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Marketing Crescent Pure Case Study
Marketing Crescent Pure Case Study
Marketing is a process aimed at creating a balance between product distribution and customer satisfaction. This process involves satisfying customer needs and at the same time achieving organization’s objectives, which include high sales, which increase or maintain an organization’s profit gains (Carpenter & Shankar, 2013). Marketing focuses on the customer and is a process that should be integrated into every organization dealing with provision of goods and services to customers (Carpenter & Shankar, 2013). Effective marketing can create a new customer base and maintain current consumers, which is a competitive advantage to any organization in the market (Carpenter & Shankar, 2013). In the HBS Business case, Portland Drake Beverages is strategizing on how to market their new beverage Crescent Pure, which is a specialty organic beverage (Quelch & Zalosh, 2014).
What Is The Best Way To Explore Product Positioning Based On A Combination Of Customer Segmentation And Product Differentiation Analysis?
With the management having a difficult time in positioning the product as either an energy drink or a sports drink, information based on the customer segmentation and product differentiation can be useful in better positioning the drink to enable a successful integration into the beverage market (Quelch & Zalosh, 2014). With increasing demands on natural beverages by the consumers, large companies are planning to launch their own natural beverages. For PDB to have a competitive advantage over these companies they have focused on the Western States, which are California, Oregon, and Washington (Quelch & Zalosh, 2014).
This will give it a competitive advantage as these states represent 15% of the national demand for beverages. Due to the two current product differentiation, which are the energy drinks and sports drinks, these drinks already have a high market share. The recommendation by Ryan on a third positioning of Crescent Pure, as healthy and organic beverage will give PDB a competitive advantage over other companies in the market (Quelch & Zalosh, 2014).
How Can the Company Show How the Chosen Product Position Should Be Reflected In Other Elements of the Marketing Mix
The chosen product position can be reflected in other elements of the marketing mix by integrating the product positioning objectives in the marketing mix (Richter, 2012). Product positioning is aimed at determining a certain market target for a new product, which cannot be achieved without the other marketing mix factors (Richter, 2012). These factors are important in influencing consumers to purchase the product. These goals should also be supported by the organization, as all marketing components should be directed to achieve the desired position goals (Richter, 2012). Any weak points in the marketing mix will result in an ineffective marketing strategy, which will lead to negative outcomes of the desired sales (Richter, 2012). The organization can coordinate and provide support to all marketing mix components as product positioning is among many other marketing processes. There are many other important marketing processes, which should also receive support from the organization in enabling a successful integration of the new product (Richter, 2012).
What Is Perceptual Mapping, And Can You Evaluate The Value Of Perceptual Maps As A Market Research Technique?
Perceptual mapping is a technique used by organizations in the marketing process in determining customer’s perceptions to certain products in the market (Hooley, Piercy, Nicoulaud, ; Rudd, 2017). Organizations aiming at availing new products in the market should use perceptual maps to develop an effective positioning strategy for their products. Perceptual mapping helps an organization in determining gaps in the market where they can position their products to fill those gaps (Hooley et al., 2017).

Perceptual maps have a high value if used as a market research technique as they help in making informed decision in product positioning which is important as this determines the success or failure on the performance of a product in the market (Hooley et al., 2017). The positioning of a product will determine the achievement of an organization’s goals, which are to have high sales, which will increase the company’s profits. This decision should be carefully determined and with the use of perceptual mapping, an organization is able to make effective decisions, which will have positive outcomes (Hooley et al., 2017).
Given That Crescent Is PDB’s First Entry in the U.S. Sports and/or Energy Beverage Markets, What Must PDB Do In Regard To Crescent’s Pending Launch?
PDB should do more research about the market, which will be aimed at reducing any risks that may be associated with the launch of the new beverage. This research may include an analysis of the market size concerning beverage drinks (Hooley et al., 2017). Projected forecasts for beverage drink are expected to reach 13.5 billion dollars by 2018 in the United States market, which is a good basis for launching a new product in the market (Quelch ; Zalosh, 2014). An analysis of the market will also provide information about the target population, which the launch should be focused on as the target market will determine the success of the product (Hooley et al., 2017).
An analysis of the competitors in the market will help in strategizing the new beverage (Hooley et al., 2017). PDB should consider the available opportunities, which include the rising consumer demand for healthy beverages, which will help PDB in the manufacturing and marketing Crescent Pure (Quelch ; Zalosh, 2014). This is because consumers are now going for products with less sugar and caffeine, which will be an advantage to PDB if they launch their product as a healthy energy drink (Quelch ; Zalosh, 2014). Any threats into the market should also be properly addressed with good planning to overcome any challenges that may be faced.
How is the market segmented? At what segment should Crescent be targeted toward?
The market is segmented into three market segments based on beverage products, which include the energy drink segment, the sports drink market, and the new organic health and wellness beverage segment (Quelch ; Zalosh, 2014). The energy drink segment is composed of individuals between the age of 18 and 34. The leading energy beverages in the market are Fright and Razor where Crescent Pure sugar quotient was 70% less than Freight’s and Razor’s which is a competitive advantage as this sugar is derived from organic, raw sugar (Quelch ; Zalosh, 2014).
The other market segment is the sports drink market, which is targeted to individuals between the age of 12 and 24. This market aims at providing low-calorie beverages to the sporting and non-sporting population and has a wider consumer base than the energy drinks as they were consumed more regularly than the energy drinks (Quelch ; Zalosh, 2014). The third market segment, which the PDB intends to venture into, is the healthy organic beverage segment, which will be, targeted to consumers who are self-conscious about their health (Quelch ; Zalosh, 2014). This is the best market for PDB to target as their product is largely composed of natural ingredients, which is an advantage over the energy and the sports beverages and will guarantee a successful integration into the market (Quelch ; Zalosh, 2014).

Pros and Cons of Positioning Crescent as an Energy Drink, a Sports Drink, or a Healthy Organic Beverage
The advantage of positioning Crescent Pure, as an energy drink is that it would reinforce existing perceptions from Oregon as a survey conducted revealed that consumers described Crescent’s characteristic with energy (Quelch & Zalosh, 2014). Due to the low caffeine levels of Crescent’s drink, consumers prefer it as the healthier drink compared to other energy drinks. A disadvantage of positioning Crescent as an energy drink is that the energy drink market is not viable in the long-term, as negative media reporting has resulted in the decrease of the consumption of energy drinks (Quelch ; Zalosh, 2014).
The advantage of positioning Crescent Pure as a sports drink is that this market has attracted a wider consumer base than energy drinks because sports drinks that can be used anytime and are not necessarily associated with exercise (Quelch ; Zalosh, 2014). Crescent’s hydrating elements plus the mental focus and energy boost associated with the drink can improve athletic performance giving it a competitive advantage over other products in this market (Quelch & Zalosh, 2014). A disadvantage of positioning Crescent as a sports drink is the pricing, which will be higher than similar products, which may affect its acceptance by the consumers of the sports drinks (Quelch & Zalosh, 2014).

The advantage of positioning Crescent Pure as a healthy organic beverage is the competitive advantage and opportunity of providing consumers with a healthier product (Quelch & Zalosh, 2014). Crescent Pure has low levels of caffeine and is largely composed of natural ingredients. There is a rising demand due to consumers’ preferences for healthier foods and beverages (Quelch ; Zalosh, 2014). The disadvantage of positioning Crescent, as a healthy organic beverage is the challenges involved with the establishment of a new market and the pricing issues compared to other similar products, which may influence the reception of the beverage, by consumers (Quelch ; Zalosh, 2014).

Carpenter, G. S., ; Shankar, V. (2013). Handbook of marketing strategy. Cheltenham: Edward Elgar.

Hooley, G. J., Piercy, N., Nicoulaud, B., ; Rudd, J. M. (2017). Marketing strategy ; competitive positioning. Harlow, England: Pearson.

Quelch, J. A., and Zalosh, A. (2014). Crescent Pure. HBS No. 9-915-539: Boston, MA: Harvard Business School.

Richter, T. (2012). International marketing mix management: Theoretical framework, contingency factors and empirical findings from world markets. Berlin: Logos.

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