Case Study Crescent Pure
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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The advantages of positioning Crescent as a sport drink is that the market size is also increasing. The market increased 9% between 2007 and 2012. In 2012, sports drinks reached $6.3 billion in the United States and are expected to grow to $9.58 billion by 2017. Another advantage of positioning Crescent as a sports drink is that diet and low-sugar beverages, which did not exist before 2009, had grown by 33% between 2010 and 2012. The market size for diet and low-sugar sports drinks is expected to increase from $1.4 billion in 2012 to $2.97 billion in 2017. This is perfect for PDB because the Crescent beverage is based on being a diet, low-sugar, and overall healthy option. The disadvantage of PDB positioning Crescent as a sports drink is the concern regarding rising childhood obesity rates resulting in government-mandated guidelines to remove high-calorie sugary drinks and snacks, including sports drinks, from school vending machines. This could be a negative impact on the amount of sports drinks young consumers buy, who make up a large portion of the sports drinks that are consumed. The advantages of positioning Crescent as a healthy organic beverage is due to consumers currently moving towards healthier food and beverage options, as mentioned earlier. It is a market that is currently growing and will continue to grow. The disadvantage of positioning Crescent as a healthy organic beverage is that it lacks the energy that is provided by other energy drinks due to its