Jamba Juice Growth Strategy
Jamba Juice was founded in April of 1990 by Cal Poly graduate Kirk Perron, along with cofounders Joe Vergara, Kevin Peters, and Linda Ozawa Olds. Their goal was to sell healthy smoothies.
It‘s corporate was called Juice Club, Inc. in San Luis Obispo, California. In August of 1997, Jamba made an agreement with Whole Foods Market to sell natural products inside some of the market’s locations. In March of 1999 they acquired Zuka Juice Inc, Zuka was a smoothie company that was very popular at the time. Since then Jamba has become one of the nation’s number one smoothie chain’s.
They emphasize on the benefits of healthy lifestyle. In 2004 they expanded in New York, opening nineteen locations throughout the city. On March 13,2006 Jamba was acquired by Services Acquisition Corp. International for $265 Million. SACI is run by Steven Berrard, former CEO of Blockbuster. Once the transaction was processed, they called their name to Jamba Inc.
In December of 2007 Jamba and Nestle partnered up to make a line of healthy, ready-to-drink beverages under the Jamba brand. On February 28th,2008, Jamba launched a new breakfast smoothie and it began selling baked goods.
Jamba’s headquarters’ is now located in Emeryville California. They has over seven hundred locations in thirty states in the nation, including the District of Columbia and the Bahamas. Five hundred are company-owned and the rest are franchised.
Marketing Overview As head of Marketing and Public Relations, I will be speaking about some things we can do to improve on customer service as a whole. In order to improve on Jamba Juice as a franchise we have began to take an evaluation of our competition, Starbucks and Robeks Juice in terms of their customer service tactics.
Based on this evaluation we discovered that each of these companies has very strategic tactics to make their franchise simple and easy to operate for the owners. We have also looked very closely at companies that have mastered the art of franchising like Subway, to develop better ways of making the Jamba Juice experience the same in every location.
The last step we took in our marketing plan was to evaluate what the Jamba Juice customer wants and develop a plan to make their ideas a reality. As a very successful franchise Starbucks has created a strong sense of brand awareness.
This franchise focuses on five main areas to create a successful business environment. We at Jamba Juice feel that it is important to take these areas and use them as lessons for marketing our brand. The first area Starbucks focuses on is the experience aspect of marketing.
Starbucks believes that the overall feel of their company ranging from types of drinks, graphics, furniture and displays is a major reason for their success. As the people at Starbucks put it “attention to small things sends a big message. This is based on the fact that every customer wants to know that they are well taken care of. Second, paying attention to brand consciousness drives the business. Starbucks believes that their franchise must have a distinct and recognizable voice throughout the company.
The main focus is to hone in on the customer and what they value, lifestyle, and their needs. The next lesson that we have pulled form Starbucks is “don’t try to squeeze every last cent out of the customer. ” Making the customer feel comfortable and practicing patience and confidence will create brand equity.
This in turn will not only keep people coming back for your product, but for your brand. The fourth step in the Starbucks process is “don’t accept conventional price ceilings.
” The main point here is to develop and deliver a higher sense of image for both your brand and product so you are able to evaluate your own price range. Last,” Pastiche is powerful. ” Making sure the company sends the right signals and hits consumers as well as personnel conceptually, product wise, and by use of graphics will keep you moving forward with both sides of you business.
As a main competitor of Jamba Juice, Robeks Juice has received a significant amount of success due to its organized and efficient operational system. The mission statement of Robeks Juice states “Our passion is to help people lead an active and healthy lifestyle by offering the highest quality of nutritional food, products, and supplements. ” To the people at Robeks Juice this is more than their mission statement, it’s their main bases to create superior value.
Robeks believes that with a clear and effective mission the process of operating a franchise is easily executed.
The main thing that Robeks Juice has over Jamba Juice is the basic fact that they have mastered an effective way to operate their franchise. According to the Robeks Franchise Business Opportunity Review the proper execution of your franchise will add value to the customer and create loyalty. Robeks Juice has created several programs for their franchise such as training programs, marketing programs, common franchise opportunity where they look for entrepreneurs that share the same passion and values. Among these things Robeks has created franchise programs to ensure that every franchise operates the same.
In addition to all of these things Robeks juice works hard to make sure each and every customer is taken care of and educated on their products by using an online education program. With an experienced support staff Robeks is quickly becoming the most favored smoothie franchise. Subway is one of the leaders on the franchise front. With an enormous amount of success in America and several other countries, Subway is a main source Jamba Juice is looking to for advice on operating a franchise. The Subway franchise bases their success on four main categories; value, simplicity, support, and control.
Among these things Subway has a streamlined operation that includes a detailed manual to guide the franchisee through every possible scenario. Subway feels that a key to ensure proper success of these categories is taking pride in the people who make it happen. Subway has outlined clear and effective ways to make franchisees embrace their system. These things include quality of product, lower investment, location flexibility, and operational support. One of the main goals for Subway is expansion by franchisee.
By 2004 70% of franchisees became multi unit owners.
This indicated satisfaction for the owner and benefits the company because they get someone who already knows their program. Subway encourages learning about the performance of the store by speaking with other franchisees who have gained success form the Subway Company. Subway indicates that the main reason for a successful shop is the location and how well it’s run. Other goals for Subway include making sure they are the number one location with the number one customer satisfaction in every market they serve.
With a clear list of the franchisee and company responsibilities Subway has been able to execute an effective and very successful franchise on an international bases. The last issue we are dealing with in creating better customer service for our company is incorporating the consumer’s opinion into our creation of a better business. We have taken a survey based on 30 people in order to evaluate what the customer thinks is most important in our company. The survey asks six questions that helped us evaluate how to focus our customer service.
What we found out was that 75% of the participants in the survey went to Jamba Juice sometimes. When asked which they prefer 45% of them said Starbucks compared to the 30% who like Jamba Juice.
In the third question we found that 80% of the participants thought that service at Jamba Juice was only OK. Not only did most customers feel that way, but 70% of them felt that the Jamba Juice experience was not consistent in every location. On question number five we wanted to find out what the consumer liked about Jamba Juice, what we found was that 45% of them believed that Jamba Juice gave superior value to that of its competitors.