Sarah Ryan, vice president of marketing for Portland Drake Beverages (PDB), has been given the opportunity to position her company’s new beverage, Crescent Pure. She will be given a budget of $750,000 to advertise the drink and has a few options on how to market it. The first option is to advertise it as an energy drink because of the energizing ingredients, the second is an energy drink because of the drinks hydrating elements, and the third option is an organic drink that focuses on the healthy roots. Due to the fact that some of the largest national beverage companies planned to launch their own versions of the beverage in the second half of 2015, PDB wanted to beat them to the market with a “soft launch” in 2014 to three western states (California, Oregon, and Washington). This gives Ryan six weeks to work on the strategy and allocate her resources according to the budget she was given.
Analysis and Alternatives
The first way Ryan can position the drink is Crescent Pure Energy Drink. The energy drink market is gradually increasing and is estimated to hit $13.5 billion by 2018. With caffeine equivalent to a cup of coffee there would be no need to modify these ingredients because of consumers demanding a healthier option. Although there will be competition, 34% of the population said they have consumed an energy drink in the last 6 months. By entering the market early, this will allow Crescent Pure to have a competitive advantage over other...