Crescent Case Essay

ASC 320-10-35-33F: “Changes in the quality of the credit enhancement should be considered when estimating whether a credit loss exists and the period over which the debt security is expected to recover.”

In recent studies sports drinks like Gatorade, PowerAde, and Muscle Milk have been proven to be not fully truthful about their nutritional value and the impact it will have on some people.

The product in the health and fitness industry that we are proposing for research includes a variety of energy drinks with high concentrations of caffeine, from products such as Gatorade, Red Bull, Monster, etc. Targeted users for this product include amateur and professional athletes, young adults between the ages of 16-25, and other individuals who would be considered a "workaholic" or "busy person." The main reason why athletes consume energy drinks is because they increase focus, improve performance, vitalize the body, mind, and satisfy consumers’ needs for quality tasting, healthy, natural and functional beverages. My health claim is that while caffeine and sugar have some benefits like increasing the attention and alertness of athletes,

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.

Companies such as Compass (and its subsidiary Canteen), Sodexo and Aramark will help us reach inside large office buildings and grow on word of mouth publicity. We want Crescent pure to become the choice of beverage for corporate meetings.

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.

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

The target consumer market that should be chosen for a new energy beverage brand is males between the ages of 15 and 26. Marketing to this age group falls between the 12 to 34 year olds that estimate to make up 70 percent of the energy drink market (Kerin & Peterson, 2010). This would allow them to still market to the heavy users but would be able to narrow it down to a specific age group within the market. Marketing to this group would allow you to focus on groups such as high school & college students, athletes, and young adults entering the work force or newly parents. The students that would be using the energy products can use it for staying up to study or to help wake up and be alert in class. Athletes could use this product for refocusing after a workout or practice so they would crash. Young adults could use this energy drink for staying up in there social life late at night or to make sure they are awake in the morning for that new job to impress the boss. A different market would be the parents of a newborn. Markets like this could be beneficial because parents want to stay up to feed their new born and make sure everything is okay during the day especially after a sleepless night or two. Marketing to specific target markets helps companies clarify what the product is used for and how it can be beneficial instead of having it say we

Both competition and market size are of major importance when one explores the positioning of a product. In the case of Crescent Pure, this is vital as Ryan must determine the level of competition that will be faced if the product is marketed as either an energy or sport drink. In the case of an energy product, it should be noticed that there is heavy market dominance by Together, Freight, Razor, Torque and Steller, as they account for roughly 85% of the market. Despite this, it should be seen that the average price point for a 5oz can is $2.99 which is notably higher than Crescent’s $2.75 pricing. Additionally, the market size for sport drinks is of particular interest as it is estimated to grow to $8.5 billion by the year 2013. This, coupled with the fact that the market had grown 40% between the period 2010 – 2012, makes this sector of particular interest to PDB.

The energy drink industry must have a SWOT Analysis just like any other industry in order to assess the market before entering. The strengths in the energy drink industry are its “quick fix” for consumers; their products serve as a quick burst of energy for their target consumers of people on the go. Other strengths include the high brand awareness and relative attractiveness in the industry. Everyone knows what energy drinks are and the purpose they serve so companies in this industry do not have a problem integrating their product into the energy drink industry; this serves as a critical success factor in the industry. Energy drinks being relatively attractive in the industry is a definite strength in terms of advertising because often energy drinks are portrayed as that “must have” product that the consumer cannot go without.

One of Gatorade’s highly lauded strengths is their rich bond with the most popular sports in America: basketball, football, baseball, and the like. However, one aspect is less publicized and televised sports, such as boxing, wrestling, or fencing. Manufacturing hydrating bottled water and energy drink. In order to convert the above stated weakness into an opportunity, Gatorade could experiment and venture into the enhanced bottled water and energy drink segments. Although it may add to an already large assortment of products, if marketed correctly, it could definitely have some potential in terms of general, everyday use.

Sports drinks, or carbohydrate-electrolyte beverages, are intended to maintain hydration and restore electrolytes, unlike energy drinks (which contain caffeine). There are two main goals for theses drinks rehydration and fuel for exercising muscles. As an athlete taking of your body is vital in order to have success in any sport. There are many different ways to help your body perform at the highest level possible. Most sports drinks are made with the intent that you are using them before, while, or after your workout. Tons of people believe that sports drinks are not that healthy for you. Many people believe that it is a perfect alternative to water. Theses drinks are appealing to the eye, which is mainly the reason people consume the

I believe sport drinks are overhyped because it's no different than having a soda or juice because it's all extra calories.

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

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