This presentations involves the introduction of Tropical Smoothie Cafe into the Japanese Market.

1. Tropical Smoothie Café
Southern New Hampshire University
MKT 700: Marketing Capstone
Samantha Russo
June 15, 2023

2. Agenda
• Company Profile
• Target Market: Identification
• Target Market: Influences
• Competitors
• Likelihood of Success
• Financial Forecasts
• Marketing Environment Analysis
• Pricing
• Alignment with Strategic Goals
• Promotional Objectives
• Communication Options Cost
• Measures of Success
• Sample Communication Channels
• Implementation
• Evaluation
• Control
• Global Trends
• Conclusion
• Questions
• References

3. Company Profile
• Founded in 1997 in Destin, Fl
• 11th on the Entrepreneur 2023 Franchise
Rankings
• More than 1,000 US locations
• Known for its fresh fruit smoothies
• Open all day

4. Target Market:
Identification
• Generation X and Y
• Working Class with middle income

5. Target Market:
Identification
14.2% growth in Japanese foodservice industry
2nd largest segment
Location: Tokyo
34.2% GDP
30.7% population share

6. Target Market:
Influences
• Commercial Factors
• Ranked 13th out of 153 for safest
countries
• Increasing high GDP
• 1.15% increase in economic growth
Political Factors
Strong ties with US
Ranked 96 out of 100 on Freedom of World index

7. Target Market:
Influences
• Cultural Factors:
• Japanese Diet
• Health-conscious
• Time scarcity
• Legal Factors:
• 0.05 out of 1.0 FDI restriction score
• 35th freest economy

8. Competitors
Domestic Market Global Market

9. Likelihood of Success

10. Financial Forecasts
Name of Fee Low High
Initial Franchise Fee $15,000 $30,000
Professional Fees $6,500 $15,500
Restaurant Fixtures, Furniture and Equipment (including point of sale/cash register system) $95,000 $142,000
Leasehold Improvements $140,000 $259,500
Signage $3,000 $25,000
Initial Inventory $3,500 $19,500
Initial Training Expenses $1,000 $15,000
Initial Deposits $1,500 $25,500
Grand Opening Contribution $5,000 $10,000
Additional Funds (Working Capital) – 3 to 6 months $8,000 $42,500
ESTIMATED TOTAL* $277,000 $584,000

11. Financial Forecasts

12. Financial
Forecasts
2024 2025 2026 2027 2028
Fixed Costs $1,317,500
$1,372,39
6
$1,414,84
1
$1,458,59
9
$1,503,71
0
Sales Price $5.19 $5.19 $5.19 $5.19 $5.19
Variable
Costs
$1.71 $1.71 $1.71 $1.71 $1.71
Contribution
Margin
0.67 0.67 0.67 0.67 0.67
Breakeven
Point
$1,966,418
$2,048,35
2
$2,111,70
3
$2,177,01
3
$2,244,34
3

13. Marketing
Environment
Analysis
• External Factors that could impact the campaign:
• Fruit
• Home-made smoothies
• Rising minimum wage
• Seasonality
• Inflation
• Age

14. Pricing
• Pricing: ¥450 to ¥700.
Additional cost for add-ins like protein
powder
• 20.7% market share
Location: Shibuya

15. Alignment with
Strategic Goals
• spreading sunshine and inspiration.
• “Inspire Better and spread sunshine around”
• expanding “horizons as wide and vibrant as
a sunset”

16. Promotional Objectives
1. Brand
Awareness
2. Brand
Engagement
3. Mobile
Application

17. Communication
Options Costs
Cost
Social Media Team $5,000
Hootsuite $249/month
Adobe Business
Suite
$84.99/month
LINE Analytics
Program
$150/month
App development $90,000
SEO $500/month
Transit Flyer $249/month
Google Analytics $0
Budget $100,000

18. Timeline

19. Measures of Success
1. Brand Awareness
Views
Reach
Follower count
Impressions
Audience growth rate
2. Brand Engagement
Reactions
Comments
Shares
3. Mobile Application Downloads

20. Sample Marketing Channels

23. Implementation

24. Implementation

25. Evaluation
Evaluating Marketing Strategy Effectiveness
Channel Metrics Measurement Time Frame
Social Media Platforms: Views, Reach, Followers, Impressions Data is collected daily and metrics are
Instagram, Facebook, TikTok Audience Growth Rate, engagement rate, measured weekly and monthly
Video views, video completion and video shares
LINE Views, Reach, Followers, Impressions Data is collected daily and metrics are
Audience Growth Rate, and engagement rate measured weekly and monthly
Mobile APP Downloads, activation rate, DAU, MAU, retention Data is collected daily and metrics are
and Churn rate, measured weekly and monthly
SEO CTR, Bounce Rate, Keyword ranking, and Data is collected daily and metrics are
conversions measured weekly and monthly
Transit Flyer Reach, Frequency, and Traffic and Location Flyer is up for 1 month before and 1 month
after opening, and effectiveness is measured
once the flyer is taken down

26. Control

27. Global Trends

28. Conclusion

29. Questions?

30. References
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