Business Report Sample: Smoothie Queen

Name: Nolan Smith
Title: Head of Research and Planning Department
Company: Smoothie Queen
Address: 121 Park Place Covington, LA 70433
Phone: 780-660-675


Due to a 40% recession in the US smoothies market and a critical reduction of Smoothie Queen’s (SQ) market share, the company has developed a report to project the future trend in the US smoothie market. In addition, it provides a recommendation for a new product range for SQ to be implemented over the next 3 years. In summary, the main goal of this research is to inform the SQ top management about the current economic situation and to propose new directions to increase sales and to extend its market share. Our analysis is based on secondary information.

Key Findings

  1. Due to a US economic recession, our potential customers have less available income and are more price-conscious in comparing costs in the current year with costs from the previous year. Low consumer confidence and a high unemployment rate have induced consumers to buy cheaper smoothie brands, such as supermarket brand smoothies or juice. As SQ is a premium brand, it needs to revise its price strategy in order to remain a market leader. Moreover, SQ has to take into consideration that its targeted consumers are suffering from a recession.
  2. In most cases, SQ’s products are designed to attract a young consumer. However, the number of elderly people is steadily increasing in US. Therefore, it is strategically important for QS to extent the appeal of smoothie products beyond the currently targeted group. The future QS strategy should be designed to attract older consumers as well.
  3. Due to governmental programs’ increasing focus on the healthy lifestyles of its citizens, people in the US are demanding more healthy options for themselves. Therefore, QS needs to be prepared to meet these needs and to seize opportunities that present themselves in the current market situation.
  4. The QS share of the market continues to decrease during this economic decline. However, the smoothie’s sector growth is very strong despite bad economic conditions. There are relatively few competitors with their own brands. Tropical Smoothie Company is a developing firm that may become a serious competitor in the future due to its focus on the premium juice segment. QS must analyze the marketing strategies of such successful new companies to gain insight as to what is effective in attracting and retaining customers.

Conclusions and recommendations

Recommendations are as follows:

  1. Due to the fact that QS consumers are experiencing a decrease in income, higher pricing of the product will be an important issue for them. For this reason, SQ should offer people more value for less money, using the “Buy One, Get One Free” strategy. This strategy will reduce the customer’s price sensitivity.
  2. To compete with a supermarket’s brand of smoothies, SQ Company needs to sell its products exclusively to a supermarket chain; therefore, it should develop a new, limited smoothie taste for that purpose. Such a strategy will push QS sales and demand upward and, at the same time, increase the attractiveness and consumer awareness of the QS brand.
  3. In addition, SQ should develop a special smoothies line aimed at the older population. If such a strategy is successful, SQ could enter into the older demographic consumer market and expand its market share. For instance, a new product could be named SQ Traditional to create an association of nostalgia for the older clientele.
  4. Another way for SQ to increase its profit is to introduce products into the restaurant facilities. SQ might add products into the menu of some vegetarian restaurants. It could also offer special promotions, such as paying half price when ordering a salad. This may be a powerful strategy gaining the consumer’s attention, as the individual who orders a salad may be interested in healthy food selections, especially with a discounted price. Consequently, such a strategy might promote the SQ business in restaurant chains.
  5. Additionally, SQ should consider introducing non-alcohol cocktails as a new smoothie type. The product will look like a smoothie but will have the taste of cocktails such as Mojito, Pina Colada or Woo Woo. However, the SQ Company should also consider the impact of cocktails on the brand reputation. Possibly, the SQ Company could create a separate brand name for smoothie cocktails.

In summary, SQ is still the leader in the market for smoothies. However, it must look at the product’s differentiation among potential clientele and foster new partner deals to strengthen its market position. Additionally, the SQ Company should focus its attention on new market segments. Such strategies will increase both its market share and sales, which is the core value for the company presently and in a long term perspective.