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Transcript of Jamba Juice
Leader in smoothie and fresh juice bar industry
Positioned as a dominate player within the healthy living category
Attract consumers of all ages
Founded in 1990 by Kirk Perron, a cyclist and healthy living enthusiast
Smoothie shop to promote healthy living
Lack of financial discipline
Outdated product offerings
Franchisees unhappy with platforms
Poor Store Management
Lease agreements with Whole Foods
Ability to establish an successful store in environments with colder temperatures
Close proximity to Universities, health clubs, and health food stores
Fresh squeezed fruit juices
Strategic Issues Synthesis
1. Natural ingredients of the Highest Quality/ Brand Equity
2. Variety of Nutritional boosts
Same as current situation with many stores in under developed areas
Limited service restaurants achieve higher quality and gain market share
Reduce number of stores
Innovate a few products
Reestablish FIBER atmosphere
Same But Better
Advertise they have the highest quality and best nutritional boosters
Establish management team that can manage current 700-store system
Secure a supply chain
Inventory information system
Many stores in under developed areas
Management not able to keep up with complexities of 700-store system
Limited service restaurants carrying smoothies
Are their competitive advantages enough to sustain company?
How will we
manage 700-store system
overcome limited service stores introducing smoothies
reinvigorate the high quality image and nutritional benefits to consumers
improve our supply chain
Critical Strategy Issues
Health Conscious Consumers
Families with Children
Healthy Meal Substitute
Quality of Ingredients
Limited Service Restaurants
Customers are willing to pay the premium price for fresh-squeezed juices and hand crafted smoothies.
By 1990, the smoothie shop and juice bar industry transformed from small local shop to large regional systems
By 1995 opened 18 company-owned stores, 13 franchised and 75 juice bars inside Whole Foods grocery stores across 17 states
Industry revenue peaked at 1.9 billion by 2008
Increased in gross margins throughout its operating history
1995: Changed name to Jamba Juice from Juice Club, Inc.
1999: Bought out Zuka Juice
2006: Jamba Juice goes public
1990: Founded by Kirk Perron
1994: Opened 16 Juice Clubs and raised over $66 million