Taylor Hayden Prof. Mgrdichian BUSN 301 12/2/14 Crescent Pure Analysis Key Issue: The Key issue in this case is whether not to label the Crescent Pure drink as a sports drink, an energy drink, or focus more on the drink’s healthy and organic roots and which one would attract the most customers. Relevant Considerations: - - The Crescent energy drink could be promoted to boost energy and promote mental focus There is a concern about the long-term viability of the energy drink market The regular consumption of energy drinks have fallen because of negative media attention. The price for a Crescent sports drink would be significantly higher than those of similarly sized sports drinks. The market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. The largest group of energy-drink consumers were males between ages 18 and 34. Sales of energy drinks with lower levels of caffeine and purer ingredients were rising due to consumer demand for healthier food and beverage choices. Roughly half of men drank sports drinks, while only a third of women did. Concern regarding rising childhood obesity rates resulted in government-mandated guidelines to remove high-calorie sugary drinks and snacks, including sports drinks, from school vending machines beginning in 2014. New diet and low-sugar sports drinks were growth areas for the industry. Crescent appeared to be most popular among consumers aged 18-30 A higher percentage of women purchased Crescent than expected. Younger, health-conscious consumers who regularly consumed energy or sports beverages were prospect for Crescent. Crescent could position itself as an organic refreshment and capitalized on the growth of the organic food and beverage industry. Recommendation: I recommend that PDB focus more on a healthy, organic drink than an energy or sports drink, since more people have reacted positively to a more health oriented drink. If they could focus all their attention on healthy drinks, and push it into the market before other major corporations released their drinks, crescent could have leverage and become successful.