Overview

Leaders in the Portland Drake Beverage (PDB) organization initiated attempts aimed at

determining the appropriate product positioning and advertising campaign necessary for

launching a specialty organic beverage, the Crescent Pure. The options targeted for the

achievement of the desired goals included positioning the product as an energy drink, soft drinks,

or as an organic health and wellness beverage. The achievement of these objectives would occur

through the company’s motives which entail becoming the greatest natural beverage in America

which is organic, enhances energy, hydration in sporting activities. Nonetheless, these motives

necessitated a product positioning option that included various packages. For instance, if the

company opted to position their product as an organic drink, it would incur 25 percent premium

while the sports drink option would involve costs of $1 to $2 per can. Additionally, if the

company decided to position their product as an energy drink it would incur costs of $2.99 on

average. However, the company has encountered various challenges in their operations and

selection of a suitable product positioning option. Some of these challenges include finalizing the

product positioning strategy, attainment of the estimates provided by the beverage industry in the

United States, overcoming their competitors and advertisement on a large scale.

Problems

Some of the problems facing the Crescent Pure organization in determining the suitable product

position strategy for their specialty organic beverage entail intense competition from other

companies in the industry. These competitors include companies with energy other energy drinks

such as Torque, Steller, Gleam, Razor, just to mention but a few. Moreover, these competing

companies have enjoyed market domination through the acquisition of about 85 percent of the
market share. Additionally, consumer trends in purchasing organic beverages are widely

distributed across various factors based on the positioning strategy. These factors bring about

hindrances to the management team in determining a suitable product positioning strategy for

their product. Moreover, according to research, the organic beverage industry employs a short-

term productivity restraint that requires companies to process about 12,000 cans every month as

per 2014. These are followed closely by a limitation in the variety of products the competing

organizations may position in the market. Additional challenges facing the company in the

achievement of their desired goals entail negative campaigns against synthetic energy drinks. For

instance, as a result of obesity among children, schools initiated the removal of energy drinks

and snacks rich in calories and sugars. Moreover, energy drinks and organic beverages have been

associated with health and safety concerns among the people thereby creating a challenge in the

identification of an appropriate product positioning strategy that would ensure success in the

market.

Alternative Solutions

Some of the mitigation strategies employed in solving the problem at Crescent Pure entail

focusing on strengths such as organic certification and less caffeine. Additionally, they focused

on the production of an environmentally friendly product with unique, refreshing, organic and

healthier energy drink that differs from the average beverage in the market. Most importantly,

the company emphasized on the reduction of the prices of production to $2.75 for each can of the

energy drink. This price was relatively lower than that of producing average energy drinks which

cost $2.99 for each can. These strategies allowed the company to enjoy opportunities such as

projection in the market and consciousness of a healthier lifestyle which initiated a transition

among consumers to healthier alternatives. For instance, with the identification of a suitable
product positioning strategy, the company expected their growth in the market to yield about

$9.58 Billion by 2017 and $13.5 in 2018. These figures portrayed an instance of progress in the

projected market value in the sale of their products from $8.58 billion in 2013. Nonetheless, to

solve the product positioning problem in the company, they management team ought to focus on

alternative strategies such hiring an advertising organization to facilitate the improvement of

their market presence and share. The marketing firm would focus on creating awareness

regarding the product and also acquire consumer’s insights on the energy drinks they prefer. The

acquisition of this information would enable the company to develop and execute a new strategy

based on health, welfare and natural ingredients in positioning their products. Additionally, the

company may direct their attention towards a second marketing potential based on organic

beverages which would give them an upper-hand over their competitors in the energy drink

market.

Evaluation of the Alternatives

A product positioning strategy entails a marketing plan which involves the development and

communication of the distinct attributes provided by the goods and services manufactured within

an organization. According to research, the product positioning strategy necessitates the in-depth

understanding of the dimensions used by consumers in evaluating competing marketing

programs as well as making purchasing decisions. Moreover, it facilitates mapping of consumer

perceptions regarding different dimensions. For instance, at the Crescent Pure organization, the

lack of a product positioning strategy hinders the achievement of desired goals in that they fail to

understand the various dimensions applied by consumers in purchasing energy drinks. The

challenges associated with the lack of a product positioning strategy within the company entail

fierce competition, negative campaigns against synthetic energy drinks, among others.
Additionally, fluctuations in consumer dimensions on purchasing energy drinks and organic

beverages largely affect the organization’s objective in choosing a suitable product positioning

strategy. Nonetheless, mitigation strategies such as the alternative solutions provided above

would facilitate the development of a suitable plan that focuses on boosting the company’s

marketing portfolio. For instance, hiring a marketing firm would bring introduce benefits such as

transforming the entire organization into a market-oriented firm. This would facilitate the

identification of major aspects of their products and align them with consumer dimensions as

opposed to their competitors. Additionally, it would enable the company to cope with changes in

the market through realizing the expectations of the buyers. For instance, the removal of energy

drinks containing calories and sugar in schools would be met by provision of organic beverages

produced by the company. These factors would be followed closely by the promotion of

consumer loyalty and goodwill. Further, a marketing firm would allow the company to win the

attention and interest of the consumers thereby boosting their market share and enable the

successful introduction of new products.

Recommendations

The alleviation of the situation in the Crescent Pure organization necessitates the development of

a solid product positioning strategy that would ensure an increase in the market share as well as

profitability. According to the SWOT analysis on the company, some of the challenges affecting

the organization include a limitation in the variety of their goods, short-term productivity

restraints that include the manufacture and processing of about 12000 cans every month as per

2014. Therefore, based on these challenges, the company may opt to develop a product

positioning strategy that states a framework which promotes the marketable solutions in an

effective manner. This strategy should include various core elements such as the articulation of
the significant benefits distinguishing the company’s products from other competing brands. It

should also accentuate the alignment and preparation plans necessary for communicating the

value proposition of the company in a suitable manner. Additionally, the incorporation of a

suitable product positioning strategy necessitates the determination of the various factors

affecting the performance of certain products in the market. The determination of these factors

may be coupled with the creation of mapping tools necessary for evaluating consumer

perceptions based on various factors. After understanding these consumer perceptions, the

company should further focus on developing a suitable positioning strategy and aligning their

marketing program with the dimensions identified. Moreover, the company should focus on the

development of a promotional strategy that relies on the communication of the advantages

appropriate to the promotion of the products.

Possible Results and Obstacles to the Recommendations

Some of the advantages associated with the recommendations of implementing a product

positioning strategy within the Crescent Pure organization include the creation of a competitive

advantage. For instance, if the company manages to establish its organic beverages as uniquely

valuable, their competitors will have challenges in making a compelling argument for the

purchase substitute. Therefore, the Crescent Pure organization should focus on making their

products as unique as possible through well-guarded recipes which cannot be imitated by their

competitors. This would allow the company to have a better position in the marketplace based on

the fact that consumers are able to recognize their products over those of their competitors.

Additionally, the successful implementation of the strategy proposed above would bring about

advantages such determination of consumer perceptions and decisions in purchasing their

products. For instance, to overcome competition and increase their market share, the Crescent
Pure organization may focus on using various marketing techniques in positioning their products

in a favorable manner to the consumers. Contrastingly, the implementation of a product

positioning strategy with the company would face obstacles such inevitable change. For instance,

the consumers of their products might get bored and tired hence necessitating improvement and

restructuring of the company’s brands through improvement of the introduction of new goods.