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Marketing plan for crescent pure
Crescent pure history• Peter Hooper founded crescent in 2008• Non-alcoholic functional beverage• Combination of energy-enhancing ,
hydrating with all organic ingredients• Promoted at farmers’ markets , local
food shows , pursuing local retailers in Oregon , demand grew in Oregon
• Portland drake beverages acquired the product in July of 2013
What made the Demand rise?• Sugar quotient is less than 70%• Contains caffeine equal to a cup of coffee
, Less sweet than juice• Refreshing and an energy boost as it
contains herbal stimulants , guarana seed and ginseng
• Lower price of $2.75 per 8 oz can • Packaged in a sleek , tall silver 8-once
can• Flavour of lime juice , lemon juice , small
amounts of raw cane and green tea
Sarah Ryan , vice president of market must decide on positioning of
crescent pure as ENERGY DRINK POSITIONING OR
SPORTS DRINK POSITIONINGOr
Organic refreshment
ENERGY DRINK POSITIONING
PROS:• Can occupy a unique place as it contains much less
sugar , less caffeine with all organic and herbal ingredients
• Price is $2.99 per 8 once can where the company can rise its price point
•Consumer response: viewed “energy” as most reasonable characteristic
Cons:• Regular consumption of energy
drinks is reduced due to health risks
• 11% of people drink less energy drinks due to health risks
• Some younger consumers think that crescent has less energy than they hoped
• High competition from other energy drinks such as Fright , TORQ , Stellar, Razor
Market consumer data:• Market size :
1) grown by 40% 2)growing between 2010 &2012 3)estimated $8.5 billion in U.S in 2013 4) forecast projected reach $13.5 billion in 2018• Consumer data:1)The largest group consumer males between 18 and 342)Parents are more likely to consume energy drinks3)Highest volume of consumers is households4)Income below $25,000 per year• Competition:together:34%Fright :27%Razor:16%Torque:8%Stellar:15%• Opportunity:1)Sales energy drinks with lower levels of caffeine and purer
ingredients2)To consumer demand for healthier food and beverage choices• Threats:1)The drinks alleged: 32% consumers over 18 indicated drank an
enery drinks in last 6 months2)health risks
Sports drink positioning Pros:• 42% of sports beverage drinkers considered
drinks as “anytime beverages”• Sports drinks are consumed more often • Price of $1-$2
•Consumer Response :refreshing , healthy, affordable , functional , fun and hydrating
1) Market is $2.2 billion less than energy drink market.2)Price is lower than crescent’s $2.75 per 8 once can
Cons:
Market consumer data:• Market size:
1)Increase 9%between 2007&2012 reach $6.3 billion in US2)expected to grow $9.58 billion in 2018• consumer data:1)40% of men and 27% of women2)62% ages 18-243)77% ages 12-17• Competition:1)Gleam : 73%2)Dip: 21% market share3)6% of market share :$378 million 4)20 producers• Oppurtunity:1)Concern rising childhood obesity rates in government
mandated guidelines to remove high calories sugar drinks and snacks
2)Including sports drink from school vending machines.• Threats:1)New diet and low sugar sports drink were growth2)Grown 33% in 2010 and 2012 taking market share
Organic refreshment pros:• Capitalize on the growth of
organic food and beverage industry over the past few years
• Ability to have a more premiunm price in this market as the focus is on quality ingredients and target consumers
• Would alow for a much wider range of consumers
Organic refreshment cons:• By focussing on just health
attributes PDB might not reach all consumer needs
• More distributors and retailers would be necessary
• To satisfy consumer and reach their expectations a company much time
Consumer study:
Perceptual map : Hydration Vs energy
Perceptual map : Nutrition and Taste
Consumer study of Crescent:
Consumer study of Crescent:
Feedback:Retailer feedback:• Levor contacted ten large
Portland area retailers.• Products were sold even
though price increased by 25%
• Popular among 18-30 aged
• Higher percentage of women purchased drink than expected
• Younger often purchaed six or more cans
FOCUS GROUP FEEDBACK:
• Three focus group segments were participated by women aged 25-33,men aged 25-35
• The taste is acceptable to consumers
• Some are happy for lower prices while others questined quality assurance of low price
Recommendation:To position crescent pure as energy drink:• With less caffeine content and oreganic
certification crescent can position itself as a healthier and better alternative
• This can enable PDB to increase the price which assures quality
• Forecast to reach $13.5 billion in 2015• Suitable for targeted markets and both
genders • Market growth 40%between 2010-2012• Can easily compete with different products
using artificial sweeteners and higher caffeine content
Disclaimer:Created by Sushmitha.E,NIT Nagpur
during marketing management internship under Prof. Sameer Mathur , IIM Lucknow.
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