Name- Siddharth Gautam
Roll no.- PGP10233
Case Analysis- Crescent Pure
Problem Statement-
Portland Drake Beverages (PDB), manufacturer of organic juices and sparkling water recently
acquired Crescent Pure, a non-alcoholic functional beverage. Acquisition of Crescent Pure by PDB
has given rise to the dilemma of choosing positioning strategy. Michael Booth, PDB’s CEO has asked
Sarah Ryan, VP of Marketing for PDB to choose a positioning strategy for which she considers three
options.
1) Energy Drink:
Target age group: 18-24 years
Cost: $2-$5
Top competitors occupy 85% of the market
As per the perceptual map energy drinks are considered as
(a) high in energy but low in hydration
(b) low nutritionally but good in taste
2) Sports Drink:
Target age group: 12-24
Preferred more by teenagers
Top two competitors occupy 94% of the market share
As per the perceptual map sports drink are viewed as
(a) high in hydration but low in providing energy
(b) high in nutrition as well as taste
3) Organic Drink:
Preferred by all ages
Includes soft drinks, tea, energy drinks, milk
Claim on average a 25% price premium over conventional beverages
Recommendation-
Sarah Ryan should go with Organic-Energy beverage
Justification-
Rising growth rate of energy drinks at 40% would be profitable for PDB
Crescent’s low caffeine concentration and low sugar along with its natural ingredients is a
strong point of difference in comparison to its competitors
The fusion of low priced energy drink with the naturalness and wide age acceptability of an
organic beverage would bring the target market under one roof