You are to assume the role of the owner of DR. SMOOTHIE, a mobile beverage truck that sells smoothies. The investor wants you to identify resources needed for DR. SMOOTHIE to adapt its channel strategies.
DR. SMOOTHIE operates out of a mobile truck and provides customers with various menu options for fruit smoothies and customizable add-ins. DR. SMOOTHIE has the required permits to park in lots near the local high school, on the college campus, on the streets near city parks and on-site at the farmers market.
During the school year, DR. SMOOTHIE is extremely busy each morning selling smoothies near the local high school on Mondays and Tuesdays and on the college campus on Wednesdays, Thursdays and Fridays. DR. SMOOTHIE sets up near city parks on Saturdays during the school year and sets up as part of the city’s farmer’s market on Saturdays during the summer months.
DR. SMOOTHIE brings in the most revenue during the school year. The students and staff at the high school and college are loyal customers, and there is always a line of customers. The summer months are slower without the heavily populated high school and college campuses. It is difficult to find a location for the mobile truck during the weekdays in the summer that regularly attracts customers.
The city will soon open a second high school. While this is great news for business, you feel that an additional sales channel is needed to accommodate the new location. You feel that there are two options for DR. SMOOTHIE that will help the business:
- Add another mobile truck
- Open a small physical store location
The investor wants you to analyze the two channel strategies and determine the capital resources needed for both overhead and operating costs, and how each would help the changes in the business environment. You must make a final decision before asking for funding.
