Portland Drake Beverages acquired Crescent Pure, a non-alcoholic functional beverage combining energy-enhancing and hydrating organic ingredients. With six months left to decide on Crescent Pure's positioning, research showed it had characteristics of both energy and sports drinks. Three options were considered: positioning as an energy drink, sports drink, or organic drink. Analysis of market trends, consumer data, and insights favored positioning Crescent Pure as an energy drink to leverage the growing low-sugar energy drink market. Financial projections estimated that with this positioning, Portland Drake would break even and eventually earn a net annual profit of $10,320.

1. CRESCENT PURE CASE
ANALYSIS

2. COMPANIES INVOLVED
1. PORTLAND DRAKE BEVERAGES
• Manufacturer of Organic Juices & Sparkling Waters
• Revenues increased to $120.5 million by 2012
• Recently acquired Crescent Pure
2. CRESCENT PURE
• Crescent pure is a non-alcoholic functional beverage
• The drink is a combination of energy enhancing, hydrating, &
all-organic ingredients.

3. Characters Involved
Sarah Ryan Matt Levor
Michael
Booth
VP, Marketing
PORTLAND DRAKE BEVERAGES
CEO,
PORTLAND DRAKE BEVERAGES
Director Of Market Research
PORTLAND DRAKE BEVERAGES

4. About Crescent Pure
-A Healthy Organic Drink
1.FOUNDED BY PETER HOOPER IN 2008.
2. PDB ACQUIRED CRESCENT PURE IN
2013.

5. Situational Analysis
1. ONGOING RESEARCH FOR POSTIONING
STRATEGY
2. IT HAS BOTH CHARACTERISTICS OF
ENERGY AND SPORT DRINKS
3. CONFUSION AS TO HOW TO POSITION
CRESCENT PURE?

6. Situational Analysis
1. 6 MONTHS LEFT FOR SARAH RYAN TO
DECIDE ON THE POSITIONING OF CRESCENT
PURE SO THAT BOOTH CAN NEGIOTIATE
WITH DISTRIBUTORS AND RETAILERS
2. MARKET RESEARCH ,ANALYSIS AND
SURVEY HAD BEEN RUN FOR THE BEST
POSSIBLE POSITIONING OF THE DRINK

7. POSITIONING ANALYSIS
Crescent was a non-alcoholic functional beverage
with drink’s energizing ingredients, hydrating
elements and organic roots provided with
3 positioning options.
ENERGY DRINK SPORTS DRINK ORGANIC DRINK

8. MARKET TRENDS
Rising sales of healthier
beverage choices AND
Organic Drinks industry –
emerging, growing rapidly
Fierce competitions amongst
both energy and sports drink
segments
Negative
campaigns against
both sports &
energy drinks
Drinks with low caffeine &
sugar Energy Drinks market up
by 40%

10. Energy Drink Insights
Only 34% of
consumer drank
energy drink in last
6 months with 11%
drinking fewer
amounts.
Increasing demand
for low level of
sugar and caffeine
and purer
ingredients

11. Sports Drink Insights
New diet and low
sugar hydrating
drink. Expected
growth of low sugar
sports drinks
High price in
comparison to other
competitors in
market.

12. Consumer Data

15. Best Solution Based on
Insights and Consumer
Data
Energy
Drink

17. The variable cost of 1 can is $1.02
for the manufacturer.
After applying a margin profit of
18%, the per prize can to the
distributor would be $1.24 A net
margin of $0.22 on 1 can.
Company’s production would
result in 12,000 cases per month.

18. Revenue = 0.22 * 24 * 12000 * 12 =
$760320 (One year Revenue)
Net Profit = 760320 - 750000(Advertising
expenditure) = $10,320
The above analysis shows that PDB
would break even and would eventually
go on and earn a net profit of $10,320.

19. DISCLAIMER
These slides were created by Ashish Malani, PICT, Pune as a
part of a Marketing Internship under Prof. Sameer Mathur,
IIM Lucknow.