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Crescent pure
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- 2. Crescent Pure • HISTORY PeterHooper– in 2008 Product demand grew in Crescent and Oregon Michael Booth, CEO of Portland Drake Beverages (PDB), acquired in July, 2013 Michael Booth
- 3. Why CrescentPure? • Lowcaloriebeverage • 70% less sugar than other energy and sports drinks • Caffeine as much as a cup of coffee • All-naturalherbalstimulantsas energy boosters • Organic product at affordable price
- 4. Positioning • Two choices: SportsDrink Energy Drink • “soft-launch”in Jan2014 domestically • $750,000 advertising budget • If profits > budget; Crescent Pureto be launched nationallyin 2015.
- 5. Sports Drink PositioningPROS CONS 42%sportsbeveragedrinkershavesportsdrinks as“anytimebeverages”;notonlyforexercise. Government mandatedguidelines toremove sportsdrinkfromschool vending machines; courtesyhigh calorie. Attractwide consumerbaseforits refreshing, healthy,affordable,functionalandfunproperties. Regularusersconsume frequently Crescent’s$2.75pricefor8 ozcanis higher than othercompeting sportsdrink. Marketis $6.3billion Marketis $2.2billion less thanenergy drink market. Hydratingelements +Mental focus+energy boosters= Veryattractivedrink Similardrinksin themarket
- 6. Energy Drink PositioningPROS CONS Uniqueness(less sugar,more caffeine) Negative media attention for health risks reduced11% consumption All-natural stimulants for energybooster Competitors-85% notmuch wiggle room for new Consumers viewed “energy” as crescent’s most descriptive characteristic. Only 32% consumers consumed an energydrink in past 6 months. Average pricefor an 8 ozcan of energy drinks: Crescent’s = $2.75 Others = $2.99 Question on company’s ability to deliver healthy, organic product for just $2.75
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- 10. Organic Refreshment Positioning PROS CONS Capitalizeon growth of organic food and beverageindustry Critical time for “soft launch” execution of marketing strategy More premium price for focus on quality ingredients and target customers With wide range of customers, $750,000 advertising budget may no longer befeasibleOrganic beverages claim price premium (25%) overother beverages Allow wider rangeof customers Focusing on health attributes only, might lose important customer segments
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- 13. Strategies • Use third-partycelebrity endorsers for positioning and appealing to the younger generation • Engage millennialthrough community outreach and university collaboration • Combine efforts withfavorable global brands to raise awareness • Increase exposure and establish affiliationwith international sporting brand through sponsorship • Receive extensive and favorable press coverage via traditional and social media
- 14. Evaluation • Number ofsales- before vs. After • Media coverage, placements and feedback - before vs. After • Community outreach: sports club, etc. - before vs. after • Awareness of Crescent Pure asa brand and asa company • Change of attitudes towards sports drinks • Customer satisfactiontowards Crescent Pure via online surveys and Facebook polls • Target audience distribution • Social media followers endorsers - before vs. after
- 15. Future Considerations • Partnershipwith MichelleObama’s ‘Let’s Move!’ initiative • Sponsorship of 2016 Olympics in Brazil • Nationwide university initiative, distribution of Crescent Pure • Lululemon partnership targeting niche yoga community: sponsorship by Crescent Pure, education on healthy diet and exercise, etc • Trialtesting of products • Launchof additionalflavors
- 17. History Energy Drink Sports Drink OrganicDrink Evaluation Analysisof Crescent Pure Strategies SWOT Analysis Positioning options Future Considerations
- 19. DISCLAIMER This is aHarvard Business case study prepared by Kiran Gotaphode from Shri Ramdeobaba College of Engineering and Management during marketing internship under Professor Sameer Mathur. Prof. Sameer Mathur IIM Lucknow Kiran Gotaphode SRCOEM