Michael Booth, CEO of Portland Drake Beverages, acquired Crescent Pure in 2013. He is considering strategies to maximize Crescent's revenue. Market research shows increasing demand for healthier drinks. While energy drinks have high growth, concerns exist about health impacts. Sports drinks have a large market but also health concerns. The document analyzes positioning Crescent as an energy drink, sports drink, or healthy organic beverage. It provides pros and cons of each option, consumer perceptions of different drinks, Crescent consumer demographics, and a recommendation to position Crescent as a healthy organic drink due to growing demand and avoiding health concerns of other options.

1. CRESCENT PURE
Harvard Business Case
Analysis

2. Portland Drake Beverages Overview
• Manufacturer of organic juices and sparling
water.
• VALUES: Quality and Affordability.
• Present CEO Michael Booth.

3. History of Crescent pure
• Peter Hooper, a native of Crescent, Oregon founded
Crescent Pure in 2008.
• Crescent was a non-alcoholic functional beverage.
• In July, 2013 Michael Booth PDB’s CEO acquired
Crescent pure.

4. Situation
What positioning strategy should be used to maximize the
Crescent’s revenue ?

5. Objective of this case
To analyse the consumer behaviour and by market
research choose proper positioning strategy .

6. Brand positioning options
1. Energy Drink
2. Sports Drink
3. Healthy Organic Beverage

7. Energy drink
Pros
• Contains less sugar and caffeine content comes
from natural herbs making the product unique.
• Growth in market for energy drinks (About 40%
growth in 2012-2013).
Cons
• Concerns about health and safety.
• Only 32% customers claim that they have
consumed an energy drink in the last 6 months.

8. Sports Drink
Pros
• Fast growing market.
• Market share is 6.3 billion in 2012.
• Regular users consumes sports drink more often.
Cons
• Rising childhood obesity rates resulted in government
mandated guidelines to remove high-calorie sugary drinks and
snacks.
• Market is $2.2 billion less than energy drink.

9. Healthy Organic Beverage
Pros
• Crescent’s taste appeals to most consumers.
• Increasing demand of healthier drink.
• Premium price (on average 25%) over conventional beverages
of the same variety.
Cons
• By focusing on health attributes, PDB might risk excluding
additional, lucrative customer segments.
• Advertising budget of $750,000 may no longer be feasible.

10. Perceptual Map
Hydration vs. Energy Nutrition vs. Taste

12. Percentages of respondents who felt a specific
word was reflective of energy and sports drinks in
2013.
12%
6%
5%
22%
9%
7%
9%
4%
11%
52%
34%
16%
11%
28%
8%
22%
11%
6%
41%
27%
35%
22%
29%
47%
9%
8%
19%
28%
39%
0
REFRESHING HEALTHY AFFORDABLE FUNCTIONAL TOO SWEET SUITABLE FOR
TEENS
FUN NTURAL HYDRATING NONE OF
THESE
Energy drink Sports drink Organic drink

13. Demographics of Crescent online consumers.
44%
36%
15%
3%2%
Age ranges
18-24
25-34
35-44
45-54
55+
Male- 59%
Female- 41%

14. My recommendation to Sarah Ryan,
vice president of marketing for
Portland Drake Beverages, is to
strategise for an Organic healthy
drink.

15. Points of Parity
• Hydrating .
• Good Taste.
• Not too sweet.
• Performance Enhancing.
• Nutritious.

16. Points of Difference
• Low sugar.
• Healthier.
• 35% of consumers found Crescent pure more
refreshing drink.
• Diet.
• Expansive than Sports drink but less than Energy
drink.

17. Profit Margin Analysis
Manufacturer Distributor Retailer
18% 25% 40%
$1.24 $1.64 $2.75

18. DISCLAIMER
Created by Amit Kumar Singh,MNIT Jaipur during
a Marketing Internship by Prof. Sameer Mathur,
IIM Lucknow.