Jamba Juice is developing a new campaign to increase sales and brand awareness as competition rises. The goals are to increase sales by 10% among 16-35 year olds with a $35,000 budget combining traditional and guerrilla marketing. A second goal is to boost brand awareness against competitors in smoothies and specialty beverages like Starbucks. The campaign will target young, health-conscious consumers who drink smoothies and coffee daily.
2. Executive Summary 1
Who is Jamba Juice?
Goals and Objectives
Market Analysis 2
Table of Contents
Target Market
Situation Analysis 3
SWOT Analysis
Competitve Analysis 4
Major Competitors
Smoothie and Juice Market Share
Media Plan 6
Objective
Strategy
Placement
Budget
Summary
Creative 9
Resources 11
3. Jamba Juice
Campaign Goals and Objectives
Jamba Juice is in need of a new multifaceted campaign to increase
Jamba Juice is a leading chain of smoothie restaurants. The company has
traffic, revenue and awareness of the Jamba Juice chain. The company is
over 700 locations throughout 30 states, the District of Columbia and the Baha-
well-known for their healthy, all-fruit smoothies and their fun interesting
mas. 500 of these stores are company owned while the remainder are franchised,
flavor combinations, however the competition is fast-rising. Other smoothie
which together brought in over $317 million in 2007.
chains, such as Smoothie King and Maui Wowi as well as other beverage-
Jamba Juice was founded in 1990 by Kirk Perron, a Cal Poly graduate,
oriented companies like the giant Starbucks Corporation, are quickly
along with Joe Vergara, Kevin Peters and Linda Ozawa Olds. The company was
gaining market share and the consumer’s attention. In order to regain their
incorporated in San Luis Obispo, California in under the name Juice Club Inc.
market share and consumer base, Jamba Juice needs a campaign to increase
Soon after opening their first stores in San Luis Obispo, Palo Alto and
single store traffic as well as overall brand awareness. This campaign will
Irvine, Jamba began a deal with Whole Foods Market in 1997. The deal consisted
help to solve these issues.
of Whole Foods selling only “natural” ingredients in selected stores, including
A main goal of Jamba Juice is to increase overall sales by 10% within
Jamba’s all natural smoothie ingredients.
the 16-35 year old demographic.With a budget of $35,000, this campaign will
2 years later, Jamba bought out another popular smoothie chain, Zuka Juice.
combine traditional advertising techniques including magazines, billboards,
Zuka Juice was a prominent smoothie company founded in Utah. & years after
direct mail pieces and radio. Along with the traditional media, this campaign
this, Jamba was purchased for $256 million by Services Acquisition Corp.
will include guerilla marketing and in-store events.
International, headed by former Blockbuster CEO, Steve Berrard. After buying
A second goal of the company is to raise brand awareness. Jamba
Jamba, the Services Acquisition changed its name to Jamba Inc.
Juice has numerous top competitors not only in the smoothie and juice
Executive Summary
Goals and Objectives
industry, but the entire specialty beverage umbrella. Coffee, teas and other
specialty beverage locations are gaining on Jamba Juice. This campaign will
serve to boost Jamba Juice back to the number one spot in the specialty but
Jamba Juice is in need of something new. The company is well-known
beverage industry.
there is major competiton in the smoothie and juice industry. In order to stand out
from the crowd and continue to be a leader in the field, they need a big idea.
Jamba Juice Background they need to have some interest.
They need to bring people into their stores,
This campaign will help to solve these issues.
Jamba Juice is a leading chain of smoothie restaurants. The company
A main goal of Jamba Juice is to increase their sales by 10% within the
has over 700 locations throughout 30 states, the District of Columbia and the
16-35 year old demographic. With a budget of $10 million, this campaign will
Bahamas. 500 of these stores are company owned while the remainder are
combine traditional advertising techniques in media such as magazines and radio,
franchised, which together bought in over $317 million in 2007.
as well as billboards, and direct mail pieces. Along with the traditional media, this
Jamba Juice was founded in 1990 by Kirk Perron, a Cal Poly gradu-
campaign will include guerilla marketing and in-store events.
ate, along with Joe Vargara, Kevin Peters and Linda Ozawa Olds. The com-
pany was incorporated in San Luis obispo under the name Juice Club Inc. over
A second goal for the company is to get the consumer to choose them
their competitors, or brand awareness. They have numerous competitors in not just
Soon after opening their first stores in San Luis Obispo, Palo Alto and
theIrvine, Jamba began a deal with Whole Foods Market in 1997. The deal con-
smoothie and juice industry, but the entire specialty beverages umbrella.
Coffee, teas Whole Foods selling only “natural” ingredients in selected stores,
sisted of and other specailty beverage locations are gaining ground on Jamba
Juice. This campaign will serve to boost Jamba Juice back to the number one spot
including Jamba’s all natural smoothie ingredients.
under that2 years later, Jamba bought out another popular smoothie chain, Zuka
umbrella.
.
Juice. Zuka Juice was a prominent smoothie company founded in Utah. 5
years after, Jamba was purchased for $256 million by Services Aquisition
Corp. International, headed by former Blockbuster CEO, Steve Berrard. After
buying Jamba, the Services Aquisition changed it’s name to Jamba Inc.
4. Target Market
Jamba Juice wants to continue to reach out to the young,
Age: 16-30 years old
creative middle class consumer. This consumer has a high disposable
Market Analysis
Gender: Male and Female
income and they are single or newly married. They are just beginning
Location: West Coast
their lives as young adults. This younger demographic is interested in
Lifestyle: Young, hip, motivated, achiever
health and health related products. They look for the healthy a
Yearly Income: $10,000-$60,000
lternatives as a choice.
Occupation: Any
Education: High School and up
Although the fast-food industry plays a large part in the daily
lifestyle of a young adult, health-conscious choices are always on
Social Class: Middle, Upper Middle
their mind. This demographic frequents local coffee shops as well as
Personality: Creative, smart, organized
giants like Starbucks. They need caffiene on a daily basis, sometimes
more than once a day, to get them through their long days of school,
work and play. overlying theme of this campaign, the younger,
Due to the
creative, middle class consumer is the perfect demographic. This
Jamba Juice can become a staple in the lives of this younger
consumer has a somewhat disposable income, they are either single or
demographic by gaining the interest of the consumer. This particular
just getting married. They are just beginning their lives and want to be
age group is constantly changing their mind, whether it be fashion,
on their own. They drink smoothies and coffee beverages on a daily
food or their favorite beverage. This demographic is what can make
basis. They have a creative yet organized mind and know what they
or break a company.
want. They are out and about on a daily basis, buying and spending
along the way.
Age:16-30 younger demographic is huge on health. They want to be
The
in shape, they want good, nutritious products. Although the fast food
Gender: Male and Female
industry is a huge part of the younger lifestyle, having a tasty, cool,
Location: West Coast
nutritious beverage is always on their mind. This young crowd is a
Lifestyle: Young, hip, motivated, achiever
Starbucks junky, they need their caffeine, they need that extra jolt of
Income: High Disposable
energy to get them through their long days of school, work and play.
Education: High School Plus
Social Status: Middle, Upper Middle in the lives of this younger
Jamba Juice can become a staple
demographic by gaining the interest of this crowd. This age group is
Personality: Creative, smart, organized, health seeker,
constantly changing their mind. Just like fashion, food and beverages
high body conciousness
are constantly changing. What’s hip and cool and popular now can be
completely out of business in a year if this demographic moves on.
Jamba Juice has to keep their attention, they need to get the
interest of this growing population and hold on to it like never before.
5. Strengths
Jamba Juice is a well-known company. They have been around
a short time, but have grown rapidly to become a top competitor in
their industry. With many options for their customers, and their menu
Situation Analysis
and merchandise line continuously growing and changing, they have
many selling points.
Weaknesses
Although they are a top competitor, they do still have those
other companies in their indsutry. Competitors like Smoothie King
industry
and Planet Smoothie are quickly rising and sometimes overcoming
the sales and overall revenue of Jamba Juice. Along with the
competitors comes the health factor. Jamba Juice has recently taken
some heat for less-than ideal health contents in their smoothies.
Opportunities
Due to the growing amount of health conscious people, Jamba
Juice has a huge opportunity to get in the heads of these consumers.
They have to get out there and let the health conscious Americans
know that they are number one, and that the consumer can feel good
about drinking Jamba Juice over their competitors. Sponsorship is a
great thing for them to consider, sponsoring sporting events,
marathons etc.
Threats
One of the major threats for not only Jamba Juice, but for all
companies is the worsening economy. Consumers just aren’t
purchasing as much as they used to. Their income is no longer as
disposable as it used to be. In order to overcome this, Jamba Juice
needs to do something to get their interest, giveaways of some kind
are a great option.
Competitors not necessarily in the smoothie industry are also a
huge threat. Starbucks, McDonalds and other fast food restaurants are
gaining ground on the smoothie industry by adding smoothie and
coffee beverages to their menus.
6. Major Competitors
Smoothie King
Competitive Analysis
Smoothie King is a Louisiana-based franchise specializing in nutri-
tional, fresh fruit blended smoothies. They currently hold the number 1 spot
in the Smoothie Bar and Nutritional Lifestyle Center industry, as they have 17
times before. They have over 550 locations around the US, with numerous
stores based in Seoul, Korea.
Aside from fresh smoothies, Smoothie King offers healthy
alternatives such as, sports beverages, energy bars, snacks, vitamins, herbs,
minerals and other sport nutrition products.
Smoothie King is Jamba Juice’s most note-worthy competitor. Not
only have they held the number one spot for 17 years, but they have much the
same items in their line of merchandise and smoothies and they too have
locations overseas.
Smoothie King demographic is very similar to that of Jamba Juice, the
main difference is that Jamba Juice has been under fire for having less-than-
ideal health contents in their smoothies. Smoothie King has taken notice and
provides extensive health facts to their customers.
In order to overcome this hurdle, Jamba will be starting a new line of
low-sugar, low-calorie smoothies. This will help to redefine their image and
grab both the extreme-health-nut market as well as the just-plain-smoothie-
lover market.
Maui Wowi
Maui Wowi is a Hawaiian themed smoothie and coffee shop. Started
in 1997 as a way for the creators to get a healthy alternative to all the fat-laden
junk food of the world, Maui Wowi has grown to become a top leader in the
industry. They currently have 400 locations nationwide, and still adding more.
Maui Wowi is different from the others in the fact they have an overall
theme. They are Hawaiian, they eat, sleep, play and of course drink
Hawaiian. With all natural fresh fruit smoothie, and straight-from-Hawaii
coffee, Maui Wowi has that look, that feel that consumers like.
They get the international market, the market that likes to feel at home
when they go into a store. They also have the organic market. Maui Wowi is
the only of the leading smoothie chains that is all natural, all organic.
Jamba Juice will need to add something to their company that creates
an international feel. They need that island feel, the isalnd look. In order to
compete with the straight-from-Hawaii Maui Wowi, Jamba Juice will open
stores in the Bahamas as well as connecting with Travelocity to give a trip to
the Bahamas.
7. Starbucks
This international coffee chain is the leader in the coffee industry. With
sales topping $9.4 billion in 2007, Starbucks in a giant competitor for numer-
ous companies. Starbucks currently has 15,012 stores spanning 44 countries,
Competitive Analysis
and there is no end in sight. Although they are mostly known for their coffee,
Starbucks is slowly broadening their menu into the smoothie and juice indus-
try. They have just recently introduced Vivanno, a fruit smoothie blended
beverage. Along with the new smoothie, they also sell teas, juices, sparkling
water, sodas, milks, snacks and merchandise.
Obviously it has been known that competing with this powerhouse
company has ended poorly for locally owned speacilaty shops, but Jamba
Juice has a chance. They too are a well-known, well-established company.
The main difference between Jamba Juice and Satrbucks is the smoothies.
Starbucks has 3 flavors, only one size, and nothing extra added. Jamba is a
smoothie maverick, over 20 flavors, free boosts, all natural energy. If Jamba
Juice continues to add to their wine array of smoothie options and possibly
add some coffee blends to their menu, they will be a top competitor with
Starbucks.
Smoothie and Juice Market Share
Smoothie and Juice sales exceeded $664 million in the US alone.
Three quarters of those sales are from major chain locations. The smoothie
and juice industry not only has major competiton in their own field but also
in other specialty beverage industries.
Major smoothie chains like Jamba Juice, Smoothie King and Maui
Wowi brought in an estimated $434 million in sales in 2000, while
independent smoothie shops brought in just over $180 million.
The coffee and fast food industry is quickly becoming a huge
competitor for the smoothie companies. With companies like Starbucks
beginning to introduce smoothie and juice beverages, Jamba Juice and others
are adding them to their growing list of competitors. McDonalds, Burger
King, Jack in the Box and other large fast food chains are also hopping on to
the smoothie, juice and coffee bandwagon. They are adding Cafes to their
restaurants, offering smoothies and coffees at much lower prices than those of
the competitors.
Starbucks alone brought in over $9.4 billion in 2007. While
McDonalds, Burger King and Jack in the Box brought in a combined total of
$30 billion in sales in 2007.
Jamba Juice is constantly adding companies to their ever-growing list
of major competiton in the specialty beverage industry. They need a big idea.
they need that one thing to get their consumers back to them. This campaign
will serve to help bring Jamba Juice’s needs and desires to reality.
8. Objective
The main objective of this campaign is to raise awareness of Jamba Juice,
and increase traffic and revenue by 10% with the 16-30 year old demographic. A
side objective is to let consumers know that Jamba Juice is a healthy alternative to
other fast food establishments.
Strategy
In order to achieve the goals and objectives for Jamba Juice, this campaign
will focus on the consumer. By involving the consumer in the campaign, it will
garner interest in the company. The consumer is everything to a company, and the
Media Plan
consumer wants to feel as if they are needed, or wanted. They want to feel a part
of the overall company. This campaign will help get the necessary attention and in
turn increase revenue and brand awareness of Jamba Juice.
Because Jamba Juice is mainly on the West Coast, this campaign
Because Jamba Juice is mainly on the West Coast, this campaign will
will stick with that demographic. The media and promotions will be
only be featured in the areas of California and Nevada. These states have
shown to generate the most sales for Jamba Juice and has the largest demo- and
strictly West Coast advertised. Research has found that California
Nevada are the main contributing states to Jamba Juice stores. These
graphic in the targeted market.
states will be the main focus of our promotions.
Placement
In order to fully maximize the potential of this campaign, it will be placed
in numerous forms of media. Below is the full list of media placement for the
Jamba Juice “Jambalocity” campaign:
Magazine: Radio:
San Diego Reader Clear Channel San Diego
LA Magazine Clear Channel Los Angeles
Vegas Today r
Cleat Channel Las Vegas
Billboard: Direct Mail:
2-San Diego 50,000 in Sa Diego
3-Los Angeles 80,000 in Los Angeles
2-Las Vegas 60,000 in Las Vegas
In-Store:
Posters in 300 stores
9. Budget
Objective
The main objective budget of $35,000is tothe Jamba Juice “Jambalocity”
With an allotted of this campaign for raise awareness of Jamba Juice,
and increase traffic and revenue bywill be used to16-30 maximize the campaign:
campaign, the following budget 10% with the fully year old demographic. A
side objective is to let consumers know that Jamba Juice is a healthy alternative to
other fast food establishments.
Magazines:
San Diego Reader: Full page, Full Color, 6x8...$3,000
Strategy Full Page, Full Color, 8x10.......$4,500
LA Magazine:
Vegas Today: Full Page, Full Color, 8x10.........$3,500
In order to achieve the goals and objectives$11,000 Juice, this campaign
Total Magazine Cost: for Jamba
will focus on the consumer. By involving the consumer in the campaign, it will
garner interest in the company. The consumer is everything to a company, and the
Radio:
Media Plan
consumer wants to feel as if they are needed, or25 :15 spots/day.......$1,900a part
Clear Channel San Diego: 93.3, 94.1, 105.3, wanted. They want to feel
of Clear Channel Los Angeles: 108.5, 97.2, 100.7, 25 :15 spots/day...$2,000 and in
the overall company. This campaign will help get the necessary attention
turn increase revenue and brand awareness of Jamba Juice.
Clear Channel Las Vegas: 87.4, 90.5, 105.5, 25 :15 spots/day........$1,950
Total Radio Cost: $5,850
Billboards:
2-San Diego: 1 month each......$1,400
3-Los Angeles: 1 month each...$3,150
2-Las Vegas: 1 month each......$2,000
Total Billboard Cost: $ 6,550
Direct Mail:
50,000 San Diego:........$1,075
80,000 Los Angeles:.....$2,500
60,000 Las Vegas:.........$1,950
Total Direct Mail Cost: $5.525
In-Store:
Posters: 300 stores, 11x17, Full Color...$1,975
Total In-Store Cost: $1,975
Total Advertising Cost: $30,900
Total Budget Allotted: $35,000
Total Leftover: $4,100
(to be spent on last-minute expenses)
10. Objective
Summary
The main objective of this campaign is to raise awareness of Jamba Juice,
increase traffic and revenue by 10% with the 16-30 year old demographic. A
and Overall, the Jamba Juice campaign for “Jambalocity” will be featured in 3
major cities on the West Coast, San Diego, Los Angeles and Las Vegas. Research
side objective is tothe Jamba Juice campaign for “Jambalocity” will be featured in 3 major
Overall, let consumers know that Jamba Juice is a healthy alternative to
other fast food West Coast, San Diego, Los Angeles and Jamba Juice beverages. With
shows that these locations are the largest consumers of Las Vegas. Research shows that
cities on the establishments.
an allotted budget of $35,000, this campaign will be featured in a variety ofan allotted
these locations are the largest consumers of Jamba Juiice beverages. With media
Strategy
including magazines, radio, billboards, direct mail and in-store promotions.
budget of $35,000, this campaign will be featured in a variety of media. Magazines,
Radio,By placing this campaign in the above medias, the message will be delivered to
Billboards, Direct Mail and In-Store promotions.
a large amount of consumers in an efficient way. The magazines and radio stations are a
By placing this campaign in the above medias, the message will be delivered to
In order to achieve the goals and objectives for Jamba Juice, this campaign
some of the most read and listened to medias in the cities listed.
will focus on theof consumers in an efficient way. The magazines and Radio tations are the
large amount consumer. By involving the consumer in the campaign, it will
some of the
The objective is to raise awareness of Jamba Juice and increase revenue by 10%
garner interest most read and listened to medias in the cities to a company, and the
in the company. The consumer is everything listed.
within the 16-30 year old demographic. This consumer is the target of this campaign.
consumer wants to feel as if they awareness of jamba Juice and increase revenue
The objective is to raise are needed, or wanted. They want to feel a part by 10%
Media Plan
Of the budget of $35,000, only $30,900 was used for marketing and advertisng, the
of within the 16-30 year old demographic. This consumer is the target of thisand in
the overall company. This campaign will help get the necessary attention campaign.
rermainder of $4,100 will be used for any extra advertising or last minute costs. the
turn the budget of $35,000, only $30,900 was used for marketing and advertising,
Ofincrease revenue and brand awareness of Jamba Juice.
remainder of $4,100 will be used for any extra advertising or last minute costs.
11. Due to the major competitors in the smoothie industry, Jamba Juice
must go beyond to create a want and need, and an interest in their store.
The objective of this campaign is to create interest in the company.
By Jamba Juice partnering with leading travel agent Travelocity and
offering a trip to the Bahamas, where they also have a chain of stores, this
will bring consumer interest of all varieties to the chain.
Jamba Juice will partner with Travelocity to create the “Jambalocity
Challenge”. This challenge consists of the consumer creating a new smoothie
flavor for the chance to win a 4-person all-expense paid trip to the Bahamas.
Creative
The winner of this challenge will be selected by Jamba Juice executives, and
the winning creation will be a new menu item in all Jamba Juice locations.
The winner recieves a trip to the Bahamas where they will see their creation
featured on the menu in the Jamba Juice Bahamas store location.
The campaign for this challenge will include magazine advertise-
ments, :15 radio spots, a direct mail piece, billboards as well as in-store
posters and handouts. The design will include eye-catching color, the head-
line “Take the Jambalocity Challenge” and the logos of both Jamba Juice
and Travelocity.