Assignment 5 Week 10

Fruity Surprise: Company Description and SWOT Analysis

The non-alcoholic industry is flooded by several products. The most popular of these products include the smoothies which are basically made from fruits or vegetables and an added fluid or liquid such as milk, juice or yogurt as well as flavors such as honey and spices. The primary advantage of smoothies over other juice products is that they contain whole fruits or vegetables hence the fiber element for healthy digestive systems (Nienhaus, 2016). Similarly, they offer an easy way of consuming recommended daily vegetable or fruit intake. This paper focuses on non-alcoholic beverages company offering a unique type of smoothie drink.

Company Name and Significance

The company name is Fruity Surprise. It is a company offering frozen drinks with smoothie and milkshake contents. These drinks are made from fresh vegetables and ingredients from the local farms and agricultural centers. Other products that the firm offers include the take-home smoothies as well as frozen vegetable infused yogurts which can be diluted or taken as bought. The philosophy behind the “Fruity Surprise” name is the fact that the frozen beverage options are left to the choice and desires of the client. This means that the client can decide on the flavors or how their smoothie is mixed up (Cardozo, 2018). The mixtures popular at the joints range from lavender to the mint among other creative creations by clients.

Mission Statement and Rationale

Fruity Surprise is a creative and imaginative frozen drinks company encouraging and supporting healthy lifestyles with delicious concoctions from freshly harvested vegetables and fruits. The firm's mission is to improve the health and integrate healthy behaviors by creating flavored beverages composed of healthy ingredients including milk and vegetables. By creating a package full of nutrients, the firm opens an avenue to improving the health of the consumers as well as ensuring balanced and nourishing diets. Fruity Surprise is focused on sowing back to the community by supporting the local farms and farmers. The company presents an opportunity for partnership with the community and a product that is not only environmentally friendly but also healthy (Cardozo, 2018). We strive to achieve recognition across the region, capitalize on the interests of individuals and families as well as provide healthy options across a wider platform.

Considering that the business is a startup, we are looking to operate in various local farmers and residential markets. In relation to the overall goal of the industry, Fruity Surprise is looking to achieve moderate growth and expand throughout the eastern regions of the country. The primary goal of the company is to establish franchises and other people as well as a business would buy into the model. This is under the consideration that it is not a mass production firm. This means that people will be buying more into a concept than the product.

Trends

The motive behind the choices into the smoothie industry includes; firstly the evolution of consumers into the health-conscious diets. Secondly, the smoothies can be alternatives to a meal or a snack and lastly, smoothies are quick, portable and easy to make healthy diets. Smoothies can be made at home or school or anywhere provided one has the right tools and ingredients. It is also notable that the recipes are endless and not fixed like other juices. With the world becoming a global working environment by the day, everyone is always at the go to work and school. It is becoming increasingly hard to eat a well-balanced diet. Smoothies offer a healthy option as opposed to the snacks and fast foods. It is also notable that they are customized to the client's needs, offer convenience and portability. According to US Smoothies 2017, the Smoothie industry is expected to grow by at least 13% within the next three years (Facts, 2019).

The Smoothie market has lower entry barriers mainly because of the lower capital needs. However, quality and brand awareness is critical for the overall growth of individual startups. Facts (2019) posits that the US smoothies industry has been recording servings in millions exceeding 500 and is expected to reach at least 1 billion servings within the next two to three years. The consumers and clients in these markets are looking for a cup that offers fresh vegetables and ingredients, an interactive or “jazzed up’ customizable experience as well as a tone of a healthy diet (Facts, 2019). This is because Smoothies are convenient as a snack, meal or beverage meeting up to two meal components of protein and fruit for very little.

Strategic Position

Fruity Surprise aimed to become the best smoothie and froze drinks fir in the region. To make this goal a reality, a strategic position focusing on products made with local ingredients, customizable products, and chef or dietician created flavors or selections has been created. The firm's strategic position of convenience is based on the examination of factors such as Industry trends, the market segmentation, product environment and the strengths of the firm. Fruity Surprise is looking targeting consumers who are in search of healthy drinks and meals options. This is a rapidly growing market considering the green campaigns and health consciousness movements (Nienhaus, 2016). The target market will also include those that are looking to try weight loss or meal supplement options. Smoothies create a convenient way to lose weight without interfering with the calorie intake.

It is also notable that there are several competitors around this area and at a larger scale than the Fruity Surprise. However, as Fruity Surprise, we are differentiating from the market by introducing the to-go kits or drive through options which is critical for fulfilling the needs of the market. Considering that there are several large smoothie companies, we are anticipating some competitive pressure.

Overview of Distribution Channels

Fruity Surprise will use the direct distribution method to reach the consumers. This method involves products made directly from the stores and sold to customers directly. There is no shipping or transportation. However, we are integrating a delivery system where the to-go kits will be used. This involves an online ordering system, and the consumers receive their product at the required address. The fulfillment of such orders will be done using the Fed EX for purposes of utilizing the temperature control equipment and packaging systems. This will ensure that the smoothies are delivered in the right condition and ready to be consumed (Roberts, 2018).

Risks

The three basic risks anticipated for the business include product-related risks, regulatory and competitive risks. Products considered at risk include farm goods such as vegetables, honey, and milk. This is because they are all dependent on natural factors such as climate and the productive nature of bees. Similarly, the fluctuations in climate or any of the affecting factors can affect our menus or the costs incurred in obtaining these goods. Regulatory risks, on the other hand, include the FDA related issues incase ingredients are infected or not satisfactory as per the rules. This is critical as it affects the brand and quality of products (Nienhaus, 2016). Lastly, competitive risk is the most imminent considering that larger well-established smoothie business is present. However, the city is not saturated, and there is a risk of other smoothie businesses sprouting to feed the population.

SWOT Analysis

References

Cardozo, M. (2018). Specialty smoothie bar business plan(Doctoral dissertation, California State University, Northridge).

Facts, U. (2019). Topic: U.S. Juice and Smoothie Market. www.statista.com. Retrieved 12 January 2019, from https://www.statista.com/topics/1896/juice-and-smoothie-market/

Nienhaus, M. (2016). Social smoothie importance of a business plan pre-startup planning (Doctoral dissertation).

Roberts, D. L. (2018). The Best Green Smoothies for Weight Loss: Over 30 Simple Recipes for Healthy Eating. One Jacked Monkey LLC via PublishDrive.