Crescent Pure Case Study

Crescent Pure: Sport or Energy Drink? Case Study #1
Victoria Chiesa and Phillip Georgiadis
Adelphi University

After PDB acquired Crescent Pure in July of 2013, its management team was faced with a decision when discussing how the product was to be marketed -- some felt that the drink’s energizing ingredients would make it a better fit as an energy drink, while others felt that its hydrating elements would make it a better fit as a sports drink (Quelch, Zalsoh 2014). Crescent Pure was founded in 2008, as founder Peter Hooper wanted “a drink that would refresh, energize and enhance mental focus” (pg 2). However, Crescent Pure will be PDB’s first entry in the U.S., sports and/or energy beverage markets; therefore, in discussing the

Since they need to determine which market best suits their product, they need to research which products that already exist can best be compared with Crescent Pure and evaluate how that product is performing in terms of sales. Feedback from retailers as well as examining the demographics of Crescent Pure consumers will give PDB a better idea of how and where to manufacture this product. Being able to differentiate consumer trends from the markets PDB is choosing between and determining which one best matches Crescent Pure is a crucial step PDB will have to take. It is very important that PDB chooses the best fitting market to position their product in, at first. If they do not do so, this could give off the wrong perception of the product and diminish sales potential. If they choose the correct one first and it is doing very well, then they may try to position the product into a different market simultaneously; however, this can only be done once the product establishes a firm identity in the market it best belongs

As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there