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Jamba Juice Marketing Audit
Transcript of Jamba Juice Marketing Audit
Originally known as Juice Club
Founded in April 1990 by Kirk Perron, an enthusiastic cyclist and healthy lifestyle advocate who opened his first store in San Luis Obispo, California.
1995 Juice Club officially changed its name to Jamba Juice and started franchising its stores
Jamba Juice finally went public in 2005 after 15 years of operation.
Over 800 locations within the United States, the Bahamas, Canada, Philippines, and South Korea
Approximately 301 company owned stores and 508 franchise operated locations, with an additional 35 international stores
Well represented in major metropolitan areas
The customer demographics for Jamba Juice consist mostly educated female adults who have kids in the middle income bracket (50-100k)
Products- In Store
Customer’s evoked Set
Strong Brand Image & identification
Decline in Sales
Target market expansion
Rising trend of more health conscious people
Possible room for expansion- JambaGo
Competition from Smoothie King
Competition from larger fast food places like McDonalds, BK
Example- boosts, wheat shots, green juice
Strong Brand alignment with health
Product Life Cycle
Decline in Sales
600 locations worldwide
Dominates most of the smoothie market in the mid-state regions
McDonalds, Burger King
New Target Market
Targeting- Youth with Jamba Kids in 2003
o Maximum Number
o Average 1,200 – 1,400 square feet
o Major urban centers and suburban strip mall centers.
o Require lower capital investments
o Target more on “captive” customers
o The stores are located within another business in conjunction with other businesses or at institutional settings such as colleges and universities, entertainment venues, transportation centers, supermarkets and airports.
Jamba Smoothie Station
Smaller footprint than non-traditional store
Offers limited menu
Use pre-portioned fruit and yoghurt to produce smoothie
Low capital requirement
Low-labor self-machine format, which targets on serving captive audience who value the speed of service
Company stores #301
Franchise stores #473
International stores #35 (South Korea, the Philippines, and Canada)
JambaGo Served Locations #404
4 main distribution channels as of Jan’13
Expand domestically & internationally
Blend Plan 3.0
Customer & Supplier
Strategy With Suppliers
Short-term seasonal pricing agreement:
Predetermined price based on forecasted annual requirements.
Multiple suppliers to protect short-term supply volatility.
Strategy with Franchisee
Flexible and non-traditional franchise formats in travel hubs, grocery outlets, malls and colleges and universities.
Clear selection criteria and quality control over the franchisees.
Strategy with Customer
Focus on delivering easy and fun healthy living delicious drinks to customers through its fresh blend-to-order smoothie and food offering, and its vibrant environment.
Quality of products
Lifestyle & Community
New products- Jamba Kids, Youth Oriented (such as coffee & tea, Kids Meal)
Disney Planes, Twilight (Cross Promotion)
Increase foot traffic, More focus on franchising
Acquire International Customers through international franchising
Licensing “better for you” products
Price & Pricing Strategy
Starts at $4.39 for classic sixteen oz. smoothie
The most expensive smoothie price is at $6.09
Kid meals at $4.79 which includes smoothie and food.
Prices are subject to vary depend on locations across the United States.
Starbucks ($4.79 for Strawberry smoothie) and Smoothie King.
McDonalds ($2.39 to $3.39)
Maintain prices while increasing sales through foot traffic
Customers in higher income bracket
Not doing well due to competition
Social-media promotion with Twilight Saga film franchise
Brand Ambassadors- Venus Williams
Teaming with healthy America
Geography based products- Kona Smoothie in Hawaii
Brand building and total innovation
Expand Growth initiatives
New Product, partners, channels and market
Drive enterprise efficiencies
Strong emphasis on personal selling and public relations.
Master of Blending Arts program for baristas. enrich consumer’s experience and promote healthy nutritional information.
Possible Promotional Strategies
Seeding-Continue promoting to children
Reward System for loyal customers
Maintain higher price point by focusing on higher quality products
Ben Zou, Siradee Techasrisuko,
Tsering Lama, Henry Sham
Niche Market with decline in sales
Needs to expand its target base and maintain core customers
Quality control with franchise
Has implemented some changes