Harvard Business Case Study as a part of Marketing Internship under Prof. Sameer Mathur from IIM Lucknow

1. CRESCENT PURE
Case Study

2. Crescent Pure
• HISTORY
Peter Hooper– in 2008
Product demand grew in
Crescent and Oregon
Michael Booth, CEO of Portland
Drake Beverages (PDB), acquired
in July, 2013 Michael Booth

3. Why CrescentPure?
• Low caloriebeverage
• 70% less sugar than other energy and sports drinks
• Caffeine as much as a cup of coffee
• All-naturalherbalstimulantsas energy boosters
• Organic product at affordable price

4. Positioning
• Two choices:
Sports Drink
Energy Drink
• “soft-launch”in Jan2014 domestically
• $750,000 advertising budget
• If profits > budget; Crescent Pureto be launched nationallyin
2015.

5. Sports Drink
PositioningPROS CONS
42%sportsbeverage drinkershavesportsdrinks
as“anytimebeverages”;notonlyforexercise.
Government mandatedguidelines toremove
sportsdrinkfromschool vending machines;
courtesyhigh calorie.
Attractwide consumerbaseforits refreshing,
healthy,affordable,functionalandfunproperties.
Regularusersconsume frequently
Crescent’s$2.75pricefor8 ozcanis higher than
othercompeting sportsdrink.
Marketis $6.3billion Marketis $2.2billion less thanenergy drink
market.
Hydratingelements +Mental focus+energy
boosters= Veryattractivedrink
Similardrinksin themarket

6. Energy Drink
PositioningPROS CONS
Uniqueness (less sugar,more caffeine) Negative media attention for health risks
reduced11% consumption
All-natural stimulants for energybooster Competitors-85% notmuch wiggle room
for new
Consumers viewed “energy” as crescent’s
most descriptive characteristic.
Only 32% consumers consumed an
energydrink in past 6 months.
Average pricefor an 8 ozcan of energy
drinks:
Crescent’s = $2.75
Others = $2.99
Question on company’s ability to deliver
healthy, organic product for just $2.75

7. Statistical Analysis

10. Organic Refreshment
Positioning
PROS CONS
Capitalize on growth of organic food
and beverageindustry
Critical time for “soft launch” execution
of marketing strategy
More premium price for focus on quality
ingredients and target customers With wide range of customers,
$750,000 advertising budget may no
longer befeasibleOrganic beverages claim price premium
(25%) overother beverages
Allow wider rangeof customers Focusing on health attributes only,
might lose important customer
segments

11. SWOT Analysis

13. Strategies
• Use third-party celebrity endorsers for positioning and appealing to the
younger generation
• Engage millennialthrough community outreach and university
collaboration
• Combine efforts withfavorable global brands to raise awareness
• Increase exposure and establish affiliationwith international sporting
brand through sponsorship
• Receive extensive and favorable press coverage via traditional and
social media

14. Evaluation
• Number of sales- before vs. After
• Media coverage, placements and feedback - before vs. After
• Community outreach: sports club, etc. - before vs. after
• Awareness of Crescent Pure asa brand and asa company
• Change of attitudes towards sports drinks
• Customer satisfactiontowards Crescent Pure via online surveys and
Facebook polls
• Target audience distribution
• Social media followers endorsers - before vs. after

15. Future Considerations
• Partnership with MichelleObama’s ‘Let’s Move!’ initiative
• Sponsorship of 2016 Olympics in Brazil
• Nationwide university initiative, distribution of Crescent Pure
• Lululemon partnership targeting niche yoga community: sponsorship
by Crescent Pure, education on healthy diet and exercise, etc
• Trialtesting of products
• Launchof additionalflavors

17. History
Energy Drink
Sports Drink
Organic Drink
Evaluation
Analysisof Crescent Pure
Strategies
SWOT Analysis
Positioning options
Future Considerations

19. DISCLAIMER
This is a Harvard Business case study prepared by Kiran
Gotaphode from Shri Ramdeobaba College of
Engineering and Management during marketing
internship under Professor Sameer Mathur.
Prof. Sameer Mathur
IIM Lucknow
Kiran Gotaphode
SRCOEM