PDB acquired Crescent Pure and Sarah Ryan must recommend a product positioning strategy. Crescent Pure provides benefits like low sugar, organic ingredients, and caffeine similar to coffee at an affordable price compared to energy drinks and other organic drinks. After analyzing Crescent Pure against the energy drink and sports drink markets in terms of size, consumers, competition and pricing, Ryan recommends positioning Crescent Pure as an affordable, healthy energy drink, as this growing market provides the best opportunity.

1. CASE ANALYSIS

2. SITUATIONAL ANALYSIS
PDB’s CEO Michael Booth has tasked Sarah Ryan to finalize a product-
positioning strategy for Crescent and recommend it to the executive team
PORTLAND DRAKE BEVERAGES (PDB) ACQUIRED CRESCENT PURE
RIVAL BEVERAGE COMPANIES ARE PLANNING TO LAUNCH
ALL-NATURAL VERSIONS OF THEIR OWN
ADVERTSING BUDGET : $750,000 ( IN 2014 )

4. CEO : PETER HOOPER
MANUFACTURES OF NON ALCOHOLIC
FUNCTIONAL BEVERAGE
FOUNDED IN 2008 IN OREGON
01
02
03
PROFILE

5. CEO : MICHAEL BOOTH
VP (MARKETING) : SARAH RYAN
MANUFACTURES OF ORGANIC JUICES
AND SPARKLING WATER
REVENUES INCREASED TO $120.5 MILLION
BY 2012.
LARGE PRODUCT DISTRIBUTION NETWORK
AT DISPOSAL
01
02
03
04
PROFILE
PORTLAND
DRAKE
BEVERAGES

6. WHY CRESCENT PURE?
LOW SUGAR CONTENTORGANIC INGREDIENTS
AFFORDABLE PRICE80 MGS OF COFFEE
70% LESS SUGAR THAN ANY
OTHER SPORTS OR ENERGY
DRINK
LESS EXPENSIVE THAN ENERGY
DRINKS AND OTHER ORGANIC
DRINKS
AS MUCH AS A CUP OF COFFEE
ATTRACTS HEALTH CONSCIOUS
CUSTOMERS

7. ENERGY DRINK
SPORTS DRINK ORGANIC DRINK
DELIVER A HEALTH BENEFIT
THAT IS IMMEDIATELY
EFFECTIVE AND DETECTABLE.
TO HELP ATHLETES REPLACE
WATER, ELECTROLYTES, AND
ENERGY
DRINKS WITH NO
ARTIFICIAL CONTENT
PRODUCT POSITIONING OPTIONS

8. FACTORS AFFECTING PRODUCT POSITIONING
MARKET
SIZE
CONSUMER
ANALYSIS
PRICING
STRATEGY
FEEDBACK
COMPARISONCOMPETITION

9. MARKET SIZE
ENERGY DRINKSPORTS DRINK V/S
• 9% MARKET GROWTH
BETWEEN 2007-2012
• $6.3 BILLION SALES IN
US TILL 2012
• $9.58 BILLION MARKET
SIZE BY 2017 AS
FORESEEN
• PROJECTED MARKET
GROWTH : 34%
• 40% MARKET GROWTH
BETWEEN 2010-2012
• $8.5 BILLION SALES IN
US TILL 2013
• $13.5 BILLION MARKET
SIZE BY 2018 AS
FORESEEN
• PROJECTED MARKET
GROWTH : 37%

10. MARKET ANALYSIS
SPORTS DRINK
$1-2 PER CAN
AGE GROUP : 12-24
TOP 2 BRANDS HAVE 94%
MARKET SHARE
ENERGY DRINK
$2.99 PER CAN
AGE GROUP : 18-24
TOP 6 BRANDS HAVE 85%
MARKET SHARE
ORGANIC DRINK
25% PREMIUM CAN BE
EARNED PER DRINK
AGE GROUP : ALL
MARKET OPPORTUNITIES
ARE STILL OPEN

11. EXHIBIT 1
PERCEPTUAL MAP : HYDRATION VS. ENERGY

12. EXHIBIT 2
PERCEPTUAL MAP : NUTRITION VS. TASTE

13. CONSUMER ANALYSIS
44%
36%
15%
3%2%
18-24
25-34
35-44
45-54
55+

14. COMPETITION

15. COMPARISON WITH
ENERGY DRINK SPORTS DRINK
SIMILARITIES
REFRESHING
ENERGIZING
KILLS FATIGUE
DIFFERENCES
AFFORDABLE
HEALTHY (ORGANIC)
LOW SUGAR
SIMILARITIES
HIGH NUTRITION
HYDRATING NATURE
ENHANCING PERFORMANCE
DIFFERENCES
EXPENSIVE
HEALTHY (ORGANIC)
LOW SUGAR

16. RETAILER FEEDBACK
• THEIR INVENTORY OF CRESCENT
DEPLETED QUICKLY
• POPULAR AMONG CUSTOMERS AGED
18 TO 30
• HIGHER NUMBER OF WOMEN
PURCHASERS THAN ANTICIPATED
• STOPS GOT DEPLETED EVEN WHEN
PRICES WERE NIKED BY 25%

17. CUSTOMER FEEDBACK
• TASTE APPEALS TO MOST CONSUMERS
• ONLY 25% REMAINED CONCERNED
ABOUT LOWER AMOUNT OF CAFFEINE
• PERCEIVED WELL AS HEALTHY
ALTERNATIVE TO ENERGY DRINKS
• GOOD TASTE, HEALTHY INGREDIENTS
AND SLIGHT PICK-ME-UP : CONSUMER
THUMBS UP

18. PRICING STRATEGY
ENERGY DRINK SPORTS DRINK
AVERAGE PRICE - $2.99
CRESCENT PURE - $2.75
WHICH IS MUCH LOWER THAN AVERAGE
PRICE THUS HIGHLIGHTING ITS
AFFORDABLE PRICING STRATEGY.
AVERAGE PRICE - $1 -$2
CRESCENT PURE - $2.75
WHICH IS A PREMIUM PRICE, SO
POSITIONING AND ADVERTISING WILL
HAVE TO BUILD THE CASE.
PDB HAS A HISTORY OF NOT DOING WELL AT PREMIUM PRICE. IT HAS ALWAYS
BEEN THE BRAND WHICH PROVIDES QUALITY PRODUCTS AT AFFORDABLE PRICES

19. FINAL VERDICT
• GREATER MARKET GROWTH THAN SPORTS DRINK MARKET AT
40%.
• LARGER MARKET SIZE THAN SPORTS DRINK MARKET AT $8.5
BILLION.
• PRODUCT PRICING AT $2.75 FOR AN 8 OZ. CAN BELOW MEAN
INDUSTRY PRICING WHICH CAN BE FURTHER INCREASED FOR
MAXIMIZING PROFITS.
• ORGANIC ELEMENTS IN THE ENERGY DRINK WILL SURELY
RESULT IN A BROADER CUSTOMER BASE WHO MIGHT ALSO BUY
DRINKS AS HEALTHY SUPPLEMENTS.
ENERGY DRINK

20. BUDGETING $1.24
• MANUFACTURER
• 18%
$1.65
• DISTRIBUTOR
• 25%
$2.75
• RETAILER
• 40%
THE VALUES IN % INDICATE THE PROFIT MARGINS

21. BREAK-EVEN ANALYSIS
ADVERTISING BUDGET
CASES SOLD PER MONTH
CASES SOLD ANUALLY
DRINKS PER CASE
SELLING PRICE PER CASE
VARIABLE COST PER CASE
PROFIT PER CASE
MANUFACTURE MARGIN
NUMBER OF CASES TO BE SOLD
TO BREAK-EVEN PER YEAR
CAPACITY OVERAGE
PROFIT FROM CAPACITY
: $750,000
: 12,000
: 144,000
: 24
: $29.76
: $24.48
: $5.28
: 18%
: $750,000/$5.28
=140,045.45 CASES
: 1954.55 CASES
: $10,320
THE COMPANY WILL BE ABLE TO BREAK EVEN IN 2014,
ASSUMING ZERO RETURNS AND DEFORMITY.

22. SUMMARY
• SITUATIONAL ANALYSIS
• TIMELINE
• COMPANY PROFILE
• WHY CRESCENT PURE?
• PRODUCT POSITION OPTIONS
• FACTORS AFFECTING PRODUCT POSITIONING
• MARKET SIZE
• CONSUMER ANALYSIS
• COMPETITION
• COMPARISON
• FEEDBACK
• PRICING STRATEGY
• FINAL VERDICT
• BUDGETING
• BREAK-EVEN ANALYSIS

23. DISCLAIMER
THIS PRESENTATION HAS BEEN PREPARED BY
VISHRUT SHAH, BITS PILANI
IN FULFILLMENT OF THE REQUIREMENTS OF THE
MARKETING MANAGEMENT INTERNSHIP PURSUED UNDER
THE MENTORSHIP OF
PROFESSOR SAMEER MATHUR, IIM LUCKNOW
PROF. SAMEER MATHURVISHRUT SHAH