PDB aims to launch Crescent Pure in 3 Western states in January 2014. Market research shows consumers prefer energy drinks over sports drinks. Therefore, PDB will position Crescent Pure as an energy drink to capitalize on the larger and faster growing $13.5 billion energy drink market. It will compete by offering an organic product that is healthier, less sweet, and cheaper than competitors. Break-even analysis confirms PDB and distributors can be profitable selling Crescent Pure at $2.75 per unit while recovering marketing costs.

1. MARKETING
PLAN FOR
LAUNCHING
CRESCENT
PURE

2. PORTLAND DRAKE BEVERAGES
• Portland Drake Beverages (PDB) manufactured organic juices
and sparkling waters.
• Peter Hooper founded Crescent in 2008 providing organic
functional beverage which can be served for refreshing and
hydrating purposes.
• In July’13, PDB acquired Crescent product as a natural extension
of the company’s organic product lines.
This Photo by Unknown Author is licensed under CC BY-NC-ND

3. PDB GOALS
• PDB’s CEO, Michael Booth
understood the rising demand of
organic functional beverage.
• Hence, acquired Crescent product.
• PDB wanted to create dominance in
functional beverage segment.
• PDB’s CEO wants to finalise the
Market Positioning Strategy before
launching the product in January’14.
Crescent
Pure
ENERGY
DRINK
SPORTS
DRINK
NATURAL
DRINK

4. SITUATIONAL ANALYSIS
• Due to limited resources, company can manufacture just 12000 cases
per month.
• Company plans a budget of 750000$ for advertising purposes.
• It is going to launch the product in 3 Western states- California,
Oregon and Washington in Jan’2014.
• If profitable(exceed 750000$), then wishes to expand its target market
• Fixed the retail price of product to 2.75$.
This Photo by Unknown Author is licensed under CC BY

5. Market Segmentation
• Based on needs such as
need for healthy instant
energy products.
• Based on age such as
Generation X, Generation
Y segments & Generation
Z who need such instant
energy products.
Market Targeting
• Target health conscious
consumers.
• Target measurable and
substantial market
segments.
• Target market segments
that are accessible and
actionable.
Market Positioning
• Offering organic energy
drink/sports drinks.
• Offer organic products
which are differentiable in
target markets.
• Offer such products at
affordable prices to attract
more consumers.
MARKETING STRATEGY OF
CRESENT PURE

6. ANALYSING POSITIONING
STRATEGIES IN TARGET MARKETS
Positioning as
Energy Drink
Positioning as
Sports Drink
Positioning as
Organic Drink

7. Energy Drink
• Sell at cheaper prices(2.75$)
relative to competitors
offerings (2.99$)
• Less sweetening, more
refreshing and hydrating
• Tastier relatively and highly
nutritious
• Market size 13.5 billion$ in
2018
• Consumers for 18-34 years
Sports Drink
• Sells at premium price of
2.75$, relative to competitor
prices of 2$ approx
• Low sugar content &
natural ingredient defeating
threats of child obesity,
attracting consumers
• Market size 9.58 billion$ in
2017
• Consumers of 12-30 years
Organic Drink
• Create new category of
functional beverages for
health conscious consumers
• New category of product
line, no competition
• Can be used as non-
alcoholic beverage who
market size would be
164million $ in 2018

8. Less sweetening with lesser amount
of caffeine avoiding health risks
Organic content attracting health
conscious consumers
Crescent positioned itself as energy
drink already in the minds of
people. Target market segments of
age 18-34 years
PDB offers organic products at
affordable prices, thus offering
Crescent at 2.75$ when compared to
competitors who sell at 2.99$ on an
average
Negative media attention regarding
health hazards due to energy drinks
High competition in this target
market Fright and Razor
32% consumers reduced
consumption of energy drink
Doubt amongst consumers due to
low price rates of Crescent,
questioning the quality of the
product
CRESCENT PURE AS
ENERGY DRINK

9. POSITIONING OF CRESCENT PURE
AS ENERGY DRINK
Points of Parity
• It is a refreshing, energizing
drink.
• It kills fatigue and improves
mental concentration.
Points of Difference
• It is healthier compared to other
energy drinks since it’s natural
• It is cheaper and less sweet.
• Energy equivalent to 1 cup
coffee(less compared to others &
apt)

10. 1. Sports Drinks are considered as
beverages which can be consumed any
number of times any time. Target
market segments of age 12-30 years
2. Attract consumers by attributes such
as refreshing, fun & natural
3. Less sweet defeating child obesity
threat.
4. Market size is lesser and can focus on
target markets easily
1. Govt to ban sports drinks and
remove it from school vending
machines, 77% of below 18 years
consumer energy drinks and hence
major loss
2. Sell at premium prices(2.75$)
relatively, compared to competitors
prices(~2$)
3. Use of sports drinks by children are
prohibited by Govt
4. Lesser market scope when
compared to energy drinks
CRESCENT PURE AS
SPORTS DRINK

11. POSITIONING OF CRESCENT
PURE AS SPORTS DRINK
Points of Parity
• It is nutritious and organic
drink.
• It is hydrating
• It is natural
Points of Difference
• It is relatively expensive
• It has less sugar, reducing
the risk of obesity
• It is a healthier alternative

12. Capitalize on the growth of
organic beverage industry
Attract health conscious
consumers
Allow wider range of
consumers to use the products
due to multi-purpose attributes
of it, energizing as well as
hydrating
More budget
needed(>750000$) to launch
new product line
Cannot launch this product line
in a short span of time
Involving mass marketing
tactics, increase the risk of
losing profitable market
segments
CRESCENT PURE AS ORGANIC
BEVERAGE

13. ANALYSING CONSUMER MARKETS
12
6 5
22
9
7
9
4
11
34
16
11
28
8
22
11
6
44
35
22
29
47
9 8
19
38
29
0
5
10
15
20
25
30
35
40
45
50
Refreshing Healthy Affordable Functional Too Sweet Suitable for Teens Fun Natural Hydrating
Characteristics of various product lines(Energy & Sports) and Crescent
Energy Drink Sports Drink Crescent

14. UNDERSTANDING DEMAND FOR
CRESCENT IN MARKET SEGMENTS
59%
41%
DEMAND FOR
CRESCENT
MALE FEMALE
45%
37%
15%
3%
DEMOGRAPHICS OF CRESCENT
CONSUMERS EARLIER
18-24 25-34 35-44 45-54 55+

15. SPORTS
DRINK
ENERGY
DRINK
Organic beverage
cannot be considered
because company did
not have the time and
money to launch a new
category of product.

16. • Crescent Pure should be positioned as
energy drink in target market due to its
affordable pricing (2.75$) in a market with
broader scope and projected size of 13.5
billion $ in 2018.
• Crescent Pure will be the only organic
energizing drink competing with other
energy drinks which aren’t suitable for
good health.
• As per the consumer market survey,
Crescent Pure has the characteristics
similar to that of Energy Drink.
• Positioning it as Energy Drink would also
create relevance due to its past launch.

17. PDB OBJECTIVES
• Launch the product in early 2014, so as to create market dominance in the
fast emerging market for organic-energizing drinks.
• Invested 750000$ in 2014, primary objective is to recover that amount and
expand target markets if it earned profits.
• Manufactured 12000cases/month. Sell products at a retail price of 2.75$.
• To ensure distributor profitability, distributed products through only 3
distributors, to recover their investment of 34000$ per month during first
year.

18. Variable cost price to manufacturer per can
Variable cost price to manufacturer per case
1.02$
1.02$*24 = 24.48$
Number of cases sold per month
Variable cost price for 12000 cases
12,000
12000*24.48$=2,93,760$
Variable cost price for total cases sold per year 2,93,760*12=35,25,120
Wholesale price of can sold by manufacturer to
distributor
1.24$
Wholesale price of cases sold by manufacturer to
distributor in a month
1.24$*24*12,000=3,57,120$
Wholesale price of cases sold by manufacturer to
distributor in a year
3,57,120$*12=42,85,440$
Cost invested on Advertising 7,50,000$
Total Cost invested on product 35,25,120$+7,50,000$ = 42,75,120$
BREAK EVEN ANALYSIS FOR
MANUFACTURERS IS DONE. PROFIT>0. Hence
profit is
42,85,440$ – 42,75,120$ = 10,320$

19. PRICING STRATEGY
17.7% 25% 40%
Manufacturer
Profit Percentage
Distributor Profit
Percentage
Retailer Profit
Percentage

20. PRICING STRATEGY OF CRESCENT
PURE
Retail Price is fixed, the price at which
retailer sells products to consumers
2.75$
The price at which distributors sells it to
retailer/ the price at which retailer buys from
distributor
2.75 – 40/100(2.75) = 1.65$
The price at which manufacturer sells it to
distributor/ the price at which distributor buys
from manufacturer
1.65 – 25/100(1.65) = 1.2375$ ~ 1.24$
The cost price of product manufactured 1.24 – 17.7/100(1.24) = 1.02$

21. BREAKEVEN ANALYSIS TO ENSURE
DISTRIBUTORS’ PROFITABILITY
The price at which distributor buys 4000
cases on an average per month
1.24*24*4000 = 1,19,040$
The average price which the distributor needs
to spend on the first year post the launch of
product per month
34,000/3 = 11,333$
Total average price spent by the distributor per
month
1,19,040 + 11,333 = 1,30,373$
The average number of cases which the
distributor needs to sell to avoid losses
1,30,373$/(1.65$*24) = 3293 cases
Since 3293 cases < 4000 cases, the distributor
can breakeven if it manages to sell 3293 cases.
Profit margin can range from 0 to (707 * 1.65-
1.24 * 24) = (0$ to 6957$) per month

22. • PDB is providing quality product
(satisfying Product Concept)
• PDB is offering quality products at
affordable prices (satisfying Price
Concept)
• PDB is offering products in three
places such as Oregon, where there is
huge demand for natural products
(satisfying Place Concept)
• PDB is promoting brand by acquiring
relevant products from reputed local
brands like Crescent (satisfying
Promotion Concept)

23. Crescent
Pure
ENERGY
DRINK
SPORTS
DRINK
NATURAL
DRINK
12
6 5
22
9 7 9
4
11
34
16
11
28
8
22
11
6
44
35
22
29
47
9 8
19
38
29
0
10
20
30
40
50
45%
37%
15%
3%
17.7% 25% 40%
Analyse Positioning of Crescent
Analyse Consumer Demand
Analyse Consumer Survey Data
Pricing Strategy
SUMMARY

25. DISCLAIMER
This presentation has been prepared by Nitin
Singh, VNIT Nagpur in fulfilment of the
requirements of Marketing Management
internship pursued under the mentorship of
Prof Sameer Mathur.