CRESCENT PURE

THE HISTORY

Peter Hooper founded Crescent in 2008

Demand for the product grew locally in Crescent, Oregon

Michael Booth, CEO of Portland Drake Beverages (PDB), discovered Crescent acquired the product in July of 2013

BUT WHY CRESCENT PURE ?

BUT WHY CRESCENT PURE ?

THE CRESCENT ADVANTAGE70% less sugar than leading energy and sports drinks

contains as much caffeine as one cup of coffee

energy boost is delivered through all-natural herbal stimulants

quality, organic product at an affordable price(2.75$)

THE PLAN

• Soft launch of the product in January 2014 in 3 western states

• 750000$ advertising budget

• If profitable, crescent pure to be launched nationally in 2015

DECISION TO BE MADE

Sarah Ryan, vice president of marketing for PDB must now decide how to position crescent pure.

TOUGH CHOICE INDEED!!

SPORTS DRINK-THE PROS42% of sports beverage drinkers considered sports drinks “anytime beverages”

Market is $6.3 billion

Attract a wider consumer base 

consumers described sports drinks with words such as refreshing, healthy, affordable, functional, fun, and hydrating more often than energy drinks

SPORTS DRINK-THE CONSMarket is $2.2 billion less than energy drink market

Crescent’s $2.75 price point for an 8 oz. can is significantly high

Recent government-mandated guidelines to remove sugary, high calorie drinks from school vending machines including sports drinks pose a threat

M

ENERGY DRINK-THE PROSUnique in this market as it contains much less sugar than competing energy drink

40% growth in market over 2 years

Consumers viewed “energy” as Crescent’s most descriptive characteristic Average price of an energy dink is higher ,allowing PDB a chance to increase their sale price.

ENERGY DRINK-THE CONSRegular consumption of energy drinks has fallen due to negative media attention about health risks

Less energy content than hoped.

Competitors – 85% not much wiggle room for new

BUT WHY CRESCENT PURE ?

AN ALTERNATE SOLUTION ?

THE ORGANIC DRINKAbility to have a more premium price in this market as the focus is on quality ingredients Organic beverages claim a price premium over conventional beverages of the same variety (on average 25%)Would allow for a much wider range of consumers 

THE HOT SOUPBy focusing on just the health attributes, PDB might risk excluding important customer segments Timing is critical and the broad approach would complicate efforts to develop and execute a marketing strategy in time for the “soft launch”With such a wide range of consumers, the $750,000 advertising budget may no longer be feasible More distributors and retailers would be necessary and would need to be evaluated

DISCLAIMER• Created by T PRANIL CHANDRA, VNIT NAGPUR during a marketing

internship under prof. Sameer Barua.