This presentation shows how Crescent Pure sorted out it's positioning strategy for it's new product which could fall under many market position.

1. CRESCENT PURE
A MARKET POSITIONING STRATEGY DILEMMA

2. About Crescent Pure
 Owned by PORTLAND DRAKE BEVERAGES.
 Crescent is a refreshing and energizing drink
containing low caffeine & artificial
sweeteners and is totally composed of
organic juices.
 PDB is a manufacturer of organic juices and
sparkling water.

3. LET’S ANALYZE THE
SITUATIONAL DILEMMA

4. The Situation :
PDB
Manufactures
organic drinks and
sparkling water.
Brand core
principles : Healthy
drink production in
affordable prices.
Motive: Trying to
increase organic
product line.
Crescent pure
Organic and non-
artificial fillers.
Low sugar content
and moderate
energy.
Riding on locavore
movement.
Problem
Crescent falls under
PDB.
PDB wants to place
it appropriately to
generate maximum
revenue.
Have to work in
limited budget of
750,000 $
advertising budget.

5. How will I solve it?

6. Situational Analysis :
Product
Positioning Production Constraint PDB’s Goal
Sarah Ryan needs to
decide whether
Cresent Pure will be
marketed as a Sports
Drink, Energy Drink
or Organic Beverage
There’s a constraint
on production of
12,000 can a month
which has made
cresent go for a soft
launch to gain the
first mover
advantage.
To increase sales and
ride on the locavore
movement with a
more wide product
line.

7. Product Positioning
Options
 Energy Drink
 85% market share with the top 6 competitiors
 Locavore Movement and the rise of healthier drinks
 Primary Consumers : Males b/w 18-24
 Threats : News relating to health issues.
 Sports Drink
 Projected 9% growth of the industry
 Top 2 competitors hold 90% market share
 Oppotunity : Increased demand for healthier and diet
beverages
 Threat : Increasing obesity and govt. intervention

8. Another View
max
growth
• New and emerging market with the rise
of locavore movement
• Larger consumer base
• Higher margin rates ( usually 25%)
• Niche market for health conscious
consumers

9. Market Analysis
Market Trend
Rising demand
for organic, all
natural foods.
Market Growth
Sports Drink -
9% growth
Energy Drink -
40% growth
Competition
High
in both energy
and sports
sector
Target Market
Age group 18-
34 and the one
who are
Health
Threats
Negative
campaign
against
sports and
energy
drinks
Competitive Advantage
Competitors to roll out
health drinks only in mid
2015
Points of Difference
Rising demand for
organic, all natural
foods.

10. 0 50 90
Consumer Orientation
18-24 25-34 35-44 45-54 55+
44% 36% 15% 3% 2%
Annual Income
$42,500

11. Profit Margin
Analysis
Budgeting
to optimally
price the
product
$ 1.24
Manufacturer
- 18%
$ 1.65
Distributor
- 25%
$ 2.75
Retailer
- 40%
Cost Analysis

12. BREAK-EVEN ANALYSIS

13. Lets Analyze Some Graphs
Low competition in
high hydration and
mid - high drinks.
Low competition in
high nutrition and high
taste drinks

14. Swot Analysis
Strength
• All organic and
natural drink.
• Lower levels of
sugar and
moderate levels
of caffeine.
• A healthier
anytime
beverage for
health conscious
consumers.
Opportunity
• Low competition in
high hydration and
mid energy drink.
• Middle of locavore
movement.
• Recovering
economic for
functional
beverages.
Weakness
• Lower caffeine
than most
competitors.
• Lack of brand
awareness
compared o
competitors.
Threats
• Negative media
attention.
• Established
Competitors in
Energy and Sports
drinks categories.
• Lower prices
question the
organic label
which is usually
costlier.

15. Implementation

16. Product
 Launched as a
organic, healthy
energy drink
PRODUCT
 Priced at $2.75
which is above
the general
sports drinks
and lower than
the energy
drinks
Promotion
 Heavily
promoted over
social
media,event
sponsorships
and other digital
forms to reach
the younger
target audience
Distribution
 Focus on
Washington,
Oregon and
California.
 Distributed
through big
box stores
like WalMart.
PRICE PROMOTION DISTRIBUTION

17. Conclusion  Should be positioned as healthier
alternative to other energy drinks
 Priced between the premium energy
market and the general sports market at
$2.75
 First Mover advantage before the mafor
beverage brands
 Increasing the product line length.Energy
Drink

18. Disclaimer
 This presentation is presented by Tushar
Mangal, IIT Kanpur to fulfil the requirements of
Marketing Management Internship pursued
under the mentorship of Prof. Sameer Mathur,
IIM Lucknow.