The document analyzes positioning Crescent Pure, a functional beverage company acquired by Portland Drake Beverages, in the market. It discusses the companies' profiles, timeline of events, factors for Crescent Pure's acquisition, and product positioning options. Based on market size, growth, pricing, and consumer perception analysis, the document recommends positioning Crescent Pure as an energy drink to leverage the larger and faster growing energy drink market.
3. PDB :
PROFILE
01 CEO : MICHAEL BOOTH
VP (MARKETING) : SARAH RYAN
02
03
LARGE PRODUCT DISTRIBUTION NETWORK
AT DISPOSAL
04
MANUFACTURES OF ORGANIC JUICES
AND SPARKLING WATER
REVENUES INCREASED TO $120.5 MILLION
BY 2012.
4. CRESCENT PURE :
PROFILE
01
CEO : PETER HOOPER
02
03
MANUFACTURES OF NON ALCOHOLIC
FUNCTIONAL BEVERAGE
FOUNDED IN 2008 IN OREGON
5. TIMELINE OF EVENTS
2000
Lorem Ipsum CRESCENT PURE
FOUNDED
ORGANIC DRINKS
BECOME POPULAR
2008 2012
PDB DISCOVERS
CRESCENT PURE
2014
PDB ACQUIRES
CRESCENT PURE
2014 2015
PLANNED “SOFT
LAUNCH”
CRESCENT PURE’S
NATIONAL EXPANSION
6. WHY CRESCENT PURE?
80 GMS OF CAFFEINE
AS MUCH AS A CUP OF
COFFEE
LOW CALORIES AND
ORGANIC INGREDIENTS
GOOD CHOICE FOR HEALTH
CONSCIOUS CUSTOMERS
AFFORDABLE PRICE
LESS EXPENSIVE THAN
ENERGY DRINKS, SPORTS
DRINKS AND OTHER
ORGANIC DRINKS
LOW SUGAR CONTENT
70% LESS SUGAR THAN ANY
OTHER SPORTS AND
ENERGY DRINK
4 1
23
9. ORGANIC DRINKENERGY DRINKSPORTS DRINK
• $1-2 PER CAN.
• AGE
GROUP-12-24
• TOP 2 BRANDS
CONSTITUTE
94% MARKET
SHARE.
• $2.99 PER CAN.
• AGE
GROUP-18-24
• TOP 6 BRANDS
ACCOUNT FOR
85% OF THE
REVENUE.
• 25% PREMIUM CAN
BE EARNED PER
DRINK.
• AGE GROUP- ALL
• MARKET
OPPORTUNITIES
ARE STILL OPEN.
10. FACTORS AFFECTING
PRODUCT POSITIONING
• BRAND IMAGE AND PERCEPTION
• PRICE OFFERING
• MARKET PRICE
• TARGET AGE GROUP
• MARKET SIZE
• PRESENT COMPETITORS
• SURVEY OPINIONS AND RESULTS
• PROFIT MARGINS
• POINTS OF PARITY OVER COMPETITORS
11. POSITIONING AS SPORTS DRINK
POSITIVES NEGATIVES
• 42% OF SPORTS DRINKS ARE
CONSIDERED “ANYTIME
BEVERAGES”.
• CONSUMPTION IS MORE
THAN ENERGY DRINKS.
• WIDER CONSUMER BASE
THAN ENERGY DRINKS.
• SMALLER MARKET SIZE -
$6.3 BILLION.
• PRICING OF $2.75 FOR AN 8
OZ. CAN IS SIGNIFICANTLY
HIGHER THAN SIMILAR
SPORTS DRINKS.
• 94% MAKET SHARE
ALREADY UNDER TOP 2
PLAYERS IN THE SEGMENT.
• LESSER MARKET GROWTH
AT 9%.
12. POSITIONING AS ENERGY DRINK
POSITIVES NEGATIVES
• BIGGER MARKET SIZE THAN
SPORTS DRINKS - $8.5
BILLION.
• PRODUCT PRICING AT $2.75
PER AN 8 OZ. CAN IS BELOW
SEGMENT AVERAGE OF $2.75.
• CRESCENT’S ORGANIC
CERTIFICATION AND MINIMAL
CAFFEINE CONTENT ARE
STRONG POINTS OF
DIFFERENCE.
• LARGER MARKET GROWTH AT
40%.
• 85% OF THE MARKET
SHARE ALREADY UNDER
TOP 4 COMPETITORS.
• ALLEGEDLY ASSOCIATED
HEALTH RISKS MIGHT
UNDERMINE SALES.
13. POSITIONING AS ORGANIC DRINK
• PREMIUM PRICING WILL HELP
IN INCREASED REVENUE
GENERATION AND BRAND
PERCEPTION MIGHT BE AS A
TOP OF THE LINE BRAND.
• ORGANIC DRINKS ARE LIKELY
TO HAVE A BROADER
CONSUMER BASE AS
COMPARED TO SPORTS AND
ENERGY DRINKS.
• PDB MIGHT NOT BE ABLE
TO EXPAND BEYOND ITS
ORGANIC DRINK
MANUFACTURER IMAGE.
• SINCE CUSTOMER BASE
WILL BE MORE, LARGER
DISTRIBUTION CHANNELS
WILL BE REQUIRED WHICH
WILL DELAY PRODUCT
LAUNCH.
POSITIVES NEGATIVES
14. CONSUMER STUDY
FEMALE MALE
41 59
1%11%
26%
31%
31%
18-24
25-34
35-44
45-54
55+
AGE RANGES
HOUSEHOLD INCOME
$42,500
COLLEGE DEGREE HOLDERS
62%
15. CONSUMER PERCEPTION
• SPORTS DRINKS ARE
GENERALLY PERCEIVED
AS HIGH HYDRATION
AND LOW ENERGY
DRINKS.
• ENERGY DRINKS ARE
GENERALLY PERCEIVED
AS LOW HYDRATION
AND HIGH ENERGY
DRINKS.
16. CONSUMER PERCEPTION
• SPORTS DRINKS ARE
GENERALLY PERCEIVED
AS HIGH NUTRITION AND
GOOD TASTING DRINKS.
• ENERGY DRINKS ARE
GENERALLY PERCEIVED
AS LOW NUTRITION AND
GOOD TASTING DRINKS.
17. THE DECISION
PRODUCT IS BEST SUITED TO BE
POSITIONED AS ENERGY
DRINK
• 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.
