Crescent Pure - A Harvard Business School Case Study 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%

16. Break Even Analysis

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.