The document analyzes options for positioning a new acquisition called Crescent Pure, considering it as an energy drink, sports drink, or organic drink. It provides details on the characteristics, target demographics, and market for each type. Surveys of Crescent Pure customers found preferences for functionality, refreshness, and natural qualities. Analysis recommends positioning it as an organic energy drink to combine benefits, pricing it lower than the original, and setting a production level of 2,324 cases per month to cover fixed costs and make a profit. Energy drinks are ruled out due to their higher caffeine levels and sports drinks due to lower typical pricing.

2. Objective
How should the company PDB, should position
its new acquisition CRESCENT PURE.

3. OPTIONS AVAILABLE
1. Energy drink
2. Sports Drink
3. Organic Drink

4. LET US ANALYZE EACH
OPTION

7. Deliver a health benefit that
is immediately effective and
detectable.

8. WHY PEOPLE LIKE IT?
deliver a benefit
that consumers can
quickly see or feel.
It is a key way of
creating brand
loyalty.

9. Males between the ages of 18 and 34 years
consume the most energy drinks, and almost
one-third of teens between 12 and 17 years
drink them regularly.
Who like it the
MOST

11. The average price for 8 oz of energy
drink is $2.99 or above

12. SALES OF ENERGY DRINKS IN THE US

13. ISSUES
BEING
FACED

15. Caffeine use may be
associated with anxiety, sleep
problems, digestive problems,
elevated blood pressure,
and dehydration.

17. Competition from different producers
FRIGHT
RAZOR
TORQUE
STELLAR
OTHERS
27%
34%
15%
16%
8%

23. $1.00 to $2.00 for 12-0z and
24-oz can

25. Roughly, half
of men drank
sports drinks,
while only
a third of
women did.

26. 40% of men found it refreshing, while only 27% of
females did.
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
MEN WOMEN
Series 3
Column2
Column1

28. COMPETITORS IN SPORTS DRINK MARKET
SHARE
GLEAM
DRIP
Other 20
producers
21%
6%
73%

29. COMPARISON Between Energy and Sports
drinks based on terms which describe
them

30. Energy
drinks
Sports
drinks
In 2013 In 2018(estimation)
$8.5 Billion
$6.3 Billion
$13.5Billion
$9.58 Billion

31. Organic and Healthy drinks

32. New
health
option
available
Attracts
huge
number of
customers

33. The BEST example to look at
is : ......

34. Crescent Pure

36. Key Aspects
• Healthy
• Refreshing
• Energizing
• Enhancing mental locus

37. Key Aspects
• Low caffeine content
• Low sugar levels
• 80-calorie serving

38. Ingredients
• Organic juices
• Herbal stimulants
• Electrolytes
• Guarana seed
• Ginseng

39. Pricing
3.75$ for an 8-ounce can

40. Demographics of Crescents Customers

41. • We have seen the following issues for each of
Energy drinks, Sports drinks and Organic Drinks
 What are they?
Merits and Demerits
Competitors
• we have also seen CRESCENT PURE
company’s strategies and products.

42. What if we position it as an Organic drink?
To understand the impact of organic substances on
people, a SURVEY or MARKET RESEARCH can
be carried out

43. Marketing Research Process
• Step 1: Define Problem, search
alternatives and research objectives

44. Why should we introduce it as an organic
drink?
Why not as Energy or Sports drink?
The previous details help us to look into this
matter

45. Step 2: Develop Research Plan
Collect primary or secondary data or
both!
In this case, Crescent online customers were
given a link to an ONLINE SURVEY

46. Step 3: Collect the information
Survey Results

47. Results of FEEDBACK
• Quick depletion of inventory
• Sold out even if the price was increased by
25%
• Most of the consumers were aged 18-30

48. Step 4: Analyze the information
From survey , 3 main features which should
not be missed out are:
FUNCTIONAL
REFRESHING
NATURAL

49. PDB should be careful about
• Premium pricing: It was a flop when PDB
experimented to utilize it.
• PDB volume, rather than mark-ups drove the
company’s product sales.

50. ANALYSIS (1/5)
• So, the price should be around 25% less than
Crescent’s original retail price.
• (25/100)*3.75$=2.81$

51. • Wholesale price should be much less i.e
1.24$ per can.
• So, per case 1.24*24=29.76$
ANALYSIS (2/5)

52. • PDB’s selling price = $2.75
• Variable costs = $1.02
Gross margin per can = $1.73
Total Gross Margin = 1.73*(12,000cases*24can/case)
=498,240$
ANALYSIS (3/5)

53. • Fixed costs = 34,000$(includes costs of goods,
marketing materials, employee training, and
compensation)
• Advertising per month = $750,000/12
= $62,500
TOTAL FIXED COSTS = 34,000+62,500
= 96,500$
ANALYSIS (4/5)

54. Therefore, PROFITS =$ (498,240 – 96,500)
= $401,740 per month
ANALYSIS (5/5)

55. BEP Analysis

56. BEP(Break even point)
BEP = Fixed cost
Selling price – Variable cost
= $ 96,500
$2.75 - $1.02
= 55,780 cans
= 2324 number of cases

57. By observing all this analysis, we can
eliminate the option of positioning it as a
SPORTS DRINK, due to its very
mediocre PRICING(i.e $1 for 12oz)

58. CRESCENT PURE should rather be
released as a ORGANIC ENERGY
DRINK(combining the merits of both
the drinks)
And PDB should manufacture at least
2324 cases each month to avoid
loses according our PRICE STRATEGY

59. S
U
M
M
A
R
OBJECTIVES and
OPTIONS
AVAILABLE
ENERGY
DRINKS
SPORTS
DRINKS
ORGANIC
DRINKS
(CRESCENT
PURE)
BREAK EVEN ANALYSIS

60. Disclaimer
Created by Vaishnavi Lakkaraju, GNITS,
during marketing internship by Professor
Mathur, IIM LUCKNOW.