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Crescent Pure
A Harvard Case Study
Companies involved
*Crescent Pure
*PDB
 Manufacturer of organic juice
and sparkling water.
 Wanted to expand into
functional beverage sector
through acquisition.
 Acquired Crescent in July 2013.
Crescent Pure
Founded by Peter Hooper in 2008 when he
an opportunity in the local market.
All natural organic juice infused with herbal
stimulants delivered 80mg caffeine.
Good reception among both men and
women.
 Michael booth- CEO Portland Drake
Beverages.
 Sarah Ryan- Vice President of Marketing
Portland Drake Beverages.
 Matt Levor- PDB’s Director of market research.
 Peter Hooper- Founder of Crescent Pure
 PDB acquired Crescent Pure to expand into the
growing functional drink industry.
 The task of figuring out the right marketing
approach falls in the hands of Vice President of
Marketing – Sarah Ryan.
 She has two options
 Energy drink
 Sports drink
Industry specifics related to each
marketing option
The potential benefits and drawbacks
of each option
Final Recommendation.
OPTIONS
Energy drink Sports drink
PROS CONS
 Heavy market growth
projection in the coming
years
 Average price of can
$3.
 People are starting to
favor healthier drinks
which works in favor.
 Health risks area major
concern.
 Entry into market is
difficult.
 People have reduced
drinking energy drinks
due to health concerns.
PROS CONS
 Attracts wider customer
base than energy drinks
 Increased number of
young drinkers.
 Markey grew 33% in 2
years .
 Market size expected to
double in 4 years.
 Child obesity is a major
concern.
 Top Brands dominate
the market space.
 Price less than that
touted by crescent Pure.
 Only 27% consumers
women.
A THIRD POSITIONING OPTION?
Ryan upon analysis of the
market research found
out that she had a third
positioning option.
Organic beverage
My Recommendation would be to market
Crescent Pure as an Organic beverage.
HOW IS CRESCENT PURE
DIFFERENT FROM THE CROWD?
* CRESCENT PURE
0
10
20
30
40
50
60
energy drink
sports drink
crescent pure
Crescent pure has a clear advantage over
both energy drinks and sports drinks.
BREAK EVEN ANALYSIS
Advertising Budget $750,000
Cases sold every month 12000
Cases sold annually 144,000
Bottles per case 24
Price to wholesalers $29.76
Variable cost $24.48
Profit per case $5.28
No of cases to breakeven. 142,045.45
Extra cases sold 1954.55
Overall profit. $10,320
Companies involved
*Crescent Pure
*PDB
OPTIONS
Energy drink Sports drink
Created by S.T Vigneshwaran SSN college of
engineering under the esteemed guidance of
Prof. Sameer Mathur, IIM Lucknow.

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Crescent pure

  • 3.  Manufacturer of organic juice and sparkling water.  Wanted to expand into functional beverage sector through acquisition.  Acquired Crescent in July 2013.
  • 4. Crescent Pure Founded by Peter Hooper in 2008 when he an opportunity in the local market. All natural organic juice infused with herbal stimulants delivered 80mg caffeine. Good reception among both men and women.
  • 5.  Michael booth- CEO Portland Drake Beverages.  Sarah Ryan- Vice President of Marketing Portland Drake Beverages.  Matt Levor- PDB’s Director of market research.  Peter Hooper- Founder of Crescent Pure
  • 6.  PDB acquired Crescent Pure to expand into the growing functional drink industry.  The task of figuring out the right marketing approach falls in the hands of Vice President of Marketing – Sarah Ryan.  She has two options  Energy drink  Sports drink
  • 7. Industry specifics related to each marketing option The potential benefits and drawbacks of each option Final Recommendation.
  • 9. PROS CONS  Heavy market growth projection in the coming years  Average price of can $3.  People are starting to favor healthier drinks which works in favor.  Health risks area major concern.  Entry into market is difficult.  People have reduced drinking energy drinks due to health concerns.
  • 10. PROS CONS  Attracts wider customer base than energy drinks  Increased number of young drinkers.  Markey grew 33% in 2 years .  Market size expected to double in 4 years.  Child obesity is a major concern.  Top Brands dominate the market space.  Price less than that touted by crescent Pure.  Only 27% consumers women.
  • 11. A THIRD POSITIONING OPTION? Ryan upon analysis of the market research found out that she had a third positioning option. Organic beverage
  • 12.
  • 13. My Recommendation would be to market Crescent Pure as an Organic beverage.
  • 14.
  • 15. HOW IS CRESCENT PURE DIFFERENT FROM THE CROWD? * CRESCENT PURE
  • 16. 0 10 20 30 40 50 60 energy drink sports drink crescent pure Crescent pure has a clear advantage over both energy drinks and sports drinks.
  • 17.
  • 18. BREAK EVEN ANALYSIS Advertising Budget $750,000 Cases sold every month 12000 Cases sold annually 144,000 Bottles per case 24 Price to wholesalers $29.76 Variable cost $24.48 Profit per case $5.28 No of cases to breakeven. 142,045.45 Extra cases sold 1954.55 Overall profit. $10,320
  • 20. Created by S.T Vigneshwaran SSN college of engineering under the esteemed guidance of Prof. Sameer Mathur, IIM Lucknow.