Business Problem Paper
In this paper, Team B will be analyzing a fictitious company. The company will be called Jungle Smoothies and its main function is to produce and sell fruit smoothies to the public.
Problem
Jungle Smoothies has been the leader in the smoothies industry for many years. It has several franchised locations in 10 different states and all have similar financial performances. Their top competitors are Jamba Juice and Tropical Smoothies. In recent months, Jungle Smoothies has been experiencing a decline in their profits. As member of the New Product development committee, an assignment was delivered to investigate the original problem that lead to the decrease in profits. The committee performed several interviews with current customers. In additions to the interviews, the committee also conducted visits to nearby competitors. Currently, Jungle Smoothie’s menu consists of six smoothies in the following categories: Supercharges smoothies, splendid dessert smoothies, splendid smoothies, Dessert smoothies, Power smoothies, and Low-Fat smoothies. From the competitor’s information gathered by the committee, the menu was very similar with the exception if a new product that was common in several of the competitor’s menu. The new product consisted of an organic smoothie. From the customer interview, a high number of current customer responded that they would choose an organic smoothies if offered over the other six types of smoothies. It seems that organic products have become an important part of people’s daily diet.
Defining the variables
In this paper, the two variables the committee will be focusing on are the introduction of the organic smoothie product and the number of customers. The new organic smoothie product will be labeled as ...