PDB acquired Crescent Pure in 2013 and needs to choose a brand positioning. The options are an energy drink, sports drink, or healthy organic beverage. An energy drink faces stiff competition while sports drinks' consumer base is shrinking due to health concerns. A healthy organic beverage targets a growing market with less competition but requires a large advertising budget. Market research found consumers associate Crescent Pure most with being healthy and functional. Given increasing demand for healthier alternatives in energy and sports drinks, the recommendation is to position Crescent Pure as a healthy organic beverage since it can attract customers from both markets.

1. CRESENT PURE
HARVARD CASE STUDY

2. Companies Involved
CRESCENT
PURE
PDB

3. People Involved
PDB’s CEO
Michael
Booth PDB’s Vice
President of
Marketing
Sarah
Ryan

4. SITUATION ANALYSIS
• PDB acquired
Crescent Pure in July
2013
• Market Research to
decide its positioning
done
• Decision about its
market positioning
need to be taken

5. OBJECTIVE
CHOOSE A SUITABLE BRAND
POSITIONING FOR CRESCENT PURE BY
ANALYSING THE AVAILABLE DATA

6. Brand
Positioning
Options

7. 1. Energy
Drinks

8. Positioning as Energy drink
PROS CONS
• Fierce industry competition
• Publics disapproval of new
drink on the market
• Potentially stricter
government regulation
• Consumption has lowered
after negative media attention
• 42% consider them as “any
time beverage”
• Market growing at the rate
of 40%
• Price of Crescent pure
($2.75) will be less than
industry average of $2.99

9. 2. Sports
Drink

10. PROS CONS
• Health risks associated with
them
• Fierce competition
• 85% of category revenue with
big players
• $2.75 price is higher then
industry average
• Large expected market growth
• Low caffeine content acts as
point of Difference
• Diet and low sugar sports
drinks are growth areas in the
industry
Positioning as Sports Drink

11. 3. Healthy Organic Beverage

12. PROS CONS
• Large advertising budget
required
• Larger consumer base, thus,
larger distribution channels
needed.
• No competition from big
firms
• Premium pricing can be
done, thus, large revenues
• Attracts health conscious
consumers
Positioning as Organic Beverage

13. Demographics of Crescent Online
Customers
18-24
25-34
35-44
45-54
55+36%
15%
3% 2%
Age Range
44%

14. Requirements of the Case
Industry specifics related
to each positioning option.
The potential benefits and
drawbacks of each option.
Final recommendation.

15. Matt Levor’s
first Market
Research
Outcomes

16. Refreshing Healthy Affordable Functional Too sweet Natural Hydrating
12
6
5
22
9
4
11
34
16
11
28
8
6
49
PERCENTAGE OF RESPONDENTS WHO INDICATED
A WORD THAT DESCRIBED ENERGY OR SPORTS
DRINKS
Energy Drinks Sports Drinks

17. Matt Levor’s
second Online
Market research

18. 18-24 25-34 35-44 45-54
44
36
15
3
2
DEMOGRAPHICS OF CRESCENT ONLINE
CONSUMERS
Age Ranges

19. Refreshing Healthy Affordable Functional Too Sweet Fun Natural Hydrating
35
22
29
47
9
19
38
29
Percentage of respondents who described Crescent

21. Energy Drinks •Fast Growing
market.
•Estimated 8.5 billion
consumers by 2013
Major customers are
middle aged men
only.
•Increasing demand
of healtier alternative
•Reduction in
consumption due to
relation with health
related issues.

22. Sports
Drink
•Large consumer base.
•Consumer base is
segmented(Even
women consume this)
•Cheap products of
competitors
•Requirement of a
healthy alternative.
•Reducing consumer
base due to health
related issues

23. Healthy
Organic
Drink
•Emerging
market.
•Less
competition
•No existing
consumer base.
•Increasing
demand of a
healthier drink.
•Less advertising
budget may
cause a problem

25. Organic drinks market
is very diverse and
hence will require large
advertising expenditure

26. • From Lover’s market research it was
clear that a large number of people
were associated Crescent Pure with a
healthy and functional organic drink.
• Increase in prices by retailers didn’t
affect the sales which indicates that
costumers were willing to pay the
amount set by the company.
• And both sports drink and energy
drink consumers are looking for a
healthier alternative. And Crescent
Pure can attract customers of both
these segments by positioning as
Healthy Organic drink.
• Break even analysis shown in next
slides also verify that the company
would be able to stay in there
advertising budget limit by selling
the product at $2.75.

28. Break
Even
Analysis

29. Final
recommendation
by complete case
analysis would be
to position
Crescent Pure as
Healthy Organic
drink.

31. Disclaimer
This presentation was created by Tejas Shetty
as a part of a assignment given by Prof .
Sameer Mathur during the 2017 internship.
Tejas Shetty Prof Mathur