Crescent Case Essay Example

average in both areas. With an approximate caffeine content equivalent to a cup of coffee, Crescent is on par with Torsion and Drip in terms of energy levels. In regard to hydration, Crescent aligns closer to sports drinks like Glean and Watr+ due to its electrolytes and natural ingredients.

Each marketing promotion has advantages and disadvantages. When marketed as an energy drink, the pros include being part of a rapidly growing market that has already increased by 40%, with a projected value of 13.5 billion by 2018. Crescent also stands out as a healthy alternative to other energy drinks. Additionally, the product is priced below the market average. However, the con of entering the energy drink market is the current news stories highlighting the health risks associated with such drinks, leading to a decrease in consumers who consume them.

In contrast, the sports drink market has a larger consumer population ranging from ages 12-24.In addition to being more affordable, some people may not be willing to pay $2.75 for a sports drink. However, Crescent, an organic alternative to high fructose corn drinks, could expand their market audience. However, there is a potential risk of increasing childhood obesity rates, as children make up a significant portion of the sports drink market. Providing water as an option could be more convenient and economically feasible for parents. On the other hand, marketing Crescent as a healthy sports/energy drink for health-conscious adults who prefer organic products could be advantageous. However, this strategy may limit their consumer base by excluding those who do not follow the vegan/healthy organic trend. The contribution margin per case of Crescent is calculated to be

$5.28 or 18%. This is obtained by subtracting the cost per can from the selling price per can, resulting in a profit of 22 cents per can. With a case of 24 cans, the profit per case would be $5.28. Dividing this figure by the price per case of $29.76 gives a profit margin of 18%. To reach a national level of marketing, six adjustments would need to be made.The entire selling budget for marketing Crescent is $5 million, which is equivalent to 66 times the budget used to market 15%. In order to break even on a national level, 946,970 cases of Crescent would need to be sold. This accounts for 0.07% of the market share, calculated by dividing the market value of $9.58 billion by the marketing budget.

Based on similarities with competitors, market forecast, product pricing, and marketability, I recommend marketing Crescent as an organic energy drink. This would appeal to a large number of people and provide a unique alternative to the currently available energy drinks. It has the potential to change consumers' perception of energy drinks, focusing on promoting good health, hydration, and natural ingredients. With a market share percentage of only 11% in these areas, Crescent can diversify the market effectively. Additionally, Crescent's below-average pricing makes it a promising market to explore. By offering a break from high fructose and high caffeine drinks while still providing hydration and great taste, Crescent stands out in the market.