Peter Hooper founded Crescent Beverage in 2008 after seeing a market opportunity for a healthy energizing drink. After promoting at local markets, demand grew in the Portland area. In 2012, Portland Drake Beverages acquired Crescent as consumer demand for organic products was rising. PDB lowered the price to $2.75 per can and distribution expanded. Consumer testing found that Crescent was viewed as refreshing, healthy, and affordable compared to energy drinks, though some younger consumers found it lacked energy. The target demographic were males aged 18-34 with a college education and household income of $42,500.

1. Crescent Business Case Study

2. Ingredients

3. History
• Peter Hooper, a native of Crescent, Oregon, saw
a market opportunity for a healthy, energizing
drink.
• He founded Crescent in 2008.
• Twelve months after launching his small
business, Hooper secured legal protection for
his proprietary recipe.
• After Hooper promoted his drinks at farmers’
markets and local food shows and pursuing local
retailers in Oregon, demand grew in the Portland
area for Crescent.
•The drink retailed for $3.75 for an 8-ounce can.

5. PDB beverages acquired Crescent

6. • With consumer demand for organic food and
beverage products rising, PDB’s revenues had
increased to $120.5 million by 2012.
• PDB management decided that Crescent’s retail
price would be $2.75, or 27% below the drink’s
original selling price.
• Variable costs for Crescent were $1.02 per can;
PDB’s wholesale price to distributors was $29.76 per
case (or $1.24 per can).
PDB positioning strategy

8. Michael Booth – Chief executive
officer, Portland Drake Beverages
(PDB).
Sara Ryan – Vice President of
Marketing, Portland Drake
Beverages (PDB).
Peter Hooper – Founder of
Crescent pure.
Players Involved

11. Pros Cons
Contains less sugar, less
caffeine with all organic
and herbal ingredients.
Health risks
Price is $2.99 per 8 Some younger consumers
think it has less energy
than they hoped.
Consumer response viewed
“energy” as most
reasonable characteristic.
Higher competition from
other energy drinks like
Fright, TORQ
Energy Drink

12. Pros Cons
Market revenue $7.5 billion
Expected to grow to $9.58
billion in 2017
Childhood Obesity
Attracted wide consumer
base than energy drinks
Top 2 brands occupied 94%
of market share
Consumers 62% aged 18-24,
77% aged 12-17
Market increased slowly
only by 9% between 2007 to
2012
Increasing demand for diet
and low sugar drinks.
$1 to $2 for 12 &14 ounce
containers respectively
Diet sports drink expected
to increase from $1.4 to
$2.97 billion in 2017
Only 27% of consumers are
females
Sports Drink

13. Percentage of respondents who described Crescent
Descriptor
Refreshing 35%
Healthy 22%
Affordable 29%
Functional 47%
Too sweet 9%
Suitable for teens 8%
Fun 19%
Natural 38%
Hydrating 29%

14. Demographics of Crescent online consumers
Age ranges
18–24 44%
25–34 36%
35–44 15%
45–54 3%
55+ 2%
Male 59%
Female 41%
College degree 62%
Household income (median) $42,500

15. Perception of crescent among people
(energy or sports drinks)
Energy Drinks Sports Drinks
Refreshing 12% 34%
Healthy 6% 16%
Affordable 5% 11%
Functional 22% 28%
Too sweet 9% 8%
Suitable for Teens 7% 22%
Fun 9% 11%
Natural 4% 6%
Hydrating 11% 49%
None of these 52% 27%

16. 1. Taste: It appears Crescent’s taste appeals to most
consumers. While some participants were notably more
pleased with the taste, there were no unfavourable
reactions.
2. Energy content: Older consumers said that they liked
that Crescent was a healthy alternative to
high-calorie, sugary energy drinks. Some younger
consumers noted that Crescent had less energy
than they had hoped.
3. Customer profile: Several consumers said that
Crescent was exactly what they wanted in a beverage:
healthy ingredients, good taste, and a slight pick-me-
up.
4. Price:. Most were happily surprised, but some
questioned PDB’s ability to deliver quality organic
ingredients at $2.75.
Crescent major factors

20. Crescent pure on strategizing as an
organic energy drink can succeed by:
• Consumer perception about Crescent aligns well with
alternate choice of a energy drink.
• There are lesser leading competitors with drink
characteristics.
• They can position it at $2.75 which is lower in comparison
to the average price of energy drinks.
• Portland Drake Beverages is an established organization
with an efficient workforce and latest technology in order to
produce the best possible drink which uplifts the customer
trust on the product.

21. DISCLAIMER
Created by SOURABH BALLULLAYA, PICT Pune
during a marketing Internship under the guidance of
PROF. SAMEER MATHUR, IIM Lucknow.