Patrick Kelly
4/30/15
Professor Rosenblatt
Marketing Management
Business Case Study: Crescent Pure
Due to Crescent being Portland Drake Beverages’ (PDB) first entry into the U.S. sport/energy beverage market, there are some issues that PDB should consider with regard to Crescent’s impending launch. These issues consist of determining what customers want, being discussion-worthy and being transparent.
Before launching Crescent it is essential to make sure that there is a place for Crescent in the market. Sarah Ryan, Vice President of Marketing for PDB, is doing this by trying to specify whether Crescent fits in the market better as an energy drink, a sport drink or a healthy organic beverage. Being discussion-worthy is another
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For sport drinks, roughly half of men consumed them, while only a third of women did. Furthermore, although 40% of men found sports drinks refreshing, only 27% of females did. Sports drinks appealed to younger consumers, 62% of those between the ages of 18 to 24. Crescent’s best target is males and females between the ages of 18-35. PDB must decide whether or not to position Crescent as an energy drink, a sport drink, or a healthy organic beverage. The advantages for positioning Crescent as an energy drink is that the market size for energy drinks has grown 40% between 2010 and 2012. Energy drinks were estimated to be $8.5 billion in the United States in 2013; forecasts projected that figure to reach $13.5 billion by 2015. Another advantage is that Crescent is a beverage that consists of organic ingredients that are a healthier option than most energy drinks. This is an advantage because sales of energy drinks with lower levels of caffeine and purer ingredients are rising due to consumer demand for healthier food and beverage choices. A disadvantage for positioning Crescent as an energy drink is that many potential consumers view energy drinks as unhealthy and might not see past that when PDB launches their new Crescent energy drink. Due to news stories highlighting the alleged health risks from energy drinks, 32% of consumers over 18 indicated they drank an energy
b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?
Gatorade is a flagship brand of PepsiCo and has a commanding 75% market share of the sports nutrition beverage marketplace globally, being sold into 80 different countries according to the latest PepsiCo annual report published in late 2011. Gatorade's success in branding and product marketing has actually expanded the global market for sports nutrition beverages during the late 1990s and into the 21rst century. Recently however the company has faced many channels including product line extensions of the last decade which failed to deliver strong results (Pollack, 1997) and a more critical analysis of their ingredients as many of their beverages are sold in public schools (Tallon, 2009). Despite these challenges however, Gatorade continues to experience strong market share and growth. The intent of this analysis is to evaluate and provide recommendations for each of the four areas of the marketing mix including product, price, promotion and place or distribution.
The applicants are morally correct as long as their action promotes their long term interest. If their action produces or will produce for them a greater outcome of good, versus evil in the long hall than any other alternative, than that action is the right one to act on, and the individual should take that to be a moral act. An Assessment of Morality by Ethicsinbusiness.net
IgG – funtions in neutralizing, opsonation, compliment activation, antibody dependent cell-mediated cytocity, neonatal immunity, and feedback inhibition of B-cells and found in the blood.
Scenario: John is a 4 year-old boy who was admitted for chemotherapy following diagnosis of acute lymphoblastic leukemia (ALL). He had a white blood cell count of 250,000. Clinical presentation included loss of appetite, easily bruised, gum bleeding, and fatigue. Physical examination revealed marked splenomegaly, pale skin color, temperature of 102°F, and upper abdomen tenderness along with nonspecific arthralgia.
3. What target consumer market should be chosen for a new energy beverage brand? § Seeing as the heaviest users of energy beverages are males between the
To start with, market segment for energy drinks is targeted at group of people in their late teens to early thirties. The age group is determined between 18 to
Consumer Behavior Monster Energy Target Market Because the energy drink is still part of a new and developing industry, the energy drink target market is different than in some of the other beverage industries. Monster energy drinks have become a very popular, “hip” part of society, but the market at which they are aimed is not as wide and expansive, or diverse, as some might think. Early in energy drink history, when they were first being sold in the United States, athletes were the primary consumers. This shows that even initially energy drinks were directed at a select crowd, a group of people with specific interests. Although the consumer base for energy drinks has now expanded beyond that of simply athletes, the target market is
Drake, P. (n.d.). What is free cash flow and how do I calculate it? Florida Atlantic University, pp. 1-6. Retrieved from: http://educ.jmu.edu/~drakepp/general/FCF.pdf [Accessed: 6 Aug 2013].
There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion
Strengths: * Sports drinks one of the fastest growing categories of the beverage market. * Healthy and active lifestyle. * Higher levels of income and education. * Easy to carry to the gym and playing field/court. * Isn’t carbonated. * Easy to ingest and digest. * Excellent source of antioxidant vitamins and minerals.
Portland Drake Beverages (PDB) had acquired Crescent Pure, a non-alcoholic, all natural energy enhancing and hydrating functional beverage. Having organic ingredients as the bases of Crescent Pure beverages made the perfect acquisition for extending the PDB organic brand to more markets. These multiple attributes made the drink an attractive product for the consumer, but the necessity to position it, sparked a debate. Some people wanted to market it as an energy drink, while others wanted to market it as a hydrating drink. The VP of marketing, Sarah Ryan, thought that although Crescent Pure fit both of these categories, there was an alternative option. The third option would be to position the new beverages as healthy drinks, this would be a broader market positioning strategy, one that a transcendent product like Crescent Pure, could fulfill. The concern was to simultaneously position the drink in the most lucrative market, while also ensuring that the drinks attributes aligned with the market consumers’ needs.
Lucozade has managed to promote Lucozade Sport by segmenting, targeting and positioning Lucozade Sport. Lucozade Sport has been scientifically proven to benefit athletes to give them more energy and due to this Lucozade Sport targets sport enthusiasts by advertising it through athletes and on sports programmes. It is sold at a similar price to competitors and therefore doesn’t have competition for price. Lucozade Sport is stored in most shops that sell drinks across the country therefore strengthening the positioning of Lucozade Sport. Finally, Lucozade Sport has a strong consumer awareness which has helped it become UK’s most recognised and most popular sports drink.
Red Bull has built an image as a trendy energy drink, catering to young adults and young professionals between the age groups of (16-29) years. It also targets young club-goers and private parties in order to spread its picture as a stylish drink. It also believes that it is not just selling a beverage, but instead it is selling a ‘way of life’. Red Bull also uses a catchy slogan as ‘Red Bull gives you wings’. These non –traditional marketing strategies of Red Bull are not unique to any market.