Group Mini Case #1: SLENDER 2018 Remember: Stay within the timeframe of the case. That is, it is not 2021. Like many entrepreneurs before him, the idea behind Jim Heron's business was conceived at the kitchen table. A life-long dieter - he has tried many diets. He joined a gym and became an exercise addict. He got together with a friend with an interest in natural remedies and vitamins, and together they created Slender" - a drink especially for people who would like to be healthier, lose weight and feel stronger. Not only does Slender help manage your appetite, burn fat and speed up metabolism - it also provides important nutrients such as Folic Acid, Calcium and Magnesium as well as vitamins and minerals often lost during weight loss. With all-natural colors and natural fruit flavours, Slender has only 10 calories and 1 carb with zero sugar, zero caffeine, zero sodium and zero aspartame (a sweetener). Slender provides nutritional support for a healthy lifestyle by containing meaningful levels of leading-edge healthy nutrients. He started mixing up Slender in his kitchen and selling it through his local gym. It flew off the shelves and he soon realized that he had to expand. He was able to find a local company to mix and bottle his drink and he took care of all the sales and marketing by himself. The product took off quickly and after 2 years Slender's annual sales had reached $750,000 for 2017 As of 2018 (the time in the case), Slender was sold in about 400 health clubs, 100 specialty stores and 20 airports across the country. Slender is also sold online through his website, but online line sales currently represent less than 5% of total revenue. Jim now had four full time sales representatives working for him. He achieved his sales without any large-scale advertising or promotion - mostly by word of mouth and by knocking on doors. Despite this success, Jim knew that the market was ripe for a product like Slender. Baby boomers have taken to the gym and weight loss centers in anticipation of age. The largest demographic is between 40 and 64 years of age and slightly biased or skewed towards females. The market in Canada for "nutritionals", as it is called, is approximately $2 billion annually. The category, as a whole, is exhibiting slow growth of 2%-5% per year, but the weight loss sub-category has grown over 25% per year over the past 3 years. Several small competitors compete head to head with Slender. The two biggest are "Elite FX" and "Fuse Slenderize' Both of these drinks claim to boost metabolism and speed up weight loss - but neither contains the vitamins and minerals that Slender does. Both Elite and Fuse are distributed through similar channels as Slender, and in fact, all three products often appear side by side on the shelf. The market is about to be shaken up, however. Coke has recently teamed up with Nestle and has trademarked "Enviga", a green-tea diet drink that apparently burns calories and boosts metabolism. Industry analysts expect Enviga to be Several small competitors compete head to head with Slender. The two biggest are "Elite FX" and "Fuse Slenderize'. Both of these drinks claim to boost metabolism and speed up weight loss - but neither contains the vitamins and minerals that Slender does. Both Elite and Fuse are distributed through similar channels as Slender, and in fact, all three products often appear side by side on the shelf. The market is about to be shaken up, however. Coke has recently teamed up with Nestle and has trademarked "Enviga" a green-tea diet drink that apparently burns calories and boosts metabolism, Industry analysts expect Enviga to be available around November 2018, It is now January 2018. Slender is Jim's "baby" - his company and he plans to be at the controls as the company continues to grow. Start at the top of a new page Q2: Page limit: 1 (15 points) Describe the three most critical challenges or problems faced by Slender. Use the following format only: #1, #2 and #3 - Each problem must be stated with a maximum of two sentences only. - Problem #1 must be the most critical one