CASE 2 : CRESCENT PURE 1. Exec Execut utiv ivee summ summar ary y
Product positioning is an important element of a marketing plan. Product positioning is the process marketers use to determine ho to !est communicate their products" attri!utes to their their target target customer customerss !ased !ased on customer customer needs# needs# competi competiti$ ti$ee pressure pressures# s# a$aila!l a$aila!lee commu communic nicati ation on channe channels ls and carefu carefull% ll% craf crafted ted ke% messa message ges. s. Effe Effecti cti$e $e produ product ct positioning ensures that marketing messages resonate ith target consumers and compel them to take action. &by Leigh Richards). Portland 'rake (e$erages &P'() ac*uired Crescent in +ul% 2,- in order to e/tension its e/isting organic product lines !% launching launching a product hich com!ines energ%0enhancing# energ%0enhancing# h%drating# and all0organic ingredients. R%an# the $ice president of marketing for P'(# as asked to pro$ide recommendation on the positioning strategies. To options are as follo: 1 Energ%0drink positioning# 1 Sports0drink positioning. n order to ha$e a good positioning# e ha$e to anal%3e the customer needs# competiti$e pressures# communication channel and con$e%ing the differentiating of the products through the selected communication channels. (ased on the o!ser$ations and anal%3ing the case 444.&e need to rite here hich product is !etter in the th e positioning segmentation) seg mentation)
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CASE 2 : CRESCENT PURE 2. Case analysis 2.1 Crescent Pure (a company)
Peter 5ooper# a nati$e of crescent# 6regon# sa a market opportunit% for a health%# energi3ing drink. 5e founded Crescent in 2,,7. 6rganic# all natural food a !e$erages !ecame u!i*uitous in the Pacific Northest region in the -88,s and earl% 2,,,s# and 5ooper found popular energ% and performance0enhancing drinks unhealth%# to seet# and artificial. 5e !egan e/perimenting ith different ingredients in order to craft an organic# all natural !e$erage lightl% infused ith organic 9uices her!al stimulants# and electrol%tes. 5e anted a drink that ould refresh# energi3e# and enhance mental focus. hat !egan as a ho!!% !ecame a !usiness as 5ooper sa groing local demand for his product. Portland 'rake (e$erages &P'() recent ac*uisition of Crescent Pure is a $er% interesting mo$e that could !oost the compan%;s current market. 5oe$er# due to Crescent;s $ersatilit% Sarah R%an has !een charged ith figuring out hether the% should position the drink as an energ% drink or sports drink. 2.2 Customers
2?#,,, per %ear. @or sports drinks consumer# roughl% half of men drank sports drinks# hile onl% a third of omen did. Although =, of men found sports drinks refreshing# onl% 2B of females did. Sports drinks appealed to %ounger consumers D2 of those !eteen ages -7 and 2=# and BB of those ages -2 to -B.
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CASE 2 : CRESCENT PURE 2.3 Distributors
n this industr%# the distri!ution ill in$ol$e mo$ing products from manufacturing to distri!utors and then the distri!utors ill sell the products to retailer !efore the products deli$er to consumers. Usuall%# distri!utors ill markup 2? from manufacturer hile retailer ill markup =, from distri!utors. (ecause of limited production capacit% and in order to ensure distri!utors profita!ilit% sold out# P'( onl% used three distri!utors. The distri!utors monthl% cost ould >=#,,, during Cresent;s first %ear. The cost includes cost of goods# marketing materials# emplo%ee training and compensation. P'( ill decide hich distri!utors to select after determine the most effecti$e positioning for Crescent !ecause the drink;s positioning ould influence here the product as sold and hich distri!utors that P'( ould select. 2.4 Competitors
There are to leading energ% !e$erages on the market# @right and Ra3or folloed !% Tor*ue and Stellar. Table 1 and Table 2 shos the market share for each energ% drinks and sports drink. Competitors @right Ra3or Tor*ue Stellar 6thers
Market !are = 2B -D 7 -? Table 1: Energy Drink
Competitors leam 'rip 6thers
Market !are B 2- D Table 2: Sports Drink
3. Market researc!
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CASE 2 : CRESCENT PURE Research pro$ided from three consumer sur$e%s conducted !% a pri$ate research firm# se$eral academic reports and industr% media co$erage. e are using S6T anal%sis to summari3e the sur$e%s.
3.1 "#$ %nalysis comparison bet&een Ener'y rinks an port rinks $E*+,$
The market for energ% drinks as groing for the period 2,-, and 2,-2# had gron !% =,. t as estimated to !e >7.? !illion in the United States in 2,- and forecasts pro9ected that figure to reach >-.? !illion !% 2,-7. The market for Sport drink increased onl% 8 !eteen 2,,B to 2,-2. n 2,-2# the market for sports drinks reached >D. !illion in the United States and as e/pected to gro to >8.?7 !illion !% 2,-B. @rom the a!o$e# Energ% is e/pected to gro !igger in $alue compare to Sport drinks.
"E%-*EE
Energ% drinks market share here @right# Ra3or# Tor*ue# and Stellar accounted for 7? of categor% re$enue &=# 2B# -D# and 7# respecti$el%). The remaining -? as split !eteen roughl% thirt% independent regional and national producers.
leam and 'rip had B and 2- market share# respecti$el%. The remaining D of market share &>B7 million) as split fairl% e$enl% among roughl% 2, producers. @rom the a!o$e# Energ% ha$e more competitors and larger market compare to Sport drinks market share and competitors.
#PP#$*/$/E
Sales of energ% drinks ith loer le$els of caffeine and purer ingredients ere rising Page 4
CASE 2 : CRESCENT PURE due to consumer demand for healthier food and !e$erage choices. Ne diet and lo0sugar sports drinks ere groth areas for the Sport drink industr%. 'iet and lo0sugar sports !e$erages# hich did not e/ist !efore 2,,8# had gron !% !eteen 2,-, and 2,-2# taking market share from traditional sports drinks. The market si3e for diet and lo0sugar sports drinks as e/pected to increase from >-.= !illion in 2,-2 to >2.8B !illion in 2,-B. Energ% drinks demand ill !e increasing as people ants more healthier food and !e$erage compare to sport drinks hich is high in chemicals from la!s engineered nutrition.
$,E%$
Nes stories ere highlighting the drinks" alleged health risks: 2 of consumers o$er -7 indicated the% drank an energ% drink in the last si/ months# -- of hom ere drinking feer energ% drinks than the% had a %ear earlier# due to concerns a!out health and safet%. Sport drinks is creating concern regarding rising childhood o!esit% rates resulted in go$ernment0mandated guidelines to remo$e high0calorie sugar% drinks and snacks# including sports drinks# from school $ending machines !eginning in 2,-=. The a!o$e threats shos that energ% drinks create less health risk compare to sport drinks.
4. e'mentations an $ar'etin'
Segmentation and Targeting Portland 'rake (e$erages; &P'() recent ac*uisition of Crescent Pure is a $er% interesting mo$e that could !oost the compan%;s current market. 5oe$er# due to Crescent;s $ersatilit% Sarah R%an has !een charged ith figuring out hether the% should position the drink as an energ% drink or sports drink. The main age range of energ% drink consumers are !eteen -70= %ears old and are t%picall% male# hile the sports drink market is larger# including a larger male and female population ranging from age of -202=. 5ooper had set up an online store# anticipating a future focus
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CASE 2 : CRESCENT PURE on online sales. Chart - and chart 2 shos the stud% of online sales !ased on gender and ages.
Gender of Crescent Online Consum er
Female; 41%
Male; 59%
Chat 1: Gender of Crescent Online Consumer
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CASE 2 : CRESCENT PURE
Age Range of Crescent Online Consumer
45-54; 3% 55 +; 2% 35-44; 15%
18-24; 44%
25-34; 36%
Chart 2: Age Range of Crescent Online Consumer
(ased on the chart a!o$e# it shos that most of the consumers are male !ecause male acti$el% in$ol$ed in sports. n term of age# == of the consumers are age ranges from -702= %ears old hile D are age ranges from 2?0= %ears old. 2?#,,, per %ear. Roughl% half of men drank sports drink# hile onl% a third of omen drank sports drink. Although =, of men found sports drinks refreshing# onl% 2B of females did. Sports drink appealed to %ounger consumers F D2 of those !eteen ages -7 and 2= hile BB of those ages -20-B. So that# P'( determined that %ounger# health0conscious consumers ho regularl% consumed energ% or sports drink ere potential prospects for Crescent.
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CASE 2 : CRESCENT PURE Compare to other competitors# most products the% offered is not a health% alternati$e for energ% drinks. 2.88 the price of >2.B? for crescent is !elo the market a$erage as ell as !eing a slight !it different !% marketing a health% alternati$e option to most other sport drinks on the market no. 0. Positionin'
'efinition on Positioning !% ikipedia: The marketing acti$it% and process of identif%ing a market pro!lem or opportunit%# and de$eloping a solution !ased on market research# segmentation and supporting data. Positioning ma% refer the position a !usiness has chosen to carr% out their marketing and !usiness o!9ecti$es. Positioning relates to strateg%# in the specific or tactical de$elopment phases of carr%ing out an o!9ecti$e to achie$e a !usiness" or organi3ation"s goals# such as increasing sales $olume# !rand recognition# or reach in ad$ertising.
The positioning charts are e/tremel% helpful in attempting to figure out here there are ne opportunities in the market and also hat consumers t%picall% like. @or Page 8
CASE 2 : CRESCENT PURE e/ample# in E/hi!it - there is a !ig space in the lo energ%# lo h%dration *uadrant. 5oe$er# that does not seem like it ould !e a $er% popular drink. nstead# there is a large market opportunit% for a h%drating drink ith a medium amount of energ% attached. n E/hi!it 2# e once again find a large. Crescent is an all0nature organic energ% drink and that is ho it should !e positioned. This positioning strateg% reaches our target market and falls into Gloc$oreH mo$ement that is trending throughout the US. Energ% drinks are often packed ith chemicals that lead to serious health issues. Crescent ill !e launched as a healthier alternati$e to other energ% drinks !ut still at a $er% afforda!le price. 6ften times people chose to a$oid organic products !ecause of the price !ut if the drinks are positioned at a moderate and afforda!le price than Crescent ill !e a!le to !e profita!le and successful ith their drink
Though the market is dominated !% a fe large competitors# Crescent Pure has the capa!ilit% of penetrating the market ith competiti$e ad$antage of !eing healthier# more h%drating# organic and cheaper than the competition. Crescent Pure has an Page 9
CASE 2 : CRESCENT PURE energ% drink that is more suita!le to consumer trends than the competitors !rands. ith lo !rand recognition# Crescent Pure ill face a tough time educating consumers ho are scared from the !ad media attention in the energ% drink segment. To !e successful# the% ill need to successfull% communicate to the consumers that it is a healthier and certified organic alternati$e to the industr% a$erage. Another competiti$e disruptance Crescent faces is the consumer perception that the drink does not pro$ide enough energ%. Crescent ill need to communicate that the% suppl% the same amount of energ% in a !ottleIcan of their product as a cup of coffee. ith limited marketing !udget of >B?,#,,,# Crescent ill need to !e a effecti$e as possi!le in educating their targeted consumers ith their product;s features and !enefits.
D. ecommenations The recommended plan of action for P'( is to market Crescent Pure as an energ% drink • •
• •
A!ilit% to !oost energ% and mental focus 5ealth !enefits here contain no artificial chemical and uses caffeine from natural products ith much less sugar together ith natural fla$ors Pricing ad$antage as it sell it at a loer cost Trending market groth !% =, !eteen 2,-,02,-2
. Conclusion
As a conclusion# the Crescent Pure as ell0knon as !e$erage hich deli$ers a !oost of energ% to com!at fatigue and promote mental focus Positioning Crescent as on energ%0 enhancing !e$erage .ith the passage of time the% increases its strength and reduces the
eaknesses. The compan% $er% much emphasis on the energ% drinks to keep its name in the market.
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CASE 2 : CRESCENT PURE
. eerences
1. 2. 3. 4. 0. 8. .
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