The document discusses PDB Beverages' plans to launch and distribute the organic energy drink Crescent Pure. PDB planned a soft launch of Crescent in 3 western states in 2014, spending $750,000 on advertising with the goal of meeting or exceeding $750,000 in profits that year. If successful, they would fund a national expansion in 2015. PDB acquired Crescent in 2012 and decided to lower its retail price to $2.75 per 8oz can, reflecting PDB's strategy of affordable organic products. Variable costs were $1.02 per can and PDB's wholesale price to distributors was $1.24 per can. To ensure distributor profitability, PDB limited the initial launch to 3 distributors in the western

3. What is Crescent Pure?!
We haven’t heard about it !

6. U.S Beverage Industry
$131 billion $ 164 billion
2013
2018

7. PDB planned to embark on a “soft
launch” of Crescent in 3 western
states (California, Oregon, and
Washington) in January 2014. PDB
projected that these states
represented 15% of national
functional beverage demand.

8. PDB planned to spend
$750,000 on advertising for
Crescent in 2014 and used that
figure as a benchmark earnings
goal. If 2014 profits met or
exceeded the goal, PDB would
fund Crescent’s national
expansion in 2015.

9. Beverage Distribution in US Market

10. In 2013, the largest U.S.
retailers, known as “big
box” retailers, often had
their own product
distribution systems in
place to handle
purchasing,
transportation, and
stocking.

11. They continually refined their
catalogue to include products
they believed would generate
the highest demand.

12. Peter Hooper, a native of
Crescent, Oregon, founded
Crescent in 2008.

13. Crescent’s herbal stimulants
delivered 80 milligrams of caffeine.
This amounted to half the energy
contained in a similar serving of the
two leading energy beverages on the
market,

14. A high percentage of
Oregonians supported
healthy, organic food
choices and the local
businesses that made
them available.The drink
retailed for $3.75 for an
8-ounce can.

15. Crescent Acquisition by PDB Beverages

16. PDB’s revenues had increased to $120.5 million by 2012.

17. Non-Alcoholic Beverages offered
the best proposition, hence PDB
acquired Crescent Pure

18. PDB management decided that Crescent’s retail price
would be $2.75, or 27% below the
drink’s original selling price. PDB wanted Crescent to
reflect PDB’s pricing strategy in other product lines, which
was to deliver quality organic products at affordable prices.

19. 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).6

20.  PDB wanted to negotiate with
distributors for the 2014West Coast
launch. Because of limited production
capacity, and to ensure distributor
profitability if inventory sold out, PDB
used only three distributors.

21.  Booth calculated
that distributors’
monthly costs
would average
$34,000 during
Crescent’s first
year

22. Ingredients and Packaging

23. Tall silver 8-ounce can with a simple
crescent logo

24. Lime and lemon juice

25. Raw cane sugar

26. Green Tea

27. Key Ingredient

28. Guarana

29. Positioning - Sports or Energy?

30. Crescent Positioning Options

31. Energy Drinks

33. Sports Drinks

35. Statistical Analysis

45. This presentation is created by Shantnu Patil, IIT
Roorkee during a marketing internship under the
guidance of Prof Sameer Mathur, IIM Lucknow