This assignment has to be TOP WORK if I am paying for it and PAY ATTENTION to the detailsDue Week 10 and worth 150 pointsThis assignment consists of two (2) sections: your final business plan and your

Fruity Surprise

Strayer University

Professor: Andrea Banto

Strategic Management

Dorian D. Herring

February 11, 2019

Fruity Surprise

Target Market

Types of Consumers

Fruity Surprise is a unique enterprise which offers differentiated and customizable beverages to their consumers. The company is offering healthy smoothies which are made according to the preferences of the client making the firm stand out from other companies looking to or in the business (Nienhaus, 2016). The possibilities of flavors offered at Fruity Surprise are infinite. Apart from this, the company is dedicated to providing the smoothies in disposable cups which can be consumed on the go. The Company is located in the Bay Area specifically San Francisco which has a population of 805, 235 people according to the 2010 population census. The SanFrancisco area is part of the nine counties of Bay area (Bay Area Census, 2019). This means that many people from the metropolitan area working in the schools and industries in the region experience busy lives which can be complemented by the smoothie treat. The people from this part of the city need a smoothie or snack shop that does provide not only fast drinks but also healthy snacks considering the blue and white collar-nature of their jobs. The exact place of establishment is a central region with several recreational facilities such as the Fair Lakes, the San Francisco lions club among others. It is also endowed with universities and schools as well as offices. This means that people looking to catch a snack while on the go will be attracted to the startup. There are 780, 971 households in the region with a population density of with over 2000 people per square mile Bay Area Census, 2019). The income of the residents per annum is placed at roughly $100000 per annum for the 2010 census. The per capita income in the region is $45478. This area belongs to diverse ethnicities such as the whites at 48%, blacks at 6.1%, Asians at 33% and the other races taking up the remaining percentage Bay Area Census, 2019).

Demographics

On the basis of the demographic data provided above it is reasonable to infer that the population within the region has the ability to purchase Fruity Surprise Smoothies on a regular basis. This is based on the fact that the household income is stable and good enough to afford a cup of frozen Fruity Surprise smoothies which costs less than $3. Secondly, our products at Fruity Surprise is a drink that provides a healthy product in a frozen cup of juice. This is something that is likely to catch the people’s attention regardless of their levels of education. It is also notable that the younger population especially those in college and secondary institutions might find themselves inclined to the Fruity Surprise products. For this population the option of customizing their healthy cup of Fruity Surprise is captivating. In the same context, residents of all ethnicities are represented which means that the company can target the entire area and maximize its sales. The ability to customize and personalize a smoothie drink will captivate people across different cultures and backgrounds with the varied tastes and preferences (Cardozo, 2018).

Company’s Market Competition

Assessing Competition

Currently, the competitors to Fruity Surprise in the Smoothie category include that established processed smoothie and juice companies such as King Smoothies offering at least five flavors while the rest offer less than five flavours. However some competitors such as Pina Colada which offers lime and peach smoothies of the Pina Colada category. These companies that compete with Fruity Surprise do not have their products sitting int heir stores, but they delegate sales to retailers through packages. In the same context, the smoothies offered by these firms need to be processed in their factories using additives such as sugar, cold water, coconut or milk, and cream. This further increases the costs of their products as opposed to freshly produced smoothies. In addition, these smoothies are not sold by the producing companies. This Is because they do not have direct contact with their consumers. Instead, they delegate sales to the retail shops. Therefore it Is the retailer's policy to either sell on credit or not. This also means that the competitor smoothies cannot be consumed on the go. This is because of all the indirect costs associated with the products such as price per package. The retailers also focus on using reusable cups to save on costs. Considering the bland imagery of these products they are not as popular and hence people are not inclined to the smoothies. The teenagers do not subscribe as much as they would with on the go products. Fruity Surprise competitors only appeal to the elderly who want to remain seated in cafes (Cardozo, 2018).

Defending Strategy

It is notable that the competition for Fruity Surprise is based on five basic flavors offered by the competitors. As much as it is difficult to penetrate the market as a smoothie seller, Fruity Surprise strategy is based in direct contact with the clients. What distinguishes Fruity Surprise from the rest of the companies is the ease of access, use, and customizable flavors. The clients can pick their cups of Smoothies on their way to the office or have it delivered to them in disposable cups. Most importantly the company is looking to offer as many flavors as possible considering that the smoothies are made on request (Aghdaie & Alimardani, 2015).

. In addition, the customers can mix and match their desired flavors to come up with new ones and also enjoy their Smoothies regardless of the place. It is notable that the youth as part of the larger target market place weight on experience with a product and service. If the imagery of the brand is good, they chose to associate with it. The older population especially the working class associate with products that are convenient and fit in with their schedules (Aghdaie & Alimardani, 2015). Most importantly this population is focused on weight-watching techniques, and hence Fruity Surprise is strategically placed to ensure all the needs of the client are met. As part of our strategy, we are also looking to establish buying on credit for loyal customers. This will give the firm an edge considering that society is slowly becoming cashless.

Defending Plan to Differentiate

The non-alcoholic market is flooded with many companies offering a wide range of products such as coffee for Starbucks. As much as few offer smoothies, the non-alcoholic market continues to expand. It is dependent on what the company does differently to effectively penetrate the market. It is also notable that the green movement, anti-obesity movements, and healthy eating as well as keeping fit is a growing trend that has established a market for its products. To Differentiate Fruity Surprise from the rest including King Smoothies and Starbucks, this firm will focus on promoting the different flavors and ability to mix and customize flavors to the liking of the customer through campaigns and adverts. Secondly, the company will focus on local channels such as television and radio adverts to get the message across. In the same context, adverts and discounts will be offered through the smoothie trucks and strategic locations of the sales teams. Over the years the competition for the same product has increased with the preferences and choices of non-alcoholic beverages. However, Fruity Surprise differentiates itself by offering fast services, freshly made smoothies, swift services and on the go packages. For people looking for healthy frozen smoothies, Fruity surprise will be available and ready to offer the product within a minute after an order is made.

Clarifying the Company Message

The target market aligned with Fruity Surprise, there are three primary elements that define the message of the company; health, functions, and feelings. The smoothies have different positive functions including refreshing the body and giving the consumer a touch of healthy fruit helpings in the form of a beverage. The available frozen flavors with the help of the dietician have been shown to increase energy, relax the body and provide a refreshing feeling. The fruits such as the Lemon flavor has been shown to reduce weight for the health conscious people. By starting one’s day with a cup of a smoothie, the customer is assured of a good day. The flavor can also be customized according to our client’s moods and hence provide good feelings throughout the day. The primary message that Fruity Surprise Smoothies will give is “Giving a Refreshing start of the day.”

Marketing Vehicles

The smoothie business is rapidly getting integrated with technology. The best marketing avenues for this product would be through social media and online marketing which requires little to no expenses. Mainly this form of marketing will attract the youths. However, it will create or pave an away for the excitement to start about the product. This social stir and excitement is the primary target for the social media marketing strategy (Roberts, 2018). Through this launch, the entire population would gradually get informed about the Fruity Surprise products. Through the different videos and viral clips, the brand will get the message across the entire population and create some hype about the launching of the product. In the same context, the firm will offer delivery and to-go kits, and hence the launch can assess and service a larger population during the launch of the products (Roberts, 2018).

References

Aghdaie, M. H., & Alimardani, M. (2015). Target market selection based on market segment evaluation: a multiple attribute decision-making approach. International Journal of Operational Research, 24(3), 262-278.

Bay Area Census -- San Francisco City and County. (2019). Bayareacensus.ca.gov. Retrieved 27 January 2019, from http://www.bayareacensus.ca.gov/counties/SanFranciscoCounty.htm

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

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.