AMB320: ADVERTISING
MANAGEMENT
Assessment 1: Crescent Pure Case Analysis
Name: Jenny Chan
Student Number: n8738254
Tutorial Number: 1
Tutorial Time: Thursday, 11am-12pm
Tutorial Name: Lia Marx
Due Date: 14 April 2016
Word count: 1250
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Assessment 1: Crescent Pure Case Analysis, Assignments of Advertising and Sales Promotion
Problem statement , Analysis of the key factors (Problem Analysis) , Development and Evaluation of Alternative solutions .
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AMB320: ADVERTISING
MANAGEMENT
Assessment 1: Crescent Pure Case Analysis
Name: Jenny Chan
Student Number: n
Tutorial Number: 1
Tutorial Time: Thursday, 11am-12pm
Tutorial Name: Lia Marx
Due Date: 14 April 2016
Word count: 1250
Problem statement
The problem statement is the marketing positioning of the product for Crescent Pure (Crescent) beverage.
Portland Drake Beverages (PDB) is a manufacturer of organic juices and sparkling waters. The Crescent beverage product positioning which it is a non-alcoholic functional includes water, dairy, juice, soda beverage brand recently product acquired to impending launch in the U.S. market. The problem is that the market is struggling with their product positioning of Crescent product are the fact that the beverage is the two combination of energizing and hydrating elements using all the organic ingredients with a natural existence of the product line in the market, which it make it harder to determine whether the beverage should be put into two categories positioned as an energy drinks or as a sport drinks. Since the Crescent product use all the organic beverage, PDB is planning to launch their own all-natural version of the energy drinks or sport drinks. PDB would have to consider on the third positioning strategy which it can focus on the beverage which is a broader of a healthy refreshing organic it would be an option possible in the market. However, the result is that the PDB production capacity constraints prevented PDB from launching the beverage. PDB planned to embark the “soft launch” for Crescent beverage in the three western states includes California, Oregon and Washington.
Analysis of the key factors (Problem Analysis)
The problem analysis for Crescent product are positioning, price strategy and distribution in the PDB market. The beverage has two categories of energy drinks and sport drinks. The positioning in the market is that for the energy drinks and sport drinks need to in-depth research on the market size, competitors and consumer preferences in order to have broader with the positioning strategy of the products. The positioning for energy drinks is that the Crescent delivers the boost of energy to promote the mental focus on the positioning as the energy-enhancing the beverage with an existing perception in the market. The positioning for the sport drink is that the 42% of sport beverage drinkers is considered as sport drinks of “anytime beverages” which did not appeal to the consumer only with their exercise.
The price strategy is to reflecting PDB’s pricing strategy with other product lines which it can deliver the quality of organic products at affordable prices. With the short-term production of the capacity is the limited on the Crescent retail price is $2.75 of 27% below the drink original selling price. The PDB had an experimented on using the premium pricing from previous products launches and the pricing strategy had to fail in the market of the products. The price for energy drink in the U.S. range
The advantage for organic beverage is the valued of difference attributes include refreshing taste, mild energy boost, organic ingredients to focus on the health and wellness. The disadvantage for organic beverage is that it has the limiting of positioning on the product of just one or two of these attributes. The PDB might be in a risk of excluding additional productive customer segments. The segment is to avoid the traditional energy drinks and sport drinks with their ingredients and could be the psychographic positioning that did not resonate with their beliefs.
Course of Action Recommendation and Justification
The recommendation for Crescent beverage product in the market is to use the market research on the consumer reflection. The Crescent products are that the consumer reflection on between the two beverages is energy drinks and sport drinks. The sport drinks for the consumer is that the 40% of male found the sport drinks is refreshing and 27% of female which the sport drinks is appealed to the younger consumers of 62% aged of 18 and 24, and 77% aged of 12 to 17. The product opportunity for consumer is that it can make it into the new diet and low-sugar of the sport drink can be growth in the areas for the industry. Therefore, the new diet with low-sugar for sport beverages which it does not exist since the product is taking in the market share from traditional sport drinks. The group of energy drinks consumers are male between aged 18 and 34 which are parents of children more likely to drink the energy drinks. The sport drinks product is the sales of energy drinks with the lower levels is the levels of caffeine and purer ingredients for the energy drinks which it was affected by the consumer demand for the healthier food and beverages in the market.