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Case Assignment : Crescent Pure

Target Market
The target market most receptive to the positioning of an energy drink is those between the
ages of 18-34 though the product has also supported by older generation. Female drinkers are
also present that the expected. So target market should consider both males and females of all
age that are health conscious, and active. The company has limited funds for their advertising
campaign, so their resources must be allocated wisely.

Attributes

Crescent
Pure

Watr+

Swish

Drip

Razor

Fright

Torque

Hydration

Low

High

High

High

Low

Low

Low

Energy

High

Low

Low

Medium High

High

High

Nutrition

Low

High

Medium

High

Low

Low

Low

Taste

High

Medium

Medium

High

High

High

Low

Organic

Yes

No

No

No

No

No

No

POD :
Crescent is POD in “Energy” with Watr+, Swish, and Drip.
Crescent is POD in “Taste” with Watr+, Swish, and Torque.
Crescent is POD in “Organic” with all drinks
POP :
Crescent is POP in “Energy” with Razor, Fright, and Torque.
Crescent is POP in “Taste” with Drip, Raor, and Fright.
Positioning
Energy drinks are often packed with chemicals that can lead to serious health issues. Crescent
will be launched as a healthier alternative to other energy drinks but still at a very affordable
price. Often times people chose to avoid organic products because of the price but if the
drinks are positioned at a moderate and affordable price than Crescent will be able to be
profitable and successful with their drinks.
The drink contains energizing elements which could support the positioning for a sports
drink. If Crescent Pure positions the drink as a sports drink, they will have to sell the drink at
a much lower price in order to compete in this sector where fierce competition already exists.

Submitted By : Pawan Kumar Verma (Roll # 70)

With the energy market showing a 40% growth in two years and a growing health-conscious
market trend, the energy drink and organic markets present great opportunities for Crescent
Pure.
Recommendation:
After carefully observation, as Crescent has both features as Energy and sports drink.
Moreover, this has unique features of Functional, Natural, organic and affordable features
which makes the difference as POD and provide the competitive market. Secondly, in order
to capture both the market segment and Crescent should launch its product as “Organic
energy drink” and that is how it should be positioned & advertised as “The Drink: Organic
energy Something special, Just for you” because the drink is certified organic. They even
can go for charging an additional amount as premium for being an natural and organic
beverage.
Marketing Budget and Breakeven Analysis (For First Year)
Advertising budget:

$750,000

Retailer Price:

$ 2.75

Variable Cost:

$ 1.02 per can

Wholesale price:

$ 1.24 per can

Profit:

$ 0.22 per can or 5.28 per case

Contribution Margin per case:

$ 5.28

So breakeven quantity:

142045 Units

Factory capacity:

12,000 a month or 144,000 annually.

Manufacturer sale price: $1.24
Cost of Goods Sold: - $1.02
Producer’s Gross Margin

:

$.22/$1.24 = 18%

:

$.41= 25%

:

$1.10= 40%

Distribution sale price: $1.65
Cost of Goods Sold: -$1.24
Dealer’s Gross Margin
Retail sale price:

$2.75

Cost of Goods Sold : -$1.65
Retailer’s Gross Margin

It is evident from the Gross margin figures that the producer is taking less margin
compare to its dealers and Retails to promote them for maximum efforts for selling the
product in to the market. Retailers make the highest margin on Crescent Pure, creating more
incentive to push the beverage toward consumer purchases and forward value chain will also
be happy with such margins.
Submitted By : Pawan Kumar Verma (Roll # 70)