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Session 1

Research for Marketing
Decisions
Understanding Research in
Marketing
7/6/15

Dr. Ashis Mishra

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hydrating and all organic properties – PDB is deciding how to position Crescent Pure • Energy drink • Hydrating sports drink • Anything else? 7/6/15 Dr.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. Ashis Mishra 2 .

PDB timelines and constraints • Timelines – August 13.000 cases / month)prevent national roll out until early 2015 7/6/15 Dr.presentation of initial research findings – October 1 . 2013 = today – Sept 16 . Ashis Mishra 3 .need positioning strategy – January 2014 – rollouts • Constraints – "soft" 3 city roll out – capacity limits (12.

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.Budget and competition • Budget – $750. Ashis Mishra 4 .

How to go about developing the positioning for Crescent Pure? 7/6/15 Dr. Ashis Mishra 5 .

Develop retailer base Transports items to retailer 40% mark up Helps in store operations Dr. Ashis Mishra 6 .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.

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 7 .

energizing. hobby converted to business • Price – $3. healthier – productivity without the sugar crash 7/6/15 Dr. Ashis Mishra 8 .Pre-acquisition strategy • Small business.75 per 8 ounce can • Promotion – Discovered through word-of-mouth • USP – refreshing.

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 9 .

Ashis Mishra 10 .Was it a success? • Distributed through 200 retail outlets-retail grocery chains and small grocers and cafés • sales volume equals 1000 cases per month 7/6/15 Dr.

and distributor relationships 7/6/15 Dr.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. Ashis Mishra 11 . organic suppliers.

Ashis Mishra 12 . employee training and compensation 7/6/15 Dr. cost per distributor per month $34000 for the first year – Includes cost of goods.75 per 8 ounce can – PDB believes in volume business rather than premium pricing • Distribution – 3 distributors. marketing materials.Post – Acquisition proposal • Price – $2.

Ashis Mishra 13 .Ingredients and packaging • Contains – Lime 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. lemon juice.

silver can with simple crescent logo – Certified organic • Promotion – Can be based on healthy energy beverage or sports drinks 7/6/15 Dr.Ingredients and packaging • Crescent is a clear colored liquid served in 8 ounce can containing 80 calorie per serving • Packaging – Tall. sleek. Ashis Mishra 14 .