CRESCENT PURE

Prepared by Group 11
G16007 Akansha Singh
G16044 Sandip gumtya
G16046 Saurabh Moharikar
G16050 Shyam Sundar

Given that Crescent is PDBs first entry in the US sports and or energy beverage markets , what
must PCB do in regard to Crescents pending launch
Sarah Ryan had foremost decide whether to position the product as energy , sports or organic drink. PDB
should target Crescent as organic drink for following reason

Broader market share , the drink can be sellable to health conscious individuals , Sports drinks
consumer or energy drink consumer
No existing competitor hence it minimizes threat
Certified ingredients like sugar derived from organic raw cane sugar and herbal stimulus used to
make Crescent
Product has to be launched in three states out of which Oregon already has a presence so focus
will be more on California and Washington

Sarah should market it at broader level and price being charged at $2.75 has generated a positive response
[finding from focus group survey ]
What factors influence the positioning of Crescent Pure?
Position

Factors
Product Features

Price Quality

Functional

Use

Expressive

Users

Explanation
Crescent Pure is basically a functional beverage with healthy
and organic roots.
Current price range for various drinks in the market.
Energy drink - Average Price $ 2.99 per Can (8 oz.)
Sports Drink Average Price $ 1.00 per Container (12 oz.)
Organic Beverages Above $ 3.00 per Can (8 oz.)
Crescent Pure current retail pricing of $ 2.75 per Can (8 oz.) it
offers a better value proposition with the certified organic
tag. However, lower price levels compared to organic
beverages might make customers doubt the quality of the
product.
Due to the presence of lemon, green tea, lime flavour, natural
energy stimulator, caffeine and fatigue reliever Crescent Pure
can be consumed for refreshing needs or for energizing and
enhancing mental focus by the consumer. Due to the organic
certification and minimal caffeine content it can be consumed
by health conscious consumers. It can also be used for
hydrating or nutrition drink
Customer segments under the market segments are Children:
aged 12 to 17, Men: aged 18-24, Men: aged 25-35, Women:
aged 25-33.
Energy Drink
Current Energy drink consumers are Men: aged 18-34. Parents
of children are also likely consumers of energy drinks. Highest
energy drink consumption from an income group of less than $
25,000 per year. Energy drink consumer look for high energy
component. 52% of consumers cannot associate any trait for
the energy drink.
Sports Drink

Benefits

Competitors and
Market Growth
Potential

Sport drink is considered as anytime beverage and associated

to exercises or workouts alone. 40% of men found sports
drinks refreshing in comparison to only 27% female. Appeals
to 18 to 24 age group 62%, and 77% of the 12 to 17 age
group. 49% of consumer found that sports drinks were
hydrating.
47% of respondents found Crescent Pure as a functional drink
Product can position itself as healthier alternative to the
existing energy drinks which have high level of artificial
sweeteners and excessive level of stimulants.
Product can also position itself as low calories and all natural
ingredient anytime drink for anyone.
Product also position itself as organic refreshment with a
broader appeal all
Market size for Energy drink is growing and it has grown by
40% between 2010-2012. Current market size is estimated at $
8.5 billion and expected to reach $ 13.5 billion by 2018. New
media stories were highlighting alleged health risk associated
with energy drinks and consumers were concerned about the ill
effects. 35 competitors in the market with 5 competitors having
85% of energy drink category revenue.
Market size for Sports drink is growing slowly. Current market
size is estimated at $ 6.3 billion and expected to reach $ 9.58
billion by 2017. New diet and low sugar sports drinks has
grown by 33% between 2010-12. Market size for such drinks is
estimated to reach $ 2.97 billion by 2017. 94% of the market
share is with two players, rest is split among 20 products.

Given the segments; what segments should Crescent be targeted?

The positioning of Crescent as an Organic Drink seems more plausible here. Data from market research
show that more people have reacted positively to a health oriented drink. So, focusing on this segment
will be more fruitful. Following are the advantages:

The ingredients are certified organic with no use of chemicals and low in sugar content.
Its and healthier energy and sports drinks alternative.
Contains herbal supplements known to provide energy boost and mental focus functions.
Environment friendly packaging

There are several opportunities which can be capitalized. With a large group of health conscious
consumers, a large group consider it as anytime beverage which provides a large customer base.
Moreover, the new diet and low-sugar sports beverages, which newly emerged in 2009, had a dramatic
growth of 33% from 2010 to 2012.
As per the perception survey of hydration vs energy, energy drinks are placed in the fourth quadrant i.e.
high on energy and low on hydration and as per the perception survey of nutrition vs taste, energy drinks
are placed in the fourth quadrant i.e. high on taste and low on nutrition. Organic drink seems to bridge the
gap in each case.

What are the pros and cons of positioning Crescent as an energy drink; a sports drink; or a healthy
organic beverage?

Segments

Pros

Energy Drinks

1. High Market Growth.

2. High Demand for Energy
drinks.
3. Lower Caffeine and sugar level
providing the differentiating factor.
4. As per survey done, market gap
can be identified in health and
functional attributes.

Sports

1. Younger customers are more

attracted to this segment.
2.Healthy and low sugar content
drinks grew by 33% in the last
year. This market is expected to
grow to $2.94 billion by 2017.
1. Claims a price premium over
conventional beverages of the
same variety.
2. Certified organic ingredients
used and high on nutritious
content.
3. Caters to multiple attributes
demanded by customers.
4. No specific established
competition.
5. Some distributors focus
specifically on Organic products.

Organic

50% men + 33% Women+

younger generation
Cons
1. High Competition, 85%
market share is held by only
four players.
2. Negative media
campaigning.
3. Younger customer slightly
dissatisfied according to
focused group survey.
4. 11% reduction in per capita
consumption from previous
year, due to media news.
1. Market Growth rate is low
2. 94% of the market share
captured by only two players.
3. Obesity Concerns and high
government regulation.
1. Low marketing budget make
the strategy less feasible.
2. This approach will lengthen
the product launch.
3. More distributors and
retailers need to be evaluated.