Crescent Pure
•Download as PPTX, PDF•
1 like•89 views
PDB acquired Crescent Pure in 2013 and is deciding on its market positioning. Crescent Pure currently manufactures organic juices and sparkling water. Market research data is provided on consumer demographics and perceptions of energy drinks and sports drinks. Three positioning options are considered: energy drink, sports drink, or organic drink. Each option is analyzed in terms of pros and cons. The document hypothesizes that an organic drink positioning requires large advertising, while energy drinks have strong competitors. It concludes Crescent Pure should position as a healthy energy drink to leverage its organic certification and low caffeine as differentiators in the energy drink market. Financial analysis projects profitability of this positioning.
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Crescent Pure
Similar to Crescent Pure (20)
Recently uploaded
Recently uploaded (20)
Crescent Pure
- 3. 01 CEO :PETERHOOPER 02 03 MANUFACTURESOF NONALCOHOLIC ORGANIC BEVERAGE FOUNDED IN2008 Crescent Pure
- 4. 01 CEO :MICHAELBOOTH MARKETINGVP:SARAHRYAN 02 03 MANUFACTURESOF ORGANICJUICES AND SPARKLINGWATER LARGEPRODUCT DISTRIBUTIONNETWORK PORTLAND DRAKE BEVERAGES
- 5. SITUATION ANALYSIS • PDB acquired Crescent Pure in July 2013 • Market Research to decide its positioning done • Decision about its market positioning need to be taken
- 6. OBJECTIVE Choose a suitable brand positioning for Crescent Pure by analysing the available data
- 8. Word with which consumers describe Energy or Sports drinks Energy Drinks Sports Drinks percentage
- 9. Demographics of Crescent Online Customers 18-24 25-34 35-44 45-54 55+36% 15% 3% 2% Age Range 44%
- 10. Add a Slide Title - 3INCOME: $42500
- 11. Demographics of Crescent Pure Consumers Gender Male Female 41% 59%
- 12. Product Positioning Options 1. •Energy Drink 2. •Sports Drink 3. •Organic Drink
- 13. • SPORTSDRINKS PERCEIVEDASHIGH HYDRATIONAND LOW ENERGY DRINKS. • ENERGYDRINKS PERCEIVEDASLOW HYDRATION AND HIGH ENERGY DRINKS. PERCEPTUAL MAP
- 14. • SPORTSDRINKS PERCEIVED ASHIGHNUTRITIONAND GOOD TASTINGDRINKS. • ENERGYDRINKS PERCEIVED ASLOWNUTRITIONAND GOOD TASTINGDRINKS. PERCEPTUAL MAP
- 15. ENERGY DRINKS
- 16. Positioning as Energy drink PROS CONS • Fierce industry competition • Publics disapproval of new drink on the market • Potentially stricter government regulation • Consumption has lowered after negative media attention • 42% consider them as “any time beverage” • Market growing at the rate of 40% • Price of Crescent pure ($2.75) will be less than industry average of $2.99
- 17. Sports Drinks
- 18. Positioning as Sports drink PROS CONS • Health risks associated with them • Fierce competition • 85% of category revenue with big players • $2.75 price is higher then industry average • Large expected market growth • Low caffeine content acts as point of Difference • Diet and low sugar sports drinks are growth areas in the industry
- 19. ORGANIC DRINKS
- 20. Positioning as Organic drink PROS CONS • Large advertising budget required • Larger consumer base, thus, larger distribution channels needed. • No competition from big firms • Premium pricing can be done, thus, large revenues • Attracts health conscious consumers
- 21. Hypothesis
- 22. Organic drinks market is very diverse and hence will require large advertising expenditure
- 23. Average price for 12 and 24 Oz can is $1 and $2 respectively. Thus this positioning will not be very lucrative.
- 24. Crescent should be positioned as healthy energy drink
- 25. Crescent’s organic certification and minimum caffeine provide strong differentiators in energy drinks market
- 26. Analysis
- 27. Advertising Expenses = $750000 Variable cost per can = $ 1.02 Variable cost per case = 24*1.02 = $24.48 Selling price per case = 24*1.24 = $29.76 Profit per case = $5.28 Analysis (1/3)
- 28. Number to be sold to break even= 142046 Cases to be sold per month= 11838 Production capacity per month= 12000 Analysis (2/3)
- 29. Profit per month = $(12000-11838)* 5.28 = $ 855.36 Annual Profit = $855.36*12 = $ 10264.32 Analysis (3/3)
- 31. Disclaimer This presentation was created by Mohit Jain, RCOEM, Nagpur during a marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.