Crescent Case Essay
A. Cleavage and Targeting
When Looking at what market should be targeted the thing that stuck out most was there is non a healthy option for energy drinks. Most of these drinks are full of high fructose maize sirup and loaded with utmost sums of caffeine. Crescent give the consumers a healthy option to this option. The tendency these yearss is towards more organic and fitter picks. Crescent is merely that. It gives the option for a healthy version of an energy drink which is much needed. The Energy Drink market is turning at a much faster rate than the athletics drink market every bit good as the adjustment into a much better monetary value point for selling. With the market for these energy drink being on mean $ 2. 99 the monetary value of $ 2. 75 for crescent is below the market norm every bit good as being a little spot different by marketing a healthy alternate option to most other athletics drinks on the market now.
When Looking over the two perceptual Maps the thing noticed is that most of these merchandises hit extremes of each class. For illustration a athletics drink is high on the hydration degree but low on the energy. As for the energy imbibe the instance is the exact antonym. When looking at nutrition and gustatory sensation the nutrition and gustatory sensation are higher on athleticss drinks and energy drinks are low on nutrition but the 50/50 on the gustatory sensation. When looking at crescents surveies it would look that they would be the best instance for the mean consumer as they would be better than norm in all of these classs. The nutrition would be higher than the athleticss drinks and shut to what classy and trickle are refering to nutritionary value and the gustatory sensation would besides fall higher similar to Drip or Razor. When looking at the Hydration and Energy Crescent would besides be above norm for both. With the equivalent of a cup of coffee’s worth of caffeine Crescent would fall similar to where torsion and Drip are for energy degrees.
As for looking at hydration ; Crescent would be up closer to the athleticss drinks with is electrolytes and natural ingredients closer to where Glean and Watr+ are. Each selling publicity has positive’s and negative’s. When marketed as an energy drink there is the Professionals of being a drastically turning market which has grown by 40 % already and is projected to hit 13. 5 billion by 2018 every bit good as no individual merchandise being marketed as a healthy alternate energy drink. Another pro is that the cost of the merchandise is less than the market norm. The con of an energy drink market would be that current intelligence narratives are foregrounding the wellness hazards of Energy drinks and the decreasing figure of consumers who are now imbibing them. The athleticss drink market have a much larger population of consumers runing from younger ages of 12-24.
Besides with the mean athleticss drink being much cheaper people may non be willing to pay the $ 2. 75 for a athleticss drink. With Crescent being an all organic merchandise being an option to high fructose maize drinks would increase their market audience. The menaces would be the addition in childhood fleshiness who make up a big part of the athletics drink market the option of merely turn outing H2O to kids is easier and more economically sound for parents instead than continually paying for athleticss drinks. Last as an Organic Drink they are able to market it as a healthy sports/energy drink for the organic structure uninterrupted grownup who wants to remain off from non-organic merchandises. This besides works as a con where if they market entirely to this little group of people they may be losing a batch of consumers who may be avoiding the new craze of vegan. healthy organic merchandises.
C. Contribution Margin
The part border per instance of Crescent would be $ 5. 28 or 18 % . This is figured by taking the merchandising monetary value per can and minusing the cost per can. Which would convey the net income of 22 cents per can and a instance of 24 would convey the net income to $ 5. 28 per instance. You would so take that figure and split it by the Price per instance of $ 29. 76 which would give you 18 % net income.
To fit the national degree of marketing it would necessitate seting in 6. 66 times the budget that it took to market 15 % which would be a entire selling budget of 5 million dollars. With a Entire budget of 5 Million dollars it would take selling 946970 Cases of Crescent to interrupt even on the National Level. To turn to the break-even market portion for energy would be. 07 % of the Market Share. This is figured by taking the Market of 9. 58 Billion dollars and spliting that by the Marketing budget of 5 Million Dollars.
The factors that should be used to find placement are. Similarities in rivals. Forecast of market addition. pricing of merchandises and marketability of merchandise. I would Recommend Marketing Crescent as an organic energy drink. This would use to a big figure of people and would give a different option to the Energy Drinks that are presently on the market. This merchandise could increase the consumers thoughts of what energy drinks are ; particularly concentrating on conveying up the countries of good health. hydration and natural. With these area’s merely holding the highest per centum at 11 % Crescent would be a great merchandise to diversify the market. Having a below mean market monetary value for merchandise pricing makes Crescent an even better market to research. Crescent provides a great interruption from the normal high fructose high caffeine energy drinks while still hydrating and savoring great.