How Is the Market Segmented? at What Segment Should Crescent Be Targeted?

1. How is the market segmented? At what segment should Crescent be targeted?

The market is segmented into demographic and psychographic. Since Crescent is more of an organic drink I feel as if they should target the younger demographic and a healthy psychographic. They can fit perfectly within the energy drink segment since a lot of these energy drinks out are too sweet and not good for the body.

2. What factors should influence the positioning of Crescent?

Online sales are one factor that should influence the positioning of Crescent. They sold much better online with minimum advertising. The consumers chose to purchase Crescent since they have some knowledge of it. Another is their brand name, different distributors and their locations, the ingredients that go into their bottles. Also their geographic factor, since they did so well in Oregon, they might not do so well nationwide based off that small sample.

3. What are the pros and cons of positioning Crescent as an energy drink, a sports drink, or a healthy organic beverage?

Sports Drink:

Pros:

- Market is $6.3 billion.

- Sports drink is described as refreshing, healthy affordable, functional, fun and hydrating more often than energy drinks according to study.

- 42% of sports drink users considered them “anytime beverages” and did not associate them only with working out.

Cons:

- Market is $2.2 less than energy drink market

- Crescent is expensive compared to other sports drink of that are also 8oz.

Energy Drink:

Pros:

- Most energy drinks are priced at $2.99 which is above Crescent’s $2.75 price. This would allow them to raise the price of their drink.

- Market is growing for energy drinks. Grew 40% from 2010-2012

Cons:

- Will be difficult for new competitors into this market.

- Energy drinks getting a bad name lately due to health risks related to drinking them

- Young consumers think Crescent has less energy than they hoped for.

Organic Beverage:

Pros:

- Can charge more since they have quality ingredients and consumers are willing to pay more for it.

- Would allow for a much wider range of consumers