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CRESCENT PURE
CRESCENT PURE CASE STUDY
Companies Involved
Companies Involved
CRESCENT PURE CASE STUDY
Crescent Pure
Crescent Pure
CRESCENT PURE CASE STUDY
PDB
PDB
CRESCENT PURE CASE STUDY
Situational Analysis
Situational Analysis
CRESCENT PURE CASE STUDY
Objectives
Objectives
2
3
CRESCENT PURE CASE STUDY
Brand Positioning Options
Brand Positioning Options
CRESCENT PURE CASE STUDY
Market Research
Market Research
Energy Drink
• Growing market: 40% increase and
$13.5 Billion projected for 2018
• Consumers: Men of age 18-34
• Highest volume was consumed by
families with income less than $25,000
per year
• Competition:
Fright : 34%
Razor : 27%
Torque: 16%
Steller : 8%
other : 15%
Market Shares
• Growing market: 9% increase
and $9.58 Billion projected for
2017
• Consumers: Men of age 18-24:
68% and Men of age 12-17:
77%
• Refreshing 40% men ; 27%
females
• Competition:
Gleam : 73%
Drip : 21%
others : 8%
Sports Drink
CRESCENT PURE CASE STUDY
Opportunities
Energy Drink
• Sales of energy drinks with
lower levels of caffeine and
purer ingredients were rising
due to customer demand for
healthier food and beverage
choices
Market Research
Market Research
Sports Drink
• New diet and low-sugar sports
drinks were the new growth
areas of the industry
• The market size was expected
to increase from $1.4 Billion in
2012 to $2.97 in 2017
CRESCENT PURE CASE STUDY
Sports Drink
Threats
• Concerns regarding rising
childhood obesity rates
resulted in government-
mandated guidelines to
remove high-calorie sugary
drinks and snacks, including
sports drinks from the
school vending machines
• News stories were
highlighting the drinks’
alleged health risks
• Decrease in the
consumption due to
concerns about health and
safety
Market Research
Market Research
Energy Drink
CRESCENT PURE CASE STUDY
Consumer Studies
Consumer Studies
Word Energy Drinks(%) Sports Drinks(%)
Refreshing 12 34
Healthy 6 16
Affordable 5 11
Functional 22 28
Too Sweet 9 8
Suitable for Teens 7 22
Fun 9 11
Natural 4 6
Hydrating 11 49
None of these 52 27
% Customers who found the:
CRESCENT PURE CASE STUDY
Demographics
Demographics
Age Ranges %
18-24 44
25-34 36
35-44 15
45-54 3
55+ 2
Male 59
Female 41
College Degree 62
Household Income $42,500
Crescent Pure Online customers
CRESCENT PURE CASE STUDY
Physcographics
Physcographics
Word %
Refreshing 35
Healthy 22
Affordable 29
Functional 47
Too Sweet 9
Suitable for Teens 8
Fun 19
Natural 38
Hydrating 29
Crescent Pure Online customers
CRESCENT PURE CASE STUDY
Price Criteria
Price Criteria
Type Market Price
Energy Drink $2.99 (8 ounce)
Sports Drink $ 1-2 (12 ounce)
Crescent Pure $ 3.00 (8 ounce)
PDB has decided to keep price for crescent pure $2.75 per 8 ounce can.
Though this is lower than market value of crescent but it reflects PDB’s
pricing strategy
CRESCENT PURE CASE STUDY
Perceptual Maps
Perceptual Maps Hydration vs Energy
Inference
•Energy drinks have high energy value
and low hydration value
•Sports drinks have low energy value and
high hydration value
CRESCENT PURE CASE STUDY
Perceptual Maps
Perceptual Maps Nutrition vs Taste
Inference
•Energy drinks have better taste
and low nutrition
•Sports drinks have better taste as
well as nutrition
CRESCENT PURE CASE STUDY
Feedbacks
Feedbacks
Retailers Focus Group
• Quick Depletion of
inventory. Increase of price
by 25% didn’t change the
scenario
• Age : 18-30
• Higher % of women
customers
• Complete customer
satisfaction in terms of
1. Taste
2. Energy content
3. Price
CRESCENT PURE CASE STUDY
Recommendation
Recommendation
• Looking through the Market research related to Market
shares, price criteria, demographics and physiographic, I
would recommend that Mrs. Ryan should opt Brand
Positioning as “Energy Drink” for Crescent Pure.
• Also, in order to counter the threats related to the
energy drinks, PDB must advertise Crescent Pure as an
organic, all-natural energy drink!
CRESCENT PURE CASE STUDY
Break Even Analysis
Break Even Analysis
• After opting for “Energy Drink” brand positioning Ryan still requires to check whether
her company would Break even so that the final aim of successful brand expanding is
achieved.
Entity Amount
Budget Allocated $750,000
Variable cost per a can $1.02
Selling price of a can $1.24
Profit per can $0.22
Cans per case 24
Total cases needed to be
sold per month to attain
Break even
11838 / month
Manufacturing Capacity 12000 / month
• For Break even
PDB has to sell at
least 11838 cases
per month. This is
also within the per
month
manufacturing
capacity
CRESCENT PURE CASE STUDY
Thank You
Thank You
CRESCENT PURE CASE STUDY
Disclaimer
Disclaimer
This presentation has been prepared by Nirdesh Madhani, FoTE-MSU Baroda
during an internship in Marketing under the guidance of Professor Prof. Sameer
Mathur, IIM Lucknow

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Crescent Pure Case Study

  • 2. CRESCENT PURE CASE STUDY Companies Involved Companies Involved
  • 3. CRESCENT PURE CASE STUDY Crescent Pure Crescent Pure
  • 4. CRESCENT PURE CASE STUDY PDB PDB
  • 5. CRESCENT PURE CASE STUDY Situational Analysis Situational Analysis
  • 6. CRESCENT PURE CASE STUDY Objectives Objectives 2 3
  • 7. CRESCENT PURE CASE STUDY Brand Positioning Options Brand Positioning Options
  • 8. CRESCENT PURE CASE STUDY Market Research Market Research Energy Drink • Growing market: 40% increase and $13.5 Billion projected for 2018 • Consumers: Men of age 18-34 • Highest volume was consumed by families with income less than $25,000 per year • Competition: Fright : 34% Razor : 27% Torque: 16% Steller : 8% other : 15% Market Shares • Growing market: 9% increase and $9.58 Billion projected for 2017 • Consumers: Men of age 18-24: 68% and Men of age 12-17: 77% • Refreshing 40% men ; 27% females • Competition: Gleam : 73% Drip : 21% others : 8% Sports Drink
  • 9. CRESCENT PURE CASE STUDY Opportunities Energy Drink • Sales of energy drinks with lower levels of caffeine and purer ingredients were rising due to customer demand for healthier food and beverage choices Market Research Market Research Sports Drink • New diet and low-sugar sports drinks were the new growth areas of the industry • The market size was expected to increase from $1.4 Billion in 2012 to $2.97 in 2017
  • 10. CRESCENT PURE CASE STUDY Sports Drink Threats • Concerns regarding rising childhood obesity rates resulted in government- mandated guidelines to remove high-calorie sugary drinks and snacks, including sports drinks from the school vending machines • News stories were highlighting the drinks’ alleged health risks • Decrease in the consumption due to concerns about health and safety Market Research Market Research Energy Drink
  • 11. CRESCENT PURE CASE STUDY Consumer Studies Consumer Studies Word Energy Drinks(%) Sports Drinks(%) Refreshing 12 34 Healthy 6 16 Affordable 5 11 Functional 22 28 Too Sweet 9 8 Suitable for Teens 7 22 Fun 9 11 Natural 4 6 Hydrating 11 49 None of these 52 27 % Customers who found the:
  • 12. CRESCENT PURE CASE STUDY Demographics Demographics Age Ranges % 18-24 44 25-34 36 35-44 15 45-54 3 55+ 2 Male 59 Female 41 College Degree 62 Household Income $42,500 Crescent Pure Online customers
  • 13. CRESCENT PURE CASE STUDY Physcographics Physcographics Word % Refreshing 35 Healthy 22 Affordable 29 Functional 47 Too Sweet 9 Suitable for Teens 8 Fun 19 Natural 38 Hydrating 29 Crescent Pure Online customers
  • 14. CRESCENT PURE CASE STUDY Price Criteria Price Criteria Type Market Price Energy Drink $2.99 (8 ounce) Sports Drink $ 1-2 (12 ounce) Crescent Pure $ 3.00 (8 ounce) PDB has decided to keep price for crescent pure $2.75 per 8 ounce can. Though this is lower than market value of crescent but it reflects PDB’s pricing strategy
  • 15. CRESCENT PURE CASE STUDY Perceptual Maps Perceptual Maps Hydration vs Energy Inference •Energy drinks have high energy value and low hydration value •Sports drinks have low energy value and high hydration value
  • 16. CRESCENT PURE CASE STUDY Perceptual Maps Perceptual Maps Nutrition vs Taste Inference •Energy drinks have better taste and low nutrition •Sports drinks have better taste as well as nutrition
  • 17. CRESCENT PURE CASE STUDY Feedbacks Feedbacks Retailers Focus Group • Quick Depletion of inventory. Increase of price by 25% didn’t change the scenario • Age : 18-30 • Higher % of women customers • Complete customer satisfaction in terms of 1. Taste 2. Energy content 3. Price
  • 18. CRESCENT PURE CASE STUDY Recommendation Recommendation • Looking through the Market research related to Market shares, price criteria, demographics and physiographic, I would recommend that Mrs. Ryan should opt Brand Positioning as “Energy Drink” for Crescent Pure. • Also, in order to counter the threats related to the energy drinks, PDB must advertise Crescent Pure as an organic, all-natural energy drink!
  • 19. CRESCENT PURE CASE STUDY Break Even Analysis Break Even Analysis • After opting for “Energy Drink” brand positioning Ryan still requires to check whether her company would Break even so that the final aim of successful brand expanding is achieved. Entity Amount Budget Allocated $750,000 Variable cost per a can $1.02 Selling price of a can $1.24 Profit per can $0.22 Cans per case 24 Total cases needed to be sold per month to attain Break even 11838 / month Manufacturing Capacity 12000 / month • For Break even PDB has to sell at least 11838 cases per month. This is also within the per month manufacturing capacity
  • 20. CRESCENT PURE CASE STUDY Thank You Thank You
  • 21. CRESCENT PURE CASE STUDY Disclaimer Disclaimer This presentation has been prepared by Nirdesh Madhani, FoTE-MSU Baroda during an internship in Marketing under the guidance of Professor Prof. Sameer Mathur, IIM Lucknow