This presentation was made by Renil Shah during Marketing Internship under Professor Sameer Mathur of IIM Lucknow.

1. CRESCENT PURE
A HARVARD BUSINESS
SCHOOL CASE STUDY

2. COMPANIES INVOLVED
Portland
Drake
Beverages
Crescent
Pure
Acquired

3. COMPANY DETAILS OF CRESCENT PURE
• It was founded by Peter Hooper in 2008.
• It is manufacturer of Non-Alcoholic Beverages.
• Hooper found popular energy drinks unhealthy, sweet and artificial
therefore he began experimenting with different ingredients to craft an
organic, refreshing, healthy drink.

4. COMPANY DETAILS OF PDB
• Michael Booth was CEO of Portland Drake beverages.
• Sarah Ryan was Marketing VP of PDB.
• PDB is manufacturer of organic juices and sparkling water.

5. SITUATION ANALYSIS
• PDB acquired
Crescent Pure • Market Research
to decide its
positioning is
done
• Decision about
its market
positioning need
to be taken

6. OBJECTIVE
Choose a suitable brand positioning
for Crescent Pure by analysing the
data

7. BRAND POSITIONING
OPTIONS

8. 1) ENERGY DRINKS

9. Market size
Forecast predicted
that market for
energy- drinks will
reach $13.5 billion
by 2018
Consumer data
Largest group of
consumers were
males between ages
18-34
The highest volume
has been consumed
by people having
household income
below $25000 per
year
Competition
Fright, Razor,
Torque and Stellar
accounts for 85%
of market
Opportunity
Sales of energy
drinks with lower
levels of caffeine
is rising
Threats
People are now
more concerned
about health

10. 2) SPORTS DRINKS

11. Market size
Expected to grow
to $9.58 billion by
2017
Consumer data
40% males found it
refreshing while
only 27% of female
did
Appealed to
younger
consumers: 62% of
those b/w 18 & 24
and 77% of those
b/w 12-17 ages
Competition
Gleam and Drip
had 73% and 21%
market share,
remaining 6% is
shared by 20 other
producers
Threats
Government
mandated
guidelines due to
increasing obesity
among children
High prices than
other sports
drinks
Opportunity
The market size
for low sugar
drinks was
expected to
increase from $1.4
billion in 2012 to
$2.97 billion in
2017.

12. 3) ORGANIC DRINKS

13. Market size
Health conscious
consumers who
regularly
consumed energy
and sports drinks
Consumer data
Organic beverages
claimed a price
premium of
average 25% than
other conventional
beverages
Competition
No competition
from big firms
Threats
Large
advertising
budget
required
Opportunity
Large revenues
because of
premium pricing

15. 0
5
10
15
20
25
30
35
40
45
50
Refreshing Healthy Affordable Functional Too sweet Natural Hydrating
12
6
5
22
9
4
11
34
16
11
28
8
6
49
Percentage of respondents who indicated a word that
described energy or sports drinks
Energy Drinks Sports Drinks

16. 0
5
10
15
20
25
30
35
40
45
18-24 25-34 35-44 45-54
44
36
15
3
2
Demographics of Crescent online consumers
Age Ranges
55+

17. 0
5
10
15
20
25
30
35
40
45
50
Refreshing Healthy Affordable Functional Too Sweet Fun Natural Hydrating
35
22
29
47
9
19
38
29
Percentage of respondents who described Crescent

18. RECOMENDATION
Crescent Pure should be positioned as healthy organic energy drink.

19. Crescent’s organic
ingredients and minimum
caffeine and sugar level
proves to be differentiators
in healthy organic energy
drinks market.

20. ANALYSIS

21. ANALYSIS(1/3)
Advertising Expenses=$750000
Variable cost per can=$1.02
Cost per case=$24*1.02
=$24.48
Selling Price per case=$29.76
Profit per case=$5.28

22. ANALYSIS(2/3)
Number of cases to be sold annually to break even=142046
Cases to be sold per month to break even=11838
Production capacity per month=12000

23. ANALYSIS(3/3)
Profit per month=$(12000-11838)*5.28
=$855.36
Annual Profit=$855.36*12
=$10264.32

25. DISCLAIMER
Created by Renil Shah during
Marketing Internship under Professor
Sameer Mathur of IIM Lucknow.