Crescent Case Essay Example for Free

Crescent Case EssayA. Segmentation and TargetingWhen face at what food market should be targeted the thing that stuck out most was there is not a powerful alternative for expertness drinks. Most of these drinks atomic number 18 full of naughty fructose corn syrup and firm with extreme amounts of caffeine. Crescent give the consumers a healthy alternative to this option. The trend these days is towards more innate and healthier choices. Crescent is just that. It gives the option for a healthy version of an energy drink which is much(prenominal) needed. The Energy imbibe market is growing at a much faster rate than the period of play drink market as come up as the fitting into a much better outlay point for marketing. With the market for these energy drink being on average $2.99 the price of $2.75 for crescent is on a unhopefuler floor the market average as well as being a slight bit unlike by marketing a healthy alternative option to most other sport drinks on the market now.B. PositioningWhen Looking over the two perceptual Maps the thing noticed is that most of these products pip extremes of each category. For example a sport drink is juicy on the hydration aim but low on the energy. As for the energy drink the cocktail dress is the exact opposite. When looking at provender and assay the nutrition and taste are higher(prenominal)(prenominal) on sports drinks and energy drinks are low on nutrition but the 50/50 on the taste. When looking at crescents studies it would seem that they would be the best case for the average consumer as they would be better than average in all of these categories. The nutrition would be higher than the sports drinks and close to what swish and drip are pertaining to nutritional value and the taste would also eliminate higher similar to Drip or Razor. When looking at the Hydration and Energy Crescent would also be in a higher place average for both. With the equivalent of a cup of coffees worth of caffein e Crescent would fall similar to where torque and Drip are for energy levels.As for looking at hydration Crescent would be up closer to the sports drinks with is electrolytes and natural ingredients closer to where Glean and Watr+ are. Each marketing promotion has positives and negatives. When marketed as an energy drink there is the Pros of being a drastically growing market which has grown by 40% already and is projected to hit 13.5 billion by 2018 as well as no single product being marketed as a healthy alternative energy drink. Another pro is that the cost of theproduct is less than the market average. The con of an energy drink market would be that current naked as a jaybirds stories are highlighting the health risks of Energy drinks and the diminishing number of consumers who are now drinking them. The sports drink market have a much larger population of consumers ranging from junior ages of 12-24.Also with the average sports drink being much cheaper people may not be insti nctive to pay the $2.75 for a sports drink. With Crescent being an all organic product being an alternative to high fructose corn drinks would increase their market audience. The threats would be the increase in childhood obesity who get through up a large portion of the sport drink market the option of just proving pee to children is easier and more economically sound for parents rather than continually paying for sports drinks. Lastly as an Organic Drink they are able to market it as a healthy sports/energy drink for the body invariable adult who wants to stay away from non-organic products. This also works as a con where if they market solo to this small group of people they may be losing a lot of consumers who may be avoiding the new fad of vegan, healthy organic products.C. Contribution MarginThe contribution margin per case of Crescent would be $5.28 or 18%. This is figured by taking the selling price per can and minusing the cost per can. Which would generate the profit of 22 cents per can and a case of 24 would bring the profit to $5.28 per case. You would then sustain that number and divide it by the Price per case of $29.76 which would give you 18% profit.D. BreakevenTo match the national level of marketing it would require putting in 6.66 times the budget that it took to market 15% which would be a total marketing budget of 5 million dollars. With a Total budget of 5 meg dollars it would take selling 946970 Cases of Crescent to break even on the National Level. To address the break-even market overlap for energy would be .07% of the Market Share. This is figured by taking the Market of 9.58 Billion dollars and dividing that by the merchandising budget of 5 Million Dollars.E. RecommendationThe factors that should be used to determine positioning are, Similarities incompetitors, view of market increase, determine of products and marketability of product. I would Recommend Marketing Crescent as an organic energy drink. This would entertain t o a large number of people and would give a different option to the Energy Drinks that are currently on the market. This product could increase the consumers ideas of what energy drinks are especially focusing on obstetrical delivery up the areas of healthiness, hydration and natural. With these areas only having the highest percentage at 11% Crescent would be a great product to diversify the market. Having a below average market price for product pricing makes Crescent an even better market to explore. Crescent provides a great break from the normal high fructose high caffeine energy drinks while still hydrating and tasting great.