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Crafting the perfect Brand Positioning
Crescent Pure A Harvard Business School Case Study
-Shail Daswani-
COMPANIES INVOLVED
1. PORTLAND DRAKE BEVERAGES
• Manufacturer of Organic Juices & Sparkling Waters
• Revenues increased to $120.5 million by 2012
• Recently acquired Crescent Pure
2. CRESCENT PURE
• Crescent pure is a non-alcoholic functional beverage
• The drink is a combination of energy enhancing, hydrating, & all-organic ingredients.
CHARACTERS INVOLVED
MATT LEVOR
MICHAEL
BOOTH
SARAH RYAN
CEO, Portland Drake Beverages
Vice President(Marketing),
Portland Drake Beverages
Director Of Market Research,
Portland Drake Beverages
THE CURRENT SITUATION
Michael Booth, PDB’s CEO, has tasked Ryan
with evaluating the positioning opportunities
for Crescent and asked her to recommend a
positioning strategy to the executive team.
Quality and Affordable Organic
beverages are the core values of
PDB.
PDB knows that the country’s
largest national beverage
companies would be launching
their organic beverages in late
2015.
In order to counter the same,
PDB wants to beat its competitors
through Crescent Pure.
Due to production constraints,
the company is planning a soft
launch in 3 states in 2014, which
will give them a clear picture for
the big launch in 2015.
POSSIBLE POSITIONING STRATEGIES
SPORTS DRINK
ENERGY DRINK
HEALTHY ORGANIC
BEVERAGE
Crescent :- About the drink
In order to come up with a conclusion about the drink’s positioning, we need to know more
about it.
❖ 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
FACTORS THAT AFFECT THE DECISION
R E P U TAT I O N O F P D B
& L O V E F O R C R E S C E N T
• PDB’s revenues reached to $120.5
million dollars in 2012.
• PDB had strong distributor
relationships
• Crescent was mainly popular in
Oregon, where the people supported
healthy and organic food choices.
C O N S U M E R A N A LY S I S
• The consumer analysis outcomes
point to the fact that around 80
percent of the people who drink
crescent are aged under 35.
• Most of the people who drink
crescent feel that the drink has
healthy organic ingredients,
appealing taste and affordable price.
Percentage of respondents who indicated a word that described energy or sports drink
ENERGY DRINK MARKET ANALYSIS
OPPORTUNITIES
• The consumers wanted
to shift to low levels of
caffeine & pure
ingredients.
COMPETITION
• Together, Fright, razor,
Torque and Stellar
accounted for 85% of
the total category
market share.
CONSUMER DATA
• The majority age of
energy drink consumers
is between 18 & 34.
MARKET SIZE
• Growth by 40% between
2010 & 2012.
• Estimated worth $13.5
billion by 2018
THREATS
• Due to the alleged
health risks,
consumers consumed
less and less because
of health
SPORTS DRINK MARKET ANALYSIS
OPPORTUNITIES
• New diet and low sugar
drinks were occupying
a considerable market
share.
CONSUMER DATA
• Roughly, half of the
men consumed sports
drink, while only one
third women consumed
sports drinks.
COMPETITION
• Gleam and Drip are the
major competitors and
occupy around 90% of
the total market share.
GROWTH
• Market increased by
9% between 2010 &
2012.
• Expected to reach $9.58
billion by 2017.
THREATS
• Concerns regarding
childhood obesity led to
the banning of Vending
machines from schools.
Majority consumers
were teenagers.
ORGANIC BEVERAGE MARKET ANALYSIS
OPPORTUNITIES
• With the hydrating
elements and all-
organic reputation of
Crescent, the drink can
cater to consumers of
various ages.
GROWTH
• Relatively new market
segment to exploit since
the traditional organic
beverages include tea,
coffee, soft drinks, etc.
CONSUMER DATA
• A segment of consumers
who are health
conscious and avoid
energy drinks due to
their high caffeine
content.
COMPETITION
• For a drink like
crescent, there must be
no competition since it
provides good taste,
high nutrition and
considerable hydration.
IS CRESCENT REALLY DIFFERENT?
Most of the consumers of Crescent find the drink “Energetic”.
Several consumers said that Crescent was exactly what they wanted in a beverage:
healthy ingredients, good taste, and a slight pick-me-up.
The price of Crescent was less than the average price of a regular energy drink. On th
other hand, the price of Crescent was more than the average price of a regular sports
drink.
“Keeping the current scenario in mind, the best
option would be to position Crescent as an
Organic & Healthy Beverage”
Supporting Details
❖ The consumers of Energy Drink & Sports Drink are looking for a healthier alternative due to
obesity and caffeine issues that arise from these drinks.
❖ Positioning Crescent as a sports drink can go completely wrong since the price tag of Crescent
is way above average price of a regular sports drink & such a strategy has backfired for PDB in
the past.
❖ A considerable amount of consumers of Sports drink are teenagers. But the consumer analysis
of Crescent signifies that Crescent is not suitable for teens.
❖ Retailer feedback suggests that increase in the prices did not affect the sales. So, PDB can run a
sensible Ad campaign in a budget of $750,000 since Crescent was already branded to some
extent.
BREAK EVEN ANALYSIS
❖ The variable cost of 1 can is $1.02 for the manufacturer. After applying a
margin profit of 18%, the per prize can to the distributor would be $1.24.
❖ A net margin of $0.22 on 1 can. Company’s production would result in 12,000
cases per month.
❖ Net Revenue = 0.22 * 24 * 12000 * 12 = $760320 (One year Revenue)
❖ Net Profit = 760320 - 750000(Advertising expenditure) = $10,320
❖ The above analysis shows that PDB would break even and would eventually
go on and earn a net profit of $10,320.
DISCLAIMER
These slides were created
by Shail Daswani, IIT
Kharagpur as a part of a
Summer Internship under
Prof. Sameer Mathur, IIM
Lucknow.

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Crescent Pure Case Study

  • 1. Crafting the perfect Brand Positioning Crescent Pure A Harvard Business School Case Study -Shail Daswani-
  • 2. COMPANIES INVOLVED 1. PORTLAND DRAKE BEVERAGES • Manufacturer of Organic Juices & Sparkling Waters • Revenues increased to $120.5 million by 2012 • Recently acquired Crescent Pure 2. CRESCENT PURE • Crescent pure is a non-alcoholic functional beverage • The drink is a combination of energy enhancing, hydrating, & all-organic ingredients.
  • 3. CHARACTERS INVOLVED MATT LEVOR MICHAEL BOOTH SARAH RYAN CEO, Portland Drake Beverages Vice President(Marketing), Portland Drake Beverages Director Of Market Research, Portland Drake Beverages
  • 4. THE CURRENT SITUATION Michael Booth, PDB’s CEO, has tasked Ryan with evaluating the positioning opportunities for Crescent and asked her to recommend a positioning strategy to the executive team.
  • 5. Quality and Affordable Organic beverages are the core values of PDB. PDB knows that the country’s largest national beverage companies would be launching their organic beverages in late 2015. In order to counter the same, PDB wants to beat its competitors through Crescent Pure. Due to production constraints, the company is planning a soft launch in 3 states in 2014, which will give them a clear picture for the big launch in 2015.
  • 6. POSSIBLE POSITIONING STRATEGIES SPORTS DRINK ENERGY DRINK HEALTHY ORGANIC BEVERAGE
  • 7. Crescent :- About the drink In order to come up with a conclusion about the drink’s positioning, we need to know more about it. ❖ 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
  • 8. FACTORS THAT AFFECT THE DECISION
  • 9. R E P U TAT I O N O F P D B & L O V E F O R C R E S C E N T • PDB’s revenues reached to $120.5 million dollars in 2012. • PDB had strong distributor relationships • Crescent was mainly popular in Oregon, where the people supported healthy and organic food choices.
  • 10. C O N S U M E R A N A LY S I S • The consumer analysis outcomes point to the fact that around 80 percent of the people who drink crescent are aged under 35. • Most of the people who drink crescent feel that the drink has healthy organic ingredients, appealing taste and affordable price. Percentage of respondents who indicated a word that described energy or sports drink
  • 11. ENERGY DRINK MARKET ANALYSIS OPPORTUNITIES • The consumers wanted to shift to low levels of caffeine & pure ingredients. COMPETITION • Together, Fright, razor, Torque and Stellar accounted for 85% of the total category market share. CONSUMER DATA • The majority age of energy drink consumers is between 18 & 34. MARKET SIZE • Growth by 40% between 2010 & 2012. • Estimated worth $13.5 billion by 2018 THREATS • Due to the alleged health risks, consumers consumed less and less because of health
  • 12. SPORTS DRINK MARKET ANALYSIS OPPORTUNITIES • New diet and low sugar drinks were occupying a considerable market share. CONSUMER DATA • Roughly, half of the men consumed sports drink, while only one third women consumed sports drinks. COMPETITION • Gleam and Drip are the major competitors and occupy around 90% of the total market share. GROWTH • Market increased by 9% between 2010 & 2012. • Expected to reach $9.58 billion by 2017. THREATS • Concerns regarding childhood obesity led to the banning of Vending machines from schools. Majority consumers were teenagers.
  • 13. ORGANIC BEVERAGE MARKET ANALYSIS OPPORTUNITIES • With the hydrating elements and all- organic reputation of Crescent, the drink can cater to consumers of various ages. GROWTH • Relatively new market segment to exploit since the traditional organic beverages include tea, coffee, soft drinks, etc. CONSUMER DATA • A segment of consumers who are health conscious and avoid energy drinks due to their high caffeine content. COMPETITION • For a drink like crescent, there must be no competition since it provides good taste, high nutrition and considerable hydration.
  • 14. IS CRESCENT REALLY DIFFERENT? Most of the consumers of Crescent find the drink “Energetic”. Several consumers said that Crescent was exactly what they wanted in a beverage: healthy ingredients, good taste, and a slight pick-me-up. The price of Crescent was less than the average price of a regular energy drink. On th other hand, the price of Crescent was more than the average price of a regular sports drink.
  • 15.
  • 16. “Keeping the current scenario in mind, the best option would be to position Crescent as an Organic & Healthy Beverage”
  • 17. Supporting Details ❖ The consumers of Energy Drink & Sports Drink are looking for a healthier alternative due to obesity and caffeine issues that arise from these drinks. ❖ Positioning Crescent as a sports drink can go completely wrong since the price tag of Crescent is way above average price of a regular sports drink & such a strategy has backfired for PDB in the past. ❖ A considerable amount of consumers of Sports drink are teenagers. But the consumer analysis of Crescent signifies that Crescent is not suitable for teens. ❖ Retailer feedback suggests that increase in the prices did not affect the sales. So, PDB can run a sensible Ad campaign in a budget of $750,000 since Crescent was already branded to some extent.
  • 19. ❖ The variable cost of 1 can is $1.02 for the manufacturer. After applying a margin profit of 18%, the per prize can to the distributor would be $1.24. ❖ A net margin of $0.22 on 1 can. Company’s production would result in 12,000 cases per month. ❖ Net Revenue = 0.22 * 24 * 12000 * 12 = $760320 (One year Revenue) ❖ Net Profit = 760320 - 750000(Advertising expenditure) = $10,320 ❖ The above analysis shows that PDB would break even and would eventually go on and earn a net profit of $10,320.
  • 20. DISCLAIMER These slides were created by Shail Daswani, IIT Kharagpur as a part of a Summer Internship under Prof. Sameer Mathur, IIM Lucknow.