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Tanning Market Essay

1408 words - 6 pages

Opportunity
The United States is fat. The fruit and juice industry is a 3 billion dollar industry that needs to be addressed by my company Sun Tan. The indoor tanning industry is a 5 billion dollar industry serving more than 30 million Americans. We intend to merge these two productive industries under one roof and reap the benefits of a combined 7-8 billion dollar industry. From 2001 to 2006 smoothie sales grew at a rate of 82%. People need somewhere they can go and get a quick tan followed by a refreshing healthy beverage or meal replacement. Busy people find ways to work more efficiently in order to achieve desired results; that includes tanning then reaching for a refreshing beverage. ...view middle of the document...

As of now if people want to get a tan they have to go to places like Planet Tan, which is ran like an assembly line by a couple of “faceless” teenagers that have no excitement for the product or the happiness of the client. In order to get a decent smoothie, clients would have to get in their car again and drive several blocks to the nearest Jamba Juice or Smoothie Factory, if there is one around. Jamba Juice is one of the larger players in the market with around 700 locations nationally and is based out of San Francisco. Their size is the result of the purchase of Zuka Juice. Jamba Juice has a strong brand name on the west coast and is attempting to branch out. Jamba serves soup, breads and different snacks. Another competitor is Smoothie King, which has around 450 stores and they are based out of New Orleans. Smoothie King is more of a supplement store offering health supplements. There are no places within the target areas to purchase a smoothie in addition to getting a great tan and having the dual experience.

Business Concept
The basic concept of this business is simple in the fact that we are going to revitalize and combine the two lucrative businesses of selling smoothies and indoor tanning services. We are going to locate our stores in a high traffic affluent area in which an active lifestyle is historically supported. The store will be comprised of 10 tanning beds and a full service smoothie bar. There will be a couple of comfortable couches along with several diner style tables. Available within the store will be a live upbeat entertaining atmosphere along with free Internet access. This will enable the patrons to purchase a great tasting smoothie and get a tan in one convenient location.

Differentiation
The primary difference between alternative offerings will be that Sun Tan will be a tropical experience by offering a full range of tanning solutions and products with a Polynesian tropical flare. The store will be filled with cutting edge tanning and smoothie creation technology that will invigorate and motivate the customers to return. The store atmosphere will be more like a tropical excursion rather than a trip to the health store to grab a nutrient filled medicinal drink like Smoothie Factory, and the like, promotes. Our smoothies will be great tasting in addition to great for you! In addition several of the products in the store will be 100% natural in order to promote a greener healthier environment. All cups and packing supplies will be recycled and a recycling promotion will be in place.
In order to maintain differentiation Sun Tan will become a brand synonymous with great smoothies and tanning with positive support of a greener healthy environment. A great marketing campaign will ensure that our store is the only store of its kind; maintained and supported by a wonderful management team that is fully supportive to the success of the store.
The financial metric of this business will be measure by the value...

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