Analysis of Positioning Strategy for Crescent Non-Alcoholic Beverage: Energy or Sports?, Study Guides, Projects, Research of Economics

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Case Study Analysis: Crescent Pure

AMB320 Advertising Management

Assessment

Student Name: Jina Kim

Student Number: n

Due date: 14/4/

Tutor time: 11am~12pm

Tutor: Ana Lia Marx

1.Problem Statement

Portland Drake Beverages (PDB) where is one of the beverages companies in U.S, produces a Crescent that is non-alcoholic functional beverage. The company creates plans to lunch this product in California, Oregon and Washington and to improve campaigns with advertising company. However, the PDB still consider positioning of this beverage, because some members select to put positioning as energy drink, but others choose to locate position as sports drink. The main problem is undecided positioning of Crescent that impacts on plans for distribution of Crescent in three western states and employment of advertisers. This issue will be significant and influential factors in order to maximize the recent product’s profits and to create suitable advertisement for reaching an advertising goal and appropriate target audience in U.S markets.

2.Analysis of the Key factors

Drink materials

Drink materials are one of the main factors for determining position. The key features of Crescent are a mixed of energy-reinforcing, hydrating and all natural food materials. These characters can involve to stand comparison with in both industry of energy and sport drinks. For example, hydrating is beneficial and necessary elements as sport drink and energy-enhancing is powerful and successful factors as energy drinks.

Consumers

In accordance with online sale and retailers, buyers aged 18 to 30 is main purchasers of Crescent and both genders favour the product. All generation consumers are interested in health and wellness. In the area of energy drinks, the main consumers aged 18 to 24 years is males and consumed by 34% people. However, the sport drinks have more wide range of consumers and earn higher revenue than energy drinks. Also, consumers prefer more to repurchase sports drinks. Thus, sports drinks have more powerful awareness to consumers and capture extensive consumers.

3.Development and Evaluation of Alternative

Solution

The PDB suggests two main options for positioning strategy which includes the industry of energy drinks and sports drinks. Also they considers additional positioning for the product as organic beverages. Each positioning indicates different strengths and weaknesses. In case of locating the beverage in energy drink part, the firm can achieve effective opportunities and product differentiation than other competitors by organic certification and minimum standards of caffeine. Also, business can engage consumers and change images of energy drink positively by emphasis of differentiation. However, the consumption of drinks are decreased by negative media attention and consumer unsatisfied the level of energy than other energy drinks. In addition, uncertainty of long- term viability in this industry provide negative impacts and has more competitors than other positions. In case of selecting the position of product as sport drink, the PDB can capture a wide variety of people and increase possibility of re-purchase about the Crescent. Ingredients of the drink which involves hydrating elements, low amount of sugar and natural material, engage customers to think the good assisted their body to become healthily and athletically. Moreover, this position has less competitors than energy drink and expected to grow market size about new diet and low sugar sport drinks. Otherwise, expensive price of Crescent than other drinks will effect on consumption negatively. Also, they may need to invest more in positioning and advertisement because of premium price. Furthermore, raising the rate of childhood obesity impact negatively, because this issue is associated with sport drinks. If they place Crescent position as organic beverages, this area will help firm to increase a quality of the products and to emphasize organic ingredients more easily and quickly than other areas. Despite, they have to fix a price highly than other beverages which has common attribute. In addition, the rage of target audience will be limited and the budget for promotion is not enough to inform the product in other areas. Therefore, this

position is not suitable to employ for the Crescent and they are hard to implement their plans with this position.

4.Course of Action Recommendation and

Justification

Each positioning has different benefits and drawbacks. Therefore, the PDB is difficult to decide positioning quickly and easily. This analysis will recommend one of position for the PDB to accomplish their goals and plans. Positioning in energy drink is useful way to realise their plans. There are several reasons. Firstly, market size is wider than other position, so the PDB is able to approach more retailers and manufacturing for their distribution in other states. Another reason is that Crescent is a low involvement product, thus consumers are learning by their action (Belch, Belch, Kerr & Powell, 2014). At that time, they do not spend considerable time for evaluating and analysing the product. Therefore, cheaper price than average cost can be one of influential engagement factors. Moreover, they can be differentiated their product from other competitors. Also they are able to emphasis the differentiation by high-quality campaign lengthily. As a result, locating in energy drinks part might be more advantageous decision to the PDB.