PDB's CEO has tasked the VP of Marketing Sarah Ryan with evaluating positioning strategies for Crescent Pure, a newly acquired beverage brand. Sarah must choose between positioning it as an energy drink, sports drink, or organic drink. After analyzing each market and Crescent Pure's strengths, Sarah recommends an organic sports drink positioning to differentiate it and appeal to a wider age range. A break-even analysis shows PDB will earn a $10,320 profit within a year by targeting $760,320 in revenue, exceeding its $750,000 goal.

1. A Harvard Business School Case Study

2.  Crescent Pure
 PDB(Portland Drake Beverages)

3. Sarah Ryan
Michael Booth
Matt Levor
Vice-President ( Marketing) , PDB
CEO, PDB
Director of Market Research,
PDB

4.  Michael Booth, PDB’s CEO has tasked Sarah Ryan with
evaluating possible positioning strategies for the launch
Crescent Pure (newly purchased by PDB) .
 Sarah has to evaluate 3 possible positioning of Crescent -
Sports drink, Energy drink or Organic drink and give her
recommendation.

5. The BIG Picture
 PDB core values : Quality, Affordable organic
beverages.
 In order to beat its competitors , PDB is planning a
‘soft’ launch of Crescent Pure in 3 states , to prepare
for the major launch next year.
 It has set a target of $750,000 in revenues to
consider Crescent Pure a success.

6. Possible Positioning Options
Energy Drink Sports Drink
Organic
Drink

7. Market Analysis – Energy Drinks
THREATS
Alleged health risks,
reduced consumption
OPPORTUNITIES
Consumers want low
caffeine and more
natural ingredients
COMPETITION
Razor, Fright,
Torque and Stellar
hold 85% share
MARKET SIZE
Estimated worth $13.5 billion by 2018.
Majority consumers in ages 18-34

8. Market Analysis – Sports Drinks
THREATS
High sugar content,
concerns regarding
obesity
OPPORTUNITIES
Newly launched low-
sugar and diet drinks
have gained customers
COMPETITION
Gleam and Drip hold
about 90%of market
share
MARKET SIZE
Expected to reach
$9.58 billion by 2017

9. Market Analysis – Organic Drinks
THREATS
Low advertising spend will
cause lack of brand
recognition
OPPORTUNITIES
Consumers have become
health-conscious, embrace
organic drinks
COMPETITION
No major brands in
competition currently,
nascent segment.

10. Crescent Pure vs. Energy Drinks
Points of Parity
• Refreshing
• Energizing
• Caffeine content
• Kills fatigue
Points of
Difference
• Organic
• Low Sugar
• $2.75 vs $2.99

11. Crescent Pure vs. Sports Drinks
Points of Parity
• High Nutritional value
• Keep Hydrated
• Enhance Performance
Points of Difference
• Low Sugar
• Healthy alternative

12. Consumer Analysis

16. Recommendation
 Crescent Pure should be positioned as an Organic,
healthy sport drink to capture a much wider
market ( ages 18-60) .
 This will help the company avoid competition in
Energy and Sports drinks segments and capitalise on
its reputation of being organic and healthy.

17. Break-even Analysis

18.  Variable cost of 1 can is $1.02 . After applying a margin profit of 18%,
prize per can to the distributor will be $1.24
 This implies a net margin of (1.24 – 1.02) = $0.22 profit per can .
 Company’s production = 12,000 cases per month.
 Net Revenue : 0.22*24*12*1200 = $760320 , in one year .
 Net Profit = Net revenue- Advertising budget = 760320- 75000
=$10,320
The analysis shows that PDB will be able to break even in
the given time and turn a profit of $10,320

19. Summary
 Companies Involved
 Characters Involved
 Situational Analysis
 Possible product positioning options – Energy
drinks, Sports drinks, Organic drinks
 Consumer Analysis
 Recommendation
 Break-even Analysis

20. Disclaimer
Created by Abhishek Parashar
(HBTI K )
During a marketing
management internship under
Prof. Sameer Mathur
IIM Lucknow