cresent pure
TRANSCRIPT
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Cresent Pure : Position It Right A Harvard Business Case Study
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The problemPDB
Manufactures sparkling water and orange juice
Brand values : Quality product at affordable prices
Looking to increase organic product line
Cresent
Organic, all-natural energy drink.
Moderate energy, low sugar content
Riding on the locavore movement.
Problem statement
PDB acquired Cresent Pure.
Want to position it to get optimum sales result.
Want to break even with the advertising budget of $750,000
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Situational AnalysisProduct Positioning
Sarah Ryan needs to decide whether Cresent Pure will be marketed as a Sports Drink, Energy Drink or Organic Beverage
Production Constraint
There’s a constraint on production of 12,000 can a month which has made cresent go for a soft launch to gain the first mover advantage.
PDB’s Goal
To increase sales and ride on the locavore movement with a more wide product line.
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Product Positioning
Options
Energy Drink85% market share with the top 6
competitiors
Locavore Movement and the rise of healthier drinks
Primary Consumers : Males b/w 18-24
Threats : News relating to health issues.
Sports DrinkProjected 9% growth of the industry
Top 2 competitors hold 90% market share
Oppotunity : Increased demand for healthier and diet beverages
Threat : Increasing obesity and govt. intervention
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A third option
max growth
● New and emerging market with the rise of locavore movement
● Larger consumer base● Higher margin rates ( usually
25%)● Niche market for health
conscious consumers
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Market AnalysisMarket Trend
Rising demand for organic, all natural foods
Market Growth
Sports Drink - 9%growth
Energy Drink - 40% growth
Competition
High cometition in both energy
and sports sector
Threats
Negative campaign against
sports and energy drinks
Competitive Advantage
Competitors to roll out health drinks only in
mid 2015
Target Market
Age group 18-34Health concious
Points of Difference
Low sugar and caffeine content
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Consumer Analysis - Cresent
18-24 25-34 35-44 45-54 55+
44% 36% 15% 3% 2%
Annual Income$42,500
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Profit Margin
Analysis
Budgeting to optimally price the
product.
$ 1.24
Manufacturer - 18%
$ 1.65
Distributor - 25%
$ 2.75
Retailer - 40%
COST ANALYSIS
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Break Even Analysis
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SWOT
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Low competition in high hydration and mid - high drinks.
Low competition in high nutrition and high taste drinks
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Swot AnalysisStrength
All organic and natural drink
Lower levels of sugar and moderate levels of caffeine
A healthier anytime beverage for health conscious consumers
Weakness
Lower caffeine content than competitors
Lack of Brand awareness compared to competitors.
Opportunity
Low competition in high hydration and mid energy drink
Middle of locavore movement
Recovering economic for functional beverages
Threats
Negative media attention
Established competitors in Energy and sports drinks categories
Lower prices question the organic label which is usually costlier
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Implementation
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Product
Launched as a organic, healthy energy drink
Price
Priced at $2.75 which is above the general sports drinks and lower than the energy drinks
Promotion
Heavily promoted over social media,event sponsorships and other digital forms to reach the younger target audience
Distribution
Focus on Washington, Oregon and california.Distributed through big box stores like WalMart.
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ConclusionShould be positioned as
healthier alternative to other energy drinks
Priced between the premium energy market and the general sports market at $2.75
First Mover advantage before the mafor beverage brands
Increasing the product line length.
Energy Drink
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DisclaimerThis presentation has been made by Kunwarjeet Chawla, BITS Goa in fulfillment of the requirements of Marketing Management Internship pursued under the mentorship of Prof. Sammer mathur, IIm Lucknow.