Crescent pure

Crescent Pure Case Analysis

Crescent Pure HistoryPeter Hooper founded Crescent in 2008.

2 months after launching, Hooper secured legal protection for his recipe.

He manufactured and distributed the drink from Portland, Oregon.

Demand for the product grew locally in Crescent, Oregon.

Michael Booth, CEO of Portland Drake Beverages (PDB), discovered Crescent and acquired the product in July of 2013

Why Crescent Pure?

Low calorie beverage.70% less sugar.Caffeine = 1 cup of coffeeAffordable price: $2.75Energizing, hydrating, all-organic.

How Sarah Ryan, vice president of marketing for PDB is going to position Crescent Pure?

Conditions$750,000 advertising budget

“soft launch” of the product in Jan 2014 in three western states.

If profits reach or exceed this, Crescent Pure will be launched nationally in 2015.

Product Positioning Options

Energy Drink Sports

Drink

Energy Drink

ADVANTAGES

Does not contain artificial chemicals.Uses caffeine from natural products.Uses much less sugar.All natural flavors.Market grew by 40% between 2010-2012.Lower cost.

DISADVANTAGESOnly 32% consumers have had an energy drink in

last 6 months.11% people are drinking less energy drinks due to

health risks.Stories highlighting health risks are coming to

light.Low energy content.Some people question the ability to deliver quality

organic ingredients at $2.75Very competitive market.

Sports Drink

ADVANTAGES

Sports drink is more preferred by consumers.42% consumers considered sports drink as

“anytime beverages”.Hydrating elements boost endurance and

relieve fatigue.Market is $6.3 billion.

DISADVANTAGES

Market is $2.2 billion less than energy drink market.

Crescent’s $2.75 sports drink is significantly higher than competitors prices.

Concerns for sugary sports drinks have caused government guidelines to remove numerous sports drinks in schools.

Crescent’s mental focus and energy boosting features do not fall under sports drink.

Retailer Feedback

Crescent was getting sold out very fast even when price was increased by 25%.

Consumers mostly aged 18-30.Higher percentage of women purchased than

expected.Younger men often purchased 6 cans at a time.

Focus Group FeedbackThe taste is acceptable to consumers.25% of consumers concerned about energy component. Older

consumer favour Crescent as healthy alternative drinks, while younger consumers expect more energy.

Reflect a focus on health and wellness, as well as transcended a specific age and demographic.

Some are happily surprised that price is lower than expected, while others are questioning the quality assurance by that lower price.

Recommendation

I, personally would recommend positioning of Crescent Pure as ENERGY DRINK: Market growth of 40% between

2010-2012. Pricing advantage. Health benefit (consumers

demand). Forecast to reach $13.5 billion in

2018. Suitable for targeted market

based on age and both the gender.

DISCLAMERCreated by Rounoq Raj Phukan, DBCET Azara, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.