Marketing Research and Analysis: Crescent Pure Positioning Strategies

This case study analyzes the market research conducted for Crescent Pure, a new product acquired by Portland Drake Beverages (PDB). The core issue revolves around determining the optimal market segment—energy drinks, sports drinks, or an organic refreshment category—for Crescent Pure's positioning. The research encompasses an examination of the energy and sports drink markets, including consumer demographics, purchasing power, competitor analysis, and market trends. The analysis highlights opportunities in the health-conscious consumer segment and the growth of the organic beverage industry. The study reviews consumer preferences, including taste, caffeine content, and health benefits, to inform strategic decisions. The conclusion of the research suggests that the most promising segment for Crescent Pure is the health-conscious younger population, leading to the consideration of a third segment focusing on organic refreshment. The document provides a comprehensive overview of market research methodologies, consumer behavior, and strategic decision-making within a competitive market landscape.

Running head: MARKETING RESEARCH
Marketing Research
Name of the Student:
Name of the University:
Author’s Note:

MARKETING RESEARCH 1
Table of Contents
Answer to Case Study Question:.....................................................................................................2
Reference List..................................................................................................................................5

MARKETING RESEARCH 2
Answer to Case Study Question:
Market research is defined as the activity of collecting, analyzing and interpreting
information regarding a specific market regarding a product or service which is going to be
introduced in the market (Babin and Zikmund, 2015). The research also collects and analyze
information about the past, current and potential future customers of the product. The
information set of the customers include data regarding the characteristics, ability to spend and
preferences of the customers. This in turn helps the organizations to determine the target market
where it will introduce the product and determine the target audience for the product in an
effective manner (Xie et al., 2017). Presently market research is considered to be the backbone
of all new successful business ventures.
In the context of the given case study the key problem of PDB was regarding the
positioning of its newly acquired product Crescent Pure. Some people of the management team
suggested that as Crescent contains some energizing ingredients it should position its products in
the energy drinks segment. On the other hand, some of the other people suggested that Crescent
should be introduced in the sports drinks segment as it contains hydrating elements. Now the
vice president of Portland Drake beverages (BDB) is credited with the responsibility of
determining the benefits and drawbacks of the available positioning strategies and determining
which will be the appropriate segment where launching Crescent would be beneficial for PDB.
The data obtained by conducting a market research on the energy drinks market suggest
that, the market was expanding and since 2010 to 2012 the market has expanded by more than
40%. It was projected that the market for energy drinks will reach $8.5 billion in 2031 in the
United States and it will be worth of $13.5 billion by 2018.

MARKETING RESEARCH 3
In relation to the consumer data it has been observed that most of the consumers are aged
between 18 to 35. While analyzing the responses obtained it was observed that most of the
energy drinks were consumed by the individuals who had a monthly income less than $25,000.
In the context of competitors also in has been observed that Crescent will face significant
competition in the energy drinks segment. As most of the renowned organizations like Together,
Razor, Torque and Stellar comprise 85% of the market share while the rest 15% of the market
are shared between other nearly thirty different regional drink manufacturers.
As the consumers are becoming concerned about their health promoting an energy drink
with lower level of caffeine and with more pure ingredients would attract the attention of the
customers (Rothschild, 2014). This can be considered as an opportunity to the company.
In the context of threats it can be stated that news stories are highlighting several facts
about the energy drinks. Due to this 32% of the consumers aged over 18 stated that in the last six
month they had consumed energy drink while 11% stated that they have consumed less than they
used to a year ago.
In relation to the sports drink market the collected consumer responses suggested that
nearly half of the men population consume sports drinks while only one third of women consume
sports drinks. Nearly 40% of the male and 27% of the female found sports drinks to be
refreshing. Sports drinks are more appealing to the younger customers.
There are two major competitors in the market Gleam and Drip who possess 73% and
21% of the total market share respectively while the rest of the 6% market share is fairly shared
by almost 20 producers.

MARKETING RESEARCH 4
As people are becoming more concerned about the childhood obesity which resulted in
government-mandated rule of removing high calorie sugary foods (Munsell et al., 2016).
Developing a new drink with low sugar and diet components may be an area of growth for the
organization. From 2012 to 2017 the market for diet and low sugar sports drinks were expected
to increase from $1.4 billion to $2.97 billion.
As per the customer analysis it can be observed that taste of the drink appeals to most of
the customers and after knowing the amount of caffeine contents only 25% of them remained
concerned about the energy component. There were some customers who stated that Crescent is
just a drink they wanted as a beverage for long, its healthy ingredients, better taste and energy
contents made it stand out from the crowd. This specific criteria thrown a focus on health and
wellness which attracted a specific demographic segment.
On the basis of the market research analysis Ryan came to the decision that younger
population who are health conscious would be the prospective customers for Crescent. Hence a
third broad appeal segment has been considered which is the organic refreshment drink which
takes the advantage of the growth of organic food and beverage industry.

MARKETING RESEARCH 5
Reference List
Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.
Munsell, C.R., Harris, J.L., Sarda, V. and Schwartz, M.B., 2016. Parents’ beliefs about the
healthfulness of sugary drink options: opportunities to address misperceptions. Public health
nutrition, 19(1), pp.46-54.
Rothschild, A.R., 2014. System and method for adding an advertisement to a personal
communication. U.S. Patent 8,645,211.
Xie, W., Bivins, M.A., Jones, S., Deng, K.K., Schiller, B., Sullivan, J., Terrazas, A. and
Sheppard, M., Nielsen Co (US) LLC, 2017. Context-based image recognition for consumer
market research. U.S. Patent 9,569,692.