Crescent Pure Case Analysis
João Nunes
The Lisbon MBA Part-Time 15/17
Contents
Executive Summary
Situation Analysis
Company
Customers
Competition
Energy Drinks
Sports Drinks
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threaths
Marketing strategy
Positioning Alternatives
Point of Parity with Energy Drinks
Point of Parity with Sports Drinks
Point of Differentiation from both categories
Recommendation to Management
Financials
Breakeven Analysis
Final Considerations
Exhibits
Executive Summary
Sarah Ryan, VP of Marketing for Portland Drake Beverages is facing a tough decision of deciding the positioning and overall strategy for the impending launch of Crescent
Pure, an all-natural, organic beverage PDB
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However, short term production capacity restraints limited PDB’s production of
Crescent to 12,000 cases per month in 2014.
Customers
Looking at the Energy Drinks market, we find that the largest group of energy-drink consumers were males between ages 18 and 34. Parents of children were also more likely to consume energy drinks. The highest volume of energy drinks consumed was by respondents with a household income below $25,000 per year, quite lower than
Crescent’s customer base with a median of $42,500.
Regarding the Sports Drink market, roughly half of men drank sports drinks, while only a third of women did. Although 40% of men found sports drinks refreshing, only 27% of females did. Sports drinks appealed to younger consumers - 62% of those between ages 18 and 24, and 77% of those ages 12 to 17.
Comparing these figures with those provided by the respondents of Crescent’s customer survey, we find that 80% of Crescent’s customer are aged 18-34, with 44% between 18 and 24. This result would fit better with the customer profiling of the
Energy Drinks market. Crescent also had a larger portion of female customers (40%) than those who consumed Sports Drinks, which we can observe by the Retailer feedback and the customer demographic profile.
Results from the focus groups showed that
If the existing customers were to be economically valued, as an asset of the company, how much would they be worth?
This study targets the physical effect of caffeinated energy drinks on athletes, in both genders, in team sports, primarily the capacity of the participants to perform repeated sprints during a simulated match.
I believe sport drinks are overhyped because it's no different than having a soda or juice because it's all extra calories.
Ages 14 – 18 and older. Including Hispanics, White, Africans and Asian Pacifics. A total of 881 participants.
.e. 35% of customers identified as frequenting the store between 1 - 5 times in the store and therefore could not be considered regular customers- 30% of customers identified as
AXIS V: On the Global Assessment of Functioning scale, the client would score somewhere in the range of 21 30.
5. Grade or age levels covered: This measure can be administered to individuals ages 13 years and older (Beck, Steer, & Brown, 1996).
What is the demographic breakdown of their clients in terms of sex, age, and race?
could be geared towards females in an attempt to capture drinkers of Coca Cola’s Tab. In addition, males’ ages 35 to 54 consume energy beverages at a rate slightly lower than males under age 24. An energy beverage with similar stimulant effects as most energy drinks but has other health benefits (i.e. Vitamin Water, Odwalla, Naked) could also attract the abovementioned consumers.
Let assume that the "Weekender" segment estimated share of the market is 25 percent and it is growing quite rapidly.
Palmer Jackson realizes that product, price distribution, and promotion decisions for Green Ox all rely on the decisions they make, that all four of the ''P'' decisions are tangled and depend on each other. They feel that the place to start is with some notion of how many flavors of Green Ox they should introduce and at what price.
In 2012, a report found that 44.6 per cent of adults in the UK participated in sport or exercise, which has increased from 2006, at 41.2 per cent. Figure 1.1 shows this, as well as the percentage increase throughout all of the years from 2005. This shows that it is a perfect time to release an isotonic sports drink into the market, as the number of people participating in exercise is constantly increasing.
United Beverages’ CEO is debating with his department heads on the course of action the company is going to take in the future. Their flagship product, GangBuster, has been highly successful for the past 5 years. However, they have been thinking of entering the market for Energy Drinks for kids. Paul Diaz also comes up with a revolutionary idea of the dual-drink, having two separate flavored drinks in a bottle and being able to mix both flavors. Due to the limited resources of United Beverages, they have two weeks to decide whether to expand their portfolio or not?
person and depends on a wide variety of factors such as health, maturity, stability, experience,
Customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9