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Jamba Juice Marketing Audit

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Tsering Dolma

on 6 August 2013

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Transcript of Jamba Juice Marketing Audit

Marketing Audit

Company Overview
SWOT Analysis
SWOT Analysis
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

Company Profile
Customer Profile
The customer demographics for Jamba Juice consist mostly educated female adults who have kids in the middle income bracket (50-100k)

Products- In Store
Main Product-
Healthy Smoothies
Products- Retail
Products In-Store
Customer’s evoked Set
Strong Brand Image & identification
Market Presence

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

Health Conscious
Lifestyle oriented
Example- boosts, wheat shots, green juice

Strong Brand alignment with health
Recognizable logo

Product Life Cycle
Mature Stage
Decline in Sales
Heavy competition
Saturated Market

Smoothie King
600 locations worldwide
Privately owned
Dominates most of the smoothie market in the mid-state regions

Direct Competitor
Indirect Competitors
McDonalds, Burger King

Target Market
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.

Non Traditional
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
Channel Relationship
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.
Retention Strategy
Quality of products
New Products
Lifestyle & Community
Acquisition Strategy
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.
Competitor Prices
Competitive Pricing
Starbucks ($4.79 for Strawberry smoothie) and Smoothie King.
McDonalds ($2.39 to $3.39)
Pricing Analysis
Maintain prices while increasing sales through foot traffic
Customers in higher income bracket
Not doing well due to competition
Promotional Strategy
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
Lifestyle engagement
Expand Growth initiatives
New Product, partners, channels and market
Drive enterprise efficiencies

Personal Selling
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
Continue cross-promotions
Maintain higher price point by focusing on higher quality products
Free sampling
Sporting Events

Ben Zou, Siradee Techasrisuko,
Tsering Lama, Henry Sham
Niche Market with decline in sales
Facing competition
Needs to expand its target base and maintain core customers
Quality control with franchise
Has implemented some changes
Customer Demographics
Full transcript