Smoothies - US - November 2005 Executive ... - Catering.com.co

Non-traditional marketing still most commonMade-to-order smoothie shops do very little traditional advertising (TV and print),instead relying on marketing tactics aimed to drive product trials and build loyalty. Themost common promotional activities employed are sampling, coupons, sweepstakes, andloyalty cards entitling customers to a free smoothie after a designated number ofpurchases. Most smoothie shops are franchised, and their payment agreement usuallyprovides for an advertising and promotion budget. The franchisee will agree to pay 4% ofits annual sales on marketing efforts to help grow its business, and in exchange thecompany will provide materials (e.g. print, radio spots, TV ads, direct mail, promotionalmaterials, etc.) for the franchisee's use.Traditional advertising vehicles are more likely to be used in the packaged smoothiesegment, where large companies such as Unilever (Slim-Fast Optima), and Campbell’s(V8 Splash) have substantial advertising budgets and typically support new productlaunches with TV, print, radio and freestanding inserts (FSIs). However, total advertisingspending within the smoothie market is low compared to other categories, in part becausemany of the suppliers are smaller companies, like Fuze and Bolthouse Farms, which tendto rely more heavily on grass-roots marketing tactics, such as sampling tours and eventsponsorship, to generate awareness.The smoothie consumerAs the number of outlets selling smoothies has multiplied, smoothie consumption hasgrown significantly: 43% of respondents to Mintel’s exclusive consumer survey aged 18+reported drinking some type of smoothie in the past month.Smoothie consumption is heavily skewed toward younger consumers: nearly two thirds(63%) of 18-24-year-old respondents claimed to have had a smoothie in the last monthcompared to only a third (33%) of those aged 55-64. Incidence of consumption declinessteadily with age, which is most likely due to the availability of smoothies—for example,smoothie shops are commonplace on college campuses, making them more accessible toyounger consumers—and different eating habits. Younger people are more likely to bebalancing school, work and other activities, and as a result are frequently eating on thego.The incidence of smoothie drinking is higher among women than men—47% of womendrink smoothies compared to 39% of men. This is probably because women tend to bemore health- and weight-conscious, and therefore a good match for the smoothie“lifestyle.”This report is supplied in accordance with Mintel's terms and conditions.© Mintel International Group Limited.