Crescent pure Case Study Hemant

This presentation has been created by Hemant Kumar during a marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.

1. CRESCENT PURE A HARVARD BUSINESS SCHOOL CASE STUDY

2. Companies Involved Crescent Pure PDB(Portland Drake Beverages)

3. Crescent Pure Founded by Peter Hooper. Founded in 2008 in Oregon. Manufacturer of Non-alcoholic beverages.

4. PDB(Portland Drake Beverages) CEO : Michael Booth Manufacturers of organic juices and sparkling water. Gives great emphasis on quality and affordability.

5. Situation Analysis Michel Booth PDB’s CEO acquired Crescent pure in July 2013 Sarah Ryan, VP of marketing for PDB has to develop a positioning strategy for Crescent . Has to choose between energy drink, sports drink or organic drink

6. Possible product positioning options Energy Drink Energy Drink Organic Drink

7. 1.Energy Drink

8. 2.Sports Drink

9. 3.Organic Drink

10. Crescent Pure vs. Energy Drinks

11. Crescent Pure vs. Sports Drink

12. Consumer Study/Analysis

13. Percentage of respondents who described Crescent

14. Perceptual Map : Hydration vs. Energy

15. Perceptual Map : Nutrition vs. Taste

16. Break-Even Analysis

17. Variable costs per can = $1.02 Variable costs per case (24 cans) = $1.02*24 = $24.48 Wholesale price to distributors per case = $29.76 Profit per case = $29.76 - $24.48 = $5.28 Planned advertising cost = $ 750,000 Required sale of cases per year = 750,000/5.28 = 142,045.45 Required sale of cases per month = 142,045.45/12 = 11,837.12 (which is less than maximum production capacity of 12,000 cases per month) RESULT: Break-even is possible

18. Result Crescent pure should be positioned as an organic healthy Sport Drink to target men of age 18-24 . Positioning it like this would help the company to capture a large market.

19. Summary Companies Involved Crescent Pure PDB(Portland Drake Beverages) Situation Analysis Possible product positioning options Energy Drink Sports Drink Organic Drink

20. Summary(contd.) Crescent Pure vs. Sports Drinks Consumer Study/Analysis Perceptual Map Break-Even Analysis Result

21. Disclaimer This presentation has been created by Hemant Kumar, IIT Guwahati, during a marketing internship under the guidance of Prof. Sameer Mathur, IIM Lucknow.