Jamba Juice Expansion Plan - Document Transcript

1. Jamba Juice Best Opportunity for Expansion in the United Kingdom.

2. Team 12 Tiffany Dang, Brent Edwards, Emily Evans, Allison Stokes & Alicia Tikalsky

3. Executive Summary

4. This marketing proposal describes Jamba Juice’s plan to expand its business into the

United Kingdom. The target market was determined by the eight O’s characteristics, with

occupants being citizens ages 15-34 years of age and the object being Jamba Juice’s whole idea

of a healthy yet convenient service. The other O’s considered were occasions, objectives, outlets,

organization, operations, and opposition. For market coverage, we decided to use an

undifferentiated market coverage strategy, similar to the one that was successful for the United

States. Jamba Juice’s core component will be to provide customers with an easy option to live

healthy by offering nutritious beverage and snack options. Another alternative to the in-store

products will be make-at-home smoothies that will be offered in grocery stores. These products

will follow Jamba Juice’s mission to have customizable natural beverages. For the packaging

component, we decided to go against the Styrofoam cups that are used in the majority of United

States Jamba Juice stores and instead choose a more eco-friendly and recyclable option with

using paper cups instead. Our support service will provide exceptional customer service

specifically for our United Kingdom customers with well-trained employees and a 24/7 hotline.

Our marketing tactics will meet our main objective to have Jamba Juice as the largest active,

healthy lifestyle company in the United Kingdom. The steps to do so include identifying our

target audience, developing specific campaign objectives, creating a budget, determining a media

mix, establishing the campaign message, determining a strategic campaign approach, and
evaluating the campaign effectiveness. Our media mix will reach consumers online through

various mediums inclucing social networking sites (Facebook, Twitter, etc.), strategically placed

ads on the internet, as well as airing television commercials during prime viewing time. The

primary marketing message is to establish Jamba Juice as a healthy , “lifestyle brand that really

stands for great-tasting, good-for-you nourishment.” 19 The secondary message is that there is a

wide variety of fruits, juices, yogurts, and boosts that consumers can choose from to enjoy. Key

sales promotions to increase brand awareness include “Buy One, Get One” campaigns and a

frequent buyer card reward program that will create a loyal relationship between customers and

Jamba Juice. Our channels of distribution will go through independent intermediaries at a local

level. Producers, agents, wholesalers, retailers, and customers will all be included in the channel

configuration. It is necessary to go through local agents as we want our Jamba Juice smoothies to

have the finest and freshest ingredients possible. To aid in determining the appropriate approach

to distribute our products, the 11 C’s checklist will be used. Some of the 11 C determinants

include customer characteristics, competition, cost, character, and capital. Since Jamba Juice’s

product line does not vary throughout the world, so we recommend that Jamba Juice uses a

standard worldwide pricing strategy. Once Jamba Juice enters the United Kingdom market, we

plan on executing a market pricing strategy that will based on our competitor’s pricing, Crussh

smoothie maker. Because we will use the standard worldwide pricing strategy, the Jamba Juice

smoothie prices will be the same as the prices in the United States and the Bahamas, which is

about $4 per smoothie. In the United Kingdon, this is equal to € 3.25 per smoothie, making it the

same price as a Crussh smoothie. Jamba Juice hopes to achieve the long-term goal of becoming

the market leader within four year of market entry. A. Marketing Objectives 2
5. 1. Target Markets Now that Jamba Juice is expanding into the United Kingdom, it is

important for them fully understand their target market. A target market can be defined by eight

important characteristics: occupants, objects, occasions, objectives, outlets, organization,

operations, and opposition. The occupants, or citizens of the United Kingdom, will define Jamba

Juice’s marketing strategy. Currently, there are 61,621,000 citizens residing within the United

Kingdom.1 Roughly 26% of these citizens fall within Jamba Juice’s target age range of 15-34

years of age.2 Citizens who fall into this demographic define our target market because they are

most likely to purchase our product due to its convenience, nutrition, popularity and a multitude

of other factors. The objects within the target market of the United Kingdom are vital to

understand because it is this object that ultimately fulfills the market’s need. Jamba Juice’s

object is not only a smoothie; it encompasses the physical smoothie itself as well as the idea of

healthy eating and the quick convenient service provided in a friendly environment. The specific

event of a purchase, or the time period when customers are more apt to buy Jamba Juice’s object

is the occasion. Jamba needs to fully understand the cyclical nature of the occasion and how it

directly affects consumer’s objectives in regards to their object. An objective is the motivation

behind a customer’s purchase. For example, Jamba Juice must understand that in winter months

the sale of smoothies will decrease. In the occasion of winter months, Jamba Juice must account

for the change in customer’s objectives and should address this shift by using hot oatmeal or chai

tea drinks to create a hidden value that customers are looking for. In order to spur customer’s

objectives for Jamba Juice they need to create and maintain the appropriate outlets, the location

consumers will purchase the objects. It will be important for Jamba Juice to recognize the

motivation, the occasion, behind consumer purchases. For example, convenience is of high

significance to our target market, therefore choosing a highly convenient outlet is equally
 significant. As a marketer it is imperative to understand the organization within a customer’s

mind as to how and why they make the purchasing decisions they do. This organization begins in

the consumer’s mind well before they make a purchase. Jamba Juice needs to recognize what

other factors play a part in the decision making process such as: proper nutritional consumption,

current trends, and fulfilling basic hunger needs, just to name a few. Jamba Juice operates as a

leading brand within the United States displaying multiple reasons as to why it could

successfully penetrate the smoothie market on a global scale. The current operations within the

United States and the Bahamas are perfect measuring sticks. They provide clear evidence

through their successful operation of more than 740 smoothie stores, even in the face of

opposition.3 Jamba Juice has effectively surpassed other smoothie opposition like Maui Wowi,

Smoothie King, and Planet Smoothie in the United States by nearly 150 stores each.456 This

clearly indicates that their top competition in the United Kingdom, Crush and its 23 locations,

will provide opposition Jamba Juice will be able to ultimately overcome.7 Focusing on these

eight components of marketing will allow Jamba Juice to successfully define their target market,

allowing them to continue to grow in a global setting. 2. Market Coverage 3

6. We recommend that Jamba Juice use an undifferentiated market coverage strategy. Jamba

Juice is currently functioning under this strategy in the United States, and we suggest they

implement this same strategy when entering the United Kingdom market. We do acknowledge

cultural differences and social norms must be accounted for when entering a new market, and

suggest directing Jamba Juice’s undifferentiated marketing strategy towards the demand of the

target market of 15-34 year olds as a whole. This undifferentiated marketing strategy would also

account for health conscious, trendy, on-the-go individuals. We feel this is a strong strategy to

implement based on Jamba Juice’s successful history within the United States. Jamba Juice has
more than 30 different varieties of custom smoothies and ‘Jamba boosts’ along with other fruit

juices and food items. These product offerings allow Jamba Juice to adopt the cost effective

undifferentiated strategy because virtually all consumer objectives are met. Clearly, an

undifferentiated marketing strategy fulfills all consumer needs as well as market demands paving

the way for successful market penetration. A. Product Adaptation or Modification 1. Core

Component A motto that Jamba Juice utilizes in the United States is “Created by nature, blended

by Jamba.” This perfectly sums up Jamba Juice’s mission to provide the consumer with a natural

product that is customizable to their personal preferences.8 Jamba Juice’s smoothies consist of a

myriad of different fruits, yogurt blends, and fresh squeezed juices. The company’s main goal

will be to provide customers with an easier option to live healthier by choosing nutritious snacks

and beverages. For customers’ convenience, Jamba Juice will also offer make-at-home

smoothies in local grocery stores. Similar to the U.S. in store smoothies, each packet of make-at-

home smoothie will contain real fruit, non-fat yogurt as well as a vitamin C boost that provides

the consumer with 100 percent of their daily value of vitamin C. The only additional ingredient

needed is apple juice to help liquefy the fresh smoothie.9 In addition to the vitamin C boosts, the

in store smoothies can be customized with over 10 other boosts, including: a pro-biotic boost, a

3G charger super boost, flax and fiber boost, a calcium boost, a daily vitamin boost, a whey

protein super boost, an antioxidant boost, a soy protein boost, an energy boost, as well as an

energy boost. 10 These boosts, along with the large selection of fruits and yogurts, allow the

consumer to create their own personal smoothie and customize their product according to their

specific needs. 2. Packaging Component With Jamba Juice’s bright, colored Styrofoam cups, it

will have no problem differentiating itself from any competitors. The designed cup will become

quickly recognizable through out the UK, which will add to brand loyalty. Although, in the U.S.
 most Jamba Juice stores use Styrofoam cups, which take thousands of years to degrade, Jamba

Juice in the U.K. intends to use a more eco-friendly cup such as paper that can be 4

7. recyclable.11 With the use of a more eco-friendly cup, consumers will be more likely to

purchase a smoothie from Jamba Juice without worries of hurting the environment; leading to

more satisfied customers. Cities who have already successfully switched to paper cups are

Berkeley, Santa Cruz, and San Francisco.12 3. Support Services Component Just like all Jamba

Juice locations, customer service will be key for our ventures in the United Kingdom. Customers

can expect friendly service, clean locations, and an enjoyable atmosphere. There will be a readily

available hotline 24/7 for any questions regarding Jamba Juices products or services. Our

employees will also be well educated and trained to answer any nutritional or ingredient

questions regarding any smoothies or snacks on the menu. As well as smoothies and snacks, our

U.K. stores will sell nutritional cooking books, environmental friendly water bottles and

thermoses, to-go snacks, and Jamba Juice logo t-shirts and hats. C. Promotion Mix 1.

Advertising a. Objectives Our primary marketing objective is to make Jamba Juice the largest

active, healthy lifestyle company in the United Kingdom, and use this success to eventually

expand into other markets. We plan to do so by following a strategic plan using these specific

steps: ·Identify our Target Audience: Our product does not cater to any particular age or gender,

so all demographics will be considered. However, our primary target market that Jamba Juice

will try to attract is people ages 15-34 years old. ·Develop Specific Campaign Objectives: Our

objective is to gain 30 percent of the market share of the grab-and-go beverage market within 4

years. We plan on doing this by increasing brand awareness in the United Kingdom using a

“push” advertising campaign.13 This will be the most effective because we will be selling

directly to the consumer and bypassing intermediaries and other distribution channels. We will
 use personal selling and trade promotions as promotional tools. ·Create a Budget: Because Jamba

Juice is an unknown brand in the United Kingdom, an ample advertising budget is needed to

increase brand awareness in the new market. We intend to spend the majority of our budget on

advertising, trade promotions, and sales force. ·Determine a Media Mix: See section b. ·Establish

The Campaign Message: See section c. 5

8. ·Determine a Strategic Campaign Approach: Jamba Juice has a quality product that is

likely to quickly gain a following in the United Kingdom, just as it has in the United States. Our

goal is to develop long- term relationships that keep customers coming back time and time again.

We intend to meet their need on a business level, meaning offering quick, efficient service in

clean and convenient locations increasing their satisfaction with Jamba Juice. We want to

increase their commitment on a more personal level. Friendly customer service as well as

rewards promotions will keep our customers returning to us, as well as increase our reach with

positive word-of-mouth to consumers unfamiliar with our brand. By increasing commitment and

satisfaction, we will develop lasting relationships with our customers. ·Evaluate Campaign

Effectiveness: In order to evaluate our campaign’s effectiveness, we plan on conducting research

to see if we are meeting our goals. Focus groups and surveys will be conducted to gather data to

analyze. b. Media Mix Currently the leading advertising medium in the United Kingdom is the

Internet. According to a study by PricewaterhouseCoopers and the Internet Advertising Bureau,

online advertising accounted for 23.5 percent of the total advertising in UK in the first half of

2009. 14 The average English citizen spends 164 minutes online each day. 15 Jamba Juice can

use similar tactics that they have in the United States, reaching consumers online—through

strategically placed ads, as well as social networking sites such as Facebook, Twitter. Social

Networking site hits have over taken 16 search engines as the most heavily visited sites and they
 will be instrumental in our media mix. Additionally, English citizens spend 148 minutes

watching television on average. 17 We suggest that Jamba Juice air commercials during prime

time, or peak time as they call in the UK-- 6:00pm to 10:30pm will reach the most viewers at a

time. 18 c. Primary Message and Secondary Message According to Jamba Juice founder, Kirk

Perron, Jamba Juice’s primary marketing message is to establish itself as a healthy, “lifestyle

brand that really stands for great-tasting, good-for-you nourishment.” 19 The message should

continue to be the primary focus in the United Kingdom, and if they decide to expand even

further. The secondary message is that the consumer can choose from a wide variety of fruits,

juices, yogurts, and boosts to create a beverage they can enjoy. 2. Key Sales Promotions:

Objectives and Tactics In order to increase sales in the United Kingdom, Jamba Juice must first

increase its brand awareness. Jamba Juice has a quality product that is one of their competitive

strengths, so allowing consumers to try the smoothies should be a priority. Sales promotions,

such as the “Buy One, Get One” campaign, have been extremely successful in the United States

and should be implemented in the United Kingdom as well. 6

9. 20 Additionally, we recommend implementing a rewards program, such as a freguent

buyer card, that will encourage customers to return and build a loyal relationship with Jamba

Juice. D. Channels of Distribution It is important that Jamba Juice efficiently facilitates the

distribution and movement of our products. Jamba Juice’s channel of distribution will include

going through independent intermediaries at the local level to distribute our goods. The channel

configuration that will be followed will start with the producer and then channel to the agent, the

wholesaler, the retailer, and then finally to the consumer. Necessary ingredients will be supplied

by local agents before hitting the retailer and consumers. Wholesalers will also be utilized for

items such as Jamba cups and other utilities. We will be able to make sure that these agents
provide us with the best smoothie ingredients so that our customers will have the highest quality

products. The 11 Cs checklist will aid us for determining the appropriate approach to distribute

our products. External determinants include customer characteristics, culture, and competition.

Internal determinants include company objectives, character, capital, cost, coverage, control,

continuity, and communication. E. Price Determination Jamba Juice’s product line does not

differ from country to country or region to region. The per-unit costs are consistent regardless of

location. As a result, we recommend Jamba Juice implements a standard worldwide pricing

strategy. This uniform pricing method will take into consideration customers who are aware of

price charges worldwide, as well as Jamba Juice’s product having little to no differentiation that

could justify a price change between countries or regions. Additionally, once in the United

Kingdom we plan on implementing a market pricing strategy. In consideration of the existing

competition, Crussh smoothie maker, our final customer price must be based on our

competition’s pricing, resulting in Jamba Juice adjusting both production and marketing to fit the

price. We recommend this strategy due to Jamba Juice’s experience within the industry and the

confidence that they will be able to attain a long product life cycle. F. Qualitative Statements as

to the Pricing Strategy By using the standard worldwide pricing strategy Jamba Juice will price

their products exactly the same in the United Kingdom as they do in the United States and the

Bahamas. They will continue to charge roughly $4 per smoothie. This equates to € 3.25 per

smoothie, which is the average cost of competitor Crussh’s smoothies. This enables Jamba Juice

to acquire a competitive advantage from a price standpoint when relating to Crussh. The low

price and convenience of Jamba Juice’s products positions them directly in line with the target

market of citizens ages 15-34 years old. By implementing the standard worldwide pricing

strategy Jamba Juice can achieve the long-term goal of becoming the market leader within four
 years of market entry. Consistent with Jamba Juices current methods of payment, they will

continue to accept cash/Euro and credit card payments. 7

10. Work Cited 8

11. 1 1 Doing Business. (2010, January) United Kingdom.

http://www.doingbusiness.org/ExploreEconomies/default.aspx?economyid=196 2 Euromonitor

International. (2010, May) Consumer Lifestyles in the United Kingdom: Population.

http://www.portal.euromonitor.com/Portal/Default.aspx 3 Hoovers. (2010, January) Jamba, Inc.

http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=ffffssyhsrcjjfryxh 4 Hoovers.

(2010, January) Maui Wowi Franchising Inc.

http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=fffrfxchyfrjxshkfy 5 Hoovers.

(2010, January) Smoothie King Franchises, Inc.

http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=fffrfcfthrkfrjtrcy 6 Hoovers.

(2010, January) Planet Smoothie Franchises, LLC.

http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=fffrfcftjsysxxktcj 7 Crussh. (2010,

June) Our Stores. http://www.crussh.com/store_listing.php 8

http://ir.jambajuice.com/phoenix.zhtml?c=192409&p=irol-irhome 9

http://multivu.prnewswire.com/mnr/jambajuice/43830/ 10

http://www.jambajuice.com/menu/index.html#/smoothies/ 11

http://www.environmentcalifornia.org/newsroom/oceans/oceans-news/environment-california-

launches-styro-strike-at-jamba-juice 12 Hahn, Steve. "Santa Cruz Chapter | News." Surfrider

Foundation : Santa Cruz Chapter. Web. 10 June 2010.

<http://www.surfridersantacruz.org/news.html>. 13 "Marketing - Promotion - Push and Pull

Strategy." Tutor2u | Economics | Business Studies | Politics | Sociology | History | Law |

<http://tutor2u.net/business/marketing/promotion_pushpull.asp>. 14 "Internet Becomes UK’s

Largest Advertising Medium, Ahead of TV | Alootechie." Alootechie | Whatever Matters in the

Indian Online Industry. Web. 10 June 2010. <http://www.alootechie.com/content/internet-

becomes-uk’s-largest-advertising-medium-ahead-tv>. 15 Web Usage Overtakes TV Viewing

(2009). Retrieved May 27, 2010 from http://www.dtg.org.uk/news/news.php?id=1524 16 "UK

Social Network Traffic Overtakes Search Engine Visits - The EMarketer Blog." Market

Research & Statistics: Internet Marketing, Advertising & Demographics - EMarketer. Web. 10

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search-engine-visits/>. 17 Web Usage Overtakes TV Viewing (2009). Retrieved May 27, 2010

from http://www.dtg.org.uk/news/news.php?id=1524 18 "Prime Time." Wikipedia, the Free

Encyclopedia. Web. 10 June 2010.

<http://en.wikipedia.org/wiki/Prime_time#United_Kingdom>. 19 "Jamba Juice Co. Celebrates

10 Years of Healthy Living;Jamba Blends a Unique Culture and Delicious Products Into a 300-

StorePhenomenon. | North America United States from AllBusiness.com." Business Resources,

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<http://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants-fast/6416725-

1.html>.

12. 20 http://www.walletpop.com/blog/2010/04/12/jamba-juice-coupon-for-buy-one-get-one-

free/