeting to determine the appropriate product
positioning and advertising campaign for the launch of
Crescent Pure, a specialty organic beverage. They have
3 options for positioning: should Crescent Pure be
positioned as an energy drink, a sports drink, or should
it adopt broader positioning as an "organic health and
wellness" beverage? Students studying this case explore
customer segmentation, product differentiation
analysis, and the evaluation of perceptual maps as a
market research technique.
Case
Study
3. •The non-alcoholic beverage
market—which included water,
dairy, juice, soda, and
functional beverages
PDB
Beverages
•A healthy, energizing drink
Brand
Crescent
Pure
Company Overview
4. 2015
Peter Hooper
founded
Crescent
demand
grew in the
Portland
area for
Crescent
PDB acquired
Crescent in
July
PDB planned
to launch all-
natural
versions of
their own
sports and
energy
drinks before
the second
half of
As a result,
PDB planned
to embark on
a “soft
launch” of
Crescent in
three
western
states
(California,
Oregon, and
Washington)
in January
2008
2013
2014
2015
Crescent Pure Company History
5. Why Crescent Pure
Crescent’s sugar quotient (derived from organic,
raw cane sugar) was 70% less than leading energy
and sports drinks, on average
drink is refreshing, energizing, and healthier than
other mainstream beverage alternatives
7. 42% of sports
beverage drinkers
considered sports
drinks “anytime
beverages”8 and did
not associate them
only with exercise
attracted a wider
consumer base
regular users consumed
them more often
the market for sports
drinks was $6.3 billion
Pro Crescent’s $2.75 price
point for an 8-oz.can
will be significantly
higher than are those of
similarly sized sports
drinks
a
Con
Sports Drink
8. The average
price for 8 oz. of
energy drink is
$2.99, above our
$2.75 price point
consumers
viewed “energy”
as Crescent’s
most descriptive
characteristic
Pro drinks has fallen
because of
negative media
attention
a
Con
Energy Drink
10. Together, Fright, Razor, Torque, and Stellar accounted for 85% of
category revenue (34%, 27%, 16%, and 8%, respectively). The
remaining 15% was split between roughly thirty independent regional
and national producers.
11.
12.
13. Disclaimer
This slide has been prepared by Ishani
Patni as a part of internship under Prof.
Sameer Mathur
