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Crescent pure case analysis
- 1. “Make the right choice” Crescent Pure A Harvard Business School Case Study
- 2. PDB: Company Profile Manufacturer of organic juices & sparkling water Clocked $120.5m revenues by 2012 Values: Quality & Affordability
- 3. Situation
- 4. Product Positioning Options • Age Group:18-24 • Top 6 players account for 85% of the revenue • Rising sales of healthier beverage choices • Negative perception – campaigns highlights health risks Energy Drink $2.99/can • Age Group: 12-24 • Top 2 players have 94% market share • Rising sales of healthier/low sugar beverage choices • Negative perception – campaigns highlights increasing obesity rates Sports Drink $1-$2/can • All ages • New emerging market • High inclination amongst consumers to go for healthier and natural product alternatives Organic Drink 25 % premium
- 5. Market Trends Drinks with low caffeine & sugar Energy Drinks market up by 40% Fierce competitions amongst both energy and sports drink segments Competitors to launch organic products in 2015 Negative campaigns against both sports & energy drinks Rising sales of healthier beverage choices Organic Drinks industry – emerging, growing rapidly
- 7. Crescent Pure vs. Energy Drinks Points of Parity Points of Difference refreshing mental focus energizing has caffeine kills fatigue healthy $2.75 vs. $2.99 organic 1 cup coffee low sugar
- 8. Crescent Pure vs. Sports Drinks Points of Parity Points of Difference high nutrition hydrating nature enhance performance expensive low sugar healthier alternative
- 9. Why Crescent Pure? – Because it’s ‘PURE’ Contains almost 70% less sugar than other energy drinks and sports drinks. Contains 80milligrams of caffeine per serving which is equivalent to one cup of coffee. H2O: Healthy Hydrating and Organic
- 10. Why Crescent Pure? – Organic & Healthy
- 12. Drink me, please! - Crescent 44% 36% 15% 3% 2% 18-24 25-44 35-44 45-54 55+ Male Female Annual Income: $ 42,500
- 13. Leader board 0 10 20 30 40 50 60 Energy Drink Sports Drink Crescent Pure Crescent Pure is truly a healthy “energy drink alternative” and hence it should be positioned as an organic energy drink. One that is healthy and tasty.
- 14. Verdict Organic Energy Organic Energy Drink •Crescent Pure should be positioned as a organic and healthier alternative to other energy drinks •Since the diet sports drinks market is also growing at 33%, there is an opportunity of increasing product line in future through brand extensions. •Priced at $2.75 for 8 ounce can it is quite low in the $13.5 billion energy market while it is premium price in the $6.5 billion sports market. •First is the Best - Major national food and beverage companies are gearing up to launch their own organic beverages in 2015.
- 15. Budgeting $1.24 $1.65 $2.75 Profit Margin Analysis Manufacturer Distributor Retailer 18% 25% 40%
- 17. Disclaimer This presentation has been prepared by Akash Gupta, IIIT Bhubaneswar in fulfillment of the requirements of the Marketing Management internship pursued under the mentorship of Professor Sameer Mathur, IIM Lucknow.