Session 1

Research for Marketing

Decisions
Understanding Research in
Marketing
7/6/15

Dr. Ashis Mishra

Crescent Pure Case

Company : Portland Drake Beverages (PDB)
Manufacturer of organic juices and sparkling
waters (carbonated water)
Acquired Crescent Pure (a non-alcoholic
functional beverage)
Characteristics of Crescent pure include energy
enhancing, hydrating and all organic properties

PDB is deciding how to position Crescent Pure

Energy drink
Hydrating sports drink
Anything else?

7/6/15

Dr. Ashis Mishra

PDB timelines and

constraints
Timelines
August 13, 2013 = today
Sept 16 - presentation of initial research
findings
October 1 - need positioning strategy
January 2014 rollouts

Constraints
"soft" 3 city roll out
capacity limits (12,000 cases / month)prevent
national roll out until early 2015
7/6/15

Dr. Ashis Mishra

Budget and competition

Budget
$750,000 which was also the benchmark
earnings goal

Competition
Country's largest national beverages
companies plan to launch all natural
versions of their own sports and energy
drinks in the second half of 2015
PDB being a smaller player wanted to beat
them to the market
7/6/15

Dr. Ashis Mishra

How to go about
developing the
positioning for
Crescent Pure?

7/6/15

Dr. Ashis Mishra

PDB Business Model

Large Big
box
retailers

Small and
medium
food &
Beverages
manufactur
ers

7/6/15

25% mark up

Retail
ers

Consum
ers

Distributors
Assembles catalogue,
Develop retailer base
Transports items to retailer
40% mark up
Helps in store operations
Dr. Ashis Mishra

Industry and Product

US non-alcoholic beverages market is
$131 billion in 2013 and likely to be
$164 billion by 2018

Crescent Pure ingredients

80 mg of caffeine (same as cup coffee,
but half of that for the two leading
competitors fight and razor)
70% less sugar than leading energy and
sports drinks
7/6/15

Dr. Ashis Mishra

Pre-acquisition strategy
Small business; hobby converted to
business
Price
$3.75 per 8 ounce can

Promotion
Discovered through word-of-mouth

USP
refreshing, energizing, healthier
productivity without the sugar crash
7/6/15

Dr. Ashis Mishra

Pre-acquisition strategy
Distribution
Manufactured and distributed in small
batches from a warehouse in Oregon
It was successful in Oregon because
Support for healthy organic food choices and
support local businesses (locavore
movement)
promoted through farmers markets and local
food shelves

7/6/15

Dr. Ashis Mishra

Was it a success?
Distributed through 200 retail
outlets-retail grocery chains and
small grocers and cafs
sales volume equals 1000 cases per
month

7/6/15

Dr. Ashis Mishra

10

Post Acquisition proposal

Crescent Pure strategy has to
accommodate the PDB strategy (parent
company)
PDB Objective
Expand their trusted and popular suite of
organic products
grow into beverage through acquisition

Assets
PBD manufacturing facility, organic suppliers,
and distributor relationships
7/6/15

Dr. Ashis Mishra

11

Post Acquisition proposal

Price
$2.75 per 8 ounce can
PDB believes in volume business rather
than premium pricing

Distribution
3 distributors; cost per distributor per
month $34000 for the first year
Includes cost of goods, marketing
materials, employee training and
compensation
7/6/15

Dr. Ashis Mishra

12

Ingredients and packaging

Contains
Lime juice, lemon juice, small amount of raw
cane sugar and green tea for flavoring
A native south American plant seed Guarana
that contains double the concentration of
Caffeine found in coffee beans is used for
energy stimulant
Ginseng a herbal supplement known to relieve
fatigue and boost concentration as well as
endurance
A dash of fine grain salt used as electrolytes
7/6/15

Dr. Ashis Mishra

13

Ingredients and packaging

Crescent is a clear colored liquid
served in 8 ounce can containing 80
calorie per serving
Packaging
Tall, sleek, silver can with simple
crescent logo
Certified organic

Promotion
Can be based on healthy energy
beverage or sports
drinks
7/6/15
Dr. Ashis Mishra

14