The demographics of the target market are any households that make more than $100,000 annually and typically are college educated. The target market also consists of consumers that exercise on a regular basis, consumers that live active lifestyles, and consumers that maintain healthy diets.
C2. Industry Analysis: The juicing industry generates $2.3 billion in revenue each year and is projected to grow over the next several years. The juicing industry is expected to grow by 100% over the next 5 years as more consumers become more health-conscious. Securing only a 2.5% portion of the juicing market will generate over $57 million dollars in revenue. Of course, everyone has heard of Jamba Juice, Smoothing King, and the Nutribullet. However, over 75% of the juicing industry’s revenue comes from independent brands. Also, the juicing industry primarily consists of restaurant type retailers such as Jamba Juice or Smoothie King. There aren’t many juicers on the market that allow consumers to juice at home with ease or on the go with exception to the Nutribullet.
C3. SWOT Analysis: S (Strengths) 1. Most reliable line of juicing products in the small-appliance industry. 2. Lowest cost producer in the small-appliance industry. 3. Customer focused with a high emphasis on innovation and technology W (Weaknesses) 1. Name recognition. 2. Limited number of suppliers for manufacturing and producing and are only based in Asia. 3. Research and development costs to begin manufacturing and producing iJuice in-house. O (Opportunities) 1. Distribution deals with designated distributors to control market and brand recognition. 2. Social media campaign allowing consumers share success stories from eating healthy and different iJuice recipes. 3. Advertise/participate in community sports, marathons, and other athletic events to LLCrease brand recognition. T(Threats) 1. Using external foreign suppliers for manufacturing and production. 2. Competitors possess exclusive contracts with some distrubutors. 3. ijuice is a new entrant in to the health market.
Strengths: 1. Most reliable line of juicing products. AMC LLC is able to offer consumers the iJuice, a product that is guaranteed to always create high quality juices and smoothies over the life of the product. A dedicated team of engineers and developers provide a line of top quality, reliable, and visually captivating nutrition extractor and juicer to our customers. 2. Lowest cost producer in the small-appliance industry AMC LLC has developed a production process that yields low operating expenses and efficient use of raw materials. Combination of these efficiencies and the small front-end investment will allow AMC LLC to become the lowest cost producer in the juicing industry. The savings will allow AMC LLC to continue seeking new technology for the ijuice that will allow them to become the leader of the juicing industry. 3. Customer focused with a high emphasis on innovation and technology. AMC LLC’s main focus is the consumer and serving their needs. AMC is constantly seeking innovative ideas and new technology to serve our customer’s needs creating a long standing relationship. The relationship with our customers doesn’t end when the sale is made. Our team is dedicated to following up with our customers to ensure they’re still satisfied with their iJuice products.
Weaknesses: 1. Name recognition AMC LLC. doesn’t currently have the name recognition as some of our competitors due to the young age of the company.
2. Limited number of suppliers for manufacturing and producing and are only based in Asia. There are currently a very small number of companies that can manufacturing and producing the ijuice. The companies are also located in Asia which will create increased operating expenses for freight charges. Orders have the risk of being placed on backorder if initial demand is high while raw material shipments are waiting to be delivered from overseas. Initially, the demand may exceed the time it takes to produce the iluice from the increased shipping times from suppliers.
3. Research and development costs to begin producing and manufacturing ijuice in-house. To overcome the production and manufacturing weakness AMC LLC will be required to begin research and development of producing and manufacturing the component the iJuice in-house. Research and development expenses are projected to increase operating expenses by 10% for the next five years. There will also be everal expenses related to construction of a new facility that will produce raw materials and component parts, manufacture and produce product, environmental licensing regulations that have to be met, and an increase in payroll expenses for hiring new employees. However, after research and development is complete producing and manufacturing our own product will be a strength.
Opportunities: 1. Distribution deals with designated distributors to control market and brand recognition. The iJuice will allow AMC LLC to designate what distributors will initially be granted permission to start selling the iJuice. This will allow AMC LLC to review initial sales and forecast what future orders will look like before placing orders for more raw materials and components. Marketing analyses will be reviewed to see what demographics are purchasing the ijuice so future advertising can become more targeted. Also, by designating what distributors have access to the iJuice will allow AMC LLC. to better control the reputation ijuice has and slowly start selling to more distributors as word of mouth and advertising grows. The distributors that are identified initially may begin to want exclusive contracts if first months sales are really high.
2. Social media campaign allowing consumers share success stories from eating healthy and different ijuice recipes. Social media campaigns, webpages, and apps are being developed for the launch of the iJuice. AMC LLC.’s marketing team is currently negotiating with Twitter, LinkedIn, and Facebook on the launch and advertisements to our target market. Webpages and apps are being created for customers to share the positive impact the ijuice has had on their lives and how it contributes to their healthy lifestyle. There will also be an area of the website where customers can share different recipes for the iJuice and participate in a chance to win daily prizes.
3. Advertise/participate in community sports, marathons, and other athletic events to increase brand recognition. There are multiple community sports events, marathons, races, and other athletic events on every weekend in cities across the country. AMC LLC and the iJuice will create a grassroots marketing campaign and sponsor several of these events. A remote station at these events will be setup showing consumers how easy the iJuice is to use and how it can become an integral part of a healthy diet. Consumers will begin to identify and associate the ijuice as being healthy and fit. This will also allow AMC LLC.’s ijuice the opportunity and potential to attract celebrity endorsements opening the product to the children sports market.
Threats 1. Using external foreign suppliers and vendors for raw product manufacturing. The largest potential threat to AMC LLC is suppliers and vendors being located overseas are currently the only option to produce and manufacturer the iJuice at a reasonable price. This creates the possibility of AMC LLC not having any access product in the event of natural disasters, international conflicts, and at risk of high freight charges due to the fluctuating prices in logistics and fuel. Depending on initial sales of distributors’ first orders may put the iJuice on backorder and very difficult to keep up with customer demand. Or, a surplus of inventory in our distribution centers due to incorrectly forecasting sales and over ordering.
2. Competitors possess exclusive contracts with some distributors. Some of our competitors currently possess exclusive contracts with some itors. These contracts may make it difficult to expand to some stores without offering some major price discounts to the distributor. The contract may also dictate how the competitors’ products are advertised in store compared to ours. For example, competitors may receive superior product placement in the store.
3. AMC LLC. is a new entrant in to the health market or small appliances market. AMC LLC is not known in the health market and doesn’t possess brand name recognition. It may take time for demand to increase as consumers start spreading word of mouth about how great the iJuice is.
4. Market Strategy D1. 4Ps: Discuss each of the four Ps of marketing as they relate to the company’s products and services.