Company Description and SWOT Analysis
Trends in the Industry
Market projections indicate that the global smoothies market will have a compound annual growth rate of 7.2 percent in the forecasted financial period of 2020 and 2025. In the United States, the smoothie industry generates annual sales amounting to $2 billion. Also, in the past five years, the consumption of smoothies in the American market increased by 120 percent. There are key market trends that are perceptible in the industry affecting Rainbow Smoothie's product offerings.
1. Increased consumption of healthy beverages
Like a product offering, smoothies comprise fruits and vegetables, which are considered part of a healthy diet. Furthermore, mounting health awareness amongst consumers and transforming the standard of living and food preferences, together with health advantages, are dispositions that are pushing the smoothies industry's growth. In the contemporary setting, most populaces' consumption habits comprise avoiding meals and capitalizing on snacks as alternatives. The consumption of carbohydrates, fundamentally when the smoothies are produced devoid of sugar, is minimal. As a result, most health advisers and even gym enthusiasts suggest that persons ought to consume smoothies to facilitate weight loss. As a result, smoothies have emanated as an ideal meal compared to snacks, as they are tasty and convenient, and portable (Modor Intellience, 2021).
2. Raw materials and packaging
In recent times, one of the mounting trends is the high pricing levels for smoothies and concerns about the product offerings' packaging. Smoothies are made purely out of raw materials, including fruits and vegetables. The change in the harvesting of these raw materials, especially due to natural events, significantly hampers the amount of harvest and therefore altering the levels of demand. These are key factors limiting the rapid growth of the smoothies market (Robeks, 2020).
3. Growth in demand for green smoothies
Off late, there has been a mounting trend and disposition for green smoothies. In particular, there is an increase in demand levels for smoothies that are manufactured using green leafy vegetables, for instance, green cabbages, kale, lettuce, and spinach. Consumers largely prefer this to facilitate enhanced digestion and boost the immune system, in addition to curtailing cravings that are unhealthy. Moreover, owing to rapidly rising health care expenses, consumers are predisposed to capitalize on smoothies as a form of a breakfast meal. The mounting demand for meals and beverages that are functioning is rapidly pushing the market's growth. These green smoothies will stimulate the smoothie market growth for numerous years to come (Market Data Forecast, 2020).
4. Health Boosters
Progressively more consumers are seeking health boosters to get rid of poor habits and addictions such as caffeine in exchange for smoothies that offer healthy alternatives. In the present day, the supplements incorporated in...
Therefore, consumers can obtain a jump start in the morning or devoid of consuming unhealthy products such as
coffee or becoming addicted to the substances. The high-energy raw materials within the smoothies are also sought after by
athletes to accomplish their topmost body performance (Robeks, 2020).
Strategic Position
A firm's relative position within its industry of operation plays a pivotal role in performance. Imperatively,...
…to the fresh fruits and vegetables, the smoothies will have minimal shelf life losses without any additional preservatives.
4. Minimal consumer awareness. Rainbow Smoothie is a new company on the market. The company is yet to gain significant consumer awareness and recognition compared to other established companies in the market.
Opportunities
1. Growth and expansion of wholesale distribution affiliations. By creating several business partnerships, Rainbow Smoothie will be able to sell products at a wholesale level.
2. Sustained growth of the business into online sales. With the advancement of technology, e-commerce, and social media, Rainbow Smoothie will generate greater revenue through online sales.
3. Obtaining additional capital for business growth and expansion. By generating greater rounds of capital, Rainbow Smoothie will be able to expand its business operation.
4. Grow the business countrywide. Rainbow Smoothie will develop its business operations across the nation through different branches through proper growth and development.
Threats
1. A rise in the prices of inputs can result in upward pricing of the products. A rise in the seasonal prices of both fruits and vegetables will increase the cost of smoothies.
2. Plenty of competition from other players in the market. Intense rivalry in the market will be a significant threat to the success of Rainbow Smoothie.
3. Natural disasters can diminish raw materials. Natural weather catastrophes such as droughts or an infestation of pests during the planting season can affect the farmers' amount of fruits and vegetables.
4. Changes in regulations can influence the business. The changes in laws and standards such as food and drug regulations can hamper the business in production, packaging, and retail…
