Crescent Pure is a non-alcoholic functional beverage founded in 2008 that was acquired by Portland Drake Beverages in 2013. It is known for being refreshing, energizing, and enhancing mental focus. The beverage contains herbal stimulants like guarana seed and ginseng, as well as organic cane sugar, green tea, and has 80 calories per serving. The VP of marketing must decide on a positioning strategy for Crescent Pure from among energy drink, sports drink, or organic drink. Based on market analysis, suggesting positioning it as an organic energy drink to focus on health while providing a healthier alternative to existing energy drinks and attracting more consumers.

1. Crescent Pure
A Harvard Case Study

2. About Crescent
•Crescent is a non-alcoholic functional beverage
•Founded by Peter Hooper in 2008
•Portland Drake Beverages, largest nation
beverage company acquired Crescent in July
2013
•Known for refreshing energizing and enhancing
mental focus

3. The product
Boasts of being an organic, all-natural,
energy enhancing and hydrating beverage
lightly infused with organic juices, herbal
stimulants and electrolytes

4. Ingredients
•Herbal stimulants : guarana seed and
ginseng
•Raw organic cane sugar
•Green tea
•80 Calorie serving
•All ingredients are “certified organic”

5. Problem
Vice President of marketing in PDB Sarah Ryan has
to decide on the positioning strategy of PDB’s newly
acquired beverage company Crescent Pure, which
has energizing, hydrating and organic ingredients,
making it a difficult task to position it. She has a
budget of $750,000.

7. Energy Drink
Pros Cons
• Fast growing market
• Demand for healthy organic
substitutes and lower levels of
sugar, caffeine and calorie
• Price of the can is affordable and
cheaper than others
• Energy drinks are portrayed as a
unhealthy drink by media
• Consumption is on a low due to
health issues
• Less energy per can than the
competitors

8. Sports Drink
Pros Cons
• Wide range of consumers
• Opportunities to grow
• Attracts all health conscious
people
• Gives hydration, energy boost
and mental focus
• Slow growth in market
• Tough competitor's
• Cost is higher than the
competitor's
• Plans to ban ending machines in
school

9. Organic Drink
Pros Cons
• There is a demand
• Avoiding the traditional branding
• Delay in the product launch
• Higher advertisement cost
• Idea may or may not resonate
with people

10. Break Even Analysis
Advertising Budget (TFC) = $750,000
Variable cost per can (V) = $1.02
Sales price per can (P) = $1.24
Break Even cans (TFC/(P-V)) ~ 34,09,091
Break Even cases (TFC/(P-V)) ~ 1,42,045
Max capacity of cans = 34,56,000
Over capacity of cans= 46,909
Over capacity of cases ~ 1,954

11. Functional ,
natural and
refreshing are the
adjectives that
best describe this
product according
to the
respondents.
Therefore the type
of marketing
should consider
these while
choosing

12. Respondents best
described “sports
drinks” to be more
refreshing,
functional and
hydrating whiles
are in line with the
product and in the
previous slide
table 3 In which
people described
what people think

13. 62% of online
consumers have a
college degree. So
banning Crescent in
schools is a
drawback for sport
drinks category since
they are marketed to
young generation
between 12-24

14. My Suggestion
Market Crescent as organic energy drink

15. Why?
•Focuses on health
•Provides healthier alternative to the
existing energy drinks
•Attract more consumers
•The product price can be increased
• This aligns well with the demographic of
Crescent

16. Disclaimer
Created by Aaishwarya Avhad, UMIT , during a marketing
internship by Prof. Sameer Mathur , IIM Lucknow.
(See mbaskillsin@gmail.com)