Case Analysis: Jamba Juice

Jamba Juice’s mission is to be a healthy lifestyle brand developing and providing healthier healthier
lifestyle choices to its target market and current customers. As far as the company’s goals of expanding
globally, expanding their product line all while cutting costs and increasing revenue is possible in their
case; however, it would require the company to analyze where they are at to determine where they
would like to be. By evaluating their internal and external environments, Jamba Juice would need to
utilize the four key perspectives of a balanced scorecard which allows an organization to connect what
they would like to achieve in the far future with what they would like to achieve financially in the near
future. The four key perspectives of a balanced scorecard are customer perspective, company
perspective, innovation and learning perspective along with financial perspective

Problem: Jamba Juice’s main problem that causes their financial jeopardy is that their unrestrained
expansions into underperforming markets/industry and their continues repurchasing of franchised
stores.

Jamba juice is retailer specializing in providing fruit or vegetable smoothies and uses. There quarter 4
earnings report that Jamba juice has degraded and expected earnings per share are -$. 06 which could
be missed by the company based on the Q3 analysis. Relocation of the headquarter from Emeryville,
California to fresco, Texas at North of Dallas was done to improve in the overall operation cost for
finding the Talent for skill restaurant.

This area was specifically good for the great cost of living as well as relocation plan where chartered
accountant employees in the organization who were opted to go turn to 120. New office is capable of
holding hundred employees, but it was designed to hold more than hundred employees. Jamba juice is
making replacement with the Zoe's kitchen as well as the Brinker international. Both of the companies
are also at Dallas.

Company has been successfully operating in America as the overall sales rate was going wrong for the
first water and later it was jumped up at the third quarter of the yeah but later at the fourth quarter it
again went down. Relocation of the headquarter as well as changes in the operational availability of the
organization reduced the impact of the business in the specific market segment which affected the
company Bradley.

My returning to the using roots of the organization and trying new opportunities such as involving whole
food produced in to the menu was not the most appropriate approach of Jamba juice to increase their
availability of the market share as well as to increment in the assessment of available opportunities for
international as well as national market. By using cost differentiation techniques, main competitors such
as Starbucks highly affected as availability of wide range and better prices would the customers from
Starbucks to Jamba juice increasing the total revenue. Increment in new structure of operation company
is successfully creating a difference in Operation as well as taking positive impact from the customers as
well.
Case Notes:

 Originally Named Juice Club

 Founded in 1990 by Kirk Prone
 Opened first door in STL, CA (Second and third in 1993)
 Originally started as a franchise strategy
 1995 changed name to provide a point of differentiation to competitors
 2008 James White named CEO and President
 Aimed to eliminate short term debt and innovate and expand menu such as favorable menu
items such as lunch, dinner, breakfast, and a kids menu to target kids 4-8

Strengths:

 Whole Meal – Products they opened up was rated #1 by nutritionist

 Expanded food options and menu

 Acquired a company called Talbot Teas to assist with product differentiation

 Switched into bakery goods, juice shots, “boosts” protein meals, juices and smoothies

 Employee engagement is an internal strength (Partner w/ Obamas Job Program, Nutritionist,

Partnered with San Fran for employee acquisition in 2010)

Weaknesses:

 Menu is pricey

 Lack mass media advertising (Commercials, social media campaign)

 Season Variability- When its cold they have trouble generating sales

Opportunities:

 Changes in the consumer climate (McDonalds and Orange Julius moved into the smoothie
market) increases brand visibility

 Increased health awareness since Obama administration in 2008 (Schools, gyms, airports)

 Expanded far into global market (mall of Asia in the Philippines, 22 expect 80 stores in Canada
by 2022)

Threats

 High competition

 Existing larger brands seeking market share

Porter 5 forces

Buyers
  Consumers in stores

 Franchisees (62%)

Suppliers

 Heavy reliant on suppliers because they promote finest and freshest ingredients

 Need them in a timely manner

Threat of Substitutes

 High because of the number of alternative products consumers can drink

Threat of New entrants

 (medium) – low barriers of entry, but they will need to have a strong product differentiation

Industry Rivalry

 High because there are many companies that provide products that are similar and cheaper
than the Jamba Juice products

Recommendations:

 Have an increase marketing through ads because of their reliance on word of mouth
 Publicize with celebrities that promote healthy lifestyle
 Higher social media presence increasing following and customer loyalty
 Increase in healthy food options: hot drinks for winter times, organic options (cage free eggs) as
a positive reinforcement for the healthy lifestyle
 Partnering with healthy lifestyle brands and companies to promote their brand

Conclusion:

 Successful over the last 9 years, increased sales by 23 Mill per year, total Revenue increase of
2017 M since he started
 Increased opening of franchises is now higher than company owned stores, moving into
international markets and increases brand awareness
 The on the go market is an excellent opportunity to capture and the market is growing steadily
 Better than its competitors because they have been established as a pioneer in the health drink
industry as a healthy option
 Concern: Work on a more competitive pricing strategy while maintaining product quality