Portland Drake Beverages (PDP) acquired Crescent Pure in 2014. PDP must decide how to position Crescent Pure and is considering positioning it as an energy drink, sports drink, or organic drink. Positioning it as an organic drink allows Crescent Pure to dominate an upcoming market and appeal to health-conscious customers willing to pay premium prices, though it risks losing other customer segments. After analyzing customer demographics, perceptions of each option, and projected profits, PDP ultimately recommends positioning Crescent Pure as an organic energy drink to leverage the brand's reputation for natural ingredients while tapping into the large and lucrative energy drink market.

1. DFSDFSDFASD
Crescent Pure
Harvard Business School Case Study Analysis

2. Which
Companies
Are
Involved?

3. Portland Drake Beverages
 Manufacturer of Organic Juices &
Sparkling water.
 Revenue as of 2012 – $120.5 million
 Key People
 Micheal Booth - CEO
 Sarah Ryan - VP, Marketing
 Matt Levor - Director, Market Research

4. Crescent Pure
 Founded by Peter Hooper in Oregon,2008
 Manufactures Non Alcoholic,
Organic,Performance Enhancing
beverages.
 Acquired by PDP in 2014

6.  PDP has to decide a positioning strategy
for Crescent Pure.
 It has to analyse –
 Industry Specifics
 Pros & Cons of each option
 Final Recommendation

7. Product Positioning Options
1.Energy
Drink
3.Organic
Drink
2.Sports
Drink

8. Target Age
Group
-18 -24 Years
Typical cost of a
can
~ $2 to $5
Market Share
– 85% is
captured by top
4 competitors
Total Market
Value
- $8.5 Billion in
2013
Energy
Drink

9. Target Age
Group
-12 -24 Years
Typical cost of a
can
~ $1 to $2
Market Share
– 94% is
captured by top
2 competitors
Total Market
Value
- $6.3 Billion in
2012
Sports
Drink

10. Target Age Group
-Preferred by all
Ages
Includes Soft
drinks,tea,milk &
Soy beverages
Customers are
health conscious
Typical cost of a
can
~ $6.25
(Premium Pricing)
Organic
Drink

11. Positioning as Sports Drink
 Considered as “anytime
beverage ” by sports beverage
drinkers.
 Wider consumer base as
compared to energy drinks.
 Total Market Value by 2017 –
$9.58 Billion.
 USP - Low sugar content & all
natural ingredients will
appeal to health conscious
customers.
 Average price is ~ $1.5-
$2.With $2.75 price tag
crescent will be premium
priced.
 Concerns rising over relations
of sports drinks with child
obesity.
 Total market size is only
$9.58B as compared to energy
drinks $13.5B

12. Positioning as Energy Drink
 Positioning as an energy
enhancing drink would
reinforce perceptions from
Oregon.
 Total Market Value by 2018 –
$13.5 Billion.
 Average price for 8 oz. is
$2.99,which is higher than
Crescent Pure’s $2.75.
 USP- Organic Certification &
minimal caffeine content.
 Decline in consumption due
to negative media attention.
 Also frequency of
consumption is less.
 Market entry is difficult due
to many substitutes.

13. Positioning as Organic Drink
 Chance to dominate an
upcoming market.
 Customers are willing to pay
premium prices.
 Established brand image of
PDP.
 USP- Unique pricing of $2.75
is lower than $3 which is the
price expected by customers.
 Great taste.
 Small customer base of only
health conscious consumers.
 Risk of loosing other
lucrative segments.

14. 0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Energy Drinks
Sports Drinks
Crescent
Customer Perception

15. Customer Demographics
44%
36%
15%
3% 2%
Age Ranges
18-24
25-34
35-44
45-54
55+
59%
41%
Male
Female

16. Customer Demographics
44%
36%
15%
3% 2%
Age Ranges
18-24
25-34
35-44
45-54
55+
59%
41%
Male
Female

20. Entity Amount
Wholesale Price per Can $1.24
Variable Cost per Can (-) $1.02
Profit per can $0.22
Cans per Case 24
Profit per case 24*0.22=$5.28
Total cases produced in 1
month
12,000
Total Cases produced in 1 year 144,000
Profit per year 144,000 x 5.28
= $760320
Advertising Expense (-) $750,000
Net Profit $10,320

23. RECAP
 Introduction to PDP &
Crescent Pure
Formulating Problem
Statement-
Product Positioning
Pros & Cons
Consumer Reponse
Analysis
Final Recommendation
Organic Energy Drink
Break Even Analysis

24. DISCLAIMER
Created by Abhijeet Nasery, COEP,during Marketing Internship
by Prof Sameer Mathur, IIM Lucknow