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Crescent pure case analysis
- 1. “Make the rightchoice” Crescent Pure A Harvard Business School Case Study
- 2. PDB: Company Profile Manufacturerof organic juices & sparkling water Clocked $120.5m revenues by 2012 Values: Quality & Affordability
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- 4. Product Positioning Options •Age Group:18-24 • Top 6 players account for 85% of the revenue • Rising sales of healthier beverage choices • Negative perception – campaigns highlights health risks Energy Drink $2.99/can • Age Group: 12-24 • Top 2 players have 94% market share • Rising sales of healthier/low sugar beverage choices • Negative perception – campaigns highlights increasing obesity rates Sports Drink $1-$2/can • All ages • New emerging market • High inclination amongst consumers to go for healthier and natural product alternatives Organic Drink 25 % premium
- 5. Market Trends Drinks withlow caffeine & sugar Energy Drinks market up by 40% Fierce competitions amongst both energy and sports drink segments Competitors to launch organic products in 2015 Negative campaigns against both sports & energy drinks Rising sales of healthier beverage choices Organic Drinks industry – emerging, growing rapidly
- 7. Crescent Pure vs.Energy Drinks Points of Parity Points of Difference refreshing mental focus energizing has caffeine kills fatigue healthy $2.75 vs. $2.99 organic 1 cup coffee low sugar
- 8. Crescent Pure vs.Sports Drinks Points of Parity Points of Difference high nutrition hydrating nature enhance performance expensive low sugar healthier alternative
- 9. Why Crescent Pure?– Because it’s ‘PURE’ Contains almost 70% less sugar than other energy drinks and sports drinks. Contains 80milligrams of caffeine per serving which is equivalent to one cup of coffee. H2O: Healthy Hydrating and Organic
- 10. Why Crescent Pure?– Organic & Healthy
- 12. Drink me, please!- Crescent 44% 36% 15% 3% 2% 18-24 25-44 35-44 45-54 55+ Male Female Annual Income: $ 42,500
- 13. Leader board 0 10 20 30 40 50 60 Energy Drink SportsDrink Crescent Pure Crescent Pure is truly a healthy “energy drink alternative” and hence it should be positioned as an organic energy drink. One that is healthy and tasty.
- 14. Verdict Organic Energy Organic Energy Drink •Crescent Pure shouldbe positioned as a organic and healthier alternative to other energy drinks •Since the diet sports drinks market is also growing at 33%, there is an opportunity of increasing product line in future through brand extensions. •Priced at $2.75 for 8 ounce can it is quite low in the $13.5 billion energy market while it is premium price in the $6.5 billion sports market. •First is the Best - Major national food and beverage companies are gearing up to launch their own organic beverages in 2015.
- 15. Budgeting $1.24 $1.65 $2.75 ProfitMargin Analysis Manufacturer Distributor Retailer 18% 25% 40%
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- 17. Disclaimer This presentation hasbeen prepared by Akash Gupta, IIIT Bhubaneswar in fulfillment of the requirements of the Marketing Management internship pursued under the mentorship of Professor Sameer Mathur, IIM Lucknow.