![Page 1: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/1.jpg)
Title LayoutSUBTITLE
Crescent Pure:Case Analysis
![Page 2: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/2.jpg)
Companies Involved
CRESCENTPURE
PDB
![Page 3: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/3.jpg)
01CEO : PETER HOOPER
02
03
MANUFACTURES OF NON ALCOHOLIC ORGANIC BEVERAGE
FOUNDED IN 2008
Crescent Pure
![Page 4: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/4.jpg)
01 CEO : MICHAEL BOOTHMARKETING VP : SARAH RYAN
02
03
MANUFACTURES OF ORGANIC JUICES AND SPARKLING WATER
LARGE PRODUCT DISTRIBUTION NETWORK
PORTLAND DRAKE BEVERAGES
![Page 5: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/5.jpg)
SITUATION ANALYSIS
• PDB acquired Crescent Pure in July 2013
![Page 6: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/6.jpg)
OBJECTIVEChoose a suitable brand positioning for Crescent Pure by analysing the
available data
![Page 7: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/7.jpg)
![Page 8: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/8.jpg)
Word with which consumers describe Energy or Sports drinks
Refreshing Healthy Affordable Functional Too sweet For teens Functional Natural Hydrating None0
10
20
30
40
50
60
Energy Drinks Sports Drinks
perc
enta
ge
![Page 9: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/9.jpg)
Demographics of Crescent Online Customers
18-2425-3435-4445-5455+36%
15%
3% 2%
Age Range
44%
![Page 10: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/10.jpg)
Add a Slide Title - 3INCOME: $42500
![Page 11: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/11.jpg)
Demographics of Crescent Pure Consumers
Gender
Male41%
59%
![Page 12: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/12.jpg)
Product Positioning Options
1. •Energy Drink
2. •Sports Drink
3. •Organic Drink
![Page 13: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/13.jpg)
• SPORTS DRINKS PERCEIVED AS HIGH HYDRATION AND LOW ENERGY DRINKS.
• ENERGY DRINKS PERCEIVED AS LOW HYDRATION AND HIGH ENERGY DRINKS.
PERCEPTUAL MAP
![Page 14: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/14.jpg)
• SPORTS DRINKS PERCEIVED AS HIGH NUTRITION AND GOOD TASTING DRINKS.
• ENERGY DRINKS PERCEIVED AS LOW NUTRITION AND GOOD TASTING DRINKS.
PERCEPTUAL MAP
![Page 15: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/15.jpg)
ENERGY DRINKS
![Page 16: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/16.jpg)
Positioning as Energy drinkPROS CONS
• Fierce industry competition• Publics disapproval of new drink on the market• Potentially stricter government regulation• Consumption has lowered after negative media attention
• 42% consider them as “any time beverage”• Market growing at the rate of 40%• Price of Crescent pure ($2.75) will be less than industry average of $2.99
![Page 17: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/17.jpg)
Sports Drinks
![Page 18: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/18.jpg)
Positioning as Sports drinkPROS
CONS
• Health risks associated with them• Fierce competition• 85% of category revenue with big players• $2.75 price is higher then industry average
• Large expected market growth • Low caffeine content acts as point of Difference• Diet and low sugar sports drinks are growth areas in the industry
![Page 19: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/19.jpg)
ORGANIC DRINKS
![Page 20: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/20.jpg)
Positioning as Organic drinkPROS CONS
• Large advertising budget required• Larger consumer base, thus, larger distribution channels needed.
• No competition from big firms• Premium pricing can be done, thus, large revenues• Attracts health conscious consumers
![Page 21: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/21.jpg)
Hypothesis
![Page 22: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/22.jpg)
Organic drinks market is very diverse and hence will require large advertising expenditure
![Page 23: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/23.jpg)
Average price for 12 and 24 Oz can is $1 and $2 respectively. Thus this positioning will not be very lucrative.
![Page 24: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/24.jpg)
Crescent should be positioned as healthy energy drink
![Page 25: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/25.jpg)
Crescent’s organic certification and minimum caffeine provide strong differentiators in energy drinks market
![Page 26: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/26.jpg)
Analysis
![Page 27: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/27.jpg)
Advertising Expenses = $750000Variable cost per can = $ 1.02Variable cost per case = 24*1.02
= $24.48Selling price per case = 24*1.24
= $29.76
Profit per case = $5.28
Analysis (1/3)
![Page 28: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/28.jpg)
Number to be sold to break even= 142046 Cases to be sold per month= 11838 Production capacity per month= 12000
Analysis (2/3)
![Page 29: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/29.jpg)
Profit per month = $(12000-11838)* 5.28
= $ 855.36
Annual Profit = $855.36*12 = $ 10264.32
Analysis (3/3)
![Page 30: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/30.jpg)
![Page 31: Crescent Pure: A Harvard Business School Case Analysis](https://reader033.vdocument.in/reader033/viewer/2022061512/58cf29861a28ab00168b499f/html5/thumbnails/31.jpg)
This presentation was created by Ramji Binnani, SGSITS, Indore during a marketing internship under the guidance of Prof. Sameer Mathur, IIM
Lucknow.