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PDB Cresent Pure Case: Positioning the Organic Energy Drink
- 1. Cresent Pure : Position It Right A Harvard Business Case Study
- 2. The problem PDB Manufactures sparkling water and orange juice Brand values : Quality product at affordable prices Looking to increase organic product line Cresent Organic, all-natural energy drink. Moderate energy, low sugar content Riding on the locavore movement. Problem statement PDB acquired Cresent Pure. Want to position it to get optimum sales result. Want to break even with the advertising budget of $750,000
- 3. Situational Analysis Product Positioning Sarah Ryan needs to decide whether Cresent Pure will be marketed as a Sports Drink, Energy Drink or Organic Beverage Production Constraint 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. PDB’s Goal To increase sales and ride on the locavore movement with a more wide product line.
- 4. 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
- 5. A third option 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
- 6. Market Analysis Market Trend Rising demand for organic, all natural foods Market Growth Sports Drink - 9%growth Energy Drink - 40% growth Competition High cometition in both energy and sports sector Threats Negative campaign against sports and energy drinks Competitive Advantage Competitors to roll out health drinks only in mid 2015 Target Market Age group 18-34 Health concious Points of Difference Low sugar and caffeine content
- 7. Consumer Analysis - Cresent 18-24 25-34 35-44 45-54 55+ 44% 36% 15% 3% 2% Annual Income $42,500
- 8. Profit Margin Analysis Budgeting to optimally price the product. $ 1.24 Manufacturer - 18% $ 1.65 Distributor - 25% $ 2.75 Retailer - 40% COST ANALYSIS
- 10. SWOT
- 11. Low competition in high hydration and mid - high drinks. Low competition in high nutrition and high taste drinks
- 12. 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 Weakness Lower caffeine content than competitors Lack of Brand awareness compared to competitors. Opportunity Low competition in high hydration and mid energy drink Middle of locavore movement Recovering economic for functional beverages Threats Negative media attention Established competitors in Energy and sports drinks categories
- 13. Implementation
- 14. Product Launched as a organic, healthy energy drink Price 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.
- 15. 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
- 16. Disclaimer This presentation has been made by Kunwarjeet Chawla, BITS Goa in fulfillment of the requirements of Marketing Management Internship pursued under the mentorship of Prof. Sammer mathur, IIm Lucknow.