Crescent Pure

GROUP NO. 4
RAHUL KUMAR 17PGP113
SHIVAM ARORA 17PGP134
SHIVAM CHUGH 17PGP135
SHRUTI V 17PGPXX
SYLVESTER SAMUEL 17PGP153
 Commercial
Feasibility

Target Segment

Steps To Be Taken Positioning of the

Product
Before Crescent
Launch Advertising plan within
budget

Long Term Viability

Additional data
required
 Commercial Feasibility
• Yes Product is commercially
feasible and profitable
(Analysis done using one
year data)
• PDB has always believed in
High Volume strategy and
never really focused on high
profit margin (At least at
producer level)
Target Segment
• PDB’s Target segment is of age group 18-30 Year
Old
• Respondents with Household income <25K
• PDB should go for market research study for all 3
cities where drink is going to be launched to
identify the demographics and psychology of target
segment
• Based on results they need to confine the target
segment
• Target segment plays an important role in deciding
which segment drink is to be launched
• Customer Profiling needs to be done to identify
the target segment
 Positioning & Market
Campaign
• PDB needs to position its product based
on market research, perceptual maps and
need to identify proper place for the drink
• Position will depends on factors like
Nutrition, Hydration, Taste, Energy, Pricing
strategy and capacity constraints
• Competition & opportunities along with
market size provide a good reason for
positioning.
• After Positioning company needs to design
a marketing campaign for the product using
its $750000 Adv. Budget
Long Term Viability
• Energy drinks looks to be under pressure of long
term survival due to negative media attention
• Increasing Negative media attention may put breaks
on high volume strategy of PDB’s
• Already reducing frequency of energy drink is a
negative sign for the industry
• PDB’s need more data to analyze the impact of
negative media attention to accurately determine
the reduction in volume and its measures
• Alternative plan to counter negative media
attention need to be developed
• PDB can use part of its advertising budget of
$750000 to spread awareness and corrective
action to enhance long term viability of drink
PRODUCT POSITIONING OPTIONS

Parameters & Options for Positioning

Parameters Energy Sports Organic
Age Group 18-24 Years 12 - 24 Years All Age group

High, Top 6 players Oligopoly market, top 2

Competition with 85% of market player 94% share Emerging Market
Negative media Best alternative for
attention, Not a highly custoemers expecting
viable option for long Appealing for health natural and healthier
Perception term Conscious customer products
High growth in energy Rising sales of low sugar
Growth segment, Estimated at beverages, Estimated at Claim 25% premium
opportunities 8.5 Billion in 2013 6.3 Billion in 2013
 Breakeven Analysis

Break Even Analysis (in $) Factors to be considered for Positioning

Advertising Budget 750,000 • Market Analysis
Retailer Price (Per Can) 2.75 • Commercial Viability
Variable Cost (Per Can) 1.02 • Market Size
WholeSale price 1.24 • Distribution Channel
Profit per can 0.22 • Advertisement budget
Contribution Margin Per Case 5.28 • Point of Differentiation and Point of Parity with both Energy & Sport drink
Breakeven Quantity 142045 Crescent Pure Vs Energy Drink Crescent Pure Vs Sports Drink
Factory Capacity (Monthly) 12000 POP POD POP POD
Factory Capacity (Annually) 144000 Refreshing Healthy High Nutrition Low Sugar
Profit per Case 5.28
Mental Focus Organic Hydrating Nature Healthier
Profit per month 63360
Energizing Low Sugar Enhanced Performance Expensive
Profit per year 760320
Advertising Cost 750000 Kills Fatigue 1 Cup Coffee Beans
Profit 10320 Caffeine 2.75 vs 2.99