PDB is acquiring Crescent Pure and must determine its market positioning. It can be positioned as either an energy drink or sports drink. Positioning as an energy drink aligns more closely with PDB's brand values of health and affordability. Consumer surveys found Crescent to be perceived as energetic. As an energy drink, Crescent faces less competition and has a competitive advantage due to its organic certification. It also allows for lower pricing than sports drinks. However, the sports drink market is larger and growing, and Crescent's characteristics align well with a sports drink. The decision requires further analysis of market size, pricing, competition, and meeting profit goals.

1. Crescent
Pure
A Harvard Business
School Case Study
-Nidhi Ahuja

2. The companies
Manufacturer
of organic
juices and
sparkling
waters
Values: health
& affordability
PDB Non alcoholic
functional
beverage
company
Crescent
Pure

3. Overview
PDB (Portland
Drake
Beverages)
Crescent
Pure
The acquisition
requires a new
market positioning of
Crescent so it aligns
with PDB’s brand
values

4. What’s the big plan?
• Large competitors were
planning to launch all
natural versions of their
beverages
Fast launch:
• Due to production
capacity restraints
• To test the positioning
before nationalizing
Soft launch:

5. situation at hand
The CEO of PDB has asked Sarah Ryan, the
vice president of marketing to form a
suitable market positioning strategy for
Crescent within days
What are the
positioning
options?

6. Or as simply an healthy organic drink?
Energy drink
Soft drink

7. Approach
• Benefits and
• Drawbacks of
positioning
choices
State
• Positioning
• Price
Finalize • if the profits
met or
exceeded the
goal
Expand

8. Crescent- About the drink
To come to a conclusion about the drink’s positioning, it needs to be
known what it is about
• All natural beverage lightly infused with organic
juices, herbal stimulants and enhanced mental
focus
• Same energy effect as a cup of coffee
• 70% less sugar content than leading energy &
sports drinks

9. Factors that affect the decision
1. Alignment of
Crescent with
the PDB’s brand
image
2. Consumer
choices/survey
results
3. Price that can
be offered
4. Market size
5.
Differentiators
of the different
offerings
6. Competition

10. Alignment of Crescent with PDB’s brand
image:
As energy drink: combat
fatigue, promote mental
focus
As sports drink:
Hydrating, mental focus and
energy boost
1

11. Consumer choices & survey results:
As energy drink:
Most descriptive
character of Crescent
as per consumers is
‘energetic’
As sports drink:
-There’s a growing
demand for diet and low
sugar sports drink in the
market
-They can seek health
conscious consumers
2

12. One word description for the two types of
drinks: consumer survey
• According to the
data, positioning
Crescent as a sports
drink is suitable
because many of its
characteristics align
with it

13. Pricing that can be done
As energy drink:
Average price is $2.95
for 8 oz. They can
offer a lower price of
$2.75
As sports drink:
Average price is $1 to
$2 for 12 oz and 24 oz.
The positioning will
have to push the case
3

14. 4. Market size:
• $8.5 billion sales till 2013
• Forecast prediction: $13.5
billion sales till 2018
As energy
drink
• Only 4% rise from 2007 to 2012
• $6.3 billion sales till 2012
• Prediction: $9.58 billion till 2017
As sports drink

15. 5. Points of difference
As energy drink:
Due to Crescent’s organic
certification and minimal
caffeine content; they have a
competitive advantage here
As sports drink:
42% consumers consider sports
drink as ‘anytime beverage’
And so, health conscious
consumers could be targeted

16. Competition
As energy drink:
85% of the total
category revenue
goes to Together,
Fright, Razor, Torque,
Steller
As sports drink:
Major competitors
are Gleam and
Drip
6

17. Competition analysis
Consumers’ perception of the various drinks is as shown
• Crescent could be
positioned as a sports
drink because
consumers think of
Crescent as highly
hydrating and energetic
(as in the previous
slides)
• And hence, they can
position themselves in
high-hydration & high-
energy region and face
just one competition

18. Some conclusive thoughts
• Crescent pure, on positioning as
a energy drink can turn out to
produce a whooping success as:
– Consumer perception about
Crescent aligns well with an
alternate choice of a energy
drink
– There are lesser leading
competitors with similar drink
characteristics
– They have strong points of
difference as a energy drink due
to their organic certification
– They can position it at $2.75
which is lower in comparison to
the average price of energy
drinks

19. DISCLAIMER
As a part of internship under Prof. Sameer Mathur, IIML
by Nidhi Ahuja