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Distribution.
The distribution of these machines will be over the Houston metropolitan area. They will be placed in gyms, day spas, office buildings and apartment complexes. They will be as prolific as soda machines and sport drink machines in these places. The Healthy Shake 3000 will first be distributed in gyms and office buildings and overtime move to hotels and apartment complexes. .
Market.
The market that the Healthy Shake 3000 is trying to reach are adults between 18-60 years of age that want a refreshing, flavorful and healthy alternative to sodas and sport drinks. Currently the market is saturated with sodas, sport drinks and other smoothie producing companies, however, none can compare to the quality, cost, convenience and speed that the Healthy Shake 3000 can produce. The Houston area is also littered with refreshments that are ice cold because of the long hot summers. The Healthy Shake 3000 can tap into this market with ease. .
Competitors.
The competition for healthy refreshment is very high in the Houston area. The brand competitors include sport drink machines like Powerade and Gatorade. The industry competition includes the soda machine companies Coca-Cola and Pepsi Cola. The form competitors are Jamba Juice, Smoothie King, Juice Stop, and gym juice bars.
Costs.
Filling the machine, buying the ingredients, technology, transportation and the cost of the machine are the total cost of each machine. The average cost of maintenance, buying the ingredients and filling the machine (including cups, ice and frozen non-fat yogurt) is estimated at $120.00 every two weeks or $3,120 per year. The cost of transportation and delivery for each individual machine is estimated at $7.00 per machine. The technology and cost of each individual machine is $400.00. The initial total cost of each machine from production to refilling the machine is $527.00 per machine. Marketing costs in the first year of distribution is estimate at $150,000.
