Session 1

Session 1Research for Marketing DecisionsUnderstanding Research in Marketing08/06/2015Dr. Ashis Mishra1Crescent Pure CaseCompany : 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, hydrating and all organic propertiesPDB is deciding how to position Crescent PureEnergy drinkHydrating sports drinkAnything else?08/06/2015Dr. Ashis Mishra2PDB timelines and constraintsTimelinesAugust 13, 2013 = today Sept 16 - presentation of initial research findings October 1 - need positioning strategy January 2014 rolloutsConstraints"soft" 3 city roll out capacity limits (12,000 cases / month)prevent national roll out until early 2015

08/06/2015Dr. Ashis Mishra3Budget and competitionBudget$750,000 which was also the benchmark earnings goalCompetitionCountry's largest national beverages companies plan to launch all natural versions of their own sports and energy drinks in the second half of 2015PDB being a smaller player wanted to beat them to the market

08/06/2015Dr. Ashis Mishra408/06/2015Dr. Ashis Mishra5How to go about developing the positioning for Crescent Pure?PDB Business Model08/06/2015Dr. Ashis Mishra6ConsumersLarge Big box retailersSmall and medium food & Beverages manufacturersDistributorsRetailersAssembles catalogue,Develop retailer baseTransports items to retailerHelps in store operations25% mark up40% mark upIndustry and ProductUS non-alcoholic beverages market is$131 billion in 2013 and likely to be $164 billion by 2018Crescent Pure ingredients80 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

08/06/2015Dr. Ashis Mishra7Pre-acquisition strategySmall business; hobby converted to businessPrice$3.75 per 8 ounce canPromotionDiscovered through word-of-mouthUSP refreshing, energizing, healthier productivity without the sugar crash

08/06/2015Dr. Ashis Mishra8Pre-acquisition strategyDistributionManufactured and distributed in small batches from a warehouse in OregonIt was successful in Oregon becauseSupport for healthy organic food choices and support local businesses (locavore movement)promoted through farmers markets and local food shelves

08/06/2015Dr. Ashis Mishra9Was it a success?Distributed through 200 retail outlets-retail grocery chains and small grocers and cafssales volume equals 1000 cases per month

08/06/2015Dr. Ashis Mishra10Post Acquisition proposalCrescent Pure strategy has to accommodate the PDB strategy (parent company)PDB ObjectiveExpand their trusted and popular suite of organic productsgrow into beverage through acquisitionAssetsPBD manufacturing facility, organic suppliers, and distributor relationships

08/06/2015Dr. Ashis Mishra11Post Acquisition proposalPrice$2.75 per 8 ounce canPDB believes in volume business rather than premium pricingDistribution3 distributors; cost per distributor per month $34000 for the first yearIncludes cost of goods, marketing materials, employee training and compensation08/06/2015Dr. Ashis Mishra12Ingredients and packagingContainsLime juice, lemon juice, small amount of raw cane sugar and green tea for flavoringA native south American plant seed Guarana that contains double the concentration of Caffeine found in coffee beans is used for energy stimulantGinseng a herbal supplement known to relieve fatigue and boost concentration as well as enduranceA dash of fine grain salt used as electrolytes08/06/2015Dr. Ashis Mishra13Ingredients and packagingCrescent is a clear colored liquid served in 8 ounce can containing 80 calorie per servingPackagingTall, sleek, silver can with simple crescent logoCertified organicPromotionCan be based on healthy energy beverage or sports drinks08/06/2015Dr. Ashis Mishra14