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CASE STUDY
CRESCENT PURE – HARVARD BUSINESS REVIEW
• Peter Hooper founded
Crescent in 2008
• Demand for the product
locally grew in Crescent,
Oregon
MICHAEL BOOTH( CEO OF PDB)
ACQUIRED CRESCENT PURE IN
JULY, 2013.
SARAH RYAN (VICE-PRESIDENT
OF MARKETING, PDB) HAS TO
DEVELOP A POSITIONING
STRATEGY FOR CRESCENT
ENERGY
DRINK
SPORTS
DRINK
ORGANIC
DRINK
SO, WHAT IS CRESCENT PURE ?
CONTAINS GINSENG AND GUARANA AND
80mg CAFFEINE.. THE ENERGY DRINK
INGREDIENTS
SUGAR CONTENT IS 70% LOWER THAN OTHER ENERGY
AND SPORTS DRINK….. A REASON TO POSITION AS
ORGANIC DRINK
• In order to Break-even net- revenue from the sales
must be greater than $750,000
• Variable cost for 1 can=$1.02
• Selling price for 1 can=$1.24
• In order to break-even 11837.2 cans per month
needs to be sold
SPORTS DRINK POSITIONING
• In 2012: Market for sports drink $6.3 billion.
• 42% sports beverage drinkers have sports drinks
as any “anytime beverage” and not only for
exercise.
• Attract wider consumer base than any energy
drink and regular consumer consumes them
more
• Available in variety of sizes and average $1-$2
for 12-oz and 24-oz containers, respectively.
• Hydrating elements+ mental focus+ energy
boosters = very attractive drink.
• Government mandated guidelines to remove
sports drink from school vending machines;
courtesy high calories.
• Crescent’s $2.75 is higher than other
competitors.
• Market is $2.2 billion less than energy drink
market.
• Similar drinks are also available in market.
ENERGY DRINK MARKET
• Uniqueness less sugar, more caffeine.
• All natural stimulants for energy booster.
• Consumer viewed “energy “ as Crescent’s
most descriptive characteristics.
• Average price of 8 oz. can of energy drink:
Crescent=$2.75, others=$2.99
• Negative media attention for health
risk.
• Only 32% consumers consumes
energy drink in past six months.
• Competitors 85% not much wiggle
room for new.
Market size
Forecast
predicted the
market for
energy- drink to
reach $13.5
billion y 2018
Consumer data
Largest group:
males between 18-
34, parents of
children.
The highest has
been consumed by
household income
below $25000 p.a
Competition
Together,
Fright, Razor,
Torque and
Steller
accounts foe
85% market
Opportunity
Sales of organic
energy drink with
lower levels of
caffeine is rising
Threats
Drinks alleged
health risks 32%
drink energy drink
once in six months.
ENERGY DRINKS
Market size
Expected to grow
to $9.58 billion by
2017
Consumer data
40%males found it
refreshing while
only 27% of female
did 62% of those
between 18 & 24
and 77% b/w 12-17
Competition
Gleam and Drip had
73% and 21% market
share, remaining 6%
is shared by 20
producers
Threats
Government
mandated
guidelines due to
increasing obesity
among children
Opportunity
The market size
was expected to
increase from $1.4
bn in 2012 to
$2.97 bn in 2017.
SPORTS DRINK
• Position Crescent Pure as an energy drink
• Opportunity to provide this market with a
healthier alternative.
• Market growth of 40% between 2010-2012.
• Pricing advantage.
• Forecast to reach $13.5 billion in 2018.
• Suitable for targeted market based on age
and gender.
DISCLAIMER
Created by Arindam Kr Bhattacharjee (BITS Pilani, Pilani
Campus), during a marketing internship under Prof.
Sameer Mathur, IIM Lucknow

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Crescent pure

  • 1. CASE STUDY CRESCENT PURE – HARVARD BUSINESS REVIEW
  • 2. • Peter Hooper founded Crescent in 2008 • Demand for the product locally grew in Crescent, Oregon
  • 3.
  • 4. MICHAEL BOOTH( CEO OF PDB) ACQUIRED CRESCENT PURE IN JULY, 2013. SARAH RYAN (VICE-PRESIDENT OF MARKETING, PDB) HAS TO DEVELOP A POSITIONING STRATEGY FOR CRESCENT
  • 6. SO, WHAT IS CRESCENT PURE ? CONTAINS GINSENG AND GUARANA AND 80mg CAFFEINE.. THE ENERGY DRINK INGREDIENTS
  • 7. SUGAR CONTENT IS 70% LOWER THAN OTHER ENERGY AND SPORTS DRINK….. A REASON TO POSITION AS ORGANIC DRINK
  • 8. • In order to Break-even net- revenue from the sales must be greater than $750,000 • Variable cost for 1 can=$1.02 • Selling price for 1 can=$1.24 • In order to break-even 11837.2 cans per month needs to be sold
  • 10. • In 2012: Market for sports drink $6.3 billion. • 42% sports beverage drinkers have sports drinks as any “anytime beverage” and not only for exercise. • Attract wider consumer base than any energy drink and regular consumer consumes them more • Available in variety of sizes and average $1-$2 for 12-oz and 24-oz containers, respectively. • Hydrating elements+ mental focus+ energy boosters = very attractive drink.
  • 11. • Government mandated guidelines to remove sports drink from school vending machines; courtesy high calories. • Crescent’s $2.75 is higher than other competitors. • Market is $2.2 billion less than energy drink market. • Similar drinks are also available in market.
  • 13. • Uniqueness less sugar, more caffeine. • All natural stimulants for energy booster. • Consumer viewed “energy “ as Crescent’s most descriptive characteristics. • Average price of 8 oz. can of energy drink: Crescent=$2.75, others=$2.99
  • 14. • Negative media attention for health risk. • Only 32% consumers consumes energy drink in past six months. • Competitors 85% not much wiggle room for new.
  • 15.
  • 16. Market size Forecast predicted the market for energy- drink to reach $13.5 billion y 2018 Consumer data Largest group: males between 18- 34, parents of children. The highest has been consumed by household income below $25000 p.a Competition Together, Fright, Razor, Torque and Steller accounts foe 85% market Opportunity Sales of organic energy drink with lower levels of caffeine is rising Threats Drinks alleged health risks 32% drink energy drink once in six months. ENERGY DRINKS
  • 17. Market size Expected to grow to $9.58 billion by 2017 Consumer data 40%males found it refreshing while only 27% of female did 62% of those between 18 & 24 and 77% b/w 12-17 Competition Gleam and Drip had 73% and 21% market share, remaining 6% is shared by 20 producers Threats Government mandated guidelines due to increasing obesity among children Opportunity The market size was expected to increase from $1.4 bn in 2012 to $2.97 bn in 2017. SPORTS DRINK
  • 18.
  • 19.
  • 20.
  • 21. • Position Crescent Pure as an energy drink • Opportunity to provide this market with a healthier alternative. • Market growth of 40% between 2010-2012. • Pricing advantage. • Forecast to reach $13.5 billion in 2018. • Suitable for targeted market based on age and gender.
  • 22. DISCLAIMER Created by Arindam Kr Bhattacharjee (BITS Pilani, Pilani Campus), during a marketing internship under Prof. Sameer Mathur, IIM Lucknow