Crescent Pure Business Case

1. Discuss key/relevant research data provided by Levor as it relates to consumer value and the product to be introduced.  Compare consumers' perceptions as it relates to Crescent Pure being positioned as an energy versus a sports drink. Develop a value equation for each (sports vs energy drink) Compare and contrast the value equations.

The research has shown that energy drinks with lower levels of caffeine and natural ingredients is becoming an increasing trend in recent years.  Unlike sports drinks, energy drinks contain a wider target market.  The ages that this attracts 18-34 or millennials.  Sports drinks attract more of the 12-34 age group.  Entering the sports drink market causes additional problems because the two top competitors own 94% of the market.  IT will be extremely difficult for Crescent Pure to enter the market under these barriers. If Crescent Pure can highlight the beverage as a healthier energy drink as Levor mentioned then it will be able to break into an unestablished territory.  As the marketing research shows marketing as an energy drink will be much more profitable for Crescent Pure.

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With the sports drink you are getting the familiarity of the product.  People aren’t familiar with the Crescent Pure energy drink since it is a new product.  With 94% of the market share for sports drinks being taken up by two companies’ people are very familiar with the sports drinks available. The cost of a sports drink is also cheaper than the energy drink. Both of the drinks give convenience as they will be available at multiple retailers.  For the sports drinks they tend to be very sugary so an individual would be giving up the health component. There would also be the time and effort of going to buy the product as well as opportunity to try another product. Both would be affected by the money that is spent on the product.  Unlike with the sports drink with the energy drink you will be gaining health.  The product have much more natural products in the energy drink. For the target market the company is trying to reach this is the most important in the value equation.  The customer will be looking for a healthy product that gives them the energy they are looking for with the product.  Also, the energy is a value added for the drink.  Sports drinks tend to be more for restoring electrolytes.  The energy drink will give the consumer a burst of energy to get them through the day.

2. Create a table outlining Crescent Pure's product attributes and consumer benefits.  Explain and support your table information using data provided from the case.

The packaging for the energy drink will be a can and 8 ounces in size.  The benefit for this is that it is accessible and easy to transport.  It is something the consumer can grab on the way outside the door or drink at their desk.  Since more energy drinks are consumed on the go this is a very important attribute. The flavor is lime juice and lime juice or citrus as mentioned in the table.  The consumer benefit is that it will taste good.  The drinks will have to have a good flavor in order for the consumer to want to buy the drink.  No consumer wants to drink a bad tasting energy drink. The calories are low at 80.  This is a good benefit for those energy are health conscious.  These consumers can still enjoy the drink without being worried about the unhealthy.  The caffeine is a solid 80 mg so it will provide consumers with that boost of natural energy that they need.  The energy stimulants are all natural and not artificial.  Once again a benefit to the health conscious consumers.  The sugar is natural so that consumer do not have to worry about artificial sweeteners. Since the target market is the healthier consumer this is very important.

3. Based upon the perceptual maps provided in the case, place and explain where Crescent Pure would be positioned relative to competitors.  Discuss the implications for both perceptual maps.

                                                Hydration-high

                                Swiss                        Drip[pic 11]

                        Watr+

                                        X All Sports Drinks

                        Gleam                        

Energy- Low                                                        Energy-high[pic 12]