Slim 50 Donuts

Evaluation of 50 Slim Donuts Company

Executive Summary

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The movement towards eating healthy is prevalent worldwide. Individuals are slowly progressing to consuming food that they believe would aid them to stay fit. The campaign is inspired by the social pressure to have a desirable body and avoid weight gain. 50 Slim Donut company is one of the start-ups that aim at providing healthy food to individuals. The corporation offers tasty and low-calorie donuts that enable individuals to satisfy their cravings while staying fit.

The need for healthy yet savory food makes it feasible to establish the corporation. While other factors come into play, it is crucial to conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis to determine whether the implementation of the company will be a success or not. The finding of the analysis will offer a prospective position of the firm in the USA’s food industry.

SWOT analysis provides the basis for formulating strategies that market the company. The approach focuses on target market segments; demographic, geographic, psychographic, and behavioral. With information on the target markets, it is simpler to conduct positioning strategies. Hence, the action plan encompasses the four marketing factors; product, price, position, and promotion. With the strategy, it is essential to conduct a performance evaluation of the company to reveal the standards that identify the company’s success. Overall, the performance evaluation facilitates the company to gauge its progress in the food industry.


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Evaluation of 50 Slim Donuts Company


Given the high obesity rates in the USA, there is a need for low-calorie meals. Individuals need products that satiate their taste buds while enabling them to stay fit. These low-calorie products come in handy since they would assist Americans in consuming fast food without gaining weight. 50 Slim Donuts Company is one of the companies established to provide the alternative to the regular high-fat donuts to individuals. However, since it is a start-up, it is essential to evaluate its success in the USA food industry. Without this analysis, the implementation of the company might fail; therefore, it is crucial to conduct an investigation and formulate strategies to establish 50 Slim Donuts Company successfully.

Overview of the Company

50 Slim Donuts corporation is a potential start-up that aims at providing low-calorie donuts in the American food industry. The company’s goal is “Low fat and tasty. Satisfied and Slim”.  It implies that the product will be low fat and tasty to ensure that the consumers are satisfied and remain slim. The company aims at being operational from June 2021. It hopes to gain investment from high-end food corporations such as Nestle. With the investment, the company’s operations will be achievable.

The Purpose of the Company

The corporation is established mainly to provide a healthy alternative to high-fat donuts. According to statistics, around 70% of the USA population suffers from both obesity and being overweight (Sun et al. 546). These high levels are linked to the food products these individuals consume. For example, the more calories they consume, the more cases of obesity and overweight. According to Sun et al. (547), these alarming rates of food-related ailments prompted Americans to be more conscious of what they consume. There was a need for low-calorie food that would enable them to satiate their cravings without gaining weight. The wholesome meals are healthy alternatives but do not have the flavorsome tastes associated with fast food. Therefore, there was a need for a low-calorie fast food alternative. The 50 Slim Donuts firm comes in handy as it provides low-calorie donuts for its prospective consumers. The donuts will have a similar flavor as the high-fat donuts but different calorie percentages. The company will aid the Americans to satisfy their craving for donuts while maintaining the BMI.

SWOT Analysis


The corporation’s products are viable in the American market because the company aims at producing low-calorie donuts. The products would be a healthier alternative to high-fat donuts, but with the same taste, which consumers would prefer. The company is established when the demand for healthy meals is high (Sun et al. 557). Since its products meet the needs of the population, the corporation will be successful. Indeed, the company’s products offer the firm leverage in the food industry.


The company lacks diversification because the production is focused solely on the production of low-calorie donuts. Without diversification of its product line, the company may collapse. Focusing on a single product is challenging for the business. Without a plan to expand its product line, the company may become irrelevant.


The niche in the production of whole meals presents an opportunity for the company. As Americans shift towards healthy eating, the corporation can specialize its production to whole meals and produce low-calorie fast food, beverages, and whole meals. Although most Americans prefer to eat low-fat meals at home, they might trust a corporation that leans towards the sole production of healthy food (Sun et al. 557). As a result, the company will optimize its profits through economies of scale. Indeed, the sole production of healthy meals presents a viable opportunity for the firm.


The firm’s production of donuts threatens its operations as it creates a negative perception of the consumers. The company’s profile indicates that it produces low-calorie donuts; however, consumers might not differentiate it from the normal high fat donuts. Individuals might not trust the firm due to the already existing negative perspective on fast foods. According to Min et al., the marketing on fast food restaurants depicts that they only sell high-calorie products linked to obesity (591). Since the existing analogy creates a negative perception of the company and threatens its operations, it may take an extensive period before consumers believe that the donuts are different from those offered in fast food joints.

Target Market Segment


Demographics is the most viable market segment for the firm since it targets both children and adults. The strategy is motivated by the increased consumption of low-calorie food across all age groups. According to Sylvetsky et al., the highest consumers of low-calorie food are children between 6-11 years and adults from 55 years and above (448). The firm also targets females because more females than males consume low-calorie foods. Non-Hispanic white individuals are also the target market of the corporation due to their high consumption rate (Sylvetsky et al. 446). Equally, the firm targets consumers from high social-economical status. According to Sylvetsky et al., these people consume more low-calorie sweeteners because they can afford them; hence, they will offer a viable market for the firm (446). The company aims at taking advantage of these statistics to gain leverage in the food industry.


The segment depicts the characteristics of the people that the firm targets. The corporation aims at targeting individuals who are sensitive to weight-related factors. Such people seek to consume low-calorie products to help them manage their existing conditions or prevent obesity (Sylvetsky et al. 445). These are consumers with existing medical conditions such as diabetes and obesity. The firm targets the group since it provides low-calorie donuts that would assist them in their journey to healthy living.


While the geographic segment depicts the firm’s positioning, the corporation targets consumers from urban and semi-urban areas. The company focuses on these groups since they have limited options for healthy food. Unlike their counterparts in reserves, the urban and semi-urban individuals rely on processed food. Therefore, the company aims at providing them with healthy alternatives.


Psychographic is one of the vital market segments that the firms consider because it depicts the general lifestyle of consumers that the company targets. The firm focuses on individuals that are impulsive buyers and willing to try out new products. The donuts from the firm are relatively new to the market; hence, the venture targets people that are not afraid to spend impulsively on new products.

Positioning Strategy and Recommendations


The corporation should offer a wide product line to boost its sales. Since the company aims to produce low-calorie donuts, the initiative is viable for the company’s general success. However, to optimize its profits, the firm needs to offer various products to the consumers by expanding its product line to encompass whole, low-fat meals. As a result, the product line expansion would maximize the firm’s production while ensuring customer gratification.


The firm should offer its products at an affordable price and aim at producing high-quality products that provide a value proposition to its customers. Although the target market involves high-income individuals, the prices should be relatively affordable for the rest of the socio-economic status groups. Making its products affordable would ensure that it has a broad market for diverse groups.


Since the firm’s positioning boosts its sales, it is set to be located in New York. The existing strides towards a healthy population in the city make it easier for the firm to enter the food industry. Individuals would be more receptive to healthy food offered by the corporation. The corporation needs to analyze the city and set up its physical location within proximity of offices and other industries to ensure that it is accessible to the population; thus, increasing the probability of sales.


Offering promotions on products will increase the firm’s sales. Since the corporation is relatively new, it needs to offer promotions on its products to make them favorable to consumers. For instance, the firm can offer discounts on purchases that exceed $40 for first-time consumers. However, only standardized promotions would be beneficial to the company.

Performance Evaluation Standards

Consumer Retention

The company will base its performance on consumer retention. Since consumer retention depicts the success of any corporation, the ability to retain consumers reveal its success (Katsikeas et al. 18). When consumers are satisfied with the firm’s products, they will make return purchases and inform their friends and families. The 50 Slim Donuts company will use this standard to evaluate their performance in the food industry. A stable consumer base facilitates the longevity of the company in the food industry. Therefore, consumer retention is a viable standard to measure the performance of the firm.

Product-Market Share

The product’s market share in the food industry determines the general performance of the company. With the prevalence of many ventures in the food industry, it is vital to analyze the percentage of the market share that the product occupies. The method takes into consideration consumer retention and accounting to determine the market share of the product. The technique reveals the marketing performance goal and measure of the company (Katsikeas et al. 18). A large market share depicts that the company is successful and vice versa. Consequently, a product-market share index is a viable means of measuring the company’s performance in the food industry.


Accounting is a practical means of conducting a performance evaluation of the company. The method will involve analyzing the company’s profits. The focus would be on the corporation’s ability to retain profits, which depicts the level at which the company can make profits rather than the total values of profits achieved (Katsikeas et al. 19). With this method, the company will evaluate its profitability. The focus will be on the profits they make per day instead of the general profits made in a year. Since the performance index will indicate whether the business is profitable or not, accounting is a viable performance evaluation.


50 Slim Donuts firm is a worthwhile venture that will reduce the levels of obesity in America. The company will provide low-calorie donuts that would satisfy the consumers’ needs without gaining weight. The company’s SWOT analysis reveals that the company will succeed if it mitigates the negative perceptions towards fast foods. The corporation targets individuals between 30-50 years individuals who are focused on maintaining a healthy BMI. The performance measurement index will be consumer retention, product-market share, and accounting. The company’s success will offer profits to stakeholders while enhancing the consumers’ health.

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