SMOOTHIE GIANT, INC. 1
SMOOTHIE GIANT, INC. 7
Smoothie Giant, Inc.
BUS599 / Strayer University
July 20, 2019
Professor - Dr. Yemer, H.
Company Name, Significance & Products to Be Produced
The name of the newly established non-alcoholic beverage company is Smoothie Giant. This is a company, which will solely focus on the production of fresh juices and smoothies made from the naturally occurring fruits and vegetables present in the neighborhood. The name Smoothie Giant has various significances. One, it states what the company will concentrate on, which in this case, are smoothies and fresh juices. Secondly, ‘Giant’ is used in the name to show both the dominance of the company in the fresh juice and smoothie industry as well as the kind of strength that comes along with the consumption of the company’s juices and smoothies. The name is short for easy memorization and to distinguish the company from other industries in the market.
Smoothie Giant, Inc. looks forward to producing flavorful, thick smoothies, and favorite juices from fruits and vegetables sourced from the local farmers. The company will mainly focus on the production of fresh juice, without any added sugars or preservatives. Smoothie Giant revolutionizes the entire beverage industry by producing healthy, non-alcoholic beverages.
Smoothie Giant, Inc. Mission Statement
The mission statement of Smoothie Giant is to influence both the younger and older generations to adopt healthy lifestyles by drinking healthy juices and smoothies at affordable prices. The underlying philosophies present in the company’s mission statement include the healthy nature of the company’s products and affordability (Abrams, 2014). The company looks forward to giving the entire population alternative drinks that are healthy and cheaper. The increasing health concerns among customers across the country call for natural and healthy juices and smoothies to replace the harmful alcoholic drinks, which have for a very long period of time, been associated with several negative health effects.
Trends in the Industry
Consumers are becoming more concerned with their health, and as such, the majority are running away from the alcoholic drinks, which have been associated with diseases such as liver cirrhosis, to healthy beverages such as smoothies and fruit juices, which do not have chemicals at all. Recent consumer reports indicate the consumption of smoothies and fresh juices have been on the rise for the last five years, more than any other period in history (Phadermrod, Crowder & Wills, 2019). The first primary reason for choosing this non-alcoholic beverage industry is it promotes healthy living within the communities. The company will produce crucial products needed by nearly everyone in society. Secondly, this industry was chosen because it has a wide range of consumers. For example, the company will target most of its sugar-free juices and smoothies to the diabetic population. This is a segment of the population who are more concerned with their sugar intake.
The company will also sell to the children and elderly, who are the largest consumers of fresh juices and smoothies. The products will be made from carefully selected fruits and vegetables, rich in vitamins and nutrients. Thirdly, the smoothie and juice industry were selected because the majority of urban dwellers need fast and fresh food, which can be picked up from the drive-thru as they travel to work or on their way home from work. The company will therefore, produce products, which can meet the demands of the working-class populations.
The strategic position of Smoothie Giant will be based solely on the market segment. The company targets health-conscious customers who do not want to consume alcoholic drinks, due to the health effects, but are more interested in drinking the fresh, nutritious, and healthy smoothies and fruit juices. The company will consider low-cost advertisement strategies such as word of mouth to help in spreading the word about the company’s benefits, and how the consumers of its products can be sure to achieve healthier lifestyles if they consume the company’s juices and fresh smoothies, but no other brands found in the market. Also, the company expects to adopt a customer-centric business approach coupled with better exceptional customer service to increase the number of repeat clients (Abrams, 2014). Everywhere in the market, the Smoothie Giant products are expected to reflect the health aspect as this is what the target consumers are expected to relate with.
The fresh smoothies and juices made by Smoothie Giant, Inc. shall be sold to the consumers in the restaurants. Smoothie Giant, Inc. looks forward to adopting the best franchise distribution channel to ensure all its products reach consumers across the country. All the franchises shall be expected to maintain the same brandings of the parent company, and also, to maintain the health quality standards that smoothie Giant will be known for. Before the adoption of the franchise system, the company focuses on targeting the nearby schools and markets by selling to them through mobile vans. This will enable the company to meet more clients during the school games and also along the busy streets where consumers will be looking for many healthy meals (Phadermrod, Crowder & Wills, 2019). The company also looks forward to tapping a large pool of clients in busy malls. This is, however, a long-term goal which will most likely be achieved through a franchise system.
The company is more likely to face several risks during its operations. In this paper, three main risks that a company is more likely to encounter are discussed. The first risk is the high likelihood for stiff competition from the stable companies which have enough financial and capital resources to scale up their business operations through advertisements (Abrams, 2014). As such, proper mechanisms need to be formed to protect the company against competitive risks, which may influence its actions. Secondly, the company is more likely to face execution risks, which may result from unforeseen circumstances such as abrupt financial shortages that may stall materialization of various organization’s projects (Abrams, 2014). Thirdly, the company is subject to capitalization risks such as the underestimation of the required costs to run the business. Without enough resources, the organization is less likely to achieve the required projected sales targets and growth trends.
SWOT Analysis for Smoothie Giant.
The Smoothie Giant Company has various advantages as it enters the market. The first strength is that the organization looks forward to employing experienced staff who will handle all customers’ needs and will also serve the clients with high levels of integrity. Additionally, Smoothie Giant is expected to display exceptional customer service, as this will distinguish the company from the rest in terms of the customer experiences. The company will be run with an experienced team that has been in the beverage industry for a long time, and therefore, they understand the changes in market trends (Phadermrod, Crowder & Wills, 2019).
The Smoothie Giant, Inc. is subject to stiff competition from well-established competitors that have enough financial resources to beat the competitors and put their products in the market (Phadermrod, Crowder & Wills, 2019). Secondly, Smoothie Giant, Inc. has no reputation at the moment, and this alone is a limiting factor because most customers still do not know what the company sells and the differences that exist between Smoothie Giant products and the other products present in the market.
The changing eating habits among the population gives Smoothie Giant an upper hand towards acquiring the new clients. Secondly, more prominent companies are more concerned with selling to upper-class consumers in malls and supermarkets. As such, Smoothie Giant can use this as an opportunity to sell in urban neighborhoods throughout the country.
Currently, there is a dominant company in the market, which is difficult to displace. Displacing the company requires investments in advertisements, which at the moment, the Smoothie Giant cannot manage due to limited funds. Also, the giant companies are lowering their prices, which may reduce the profits earned. Furthermore, ease of entry into the market by another competitor is a threat to Smoothie Giant as a company. The Smoothie Giant Company focuses on entering a global market; as such, the incorporation may be subject to currency fluctuations, which would adversely influence the company’s profit margins. Political instabilities in other countries may also negatively affect the operations of the Smoothie Giant, Inc.
Abrams, R. M. (2014). Successful business plan secrets & strategies: America's best-selling business plan guide!
Phadermrod, B., Crowder, R. M., & Wills, G. B. (February 01, 2019). Importance-Performance Analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.