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Jamba Juice Problem Statement And Criteria

750 words - 3 pages

Problem Statement and Criteria
Jamba Juice


In the past, Jamba Juice Company had a primary growth strategy of increasing brand awareness through accelerated franchise development and penetration of existing markets. However, due to increased market saturation, Jamba Juice has had a difficult time competing with other premium quality blended-to-order fruit smoothies, squeezed-to-order juices, blended beverages, and healthy snack companies. From 2008 to 2010 Jamba Juice experienced a negative difference in total revenue of over $80,000. In addition, from 2007 to 2010, Jamba Juice had fallen off the list of one of the Top 50 Quick-Service and Fast-Casual Chains, to ...view middle of the document...

Having an alternative to cold beverages will keep customers coming in during the cold seasons. In addition, it will increase market share by obtaining a few more consumers, but not much when looking at the market in its entirety.

Alternative B: Enhancing the customer loyalty program will keep current consumers coming in during the cold season, unlike now, but the loyalty program alone will not keep them coming in if they are looking for a product to warm them up. In addition, the enhancement will keep consumers coming in, but not make a significant different when looking at the market in its entirety.

Alternative C: Creating partnerships with places like fitness centers or gyms will obviously increase sales during the cold season because they are capturing a larger market increasing sales in general. This will have an effect on customer retention because typically someone who works out does so more than once. Having a healthy drink right at the gym is convenient and will keep them coming back. Finally, creating partnerships has a large effect on market share increasing because it is reaching new customers in Jamba Juice’s target market.

Jamba Juice should look into creating and expanding on the idea of creating partnerships with fitness centers. This alternative will allow Jamba Juice to capitalize on having a controlled...

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