A Case Study Presentation By students of IIM Jammu. Under the supervision of Dr. Aakash Ashoke Kamble.

1. CRESCENT
PURE
A HARVARD BUSINESS SCHOOL
CASE ANALYSIS
Presented by Group 8

2. Anirudh Kaushik
Shuvayan Biswas
Vanshika Garg
Karan Chawla
Vyankatesh Gupta
Atul Kumar
TEAM MEMBERS
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3. Mission Statement: Delivering a deeper understanding of
core marketing concepts in tandem with the case study
through interactions.
Value Proposition: Opportunity to partake in and
experience real-time decision-making as the upper
echelon of a firm.
GOALS AND OBJECTIVES
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4. Consumer Beverage Preferences
- Google Forms
https://docs.google.com/forms/
d/109V7bTVQvEGNerNSui-
_lHUfSh1scHk3MRnck4yL89c/e
dit?ts=61520170
4

5. FOUNDED IN 2008
ALL NATURAL INGRIDIENTS
SOLD 1000 CASES PER MONTH
By John Hooper
Organic Juice infused with herbal
stimulants. Delivered 80mg Caffeine
8-ounces can be retailed for $3.75 apiece.
Sold out even when retailers hiked the price
by 25%.
CRESCENT
PURE
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6. PORTLAND DRAKE
BEVERAGES (PDB)
ORGANIC JUICE AND SPARKLING WATER MANUFACTURER
Revenues hit $120.5 million in 2012.
Part of the 131 billion dollars beverage industry.
Wanted to expand into the functional; beverage (sports
and energy) sector through acquisition.
Acquired Crescent Pure on 2013
CEO of PDB, Michael Booth, entrusted Sarah Ryan, VP of
Marketing, with the brand positioning of Crescent.
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7. HISTORY OF THE CASE
PDB acquired Crescent Pure as it made a natural extension for PDB's existing
organic product lines.
Ryan was asked to evaluate the positioning opportunities and recommend
a positioning strategy to the executive team by 16 September
Ryan was asked to evaluate the positioning opportunities and recommend
a positioning strategy to the executive team by 16 September
While analyzing the data,she wonders if a third positioning option
focusing on the drink's healthy and organic roots would attract the most
consumers
PDB planned a soft launch of Crescent in three western states that represented
15% of national beverage demand
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8. Key Issues
# How should the drink be positioned?
ENERGY DRINK SPORTS DRINK ORGANIC DRINK
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9. CONS
Negative Marketing: Health risks
Top 4 Brands occupied 85% market
share.
Only 32% of consumers had an
energy drink in the past six months.
11% of them decreased
consumption due to health risks.
PROS
Projected market: $8.5 billion, growing @
40%, to reach $13.5 billion by 2018
Avg price of 8 ounces can: $2.99
Enthusiastic customers: Men of age 18-24
Sales of energy drinks with lower levels of
caffeine and purer ingredients rising due to
demand for healthier alternatives.
Energy Drink Market
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10. CONS
Negative Marketing:
Childhood obesity.
Top 2 Brands occupied
94% market share.
Price is significantly
higher as compared to
the products available in
market
Only 27% of consumers
are females.
PROS
Market Revenue: $6.3 billion. Expected to grow to $9.58
billion in 2017
Attracts a wider range of customer base than energy
drinks.
Consumers: 62%, aged b/w 18-24; 77%; aged b/w 12-77.
Increasing demand for diet and low sugar sports drinks,
Market grew by 33% in 2 years.
market size expected to increase from $1.4 billion to
$2.97 billion.
Sports Drink Market
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11. PROS
The growing market for products with natural
and organic ingredients.
Target a broader consumer base.
Command a premium pricing (25% more than
conventional beverages).
Focus is one quality ingredient; hence target
consumers who are willing to pay more for
quality.
CONS
Sole focus on health and quality.
Lose out on other essential
customer segments.
Appeal to a broader range of
customers is not feasible on a
$750,000 budget.
More distributors and retailers are
to be evaluated. Time won't permit.
Organic Drink Market
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12. PERCEPTUAL MAP OF SPORTS AND
ENERGY DRINK W.R.T HYDRATION
VS ENERGY
"All Sports Drinks" are High in
Hydration but Low on Energy.
"All Energy Drinks" are high in
energy but low on Hydration.
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13. PERCEPTUAL MAP OF SPORTS AND
ENERGY DRINK W.R.T NUTRITION
VS TASTE
"All Sports Drinks" are High on
Nutrition and High on Taste.
"All Energy Drinks" are High on
Taste but Low on Nutrition
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14. Location:
Which location do you prefer to launch our product into?
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15. Lifestyle:
What lifestyle should we target?
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16. Packaging:
What packaging should be used?
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17. Solution
Energy
Organic
Energy
Organic
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18. ORGANIC
ENERGY DRINK
●47% consumers considered crescent to be “functional”
●Growing energy drinks markets
●38% saw it as “natural”
●Healthier alternative
●Broad appeal- A whole new market which avoids traditional energy drinks
●Psychographic inconsistencies
●Cheaper than most energy drinks
●This positioning would reinforce the existing perceptions
●Targeting younger health conscious customers and people who love
organic products
●First mover advantage
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19. PRODUCT
“100% organic”
“Certified organic”
Clear coloured
70% less sweet,
80 cal/ can
Lime juice, green
tea flavors
PRICE
$2.75, 27% below
original price
PDB’s pricing
strategy intact.
Below average
price of energy
drinks
PLACE
Manufacturer-
distributor-
retailer
18%->25%->40%
PROMOTION
Advertising
Healthier alt
One size fits all
strategy
Strategy
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20. STRENGTH
Crescent product has low sugar and calorie intake.
• Offers organic ingredients.
• The market size for energy drink raised 40% between 2
years.
• Crescent received very good feedback about the drink
they offered in sampling.
• Between the ages of 18 and 30 favored the product.
WEAKNESS
Sports and energy drinks have
health risks
Crescent energy content =
caffeine in 1 cup coffee
Only younger consumers are
enticed
High price, low quantity
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21. Financial
Analysis
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22. Given that Crescent is PDB's first entry in the US sports and/or energy
beverage markets, what must PDB do regarding Crescent's launch?
What factors should influence the positioning of Crescent?
How is the market segmented? At what segment should Crescent be
targeted?
What are the pros and cons of positioning Crescent as an energy drink, a
sports drink, or a healthy organic beverage?
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Questions