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Design Brief




Josh Sarver
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
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.
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.
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.
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.
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.
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
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)
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.
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.
www.JambaJuice.com
            www.wikipedia.com
            apps.shareholder.com
            www.coriolisresearch.com
            www.juiceitup.com
Resources



            www.smoothieking.com

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Jamba Juice Design Brief and Campaign

  • 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.
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  • 15. www.JambaJuice.com www.wikipedia.com apps.shareholder.com www.coriolisresearch.com www.juiceitup.com Resources www.smoothieking.com