0 Comment

VINICIUS MELO – 51660377Introduction Portland Drake Beverages (PDB) has created a drink that is positioned and certified as organic energy drink called Crescent Pure and it has a unique feature. Out there in the market, these types of energy drink are currently saturated with high levels of sugar and can be classifies as dangerous beverages. However, Crescent Pure came along the market with a competitive advantages over its competitors, once they can positioned themselves as a healthy energy drink alternative. This movement around the world searching for a better quality of life, seeking and looking for more locally grown, organic and healthier options. The last few years, this movement and grown for searching of food and drink beverages healthier, has completely changed company’s behaviour in the food industry, and it has become a big trend in the market. Positioning Crescent Pure as an Organic energy drink provides the potential for strong consumer following. This health consciousness, especially among younger consumers along the West Coast of US, has grown absolutely and PDB has a strong plan to dive in into this market. Preparing and executing a ‘’soft’’ launch for Crescent Pure will provide solid results to use as a base for future manufacturing and distributional decisions. In this essay we will discuss and point the main step and analysis for PDB launch Crescent Pure in the market. We will be making a complete analysis where it is inside MACRO and MICRO environment, a deep SWOT analysis, Strategies made for its success and how to Control the product and market share.MACRO    In one study in 2012 on sports drink, according to Mintel, almost 50% of sports beverage users did not associate drinks solely with athletics, rather it was considered an ‘anytime beverage’. Regular drinkers consumed sports drinks more often than energy drinks as this area appeals to a fairly wider potential consumer base. Athletes and sports lovers will seek for healthy products and all organic and natural. As Crescent Pure is all natural and has low levels of sugar, organic ingredients, they will also attract the growing number and groups of health-conscious consumers who are looking for health products ‘anytime’ beverage alternatives. Considering the dense negative media coverage about energy drinks, Crescent Pure has a strong plan to prospect its new option of Organic Energy Drink and the future brighter and more health-oriented. That brings Crescent Pure in a position of being Organic Energy Drink with low sugar. The hydrating elements of Crescent Pure, together with the energy drink boost and mental focus functions, can greatly improve athletic performance and help remit post-workout fatigue after any exercise.     What regards to Crescent Pure competitors, two of its strongest competitors are Gatorade (owned by Pepsi Cola) and Powerade (owned by Coca-Cola). Both of them considering the relevant differences between them in terms of market share, 77% and 20% respectively, they are regarded as parallel competitors. Both Gatorade and Powerade contain artificial sweeteners that is 200 times sweeter than sugar, which can results serious health damage for the human body. Highlighting the ‘all organic component and 70% less sugar quotient, Crescent Pure is putting itself in a totally different position in the market from its strongest competitors and build a positive and healthy brand image. The growing health consciousness among young adults generation will bring Crescent Pure establish itself as a healthier option, surely standing out in the sports and energy drink industry.Micro Environment Company  Peter Hooper, a manufacturer who came with the idea of providing a healthy and energizing drink, with different ingredients in order to craft an organic beverage that would refresh, energize, and enhance mental focus, founded Crescent Pure in 2008.  The Company became part of Portland Drake Beverages (PDB) in July 2013; in that year the non-alcoholic beverage market was estimated to be $131 billion and was projected to grow to $164 billion by 2018.  Therefore PDB Culture   Portland Drake Beverages has been a customer-centric brand, constantly innovation. The company felt it important to expand PDB’s trusted and popular suite of organic products, once that the demand for organic food and beverage products was rising, the search of a unique product seemed to be the great solution.  Crescent Pure establish itself as a healthier option, surely standing out in the sports and energy drink industry. All Crescent ingredients were certified organic; the drink’s label highlighted its certified-organic roots. In addition to the nutritional information included on each can, the drink also listed its energy content.Suppliers / Operations  A Short-term production capacity retrains limited PDB’s production of Crescent to  12,000 cases per month in 2014. The company has a favourable supplier terms that made the drop in price affordable.Because of that limited production capacity, and to ensure distributors profitability in case of a sold out inventory, PDB used only three distributors.  The company arranges most resources at the right place and on the right time that are useful for the manufacturing. Price in the MarketingThe cost of Crescent for 8oz puts a price as $2.75 because of the lower sugar and organic ingredients. The price is higher than other drinks. According to consumers, they understand high price for their products by high quality materials, but they desire more to consume as cheaper price. Therefore, difference price based on price will impact on the consumption and the preference of target audience.Competitors There are five main companies in market for energy drinks (Together. Fright, Razor, Torque and Stellar and they occupy around 85% of market share. The rest of percentages occupy by other producers. On the Sports drinks side, there are two companies leading Gleam 73% and Drip Had 21% market share respectively. The remaining 6% of market of market share ($378 milion) was split fairly evenly among roughly 20 producers. Branding Position MatrixRight bellow is placed a map where we can find the positioning map created through the data acquired during some research. The map shows the value x price ratio for the Crescent Pure and its competitors. CRESCENTE PURE’S SWOT ANALYSIS STRENGHTHS Crescent’s organic certification Crescent’s sugar quotient is on average 70% less than leading energy and sports drinks Crescent’s herbal stimulant’s deliver 80 milligrams of caffeine, equivalent “energy effect” to a cup of coffee Crescent Pure is a healthier alternative to other leading energy drink brands (about artificial sweeteners and stimulants) Consumers thought the product was fairly priced PBD’s revenue in 2012 was $120.5 million Healthier sports and energy drink alternative Herbal stimulants (guarana and ginseng) provide energy boost (to relieve fatigue) and mental (concentration and endurance) functions Incredible taste WEAKNESSES Confusion between sports drink and energy drink Brand awareness is missing contrasted with contenders In the younger target segment, the level of energy can be considered low (not enough caffeine) Little public awareness as a new brand  Other possible competitors to arise in sports drink market in the near future (2015) OPPORTUNITIES Energy drink market catches 34% of the general populace in the U.S.A, the market has grown 40% within two years alone, between 2010 and 2012 Both male and female target markets The market for energy drinks expected to grow to 33 billion by 2018 The market for sports drink is growing Emerging and booming diet and low-sugar sports drink industry The market trend of organic, all-natural food and beverages growing rapidly in the U.S.A (about the “locavore” movement Low competition in the high hydration with mid to high energy positioning for energy drinks Low competition in the high nutrition with high taste positioning for energy drinks Larger group of health-conscious consumers Considered as “anytime beverage”, providing a wider consumer base THREATS Many are concerned with the health and safety risks associated with consuming energy drinks The market for sports drinks increased only 9% between 2007 and 2012 In the sport drink category, Gleam and Drip had 73% and 21% market share, respectively In the energy drink category, Fright, Razor, Torque, and Stellar accounted for 85% of category revenue Energy drinks have received negative media attention Younger target segments enjoy drinks containing unnaturally high energy, more than what Crescent Pure offers The low price may arouse distrust about PDB’s ability to deliver quantity organic ingredients Publics disapproval of new drink on the market Potentially stricter government regulation Monitoring and maintaining an accretive evaluation of the performance of various business strategies is an essential aspect of assessing business success. KPI is an effective measure used to measure business success.  The assessment tool ensures an effective evaluation of efforts and their success rates hence helping the management to control changes for better performance. Additionally, the assessment tool helps in the valuation of business position in the market in comparison with its competitors and determine whether a business is making losses or profits.Based on the case study on Crescent Pure, it is evident the company has managed to reach great heights of success.  Using the financial tool of analysis of the KPI model, it is true to conclude that the organization makes significant amounts of profits. For instance, the budget cost does not exceed the income. Although the actual figures are encoded, as per the statistics from the cost of production and distribution, the major expenditures are lower than the sales made. Secondly, in the benchmark basis of evaluation to assess the Crescent’s strategies, there are several goals set. For instance, the goal on the launch of the product in a national phase seemed unrealistic. It would be hard to launch the brand on a national phase when the production capacity has not reached the status. The move to launch their beverage in three states that hold 15% of the national market for non-alcoholic beverages seems right and realistic to acquire.On the customer perspective using the KPI tool to gauge their satisfaction, the marketing strategies are good enough.  Crescent’s products are available at a market medium price an aspect that brings in more customers.  Secondly, the value and nature of the drink is a healthy component that suits customer preference for healthier foodstuff. Additionally, the company maintains consistent qualities in production.  Ever since establishment, the company has managed to sustain high consistency levels in production hence maintaining a legit brand through high levels of loyalty. From the analysis, crescent strategies have attained the company great success rates.